The ONE Group Reports Second Quarter 2026 Financial Results

About this update from The One Group Hospitality, Inc.

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

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