The ONE Group Hospitality Reports First Quarter 2026 Financial Results
The ONE Group Hospitality, Inc. announced its financial results for the first quarter ended March 29, 2026, highlighting modest revenue growth, improved profitability, and continued operational progress.
First Quarter 2026 Performance
For Q1 2026, compared to the same period in 2025, the company reported:
- Revenue: Increased 0.8% to $212.8 million from $211.1 million
- Comparable sales: Declined 0.3%, on a same-day basis year over year
- Net income: Rose to $3.2 million from $1.0 million
- Restaurant operating profit: Improved by 100 basis points to 19.1% of owned restaurant net revenue (excluding closed Grill Concepts locations)
- Adjusted EBITDA: Increased 12.1% to $28.8 million from $25.7 million
CEO Emanuel “Manny” Hilario said the company delivered “strong continued momentum,” citing back-to-back quarters of positive comparable sales at its STK brand and improved margins across the portfolio. He highlighted cost controls, menu optimization, supply chain efficiencies, and integration synergies as key drivers of performance. STK saw a 1.4% comparable sales increase, while Benihana remained stable.
Operational and Strategic Progress
Hilario emphasized ongoing portfolio optimization and capital discipline. During the quarter, the company generated $21.7 million in operating cash flow, reduced debt by $9.1 million (fully eliminating its revolving credit balance), and cut capital expenditures by 23% year over year.
Key initiatives included:
- Conversion of Grill Concepts locations into Benihana or STK formats
- Continued closures of underperforming restaurants
- Expected conversion costs of $1.0–$1.5 million per location with a one-year payback
- Targeting a fully profitable Grill Concepts portfolio following restructuring
- Focus on asset-light expansion and reduced capital intensity
The company also announced its largest franchise agreement to date: a 10-unit Benihana and Benihana Express development deal in the San Francisco Bay Area.
Restaurant Development Pipeline
In 2026, The ONE Group continues expanding its footprint with several developments:
- Kona Grill relocation in San Antonio, Texas (January 2026)
- Acquisition and conversion of franchised Benihana in Monterey, California (February 2026)
- Acquisition and conversion of Benihana Express in Miami, Florida (March 2026)
- Under construction: new STK locations in Phoenix and New York, and a Benihana in Seattle
The company also has approximately 12 signed leases in its pipeline and expects 6–10 new system-wide venues in 2026.
Liquidity Position
As of March 29, 2026, The ONE Group reported:
- $17.9 million in cash and short-term receivables
- $33.7 million available under its revolving credit facility
- Total liquidity of $51.6 million
- No financial covenants under its current credit facility
2026 Financial Outlook
The company provided second-quarter guidance and reaffirmed full-year expectations:
- Q2 2026 revenue: $202–$206 million
- Full-year revenue: $840–$855 million
- Adjusted EBITDA: $24–$26 million (Q2), $100–$110 million (full year)
- Comparable sales growth: 1%–2% (Q2), 1%–3% (full year)
- Capital expenditures: $38–$42 million net
- New venues: 6–10 expected system-wide additions
Management stated that expectations are supported by ongoing operational improvements, portfolio restructuring, and synergies from the Benihana integration.
About The ONE Group
The ONE Group Hospitality, Inc. (Nasdaq: STKS) is an international restaurant company that develops and operates upscale and polished casual, high-energy restaurants and lounges and provides hospitality management services for hotels, casinos and other high-end venues both in the U.S. and internationally. The ONE Group is recognized as one of “America’s Greatest Companies” (Newsweek, 2025), and Benihana is honored as one of ”America’s Best Brands for Value” (Forbes, 2025). The ONE Group’s focus is to be the global leader in Vibe Dining, and its primary restaurant brands and operations are:
- STK, a modern twist on the American steakhouse concept with restaurants in major metropolitan cities in the U.S., Europe and the Middle East, featuring premium steaks, seafood and specialty cocktails in an energetic upscale atmosphere.
- Benihana, an interactive dining destination with highly skilled chefs preparing food right in front of guests and served in an energetic atmosphere alongside fresh sushi and innovative cocktails. The Company franchises Benihanas in the U.S., Caribbean, Central America, and South America.
- Samurai, an interactive dining experience located in sunny Miami, FL, provides a distinctive dining experience where skilled personal chefs masterfully perform the ancient art of teppanyaki right before your eyes.
- Kona Grill, a polished casual, bar-centric Grill concept with restaurants in the U.S., featuring American favorites, award-winning sushi, and specialty cocktails in an upscale casual atmosphere.
- Salt Water Social is your gateway to the seven seas, featuring an array of signature and unique fresh seafood items, complemented by the highest quality beef dishes and elegant, delicious cocktails.
- Benihana Express, a small footprint casual concept showcasing the best of Benihana but without teppanyaki tables or bar.
- RA Sushi, a Japanese cuisine concept that offers a fun-filled, bar-forward, upbeat, and vibrant dining atmosphere with restaurants in the U.S. anchored by creative sushi, inventive drinks, and outstanding service.
- ONE Hospitality, The ONE Group’s food and beverage hospitality services business develops, manages and operates premier restaurants and turnkey food and beverage services within high-end hotels and casinos currently operating venues in the U.S. and Europe.
