The ONE Group Hospitality, Inc. (STKS) AI Stock Analysis

The ONE Group Hospitality, Inc. is a hospitality company specializing in the development, ownership, operation, management, and licensing of restaurants and lounges. It operates through STK, Kona Grill, and ONE Hospitality segments. Beyond restaurant venues, it offers turn-key food and beverage solutions for hotels, casinos, and entertainment destinations, including rooftops, banqueting, catering, and room service. As of the report, the company owns, operates, manages, or licenses 25 STK restaurants, 24 Kona Grills across North America, Europe, and the Middle East, and 14 food and beverage venues within hotels and casinos.

Revenue expanded significantly from $277.2M in FY2021 to $805.7M in FY2025, showing a 5-year revenue CAGR of 41.5%. However, profitability deteriorated over that timeframe. Gross margin declined from 23.5% in FY2021 to 11.9% in FY2025, and operating margin ended at 5.4%. Net income dropped from $31.3M in FY2021 to -$92.2M in FY2025, resulting in an EPS of -$2.24. For the latest trailing twelve months, revenue reached $800.5M with a net profit margin of -10.2% and EPS of -$3.80. In the latest quarter ended June 30, 2026, quarterly revenue fell 3.3% year-over-year while quarterly earnings declined 2.0%.

As of June 30, 2026, the company held $6.4M in cash and short-term investments against total debt of $658.7M, resulting in net debt of $652.3M. Its debt-to-equity ratio stood at 5.56, with shareholders' equity at $118.5M and a current ratio of 0.38. In FY2025, operating cash flow was $30.3M, but free cash flow was -$27.3M due to $57.6M in capital expenditures. Share buybacks totaled $1.1M in FY2025, and the share count decreased 7.7% over 5 years.

STKS carries a market capitalization of $38.3M and an enterprise value of $914.9M. It trades at a forward P/E of 7.5x, below the 14.1x median of its US-listed Consumer Cyclical peers. Its EV to EBITDA multiple is 11.1x, matching the peer median of 11.1x, while its price-to-sales ratio is 0.0x compared to the peer median of 0.7x. Over the past year, STKS shares fell 52.9%, trailing the S&P 500 (SPY) return of 16.8%. Over 5 years, the stock is down 91.2% versus an 83.0% gain for the benchmark.

Wall Street coverage includes 3 Strong Buy ratings, 0 Buy, 0 Hold, 0 Sell, and 0 Strong Sell. The mean price target is $4.45, which is 267.8% above the last closing price of $1.21. For the current fiscal year ending December 31, 2026, consensus expectations project revenue of $811.9M and an EPS of -$0.95. For the next fiscal year, 1 analyst estimates revenue of $876.3M and an EPS of $0.18. The company has 0 EPS beats over the last 4 quarters, and the next earnings date is November 5, 2026.

This page is an AI-written research summary of The ONE Group Hospitality, Inc. (STKS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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