One Group Hospitality misses Q3 revenue expectations, net loss widens

Overview

• One Group Q3 revenue falls 7.1% yr/yr, missing analysts' expectations

• Net loss widened to $76.7 mln due to tax expense and impairment loss

• Adjusted EBITDA for Q3 missed analysts' estimates, reflecting profitability pressures

Outlook

• Company expects 2025 GAAP revenues between $820 mln and $825 mln

• Company anticipates 2025 comparable sales decline of 2% to 3%

• Company plans to open 5-7 new venues in 2025

Result Drivers

• GRILL OPTIMIZATION - Co closed six underperforming Grill locations and plans to convert up to nine more to enhance profitability

• COMMODITY COSTS - Rising commodity costs outpaced pricing adjustments, impacting profitability, per CEO Emanuel Manny Hilario

• BENIHANA INTEGRATION - Benihana integration exceeded expectations, contributing to positive performance, per CEO Emanuel Manny Hilario

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for One Group Hospitality Inc is $5.00, about 58% above its November 5 closing price of $2.10

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw4Jl7KPa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)