Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting the need for strong fundamentals to maintain momentum in stock prices [1][2]. Group 1: Stock Performance - The ONE Group Hospitality, Inc. (STKS) has shown a significant price increase of 80% over the past 12 weeks, indicating strong investor interest [4]. - In the last four weeks, STKS has experienced a price increase of 47.8%, suggesting that the upward trend is still intact [5]. - STKS is currently trading at 90.5% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - STKS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like STKS that are on an uptrend supported by strong fundamentals [3]. - The article suggests that there are multiple stocks passing through the "Recent Price Strength" screen, providing additional investment opportunities [8].

Core Viewpoint - The ONE Group Hospitality, Inc. (STKS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for The ONE Group Hospitality indicates expected earnings of $0.51 per share for the fiscal year ending December 2025, showing no year-over-year change [9]. - Over the past three months, analysts have raised their earnings estimates for The ONE Group Hospitality by 184.9% [9]. Zacks Rating System - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for stock price movements [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade to Zacks Rank 1 places The ONE Group Hospitality in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. Market Implications - Rising earnings estimates and the corresponding rating upgrade imply an improvement in The ONE Group Hospitality's underlying business, likely leading to increased stock prices as investors respond positively [6]. - The influence of institutional investors, who adjust their valuations based on earnings estimates, contributes to stock price movements [5].

Group 1 - The ONE Group Hospitality (NASDAQ: STKS) stock is experiencing an upward trend, attributed to recent deals with Benihana and RA Sushi [1] - The company operates in various restaurant segments, including QSR, fast casual, casual dining, fine dining, and family dining [1] - The analysis employs advanced models and valuation techniques to provide insights and strategies for investors [1] Group 2 - The founder of Goulart's Restaurant Stocks has a strong background in Business Administration and Accounting, with an MBA in Forensic Accounting and Controllership [1] - The company actively engages in academic and journalistic initiatives, contributing to institutions that promote economic freedom [1] - Previous contributions included discussions on monetary policy, financial education, and financial modeling [1]

Core Viewpoint - The ONE Group Hospitality, Inc. is conducting its Q1 2025 earnings conference call, indicating a focus on financial performance and future outlook [1]. Group 1: Company Overview - The conference call features key participants including the CFO Tyler Loy and President and CEO Emanuel Hilario, highlighting the leadership's involvement in discussing the company's performance [1][2]. - The call is structured to include a formal presentation followed by a question and answer session, suggesting an interactive approach to stakeholder engagement [1]. Group 2: Financial Performance Discussion - The company will discuss forward-looking statements during the call, which are not guarantees of future performance, indicating a cautious approach to projections [3]. - There is an emphasis on the potential risks and uncertainties that could affect actual results, reflecting the company's awareness of market volatility [4]. - The discussion will include non-GAAP financial measures, which the company believes are useful for evaluating performance, suggesting a focus on comprehensive financial analysis [5].

分组1 - The ONE Group Hospitality, Inc. reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of a loss of $0.17 per share, compared to a loss of $0.02 per share a year ago, representing an earnings surprise of 182.35% [1] - The company posted revenues of $211.13 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.17%, and this is a significant increase from year-ago revenues of $85 million [2] - The stock has increased approximately 5.5% since the beginning of the year, while the S&P 500 has declined by 4.7% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.12 on revenues of $210.87 million, and for the current fiscal year, it is -$0.65 on revenues of $844.77 million [7] - The Zacks Industry Rank for Retail - Restaurants is currently in the bottom 20% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8]

