08-05-2025
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.
