The ONE Group Hospitality (STKS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues rose 148.4% to $211.1M, driven by the Benihana acquisition and STK transaction growth.

• Restaurant-level EBITDA margin improved to 16.4%, with Benihana and STK achieving margins of 20.1% and 17.7%, respectively.

• Adjusted EBITDA increased 233% to $25.2M, outpacing top-line growth due to operational efficiencies and cost management.

• Net income attributable to the company was $1.0M, reversing a $2.1M loss year-over-year, while net loss available to common stockholders was $6.6M due to preferred stock dividends.

• Strategic priorities include integrating Benihana, expanding through new venues, and maintaining balance sheet flexibility.

Financial highlights

• Total consolidated GAAP revenues were $211.1M, up 148.4% year-over-year; company-owned restaurant net revenue was $207.4M, up 154.5%.

• Restaurant EBITDA margin increased to 16.4% from 15.9% year-over-year.

• Adjusted net income was $4.6M ($0.14 per share) versus an adjusted net loss of $0.6M ($0.02 per share) last year.

• Adjusted EBITDA was $25.2M, up from $7.6M in the prior year quarter.

• Interest expense rose to $9.8M from $2.1M, reflecting debt for the Benihana deal.

Outlook and guidance

• FY 2025 projected GAAP revenues: $835M–$870M; Q2 2025: $205M–$210M.

• FY 2025 adjusted EBITDA: $95M–$115M; Q2 2025: $23M–$25M.

• FY 2025 comparable sales expected between -3% and +1%; Q2 2025 between -5.5% and -4%.

• Five to seven new venues expected to open in 2025.

• At least $20M in acquisition synergies targeted by 2026.