The ONE Group Hospitality (STKS) Q4 2025 earnings summary

Executive summary

• Full year 2025 GAAP revenue reached $806 million, up 19.7% year-over-year, driven by the full-year inclusion of Benihana, but resulted in a net loss of $92 million due to higher tax expenses and non-cash charges.

• Fourth quarter GAAP revenue was $207 million, down 6.7% from the prior year, impacted by portfolio optimization, a fiscal calendar shift, and the exclusion of New Year's Eve, which accounted for 2.5% of the revenue drop.

• Comparable sales declined 3.7% for the year but showed sequential improvement, with Q4 comps down 1.8%, a four-point improvement from Q3.

• Strategic priorities for 2026 include accelerating same-store sales, capital-efficient and asset-light growth, portfolio optimization, and maintaining balance sheet strength.

• Portfolio optimization included closing underperforming Grill locations and converting units to higher-performing brands, with early conversions exceeding expectations.

Financial highlights

• Q4 company-owned restaurant net revenue was $203 million, down 6.8% year-over-year, mainly due to the calendar shift and closures.

• Restaurant operating profit (excluding closed units) was $38.9 million or 19.5% of net revenue, up 10 basis points year-over-year.

• Adjusted EBITDA for the year rose 16.3% to $89 million, excluding $4 million from fiscal calendar differences; Q4 Adjusted EBITDA was $28 million, down from $31 million in Q4 2024.

• Operating income for Q4 was $4.5 million, down from $12.1 million in Q4 2024.

• Net loss attributable to the company was $6.4 million in Q4, compared to net income of $1.6 million in Q4 2024, primarily due to $7.2 million in non-cash impairment charges.

• Ended Q4 with $4.7 million in cash and $27.2 million available under the revolving credit facility.

Outlook and guidance

• Fiscal 2026 GAAP revenue projected at $840–$855 million, with comparable sales growth of 1%–3%.

• Adjusted EBITDA guidance of $100–$110 million; plan to open 6–10 new venues and capital expenditures of $38–$42 million.

• Management, franchise, and licensed revenues expected at $14–$15 million.

• Q1 2026 revenue guidance: $217–$221 million, comparable sales flat to up 1%.

• No near-term price increases planned; next pricing action expected in Q4 2026.