The ONE Group Hospitality, Inc. (STKS) came out with quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -37.50%. A quarter ago, it was expected that this company would post a loss of $0.17 per share when it actually produced earnings of $0.14, delivering a surprise of +182.35%.Over the last four quart ...

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]

Exhibit 99.1 "I'm pleased to report that we met our expectations for the quarter while delivering strong top-line growth of 20% driven by the successful integration of our Benihana acquisition and continued execution of our key strategic initiatives. Benihana delivered positive same store sales and STK achieved positive traffic for the second and third consecutive quarters, respectively, clear indicators of underlying consumer engagement and brand strength," said Emanuel "Manny" Hilario, President and CEO o ...

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]

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]