One Group Hospitality (STKS 0.66%), operator of upscale and experiential dining brands like STK and Benihana, reported financial results for Q2 2025 on August 5, 2025. The most significant development was a 20.2% jump in GAAP revenue, reaching $207.4 million, largely thanks to the Benihana acquisition. However, this figure fell short of analyst expectations of $208.9 million in GAAP revenue, and the company posted a diluted non-GAAP earnings per share (EPS) of $0.05. Comparable sales (non-GAAP) decreased 4. ...

Core Insights - The ONE Group Hospitality, Inc. reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.08 per share, representing a -37.50% earnings surprise [1] - The company posted revenues of $207.38 million for the quarter ended June 2025, which was 0.68% below the Zacks Consensus Estimate, compared to $172.49 million in the same quarter last year [2] - The stock has gained approximately 4.5% since the beginning of the year, underperforming the S&P 500's gain of 7.6% [3] Earnings Performance - Over the last four quarters, the company has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.06, with expected revenues of $204.02 million, and for the current fiscal year, the estimate is $0.44 on revenues of $852.64 million [7] Market Outlook - The company's earnings outlook will be crucial for future stock performance, with management's commentary on the earnings call being a key factor [3][4] - The Zacks Rank for The ONE Group Hospitality is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Retail - Restaurants industry, to which The ONE Group Hospitality belongs, is currently in the top 41% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Wendy's, a competitor in the same industry, is expected to report quarterly earnings of $0.25 per share, reflecting a year-over-year decline of -7.4% [9]

Financial Data and Key Metrics Changes - The company achieved total consolidated GAAP revenues of $207.4 million, an increase of 20.2% from $172.5 million in the same quarter last year [20] - Adjusted EBITDA was $23.4 million, reflecting a 7.3% increase from $21.8 million in the prior year quarter [27] - Net loss was $10.1 million compared to a net loss of $7.3 million in the previous year, with adjusted net income at $1.7 million, down from $6.3 million [26][27] Business Line Data and Key Metrics Changes - Company-owned restaurant net revenues increased by 20.6% to $203.9 million, primarily due to the additional days of ownership of Benihana and Ra Sushi [20] - Restaurant EBITDA decreased to 15.4% from 17.5% in the prior year quarter, with Benihana locations at 18.5% and STK locations at 15.9% [22] - The company closed five locations that were underperforming or nearing lease renewals, indicating a focus on optimizing the growth portfolio [14] Market Data and Key Metrics Changes - The company noted that traffic in the upscale casual segment remains challenged, particularly in Las Vegas, which has been impacted by shifting convention schedules and visitor traffic declines [51][53] - Demand remains strong during peak periods, especially on weekends, with strategies in place to maximize throughput [8] Company Strategy and Development Direction - The company aims to drive same-store sales growth through operational excellence, culinary innovation, and targeted marketing [8] - A focus on asset-light growth opportunities is evident, with plans to open five to seven new venues in 2025, including a company-owned Benihana in Seattle [12][30] - The integration of Benihana is progressing ahead of plan, with significant synergies expected to be realized by the end of 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a strong fourth quarter, driven by holiday traffic and improved logistics at Benihana [55][56] - The company is optimistic about its ability to navigate the current economic environment, focusing on internal factors rather than external economic conditions [58][59] - The loyalty program launched in Q2 is expected to enhance guest frequency and spending, with significant engagement anticipated in the upcoming quarters [90] Other Important Information - The company has approximately $50 million in liquidity, providing operational flexibility [15] - The new Benihana location in San Mateo has been performing exceptionally well, serving as a prototype for future openings [39][40] Q&A Session Summary Question: What were the issues faced by