The ONE Group Hospitality (STKS) Q2 2026 earnings summary

Executive summary

• Total revenue for Q2 2026 decreased 3.3% year-over-year to $200.5 million, mainly due to planned and temporary restaurant closures from Grill Concepts portfolio optimization.

• Operating income rose to $6.6 million from $0.7 million in Q2 2025, driven by improved restaurant operating profit and reduced transition/integration costs.

• Net loss attributable to the company narrowed to $2.1 million from $10.1 million in Q2 2025, reflecting operational improvements.

• Operating cash flow for the first six months of 2026 reached $33 million, nearly triple the prior year, enabling debt reduction and disciplined capital deployment.

• Strategic focus on asset-light, capital-efficient growth, portfolio optimization, and new openings and conversions to drive future profitability.

Financial highlights

• Total GAAP revenues were $200.5 million in Q2 2026, down 3.3% year-over-year, mainly due to planned grill concept closures.

• Comparable restaurant sales increased 0.9%, with U.S. STK up 3.2% and Benihana up 0.8%.

• Restaurant operating profit margin rose 110 basis points to 16.4%; STK margin up to 17.4%, Benihana up to 19.5%, Grill Concepts at 4.9%.

• Adjusted EBITDA for Q2 2026 was $21.1 million, down from $23.4 million in Q2 2025; for the first six periods, Adjusted EBITDA was $49.7 million, up from $48.6 million.

• General and administrative expenses rose to $14.0 million (7.0% of revenue) in Q2 2026, up from $11.7 million (5.6%) in Q2 2025, due to inflation, bonuses, and IT investments.

Outlook and guidance

• Q3 2026 revenue projected at $176–$180 million, with comparable sales growth of 0–2%.

• Full-year 2026 revenue guidance is $805–$820 million, reflecting asset-light strategy and lower same-store sales expectations.

• Adjusted EBITDA guidance for 2026 ranges from $50–$105 million; CapEx reduced to $30 million.

• Plan to open 6–10 new venues in 2026, prioritizing capital-efficient and asset-light models, with conversions of Grill Concepts locations to Benihana or STK formats.

• Capital expenditures will prioritize projects requiring $1.5 million or less, net of tenant improvement allowances.