Financial Data and Key Metrics Changes - First quarter revenues increased by almost 150% to $211 million, driven by contributions from Benihana and Rasushi, as well as new unit openings [7][22] - Adjusted EBITDA rose over 230% to $25.2 million, significantly exceeding top line growth [8][29] - Restaurant level EBITDA improved to 16.4%, a 50 basis point year-over-year increase [7][25] - Net loss available to common stockholders was $6.6 million, or $0.21 per share, compared to a loss of $2.1 million, or $0.07 per share, in the prior year [28] Business Line Data and Key Metrics Changes - Benihana and STK achieved restaurant EBITDA margins of 20.1% and 17.7%, respectively [7][25] - Company-owned restaurant net revenue increased by 154.5% to $207.4 million, primarily due to contributions from Benihana and Rasushi [22] - Managed, license, and incentive fee revenues increased by 7% to $3.7 million [23] Market Data and Key Metrics Changes - The company experienced a 3.2% reduction in consolidated comparable sales [22] - Positive transaction growth of 4.1% was noted at the STK brand [7] Company Strategy and Development Direction - The company aims to become a global leader in vibe dining, focusing on operational efficiencies, culinary innovation, and strategic marketing [6][9] - Expansion plans include opening five to seven new venues in 2025, with a focus on both company-owned and franchised locations [17][33] - The company is pursuing a dual strategy of company-owned and asset-light growth, with a target of 400 Benihana locations in the U.S. [18][79] Management's Comments on Operating Environment and Future Outlook - Management noted challenges in the dining environment due to economic volatility, but remains optimistic about long-term growth [9][34] - The second quarter is expected to reflect a decline in comparable sales, influenced by weather and convention schedules [31][48] - Management emphasized the importance of operational execution and throughput, especially during peak dining periods [71] Other Important Information - The company has launched a loyalty program called "Friends with Benefits" to enhance guest experiences and drive repeat visits [12][13] - The company finished the quarter with nearly $68 million in liquid resources, indicating strong liquidity [19][30] Q&A Session Summary Question: Consumer behavior trends and changes in Q2 - Management indicated that higher-end consumers are performing better, attributing this to strategic initiatives rather than demographics [36] Question: Same store sales cadence during the quarter - February was noted as the most challenging month, while March showed strong performance, particularly due to Easter [45][46] Question: Changes in labor costs and retention - Retention rates are stable, with moderate inflation observed in labor costs [39][40] Question: Franchising efforts and infrastructure updates - The company has updated its franchising infrastructure and is actively negotiating development agreements with interested franchisees [55][57] Question: Pricing strategy and market share - The company is conservative on pricing, focusing on traffic and market share rather than aggressive price increases [60] Question: Balancing company-owned stores versus deleveraging - Management is focused on maintaining a balance between company-owned and franchised locations while managing business risks [62] Question: Impact of Easter on sales and bookings - Easter had a slight impact, but management does not consider it a significant holiday for the brand [68] Question: Tourism and convention impacts on sales - There has been a noticeable decrease in visitors from Canada and Mexico, affecting sales in markets with high tourist traffic [74]