Benihana last year? - Management indicated that HVAC issues were significant challenges post-acquisition, which have since been addressed for better sales opportunities this year [35][36] Question: Can you discuss the new restaurant in San Mateo? - The San Mateo location has a different design, eliminating the sushi bar to increase table capacity, and has seen strong initial performance [37][39] Question: How is STK managing traffic in the current environment? - The strategy focuses on value pricing and happy hour promotions to drive traffic, while also emphasizing premium products [42] Question: What are the regional differences in same-store sales? - Vegas has been a challenged market due to shifting convention schedules and visitor traffic declines, while other regions performed consistently [51][53] Question: What gives confidence in maintaining annual guidance? - Management highlighted the strong performance of Benihana and STK, particularly during the holiday season, as key factors for confidence in guidance [55][56] Question: Can you elaborate on franchising efforts for Benihana? - There is growing interest from existing franchisees, and the company is actively participating in industry events to build a pipeline for new agreements [75][78] Question: What is the outlook for food inflation? - While some commodity prices have stabilized, beef prices remain a concern, but the company is prepared to navigate these challenges through innovation [70][72]

```markdown [Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) The ONE Group reported strong Q2 2025 revenue growth, driven by Benihana integration, alongside strategic expansion [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) The ONE Group reported strong top-line growth in Q2 2025, with total GAAP revenues increasing 20.2% to $207.4 million, despite a 4.1% decrease in consolidated comparable sales and a GAAP net loss of $10.1 million | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Total GAAP revenues | $207.4 million | $172.5 million | +20.2% | | Consolidated comparable sales | -4.1% | N/A | -4.1 pp | | Operating income | $0.7 million | $1.1 million | -36.4% | | Restaurant EBITDA | $31.9 million | $29.6 million | +8.0% | | GAAP net loss | $10.1 million | $7.3 million | +38.4% (increased loss) | | Adjusted EBITDA attributable to The ONE Group Hospitality, Inc. | $23.4 million | $21.8 million | +7.3% | - Operating income and GAAP net loss were impacted by **$5.6 million** of lease termination and exit expenses related to the exit of five grill locations[6](index=6&type=chunk) [CEO Commentary & Strategic Initiatives](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Initiatives) CEO Emanuel Hilario expressed satisfaction with meeting expectations and achieving 20% top-line growth, attributing it to successful Benihana acquisition integration and strategic execution - Strong top-line growth of **20%** driven by the successful integration of the Benihana acquisition and continued execution of key strategic initiatives[3](index=3&type=chunk) - Benihana delivered positive same store sales and STK achieved positive traffic for the second and third consecutive quarters, respectively, indicating consumer engagement and brand strength[3](index=3&type=chunk) - Focus on accelerating same store sales growth and pursuing asset-light and low-cost expansion strategies to enhance capital efficiency and balance sheet strength[4](index=4&type=chunk) - On track to open **five to seven new venues** in 2025 while optimizing operations across the expanded portfolio[4](index=4&type=chunk) [Restaurant Development & Expansion](index=1&type=section&id=Restaurant%20Development%20%26%20Expansion) The company plans to open five to seven new venues in 2025, having already opened several locations and with two company-owned restaurants currently under construction - Company plans to open **five to seven new venues** in 2025[5](index=5&type=chunk) - Opened Owned Benihana restaurant in San Mateo, California (March 2025) - Opened Owned STK restaurant in Topanga, California (April 2025) - Opened Owned STK restaurant in Los Angeles, California (May 2025 - relocation) - Opened Franchised Benihana Express restaurant in Miami, Florida (June 2025) - One Company-owned Benihana restaurant under construction in Seattle, Washington - One Company-owned Kona Grill restaurant under construction in San Antonio, Texas (relocation) [Liquidity & Share Repurchase Program](index=2&type=section&id=Liquidity%20%26%20Share%20Repurchase%20Program) As of June 29, 2025, the company held $15.1 million in cash and short-term credit card receivables and had $33.6 million available under its revolving credit facility, having repurchased 0.2 million shares for $0.6 million in Q2 2025 | Metric (as of June 29, 2025) | Amount (in millions) | | :----------------------------------- | :----- | | Cash and short-term credit card receivables | $15.1 | | Available under revolving credit facility | $33.6 | - Board of Directors authorized a **$5 million** share repurchase program in March 2024[8](index=8&type=chunk) - During Q2 2025, the Company purchased **0.2 million shares** for an aggregate consideration of **$0.6 million**[8](index=8&type=chunk) [Financial Results](index=6&type=section&id=Financial%20Results) Q2 2025 financial results show increased revenues but a wider net loss, with decreased total assets and stockholders' equity [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company's Q2 2025 financial statements show a significant increase in total revenues to $207.4 million, up from $172.5 million in Q2 2024, but operating income decreased and net loss widened to $10.1 million [Revenue and Operating Expenses](index=6&type=section&id=Revenue%20and%20Operating%20Expenses) Q2 2025 owned restaurant net revenue increased by 20.6% to $203.9 million, with total owned operating expenses up 23.7% | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :----------------------------------- | :-------------------- | :-------------------- | :----------- | | Owned restaurant net revenue | $203.9 | $169.0 | +20.6% | | Management, license, franchise and incentive fee revenue | $3.5 | $3.5 | -0.03% | | **Total revenues** | **$207.4** | **$172.5** | **+20.2%** | | Owned restaurant cost of sales | $43.2 | $35.9 | +20.4% | | Owned restaurant operating expenses | $129.5 | $103.8 | +24.8% | | Total owned operating expenses | $172.7 | $139.6 | +23.7% | | General and administrative | $11.7 | $10.6 | +9.7% | | Lease termination and exit expenses | $5.6 | $0.3 | +1735% | [Profitability and Net Loss](index=6&type=section&id=Profitability%20and%20Net%20Loss) Operating income decreased by 36.9% to $0.7 million, and net loss widened to $10.1 million due to higher interest expense | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :----------------------------------- | :-------------------- | :-------------------- | :----------- | | Operating income | $0.7 | $1.1 | -36.9% | | Interest expense, net | $10.3 | $7.9 | +30.9% | | Loss on early debt extinguishment | $0.0 | $4.1 | -100% | | Net loss attributable to The ONE Group Hospitality, Inc. | $(10.1) | $(7.3) | +37.6% (increased loss) | | Basic Net loss per common share | $(0.59) | $(0.38) | +55.3% (increased loss) | [Statements of Operations as Percentage of Revenue](index=7&type=section&id=Statements%20of%20Operations%20as%20Percentage%20of%20Revenue) Owned restaurant operating expenses as a percentage of net revenue increased to 63.5% in Q2 2025 | Metric (as % of Total Revenues) | Q2 2025 | Q2 2024 | | :----------------------------------- | :------ | :------ | | Owned restaurant net revenue | 98.3% | 98.0% | | Management, license, franchise and incentive fee revenue | 1.7% | 2.0% | | Owned restaurant cost of sales (as % of owned restaurant net revenue) | 21.2% | 21.2% | | Owned restaurant operating expenses (as % of owned restaurant net revenue) | 63.5% | 61.4% | | Total owned operating expenses (as % of owned restaurant net revenue) | 84.7% | 82.6% | | General and administrative | 5.6% | 6.2% | | Depreciation and amortization | 5.2% | 4.7% | | Lease termination and exit expenses | 2.7% | 0.2% | | Operating income | 0.3% | 0.6% | | Net loss attributable to The ONE Group Hospitality, Inc. | (4.9)% | (4.3)% | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 29, 2025, total assets decreased to $935.7 million from $960.1 million, while total liabilities also decreased, and stockholders' equity saw a notable reduction to $23.0 million | Metric | June 29, 2025 (in millions) | December 31, 2024 (in millions) | Change (in millions) | | :----------------------------------- | :---------------------------- | :---------------------------- | :------------------- | | Cash and cash equivalents | $4.7 | $27.6 | -$22.9 | | Total current assets | $42.7 | $69.3 | -$26.6 | | Total assets | $935.7 | $960.1 | -$24.4 | | Total current liabilities | $121.1 | $131.4 | -$10.3 | | Long-term debt, net | $327.5 | $328.1 | -$0.6 | | Total liabilities | $742.0 | $758.7 | -$16.7 | | Series A preferred stock | $173.8 | $158.1 | +$15.7 | | Total stockholders' equity | $23.0 | $45.9 | -$22.8 | [Non-GAAP Financial Measures & Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section defines and reconciles key non-GAAP financial measures, including Adjusted EBITDA and Adjusted Net Income, for performance insights [Non-GAAP Definitions](index=4&type=section&id=Non-GAAP%20Definitions) The company uses several non-GAAP financial measures, including Total food and beverage sales at owned and managed units, Adjusted EBITDA, and Adjusted Net Income/(Loss), to provide additional insights into operating performance - Non-GAAP financial measures used include total food and beverage sales at owned and managed units, Adjusted EBITDA, Restaurant Operating Profit, Restaurant EBITDA, adjusted net income, and adjusted net income / (loss) per share[14](index=14&type=chunk)[15](index=15&type=chunk)[28](index=28&type=chunk) - These measures exclude items management does not consider in the evaluation of its ongoing core operating performance, such as non-cash rent, non-recurring gains and losses, stock-based compensation, transaction and exit costs, transition and integration expenses, and lease termination and exit expenses[15](index=15&type=chunk)[18](index=18&type=chunk) - Starting in Q3 2024, pre-opening expenses are no longer deducted from Adjusted EBITDA[15](index=15&type=chunk)[18](index=18&type=chunk) [Total Food and Beverage Sales at Owned and Managed Units](index=9&type=section&id=Total%20Food%20and%20Beverage%20Sales%20at%20Owned%20and%20Managed%20Units) This non-GAAP measure represents total revenue from owned operations plus revenue from managed locations, providing a comprehensive view of sales associated with the company's brands and hospitality services | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :----------------------------------- | :-------------------- | :-------------------- | :----------- | | GAAP revenues | $207.4 | $172.5 | +20.2% | | Food and beverage sales from managed units | $31.2 | $32.1 | -2.8% | | **Total food and beverage sales at owned and managed units** | **$235.1** | **$201.1** | **+16.9%** | [Same Store Sales](index=9&type=section&id=Same%20Store%20Sales) Consolidated comparable sales decreased by 4.1% in Q2 2025, with Benihana Owned Restaurants showing positive growth while US STK Total Restaurants and Grill Concept Owned Restaurants experienced declines | Segment | Q2 2025 vs. 2024 | Q2 2024 vs. 2023 | | :-------------------------- | :--------------- | :--------------- | | US STK Owned Restaurants | (4.9)% | (11.9)% | | US STK Managed Restaurants | (9.5)% | (7.4)% | | US STK Total Restaurants | (6.0)% | (10.6)% | | Benihana Owned Restaurants | 0.4% | (1.0)% | | Grill Concept Owned Restaurants | (14.6)% | (13.0)% | | **Combined Same Store Sales** | **(4.1)%** | **(7.0)%** | [Adjusted EBITDA](index=10&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA attributable to The ONE Group Hospitality, Inc. increased by 7.3% to $23.4 million in Q2 2025, excluding various non-cash and non-recurring items for a clearer view of operational performance | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :----------------------------------- | :-------------------- | :-------------------- | :----------- | | Net loss attributable to The ONE Group Hospitality, Inc. | $(10.1) | $(7.3) | +37.6% (increased loss) | | EBITDA | $11.5 | $4.9 | +134.1% | | Adjusted EBITDA | $23.2 | $21.7 | +6.9% | | **Adjusted EBITDA attributable to The ONE Group Hospitality, Inc.