Latest news with #STKS
Yahoo
14 hours ago
- Business
- Yahoo
STKS Q1 Earnings Call: Acquisition Integration Drives Growth Amid Shifting Consumer Trends
Upscale restaurant company The One Group Hospitality (NASDAQ:STKS) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 148% year on year to $211.1 million. Revenue guidance for the full year exceeded analysts' estimates, but next quarter's guidance of $207.5 million was less impressive, coming in 2.3% below expectations. Its non-GAAP profit of $0.14 per share was significantly above analysts' consensus estimates. Is now the time to buy STKS? Find out in our full research report (it's free). Revenue: $211.1 million vs analyst estimates of $203.4 million (148% year-on-year growth, 3.8% beat) Adjusted EPS: $0.14 vs analyst estimates of -$0.14 (significant beat) Adjusted EBITDA: $25.2 million vs analyst estimates of $24.51 million (11.9% margin, 2.8% beat) The company reconfirmed its revenue guidance for the full year of $852.5 million at the midpoint EBITDA guidance for the full year is $105 million at the midpoint, above analyst estimates of $102.7 million Operating Margin: 6.9%, up from 1.1% in the same quarter last year Same-Store Sales fell 3.2% year on year (-7.9% in the same quarter last year) Market Capitalization: $118 million The ONE Group's first quarter results reflected the full impact of its recently acquired Benihana and RA Sushi brands, which significantly expanded the company's revenue base. Management emphasized that positive comparable sales at Benihana and transaction growth at the flagship STK brand were key performance contributors, alongside operational efficiencies that improved restaurant-level margins. CEO Emanuel Hilario highlighted that cost synergies from integration efforts supported profit expansion, noting, 'We grew restaurant-level EBITDA to 16.4%, representing a 50-basis point improvement year over year through strategic operational efficiencies.' The company's new unit openings, particularly in California, further bolstered results by extending its presence in premium dining markets. Looking ahead, management's guidance is shaped by expectations for continued contributions from the Benihana integration, careful balancing of value-oriented offerings with premium positioning, and a strategic push into franchising. CEO Emanuel Hilario described a dual focus on expanding company-owned locations and accelerating asset-light growth through franchising, stating, 'We have discovered strong interest from franchisees seeking to enhance their portfolios with our established upscale and casual dining brand.' The company also plans to leverage its new loyalty program and digital marketing strategies to strengthen guest engagement, while remaining cautious about macroeconomic uncertainties, including consumer spending patterns and convention-driven demand fluctuations. Management attributed the quarter's growth to Benihana and RA Sushi's integration, increased operating efficiency, and targeted marketing, while acknowledging consumer shifts toward value and alternative dining times. Benihana and RA Sushi integration: The full-quarter performance of these newly acquired brands was a primary growth driver, contributing both higher sales and improved restaurant-level margins. Management credited operational synergies, such as unified reservation systems and consolidated purchasing, for enhancing profitability and efficiency across the portfolio. Shifting guest behavior: The company observed a trend toward value-oriented dining, with guests increasingly opting for happy hour offerings and sharing dishes, especially at STK. Management responded by introducing tiered pricing menus and midweek value-focused experiences to attract and retain traffic amid economic uncertainty. Marketing and loyalty initiatives: The soft launch of the Friends with Benefits rewards program aims to increase repeat visits and cross-brand engagement. CEO Emanuel Hilario highlighted the company's strategic use of its seven-million-member database and grassroots marketing to offset competitors' high-value TV promotions, particularly in the casual dining segment. Franchising momentum: The expansion of franchising infrastructure has led to heightened interest from potential partners, especially for Benihana Express concepts. Management is negotiating multiple development agreements and expects franchising to play a larger role in future growth, supported by dedicated internal resources and increased industry visibility. Labor and cost control: Wage inflation was described as moderate, and retention levels remained stable, particularly at STK and Benihana. The company continues to prioritize traffic and market share over aggressive pricing, opting for a conservative approach to price increases to sustain long-term growth. Management expects that Benihana's growing contribution, expanded franchising, and targeted marketing will drive results, but macroeconomic headwinds and evolving consumer preferences may limit near-term upside. Benihana's holiday and seasonal strength: Management believes Benihana will outperform during key holiday periods, especially in the second half of the year, based on learnings from last year's integration and efforts to optimize throughput during peak times. This is expected to help offset softer trends in other brands. Franchising and asset-light expansion: The company plans to accelerate its dual-track strategy, combining company-owned growth with a greater emphasis on managed and licensed venues. CEO Emanuel Hilario indicated that franchising could account for roughly half of Benihana's eventual U.S. footprint, and