The ONE Group Hospitality (STKS) Q2 2026 earnings summary

Executive summary

• Achieved positive transaction growth and expanded restaurant-level margins across all segments, despite a 3.3% year-over-year revenue decline to $200.5 million, mainly due to planned closures.

• Operating cash flow for the first six months of 2026 reached $33.0 million, nearly triple the prior year, enabling debt reduction and disciplined capital deployment.

• Strategic focus on asset-light growth, portfolio optimization, and capital efficiency, with new openings and conversions driving future profitability.

• GAAP operating income rose to $6.6 million from $0.7 million in Q2 2025, reflecting improved operational execution.

• Restaurant operating profit margin expanded by 110 basis points to 16.4% of owned restaurant net revenue.

Financial highlights

• Total GAAP revenues were $200.5 million, down 3.3% year-over-year, mainly due to planned grill concept closures and restaurant transitions.

• Comparable restaurant sales increased 0.9%, with U.S. STK up 3.2% and Benihana up 0.8%.

• Restaurant operating profit margin rose to 16.4%; STK margin 17.4%, Benihana up to 19.5%.

• Net loss attributable to the company was $2.1 million, a significant improvement from $10.1 million loss a year ago.

• Adjusted EBITDA was $21.1 million, down from $23.4 million year-over-year, mainly due to higher marketing and G&A expenses.

Outlook and guidance

• Q3 2026 revenue projected at $176–$180 million, with comparable sales growth of 0–2%.

• Full-year 2026 revenue guidance is $805–$820 million, reflecting asset-light strategy and lower same-store sales expectations.

• Adjusted EBITDA guidance for 2026 ranges from $50–$105 million; CapEx reduced to $30 million.

• Plan to open 6–10 new venues in 2026, prioritizing capital-efficient and asset-light models.