Financial Data and Key Metrics Changes - First quarter revenues increased by almost 150% to $211 million, driven by contributions from Benihana and Rasushi, as well as new unit openings [6][23] - Adjusted EBITDA rose over 230% to $25.2 million, significantly exceeding top line growth [7][30] - Restaurant level EBITDA improved to 16.4%, a 50 basis point year-over-year increase [6][25] - Net loss available to common stockholders was $6.6 million, or $0.21 per share, compared to a loss of $2.1 million, or $0.07 per share, in the prior year [29] Business Line Data and Key Metrics Changes - Benihana locations achieved a restaurant EBITDA margin of 20.1%, while STK locations had a margin of 17.7% [6][25] - Company-owned restaurant net revenue increased by 154.5% to $207.4 million, primarily due to contributions from Benihana and Rasushi [23] - Managed, license, and incentive fee revenues increased by 7% to $3.7 million [24] Market Data and Key Metrics Changes - The company experienced a 3.2% reduction in consolidated comparable sales, indicating some challenges in the market [23] - Positive transaction growth of 4.1% was noted at the STK brand, reflecting a shift in consumer preferences [6][9] Company Strategy and Development Direction - The company aims to become a global leader in vibe dining, focusing on operational efficiencies, culinary innovation, and strategic marketing [5][14] - Expansion plans include opening five to seven new venues in 2025, with a focus on both company-owned and franchised locations [18][34] - The integration of Benihana is expected to yield annual synergies of at least $20 million by 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in consumer behavior towards value-driven offerings and alternative dining times, such as happy hours [9][10] - The company anticipates challenges in the second quarter due to macroeconomic factors and a shift in convention schedules [48] - Management remains optimistic about the long-term growth potential, targeting $5 billion in system-wide sales [20] Other Important Information - The company has launched a loyalty program called "Friends with Benefits" to enhance guest experiences and drive repeat visits [12] - The company ended the quarter with nearly $68 million in liquid resources, providing flexibility for future growth [20][31] Q&A Session Summary Question: Consumer behavior trends in Q2 - Management indicated that higher-end consumers are performing better, attributing this to strategic initiatives rather than demographics [37] Question: Improvements in grill concepts - Increased marketing efforts and the launch of the loyalty program are key focuses for improving results in casual dining brands [38][39] Question: Labor costs and retention - Retention rates are stable, with moderate inflation in labor costs observed [40][41] Question: Same store sales cadence - February was the most challenging month, while March showed strong performance, particularly due to Easter [46] Question: Competitor promotions and discounting - Competitors are leveraging TV advertising heavily, prompting the company to enhance grassroots marketing efforts [50] Question: Franchising efforts - The company has updated its franchising infrastructure and is actively negotiating development agreements with interested franchisees [56] Question: Pricing strategy - The company is conservative with pricing, focusing on maintaining value positioning and traffic growth [60] Question: Balancing company-owned vs. franchised stores - The company aims for a balanced portfolio of approximately 50% company-owned and 50% franchised stores for Benihana [77]

Financial Performance - Total revenues increased 148.4% to $211.1 million from $85.0 million[6] - Adjusted EBITDA grew 233% to $25.2 million from $7.6 million, significantly exceeding top-line growth[2] - Operating income increased by $11.3 million to $10.7 million from an operating loss of $0.6 million[6] - GAAP net loss available to common stockholders was $6.6 million, or $0.21 net loss per share[6] - Net income attributable to The ONE Group Hospitality, Inc. was $975,000 for Q1 2025, a recovery from a net loss of $2,069,000 in Q1 2024[21] - Adjusted net income for the three months ended March 30, 2025, was $4,586, compared to an adjusted net loss of $631 for the same period in 2024[35] - The company reported a net loss available to common stockholders of $6,616 for the three months ended March 30, 2025, compared to a net loss of $2,069 for the same period in 2024[35] Revenue Breakdown - Owned restaurant net revenue accounted for 98.2% of total revenues in Q1 2025, compared to 95.9% in Q1 2024[23] - Total food and beverage sales at owned and managed units reached $241,201,000 for the three months ended March 30, 2025, up from $109,612,000 in the same period of 2024[27] Sales and Transactions - Benihana same store sales increased 0.7% while STK transactions increased 4.1%[1] - Same Store Sales for US STK Total Restaurants decreased by 3.6% in Q1 2025 compared to Q1 2024[28] - Consolidated comparable sales are expected to decline between -5.5% and -4% for Q2 2025[8] Operational Efficiency - General and administrative expenses as a percentage of total revenues decreased to 6.2% in Q1 2025 from 8.9% in Q1 2024[23] - Adjusted EBITDA is defined as net income before interest expense, taxes, depreciation, and other non-recurring items, providing a clearer view of operational performance[28] Future Outlook - The company plans to open five to seven new venues in 2025[3] - For Q2 2025, total GAAP revenues are guided to be between $205 million and $210 million[8] - The company aims to deliver at least $20 million in acquisition synergies by 2026[2] Assets and Liabilities - The company has $34.1 million in cash and short-term credit card receivables as of March 30, 2025[5] - Total current assets decreased to $63,850,000 as of March 30, 2025, from $69,326,000 as of December 31, 2024[25] - Total liabilities decreased to $752,886,000 as of March 30, 2025, from $758,749,000 as of December 31, 2024[25] Profitability Metrics - Restaurant Operating Profit for the three months ended March 30, 2025, was $35,503, which is 17.1% of owned restaurant net revenue, compared to 16.1% for the same period in 2024[32] - Restaurant EBITDA for the three months ended March 30, 2025, was $33,951, representing 16.4% of owned restaurant net revenue, up from 15.9% in the same period of 2024[32] - The STK restaurant operating profit for the three months ended March 30, 2025, was $10,136, which is 18.5% of STK revenue, down from 21.6% in the same period of 2024[33] - Benihana restaurant operating profit for the three months ended March 30, 2025, was $22,886, representing 19.8% of Benihana revenue[33] - Core Grill Concepts restaurant operating profit for the three months ended March 30, 2025, was $2,767, which is 8.0% of Grill Concepts revenue, down from 8.6% in the same period of 2024[33]

