The ONE Group (NASDAQ:STKS) Misses Q3 Sales Expectations

Upscale edifice institution The One Group Hospitality (NASDAQ:STKS) missed Wall Street’s gross expectations successful Q3 CY2025, with income falling 7.1% twelvemonth connected twelvemonth to $180.2 million. The company’s full-year gross guidance of $822.5 cardinal astatine the midpoint came successful 1.5% beneath analysts’ estimates. Its GAAP nonaccomplishment of $2.75 per stock was importantly beneath analysts’ statement estimates.

Is present the clip to bargain The ONE Group? Find retired successful our afloat probe report.

• Revenue: $180.2 cardinal vs expert estimates of $191.1 cardinal (7.1% year-on-year decline, 5.7% miss)

• EPS (GAAP): -$2.75 vs expert estimates of -$0.44 (significant miss)

• Adjusted EBITDA: $10.56 cardinal vs expert estimates of $16.75 cardinal (5.9% margin, 37% miss)

• The institution dropped its gross guidance for the afloat year to $822.5 cardinal astatine the midpoint from $852.5 million, a 3.5% decrease

• EBITDA guidance for the afloat year is $97.5 cardinal astatine the midpoint, successful enactment with expert expectations

• Operating Margin: -4.4%, down from 2.1% successful the aforesaid 4th past year

• Same-Store Sales fell 5.9% twelvemonth connected twelvemonth (8.8% successful the aforesaid 4th past year)

• Market Capitalization: $65.01 million

Doubling arsenic a hospitality services supplier for hotels and resorts, The One Group Hospitality (NASDAQ:STKS) is an upscale edifice institution that operates STK Steakhouse and Kona Grill.

Examining a company’s semipermanent show tin supply clues astir its quality. Even a atrocious concern tin radiance for 1 oregon 2 quarters, but a top-tier 1 grows for years.

With $820.6 cardinal successful gross implicit the past 12 months, The ONE Group is simply a tiny edifice chain, which sometimes brings disadvantages compared to larger competitors benefiting from amended marque consciousness and economies of scale. On the agleam side, it tin turn faster due to the fact that it has much achromatic abstraction to physique caller restaurants.

As you tin spot below, The ONE Group’s 43.4% annualized gross maturation implicit the past six years (we comparison to 2019 to normalize for COVID-19 impacts) was incredible. This shows it had precocious demand, a utile starting constituent for our analysis.

This quarter, The ONE Group missed Wall Street’s estimates and reported a alternatively uninspiring 7.1% year-on-year gross decline, generating $180.2 cardinal of revenue.

Looking ahead, sell-side analysts expect gross to turn 5.3% implicit the adjacent 12 months, a deceleration versus the past six years. This projection is underwhelming and implies its paper offerings volition look immoderate request challenges.

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