** | **$23.4** | **$21.8** | **+7.3%** | [Restaurant Operating Profit and Restaurant EBITDA](index=10&type=section&id=Restaurant%20Operating%20Profit%20and%20Restaurant%20EBITDA) Restaurant Operating Profit increased to $31.2 million and Restaurant EBITDA to $31.9 million in Q2 2025, though as a percentage of owned restaurant net revenue, both decreased | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :----------------------------------- | :-------------------- | :-------------------- | :----------- | | Restaurant Operating Profit | $31.2 | $29.4 | +6.3% | | Restaurant Operating Profit as a percentage of owned restaurant net revenue | 15.3% | 17.4% | -2.1 pp | | Restaurant EBITDA | $31.9 | $29.6 | +7.9% | | Restaurant EBITDA as a percentage of owned restaurant net revenue | 15.7% | 17.5% | -1.8 pp | | Segment (Company owned) | Q2 2025 Restaurant Operating Profit (in millions) | Q2 2024 Restaurant Operating Profit (in millions) | Q2 2025 Restaurant EBITDA (in millions) | Q2 2024 Restaurant EBITDA (in millions) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :-------------------------------------- | :-------------------------------------- | | STK | $9.1 | $8.3 | $8.1 | $8.9 | | Benihana | $16.2 | $20.8 | $21.3 | $16.5 | | Core Grill Concepts | $4.2 | $2.3 | $2.7 | $4.3 | | Non-core Grill Concepts | $(0.2) | $(0.1) | $(0.3) | $(0.3) | [Adjusted Net Income / (Loss)](index=11&type=section&id=Adjusted%20Net%20Income%20%2F%20(Loss)) Adjusted net income (non-GAAP) for Q2 2025 decreased to $1.7 million from $6.3 million in Q2 2024, with adjusted net income per share also declining | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :----------------------------------- | :-------------------- | :-------------------- | :----------- | | Net income (loss) available to common stockholders (GAAP) | $(18.2) | $(11.9) | +53.5% (increased loss) | | **Adjusted net income (loss) (non-GAAP)** | **$1.7** | **$6.3** | **-73.5%** | | Adjusted net income (loss) per share: Basic | $0.05 | $0.20 | -75% | | Adjusted net income (loss) per share: Diluted | $0.05 | $0.19 | -73.7% | [2025 Financial Targets & Outlook](index=2&type=section&id=2025%20Financial%20Targets%20%26%20Outlook) The company provided guidance for Q3 2025 and the full year 2025, projecting total GAAP revenues of $835 to $870 million and consolidated Adjusted EBITDA between $95 to $115 million | Metric | Q3 2025 Guidance (in millions) | 2025 Guidance (Full Year, in millions) | | :----------------------------------- | :----------------------------- | :------------------------------------- | | Total GAAP revenues | $190 to $195 | $835 to $870 | | Consolidated comparable sales | -4% to -2% | -3% to 1% | | Managed, license and franchise fee revenues | $3 to $4 | $15 to $16 | | Total owned operating expenses as a percentage of owned restaurant net revenue | Approx. 86% | 83.5% to 82.2% | | Consolidated total G&A, excluding stock-based compensation | Approx $11 | Approx. $47 | | Consolidated Adjusted EBITDA | $15 to $18 | $95 to $115 | | Consolidated restaurant pre-opening expenses | $1 to $2 | $7 to $8 | | Consolidated effective income tax rate | | Approx. 7.5% | | Consolidated total capital expenditures, net of allowances received by landlords | | $45 to $50 | | Consolidated number of new system-wide venues | None | 5-7 new venues | [Company Information & Disclosures](index=2&type=section&id=Company%20Information%20%26%20Disclosures) This section provides company overview, conference call details, forward-looking statement cautions, and investor contact information [About The ONE Group](index=4&type=section&id=About%20The%20ONE%20Group) The ONE Group Hospitality, Inc. is an international restaurant company focused on "Vibe Dining," developing and operating upscale restaurants and providing hospitality management services - The ONE Group Hospitality, Inc. is an international restaurant company that develops and operates upscale and polished casual, high-energy restaurants and lounges and provides hospitality management services for hotels, casinos and other high-end venues[12](index=12&type=chunk) - The ONE Group's focus is to be the global leader in Vibe Dining[12](index=12&type=chunk) - STK: Modern American steakhouse concept - Benihana: Interactive dining destination with skilled chefs - Benihana Express: Small footprint casual concept without teppanyaki tables or bar - Kona Grill: Polished casual, bar-centric grill concept - RA Sushi: Japanese cuisine concept with a fun-filled, bar-forward atmosphere - Salt Water Social: Features an array of signature and unique fresh seafood items - ONE Hospitality: Food and beverage hospitality services business for high-end hotels and casinos [Conference Call and Webcast](index=2&type=section&id=Conference%20Call%20and%20Webcast) The company hosted a conference call and webcast on August 5, 2025, at 4:30 PM Eastern Time to discuss financial results, with a replay available until August 19, 2025 - Emanuel "Manny" Hilario, President and CEO, and Tyler Loy, CFO, hosted a conference call and webcast on