The ONE Group Hospitality Reports 148.4% Revenue Growth to $211.1 Million

The ONE Group Hospitality, Inc. reported significant financial growth in its latest quarterly filing, with total revenues reaching $211.1 million for the three-month period ending March 30, 2025, a substantial increase of 148.4% compared to $85.0 million for the same period in 2024. This surge in revenue is primarily attributed to the acquisition of Benihana and RA Sushi restaurants, which contributed approximately $128.3 million in revenues. The company also reported a net income of $975,000, a notable turnaround from a net loss of $2.1 million in the prior year, reflecting improved operational performance and the successful integration of the acquired brands.

In terms of operational metrics, the company experienced a 154.5% increase in owned restaurant net revenue, which totaled $207.4 million, up from $81.5 million in the previous year. However, same-store sales saw a decline of 3.2% during the same period, indicating challenges in maintaining performance at existing locations. The increase in costs was also significant, with owned restaurant operating expenses rising to $128.8 million, largely due to the operational costs associated with the newly acquired restaurants. General and administrative expenses increased by 73.8% to $13.1 million, driven by additional headcount and professional fees related to the acquisition.

The company has made strategic moves to enhance its market presence, including the acquisition of Safflower Holdings Corp., which owns a majority of Benihana restaurants. This acquisition, finalized on May 1, 2024, was valued at $365 million and is expected to bolster the company's position in the upscale dining segment. The ONE Group also plans to open five to seven new venues in 2025, with recent openings including a Benihana in San Mateo, California, and an STK in Topanga, California. As of March 30, 2025, the company operated a total of 166 venues across various brands, including STK, Benihana, Kona Grill, and RA Sushi.

Financially, the company reported total liabilities of $752.9 million, with long-term debt standing at $328.9 million. The interest expense for the quarter was $9.8 million, reflecting the costs associated with the debt incurred for the acquisition. The company had cash and cash equivalents of $21.4 million as of the end of the reporting period. Looking ahead, The ONE Group aims to leverage its expanded portfolio to drive growth and improve profitability, while managing operational costs and enhancing customer experiences across its venues. The company remains optimistic about its ability to integrate the new acquisitions and capitalize on market opportunities in the upscale dining sector.