the company is actively negotiating development deals. Ongoing consumer and competitive pressures: Management cited unpredictable convention schedules, potential impacts from tariffs, and increased promotional activity by larger competitors as sources of risk. The company aims to mitigate these challenges through localized marketing, loyalty programs, and selective pricing adjustments. Looking forward, the StockStory team will be watching (1) the pace and quality of new unit openings and franchise deal signings, (2) signs of stabilization or improvement in same-store sales trends, particularly at legacy brands, and (3) evidence that marketing and loyalty initiatives are driving increased guest frequency. Execution in integrating Benihana and managing competitive pressures will also be important indicators. The ONE Group currently trades at a forward EV-to-EBITDA ratio of 1.1×. Should you double down or take your chips? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
16-05-2025
- Business
- Yahoo
1 Growth Stock to Add to Your Roster and 2 to Approach with Caution
Growth is oxygen. But when it evaporates, the consequences can be extreme - ask anyone who bought Cisco in the Dot-Com Bubble (Nvidia?) or newer investors who lived through the 2020 to 2022 COVID cycle. Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. That said, here is one growth stock with significant upside potential and two that could be down big. One-Year Revenue Growth: +139% Doubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ:STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill. Why Is STKS Risky? Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants Earnings per share have dipped by 17.6% annually over the past five years, which is concerning because stock prices follow EPS over the long term 7× net-debt-to-EBITDA ratio shows it's overleveraged and increases the probability of shareholder dilution if things turn unexpectedly The ONE Group is trading at $4.35 per share, or 1.3x forward EV-to-EBITDA. To fully understand why you should be careful with STKS, check out our full research report (it's free). One-Year Revenue Growth: +16.3% With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health (NASDAQ:LFST) provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states. Why Are We Hesitant About LFST? Subscale operations are evident in its revenue base of $1.28 billion, meaning it has fewer distribution channels than its larger rivals Cash-burning history makes us doubt the long-term viability of its business model Negative returns on capital show that some of its growth strategies have backfired At $5.79 per share, LifeStance Health Group trades at 76.2x forward P/E. Dive into our free research report to see why there are better opportunities than LFST. One-Year Revenue Growth: +17.8% Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform. Why Are We Fans of PINS? Monthly Active Users have grown by 10.4% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features Healthy EBITDA margin of 27% shows it's a well-run company with efficient processes PINS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders Pinterest's stock price of $32.35 implies a valuation ratio of 17.8x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
The ONE Group (NASDAQ:STKS) Posts Better-Than-Expected Sales In Q1 But Quarterly Revenue Guidance Significantly Misses Expectations
Upscale restaurant company The One Group Hospitality (NASDAQ:STKS) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 148% year on year to $211.1 million. Revenue guidance for the full year exceeded analysts' estimates, but next quarter's guidance of $207.5 million was less impressive, coming in 2.3% below expectations. Its non-GAAP profit of $0.14 per share was significantly above analysts' consensus estimates. Is now the time to buy The ONE Group? Find out in our full research report. The ONE Group (STKS) Q1 CY2025 Highlights: Revenue: $211.1 million vs analyst estimates of $203.4 million (148% year-on-year growth, 3.8% beat) Adjusted EPS: $0.14 vs analyst estimates of -$0.14 (significant beat) Adjusted EBITDA: $25.2 million vs analyst estimates of $24.51 million (11.9% margin, 2.8% beat) The company reconfirmed its revenue guidance for the full year of $852.5 million at the midpoint EBITDA guidance for the full year is $105 million at the midpoint, above analyst estimates of $102.7 million Operating Margin: 5.1%, up from 1.1% in the same quarter last year Same-Store Sales fell 3.2% year on year (-7.9% in the same quarter last year) Market Capitalization: $94.94 million Company Overview Doubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ:STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill. Sales Growth A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. With $799.5 million in revenue over the past 12 months, The ONE Group is a small restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. On the bright side, it can grow faster because it has more white space to build new restaurants. As you can see below, The ONE Group's 44.2% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was incredible as it opened new restaurants and expanded its reach. The ONE Group Quarterly Revenue This quarter, The ONE Group reported magnificent year-on-year revenue growth of 148%, and its $211.1 million of revenue beat Wall Street's estimates by 3.8%. Company management is currently guiding for a 20.3% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 6.4% over the next 12 months, a deceleration versus the last six years. This projection is underwhelming and suggests its menu offerings will see some demand headwinds.