August 5, 2025, at 4:30 PM Eastern Time[11](index=11&type=chunk) - A replay was available until Tuesday, August 19, 2025, accessible by phone or from the Investor Relations tab of The ONE Group's website[11](index=11&type=chunk)[12](index=12&type=chunk) [Cautionary Statement on Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20on%20Forward-Looking%20Statements) The press release contains forward-looking statements regarding future events like restaurant openings and financial targets, subject to risks and uncertainties, and investors are cautioned not to place undue reliance on them - The press release includes "forward-looking statements" regarding the impact of the Benihana Inc. acquisition, restaurant openings, and 2025 financial targets[19](index=19&type=chunk) - These statements are subject to a number of factors that could cause actual results or outcomes to differ materially, including integration challenges, ability to open new restaurants, economic downturns, and changes in regulations[19](index=19&type=chunk) - Investors are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and the company undertakes no obligation to update or revise them[20](index=20&type=chunk) [Contact Information](index=5&type=section&id=Contact%20Information) Contact information for investor relations and media inquiries is provided through ICR - Investors: Michelle Michalski or Raphael Gross at ICR, (646) 277-1224, Michelle.Michalski@icrinc.com - Media: Seth Grugle at ICR, (646) 277-1272, seth.grugle@icrinc.com ```

Key Takeaways The ONE Group Hospitality, Inc. (STKS) is scheduled to release second-quarter 2025 results today, after the closing bell. In the last reported quarter, the company's earnings beat the Zacks Consensus Estimate by 182.4%. How Are Estimates Placed? The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 8 cents, flat year over year. For revenues, the consensus mark is pegged at $209.3 million. The metric indicates 21.4% growth from the year-ago quarter's figure. Let us ana ...

Wall Street expects flat earnings compared to the year-ago quarter on higher revenues when The ONE Group Hospitality, Inc. (STKS) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near- term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, ...

Market Overview - The broader market has improved significantly as fears over geopolitical tensions and slowing economic growth ease, shifting sentiment back to "risk-on" [1] - Selective small-cap stocks are seen as offering exceptional upside opportunities, particularly those with strong growth forecasts and favorable valuations [1] The ONE Group Hospitality (STKS) - The ONE Group Hospitality operates upscale restaurant brands and is benefiting from a renewed appetite for in-person dining, indicating a shift away from "peak takeout" [4] - The company has transitioned from negative to positive earnings, with current year earnings projections rising from a loss of -$0.31 to a gain of $0.51, and next year's forecast increasing from -$0.08 to $0.69 [5] - STKS has a Zacks Rank 1 (Strong Buy) and trades at a forward earnings multiple of 9.3x, with expected EPS growth of 20% annually over the next three to five years [5] - The stock chart shows a promising technical setup, having built a solid base and formed a bullish continuation pattern, with key support at $4.70 and resistance at $5.13 [6] Legacy Education Inc. (LGCY) - Legacy Education Inc. operates in healthcare education and workforce development, focusing on training for high-demand medical roles, making it somewhat recession-resistant [8] - The company has strong momentum, holding a Zacks Rank 2 (Buy) and trading at a forward earnings multiple of 17.1x, with sales expected to rise by 37.9% this year and another 16.9% in 2026 [9] - Following a recent breakout to new record highs, LGCY is forming a technical bull flag, with a potential confirmation above the $11 level [10] Investment Outlook - Both The ONE Group Hospitality and Legacy Education Inc. are highlighted as compelling investment opportunities, supported by strong earnings growth forecasts, reasonable valuations, and improving technical setups [13] - These small-cap stocks are positioned to be early leaders in a broader small-cap resurgence, making them worthy of close attention for investors seeking growth stories with breakout potential [14]

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]