The ONE Group Hospitality, Inc. (STKS) released its fourth quarter and full-year 2025 financial results, showing a 6.7% decline in Q4 GAAP revenues to $207 million from $222 million in the prior year.3231
Key Q4 2025 Highlights
Consolidated comparable sales fell 1.8%, while restaurant operating profit margin improved slightly to 19.5% of owned restaurant net revenue, excluding impacted Grill Concepts locations.32
The GAAP net loss widened to $6 million from a $2 million net income, driven by a $7 million non-cash impairment charge tied to Grill optimization efforts. Adjusted EBITDA dropped to $28 million from $31 million, with about $3 million of the decline linked to the shift of New Year’s Eve into fiscal 2026.
Full-Year 2025 Performance
Total GAAP revenues rose 19.7% to $806 million from $673 million. Despite a 3.7% drop in consolidated comparable sales, Adjusted EBITDA climbed 16.3% to $89 million, and Adjusted Operating Income increased 15.2% to $38 million.32
The net loss expanded to $92 million, primarily due to $69 million in higher income tax expenses from a non-cash valuation allowance, plus impairment and lease exit costs.
CEO Comments on Strategy and Outlook
“Guests continue to choose our differentiated Vibe Dining concepts when they want memorable experiences,” stated Emanuel Hilario, President and CEO. “In the fourth quarter, consolidated comparable sales improved by four percentage points sequentially from the third quarter, with every brand contributing. So far in the first quarter, we are delivering positive consolidated comparable sales.”32
Hilario highlighted disciplined cost management, expanded margins despite sales challenges, and secured beef supply through September 2026. He noted untapped synergies from the Benihana acquisition.
Portfolio Optimization Efforts
The company closed six underperforming Grill locations in 2025 and one in 2026, with up to five more slated for conversion to Benihana or STK formats by 2026. Conversions require $1.0-$1.5 million investment with one-year payback, aiming for a fully profitable Grill portfolio.
The first RA Sushi to STK conversion in Scottsdale, Arizona, runs at a $7 million annualized sales rate on $1 million capex, validating the approach.
Development Pipeline
2025 openings included owned Benihana in San Mateo, STK in Topanga and Los Angeles (relocation), franchised Benihana Express in Miami, STK conversion in Scottsdale, and others.32
For 2026, early activity features a Kona Grill relocation in San Antonio and Benihana conversion in Monterey. Under construction: STK in Phoenix and New York (relocation), Benihana in San Jose and Seattle.
Asset-light growth includes a 10-unit franchise deal for Benihana/Benihana Express in the San Francisco Bay Area and two units in the Florida Keys.
Liquidity and 2026 Guidance
As of December 28, 2025, liquidity stands at $51 million, including $24 million in cash and $27 million revolver availability, with no financial covenants.
2026 targets include:
| Metric | Q1 2026 | FY 2026 |
|---|---|---|
| Total GAAP Revenues | $217M-$221M | $840M-$855M |
| Consolidated Comp Sales | 0%-1% | 1%-3% |
| Managed/License/Franchise Fees | $3.5M-$4.0M | $14M-$15M |
| Owned OpEx % of Owned Rev | 82%-83% | 82%-83% |
| G&A ex-Stock Comp | $13M-$14M | ~$53M |
| Adj. EBITDA | $28M-$29M | $100M-$110M |
32
GAAP EPS came in at -$0.49, missing estimates, with revenues also below expectations.31
