The ONE Group Hospitality, Inc. reported a decline in financial performance for the third quarter of 2025, with total revenues decreasing by 7.1% to $180.2 million compared to $193.9 million in the same period last year. The decrease was primarily attributed to a decline in same-store sales amid challenging market conditions. Owned restaurant net revenue fell to $177.4 million, down from $190.6 million, while management, license, franchise, and incentive fee revenue also decreased to $2.8 million from $3.4 million. The company recorded a net loss of $77.5 million for the quarter, significantly higher than the $9.5 million loss reported in the prior year.
In contrast, the nine-month period ending September 28, 2025, saw total revenues increase by 32.6% to $598.7 million, largely due to the acquisition of Benihana and RA Sushi, which contributed $368.8 million in revenue. The operating income for this period improved to $3.5 million from an operating loss of $3.2 million in the previous year, driven by the performance of the acquired restaurants. However, the company still faced challenges, including a non-cash impairment charge of $3.4 million on long-lived assets.
Operationally, the company managed 157 venues as of September 28, 2025, including 30 STK, 85 Benihana, 23 Kona Grill, and 13 RA Sushi locations. The company plans to open five to seven new venues in 2025, with several under construction in various locations. Despite the challenges, the company aims to leverage its expanded footprint to improve operational efficiencies and increase market share.
The company’s financial position showed a decrease in cash and cash equivalents, totaling $5.5 million as of September 28, 2025, down from $27.6 million at the end of 2024. Long-term debt increased to $355 million, reflecting borrowings related to the Benihana acquisition. The company’s outlook remains cautious, focusing on integrating the new acquisitions and managing costs while navigating a challenging economic environment. The management emphasized the importance of maintaining relationships with suppliers and retaining employees to support future growth.
About ONE Group Hospitality, Inc.
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