Financial Data and Key Metrics Changes - Full year revenue increased over 100% to $672 million and adjusted EBITDA increased almost 130% to $75.2 million, reflecting significant growth from the prior year [11][12] - Fourth quarter revenues increased by almost 150% to a record $222 million, with adjusted EBITDA rising almost 150% to $30.3 million [12][46] - Company-owned restaurant cost of sales as a percentage of net revenue decreased by 250 basis points to 20.4% compared to 22.8% in the prior year quarter [40] Business Line Data and Key Metrics Changes - Company-owned restaurants' net revenue increased by 155.7% to $217.8 million, primarily due to contributions from Benihana and RA Sushi [38] - Restaurant operating profit decreased by 90 basis points to 18.4%, with Benihana locations achieving a restaurant operating profit of 22.6%, improving approximately 300 basis points versus the prior year [41][95] Market Data and Key Metrics Changes - Consolidated comparable sales decreased by 4.3%, with management license and franchise revenue decreasing by 14.5% to $4.1 million [39] - The company anticipates consolidated comparable sales for the first quarter of 2025 to be between -4% to -3%, with a full year expectation of -3% to +1% [50][58] Company Strategy and Development Direction - The company aims to become the global leader in vibe dining, with a focus on operational efficiencies and cost savings of $20 million by the end of 2026 [10][30] - Plans to open five to seven new company-owned restaurants in 2025, balancing this with asset-light growth through managed and licensed units [28][52] - The company is enhancing its franchising strategy for Benihana, responding to strong interest from franchisees [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to improve traffic and sales, particularly for STK and Benihana, despite ongoing consumer uncertainty [60][92] - The company is focused on maintaining guest frequency and brand engagement, with a strategy to innovate menus and pricing carefully [15][78] - Management highlighted the importance of a strong supply chain to navigate commodity price fluctuations and tariffs [71] Other Important Information - The company ended 2024 with over $71 million in liquid resources, including cash and undrawn credit [34] - Adjusted net loss available to common stockholders was $0.9 million, compared to adjusted net income of $5.3 million in the prior year quarter [46] Q&A Session Summary Question: What is the expected progression of same-store sales throughout the year? - Management expects gradual improvement in same-store sales, projecting a sequentially better performance in the second, third, and fourth quarters [58][60] Question: Are there any impacts from equipment availability or tariffs on new restaurant openings? - Management indicated that equipment for current openings is in place and does not foresee immediate impacts from tariffs on equipment availability [66][70] Question: How is consumer behavior affecting traffic and pricing? - Management noted cautious pricing strategies due to consumer sensitivity, with trends showing a shift towards alternative dining times like happy hour [78][79] Question: How are the new openings performing? - New openings, particularly for RA Sushi and STK, are performing well, with sales tracking positively [82][85] Question: What are the construction costs for new units? - Current construction costs are in the high $600s to close to $700 per square foot, with efforts to manage costs effectively [87][89]

