DENVER- The ONE Group Hospitality, Inc. ('The ONE Group' or the 'Company') (Nasdaq: STKS) today reported its financial results for the second quarter ended June 28, 2026.
* Positive Comparable Sales, Positive Transactions Across All Business Segments
* Capital Expenditures, Net of Tenant Improvement Allowances, Reduced 38% Year-Over-Year as Company Prioritizes Capital-Efficient Growth and Free Cash Flow Generation
Highlights for the second quarter 2026 compared to the same quarter in 2025 are as follows:
* Total GAAP revenues decreased 3.3% to $200.5 million from $207.4 million, due to the impact of permanent and temporary restaurant closures
* Consolidated comparable sales* increased 0.9%
* GAAP operating income increased to $6.6 million from $0.7 million
* Restaurant operating profit** increased by 110 basis points to 16.4% of owned restaurant net revenue from 15.3%
* Year-to-date net cash provided by operating activities improved $21.7 million to $33.0 million from $11.3 million
'Our second quarter results underscore the momentum we are building across the portfolio, driven by the continued strength of our Vibe Dining brands. Consolidated comparable sales were positive, with positive transaction growth across all segments. STK posted a strong comparable sales performance of 3.2%. We completed the relocation of our STK Downtown New York restaurant from Little West 12th to 15th Street, with the restaurant having been closed for most of the second quarter due to the transition,' said Emanuel 'Manny' Hilario, President and CEO of The ONE Group.
'Quarterly margin performance was strong, with the consolidated margin expanding 110 basis points to 16.4%. These results reflect the continued execution of our operational and strategic initiatives across the portfolio,' Hilario continued.
'We remain focused on capital-efficient growth and portfolio optimization. During the quarter, we signed a new development agreement for two licensed STK locations at a major U.S. airport. We are also very excited about the expansion of the Benihana Express brand, a small footprint, fast casual version of the Benihana that you crave. Both of these are great examples of our asset-light strategy in action, which continues to gain traction with additional openings planned for the second half of the year. With this approach, we will be able to reduce capital expenditures while sustaining our development pipeline, further strengthening our balance sheet. Going forward, we remain committed to disciplined capital allocation and operational excellence as the foundation for building long-term shareholder value,' Hilario concluded.
Grill Concepts Portfolio Optimization
Temporarily closed three Kona Grill restaurants and two RA restaurants in January 2026 for conversion to Benihana or STK formats
The conversion of the Riverton Kona Grill to Benihana was completed on July 31, 2026 and is now re-opened to the public
The Kona Grill Baltimore conversion is expected to re-open as an STK in the third quarter
Conversion economics: approximately $1.0 to $1.5 million, net build-out cost per conversion with a one-year payback
Expected outcome: 100% profitable Grill portfolio with enhanced margins
Capital Efficiency Focus
Significant reduction in discretionary capital expenditures to increase free cash flow to strengthen the balance sheet
Prioritizing asset-light and conversion-driven growth with emphasis on franchising and licensing opportunities
Targeting new company-owned openings averaging $1.5 million, net or less in build-out costs
Benihana Express Expansion
Your Benihana fix on the go: a fast casual version of Benihana
800-1,000 square foot space with strong margins at a lower build-out cost
One Company-owned restaurant open; one Company-owned restaurant under construction; one franchised restaurant in development
2026 Completed Restaurant Development
Restaurant
Location
Date
Owned Kona Grill (relocation)
San Antonio, Texas
January 2026
Converted franchised Benihana to owned
Monterey, California
February 2026
Converted franchised Benihana Express to owned
Miami, Florida
March 2026
Owned STK (new)
Phoenix, Arizona
June 2026
Owned STK (relocation)
New York, New York
July 2026
Owned Benihana (conversion of a Kona Grill)
Riverton, Utah
July 2026
2026 Remaining Restaurant Pipeline
Currently Under Construction (3 locations):
Owned STK restaurant in Baltimore, Maryland (conversion of a temporarily closed Kona Grill restaurant)
Owned Kona Grill Bistro in Baltimore, Maryland
Owned Benihana Express restaurant in Denver, Colorado
Asset-Light Expansion Highlights:
Franchised Benihana in the Florida Keys
Licensed Benihana Express in the Florida Keys
Two-venue agreement for licensed STKs in a major U.S. airport
Licensed RA Sushi at Niagara Falls
Liquidity
As of June 28, 2026, the Company held $17.1 million in cash and short-term credit card receivables and had $28.7 million available under its revolving credit facility, or a total of $45.8 million in short term liquidity. Under the current conditions, the Company's credit facility does not have any financial covenants.
2026 Financial Targets
The Company is introducing the following third quarter financial targets and updating its full year financial targets, reflecting the emphasis on expanding free cash flow through reduced capital expenditures, benefits of portfolio optimization, operational improvements, and continued Benihana integration synergies.
Financial Results and Other Select Data: See full release at:
https://ir.togrp.com/press-releases/detail/564/the-one-group-reports-second-quarter-2026-financial-results
(C) 2026 Electronic News Publishing, source ENP Newswire