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By Brandon Hornback
The ONE Group Hospitality, Inc. (NASDAQ: STKS) is on the verge of a holiday season to celebrate.
The owner of Benihana reported a modest sales decline in the September quarter, reflecting the ongoing restructuring process, including strategic location closures. But there are promising indications for a rebound in the fourth quarter, with a transformation taking shape.
The ongoing grill portfolio rationalization, with seven closings completed and nine conversions planned, is all about maximizing profitability. Meanwhile, Benihana remains on a tear, with the new San Mateo prototype reporting record-breaking sales — the strongest opening in 60 years for this iconic brand. That recipe for success is ready to roll out across new locations.
Cost management and synergies generated by integrating Benihana have mitigated inflationary pressures, with cost of sales holding steady at about 21% of revenues.
Looking ahead, Street expectations are quite hot for 2026. With revenue anticipated to grow to $879 million, fueled by strong pipeline performance and improved holiday and event-related business, there is undeniable momentum going into the new year. At an EV/EBITDA multiple of 5.2x and EV/revenue multiple of 0.7x, STKS trades well below the industry average.
Download the full report to see how holiday momentum, the Benihana rollout, and smart portfolio management can translate a brief downturn into a banner year in 2026.
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Read Exec Edge’s Initiation on The ONE Group Here
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