Revenue and Growth - Total revenue increased by $340.6 million, or 102.3%, to $673.3 million for 2024 compared to $332.8 million for 2023, primarily due to the addition of Benihana and RA Sushi restaurants [167]. - Owned restaurant net revenues increased to $658.9 million in 2024 from $317.4 million in 2023, representing a growth of 107.5% [203]. - Total revenues for 2024 reached $673.3 million, compared to $332.8 million in 2023, marking a 102.2% increase [203]. - Owned restaurant net revenue increased by $341.5 million, or 107.6%, to $658.9 million for 2024 from $317.4 million for 2023, primarily due to the acquisition of Benihana and RA Sushi restaurants [209]. Profitability and Expenses - Restaurant operating profit increased by $57.9 million, or 114.9%, to $108.3 million for 2024, with a profit margin of 16.4% compared to 15.9% in 2023 [170]. - Net loss attributable to The ONE Group Hospitality, Inc. was $15.8 million in 2024, compared to net income of $4.7 million in 2023, mainly due to transaction and integration costs [171]. - Owned restaurant cost of sales was $138.8 million in 2024, which is 21.1% of owned restaurant net revenues, down from 23.9% in 2023 [203][205]. - Owned restaurant operating expenses totaled $411.8 million in 2024, accounting for 62.5% of owned restaurant net revenues, compared to 60.3% in 2023 [203][205]. - General and administrative expenses rose to $44.2 million in 2024, representing 6.6% of total revenues, up from 9.2% in 2023 [203][205]. - Interest expense increased significantly to $31.1 million in 2024 from $7.0 million in 2023 [203]. - Depreciation and amortization expense increased by $18.4 million to $34.1 million for 2024, primarily due to the acquisition of Benihana and RA Sushi restaurants [214]. Sales Performance - Same store sales for STK decreased by 8.7%, Benihana by 1.8%, and Grill Concepts by 13.2% for 2024 compared to the prior year [179]. - Average check per person at STK was $127 for 2024, down from $130 in 2023 [182]. - Average transaction for comparable Benihana restaurants was $111, while Grill Concepts had an average transaction of $64 in 2024 [183]. - Average comparable STK restaurant revenues were $15.5 million for 2024, down from $17.3 million in 2023 [184]. - Comparable restaurant sales decreased by 6.2% in 2024 compared to 2023 [209]. Acquisitions and Expansion Plans - The company acquired Safflower Holdings Corp. for $365.0 million, which owns most Benihana and RA Sushi restaurants in the U.S. [162]. - The company plans to expand STK to 200 restaurants globally, with an expected opening of four to six new locations annually [172]. - The company expects to grow the Benihana brand to 400 restaurants, with plans to open one to three new locations annually [174]. - Transition and integration expenses related to the Benihana acquisition amounted to $13.7 million in 2024 [203]. Cash Flow and Financing - Net cash provided by operating activities increased to $44.19 million in 2024 from $30.78 million in 2023, primarily due to cash generated from acquired restaurants [238]. - Net cash used in investing activities for 2024 was $441.39 million, including $369.8 million for the Benihana acquisition and $71.6 million for new restaurant construction [240]. - Net cash provided by financing activities was $404.34 million in 2024, primarily from borrowings under the Credit Agreement [241]. - A credit agreement was established providing a $350.0 million senior secured term loan facility and a $40.0 million revolving credit facility [165]. Market and Operational Risks - The Company is exposed to market price fluctuations in beef, seafood, produce, and other food products, which can materially impact food and beverage costs [259]. - The Company does not enter into long-term agreements for the purchase of food supplies, leading to potential unforeseen supply and cost fluctuations [259]. - Inflation impacts labor, food, operating supplies, and occupancy costs, which could significantly affect operations [260]. - The Company has maintained food costs as a percentage of revenues through procurement efficiencies and menu price increases, although future stability is uncertain [260]. - The Company does not currently use financial instruments to hedge against market price fluctuations in food products [259]. - Foreign currency exchange risk exists for operations in the UK, Europe, Canada, Mexico, and the Middle East, but exposure is not material to consolidated financial statements [262]. - The Company’s strategy includes maintaining operating margins through menu price increases and cost controls to address inflation [260]. - The Company has qualified multiple suppliers to mitigate risks associated with food product price fluctuations [259].