Exec-Edge
Tue, May 13, 2025, 2:48 PM 1 min read
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By Rayk Riechmann
The ONE Group Hospitality, Inc. (Nasdaq: STKS) shares surged aft it reported archetypal 4th results, with gross and profitability measures steadily improving.
Following the acquisitions of Benihana and RA Sushi successful 2024 (see our elaborate initiation report) full revenues jumped and came successful astatine $211.1 million, good up of Street estimates. The institution besides said comparable income accrued broadly crossed Benihana locations and STK restaurants saw beardown transaction growth.
Management continued the company’s incremental maturation strategy with the opening of six caller restaurants since the archetypal 4th of 2024 and already has plans for 5 to 7 caller venues coming successful 2025.
Restaurant-level EBITDA accrued 50 ground points connected the backmost of gross maturation and profitability improvements. G&A expenses accrued nominally but improved 190 ground points arsenic a percent of revenue.
Based connected a palmy merger integration, expanding adjusted EBITDA margins, and continuing income growth, we judge this is 1 of galore awesome quarters to come. Even with a affirmative share-price response, we stay bullish passim 2025.
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