The ONE Group Reports Revenue Increase to $212.8 Million in Q1 2026

The ONE Group Hospitality, Inc. reported a slight increase in total revenues for the first quarter of 2026, reaching $212.8 million, up from $211.1 million in the same period of the previous year. The growth was primarily driven by a $1.9 million increase in owned restaurant net revenue, which totaled $209.3 million, compared to $207.4 million in the prior year. This increase was attributed to the opening of seven new restaurants and a shift in the fiscal calendar, which included New Year's Eve in the current quarter but not in the previous one. However, the company experienced a decrease in same-store sales, which fell by 0.3% year-over-year.

Operating income for the quarter increased to $13.9 million, a rise of $3.2 million from $10.7 million in the prior year, largely due to improved restaurant operating profit. The restaurant operating profit, excluding closed Grill Concepts locations, increased by 11.1% to $39.9 million, representing 19.1% of owned restaurant net revenue. The company also reported a net income attributable to The ONE Group of $3.2 million, compared to $975,000 in the same quarter last year. This improvement was offset by higher general and administrative expenses, which rose by 14.5% to $15 million, driven by inflation, increased marketing costs, and investments in technology.

In terms of operational developments, The ONE Group currently operates 158 venues, including 31 STK, 86 Benihana, 23 Kona Grill, and 12 RA Sushi locations across North America, Europe, and the Middle East. The company has plans to open six to ten new venues in 2026, with a focus on converting existing Grill Concepts locations into Benihana or STK formats. The company has already opened a new Kona Grill in San Antonio, Texas, and is in the process of converting a franchised Benihana restaurant to a company-owned location.

The company’s financial position remains stable, with cash and cash equivalents totaling $6.1 million as of March 29, 2026. Long-term debt stood at $345 million, primarily from a credit agreement. The company reported net cash provided by operating activities of $21.7 million, a significant increase from $8.5 million in the previous year, reflecting improved collections on credit card receivables and increased net income. Looking ahead, The ONE Group aims to prioritize capital-efficient growth and expects to manage its cash requirements effectively through operational cash flows and potential borrowings under its credit facilities.