The ONE Group Reports 20.2% Revenue Growth to $207.4 Million in Q2 2025

The ONE Group Hospitality, Inc. reported significant financial results for the second quarter of 2025, with total revenues reaching $207.4 million, a 20.2% increase from $172.5 million in the same period last year. This growth was primarily driven by the acquisition of Benihana and RA Sushi, which contributed $128.1 million in revenues during the quarter. However, the company also experienced a decline in same-store sales, which fell by 4.1% compared to the previous year. For the six-month period ending June 29, 2025, total revenues surged to $418.5 million, up 62.5% from $257.5 million in the prior year, again largely due to the Benihana acquisition.

Despite the revenue growth, the company reported a net loss of $10.3 million for the second quarter, compared to a loss of $7.5 million in the same quarter of 2024. The increase in losses was attributed to higher operating expenses, including a $25.7 million rise in owned restaurant operating expenses, which totaled $129.5 million for the quarter. This increase was driven by the additional costs associated with the newly acquired restaurants and investments in marketing and staffing. Operating income for the quarter decreased to $0.7 million from $1.1 million in the prior year, reflecting the impact of these rising costs.

The company has made strategic moves to enhance its market position, including the acquisition of Benihana for $365 million, which was finalized on May 1, 2024. This acquisition has expanded the company's footprint significantly, with the total number of venues now at 159, including 30 STK, 85 Benihana, 23 Kona Grill, and 15 RA Sushi locations across various regions. The company plans to open five to seven new venues in 2025, with recent openings including a Benihana in San Mateo, California, and STK locations in Topanga and Los Angeles.

Operationally, the company reported a restaurant operating profit of $31.2 million for the second quarter, a 6.3% increase from $29.4 million in the same period last year. However, the restaurant operating profit margin decreased to 15.3% from 17.4% due to increased costs and lower same-store sales. The company also faced challenges with lease termination and exit costs, which amounted to $5.6 million for the quarter, primarily related to the closure of five restaurants.

Looking ahead, The ONE Group remains focused on integrating the Benihana brand and optimizing its operations to improve profitability. The company anticipates that the acquisition will yield synergies and enhance its market share in the upscale dining segment. However, it also acknowledges the potential risks associated with market conditions and operational integration as it continues to expand its restaurant portfolio.