Yahoo
22-04-2025
- Business
- Yahoo
1 Volatile Stock Worth Your Attention and 2 to Keep Off Your Radar
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors. Navigating these stocks isn't easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here is one volatile stock that could deliver huge gains and two best left to the gamblers. Rolling One-Year Beta: 1.68 Doubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ:STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill. Why Do We Think Twice About STKS? Poor same-store sales performance over the past two years indicates it's having trouble bringing new diners into its restaurants Earnings per share fell by 19.9% annually over the last five years while its revenue grew, partly because it diluted shareholders High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens At $2.79 per share, The ONE Group trades at 0.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than STKS. Rolling One-Year Beta: 1.25 With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ:TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels. Why Should You Sell TNDM? Declining pump shipments over the past two years indicate demand is soft and that the company may need to revise its strategy Revenue growth over the past five years was nullified by the company's new share issuances as its earnings per share fell by 34.7% annually Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Tandem Diabetes's stock price of $16.50 implies a valuation ratio of 30.9x forward EV-to-EBITDA. If you're considering TNDM for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 2.01 Headquartered in Israel, Nova (NASDAQ:NVMI) is a provider of quality control systems used in semiconductor manufacturing. Why Are We Bullish on NVMI? Impressive 24.5% annual revenue growth over the last five years indicates it's winning market share this cycle Free cash flow margin jumped by 12.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends Industry-leading 31.4% return on capital demonstrates management's skill in finding high-return investments Nova is trading at $174.41 per share, or 22.7x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.
Yahoo
02-04-2025
- Business
- Yahoo
3 Restaurant Stocks Walking a Fine Line
Restaurants increase convenience and give many people a place to unwind. Still, their demand can ebb and flow with the broader economy because consumers can always cook meals at home when times are tough, and the market seems to be baking in a downturn for the industry - over the past six months, it has pulled back by 6.6%. This performance was worse than the S&P 500's 2.3% fall. Investors should tread carefully as any operational misstep or unforeseen change in preferences can have you catching a falling knife. Keeping that in mind, here are three restaurant stocks we're swiping left on. Market Cap: $1.36 billion Founded by the eclectic John 'Papa John' Schnatter, Papa John's (NASDAQ:PZZA) is a globally recognized pizza delivery and carryout chain known for 'better ingredients' and 'better pizza'. Why Are We Wary of PZZA? Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants Estimated sales growth of 1.8% for the next 12 months implies demand will slow from its five-year trend Capital intensity has ramped up over the last year as its free cash flow margin decreased by 3.8 percentage points At $41.57 per share, Papa John's trades at 17.2x forward price-to-earnings. Read our free research report to see why you should think twice about including PZZA in your portfolio, it's free. Market Cap: $196.1 million Open around the clock, Denny's (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare. Why Should You Dump DENN? Recent restaurant closures reflect a shift toward streamlining existing locations to maximize efficiency Revenue base of $452.3 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale Free cash flow margin dropped by 13.2 percentage points over the last year, implying the company became more capital intensive as competition picked up Denny's stock price of $3.77 implies a valuation ratio of 6.6x forward price-to-earnings. If you're considering DENN for your portfolio, see our FREE research report to learn more. Market Cap: $94.05 million Doubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ:STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill. Why Does STKS Give Us Pause? Poor same-store sales performance over the past two years indicates it's having trouble bringing new diners into its restaurants Issuance of new shares over the last five years caused its earnings per share to fall by 19.9% annually while its revenue grew 8× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings The ONE Group is trading at $3.03 per share, or 0.9x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than STKS. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
