EU and US could reach trade deal this weekend - Reuters
Investing.com - Freedom Broker initiated coverage on The ONE Group Hospitality Inc. (NASDAQ:STKS) with a Buy rating and a price target of $5.50 on Thursday. The price target represents a potential 29% upside from the current share price of $4.26. The stock has shown strong momentum, gaining nearly 28% in the past week and 45% over the last six months. According to InvestingPro analysis, the stock appears to be trading below its Fair Value.
The research firm cited the company’s expanding brand portfolio, improving cash flows, and potential multiple re-rating as key factors behind its bullish outlook. The ONE Group has transformed into a global "Vibe Dining" platform following its 2024 acquisitions of Benihana and RA Sushi. While the company operates with a significant debt burden of $640 million, InvestingPro data shows analysts expect both sales and net income growth this year.
These strategic acquisitions have nearly tripled the company’s footprint to 166 venues across 32 states and 12 countries. The expanded presence has significantly strengthened The ONE Group’s market position in the hospitality sector.
The company reported substantial growth in 2024, with revenue increasing by 102% to reach $673.3 million. This strong performance was directly attributed to the integration of its newly acquired restaurant brands.
Freedom Broker expects The ONE Group to continue its operational and earnings expansion in the coming quarters, leveraging its enlarged scale and diversified brand portfolio to drive further growth.
In other recent news, The ONE Group Hospitality reported a strong first-quarter 2025 performance, exceeding earnings expectations. The company achieved an adjusted earnings per share (EPS) of $0.14, surpassing the anticipated loss of $0.10, and reported revenue of $211.2 million, slightly above the forecasted $207.44 million. This revenue marked a significant 148.4% increase year-over-year, driven by new restaurant openings and product innovations. Additionally, The ONE Group Hospitality’s adjusted EBITDA rose by 233% to $25.2 million, reflecting operational efficiencies and successful integration of Benihana operations.
Furthermore, the company held its Annual Meeting of Stockholders, where directors were elected, and Deloitte & Touche, LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 28, 2025. The company also approved the compensation of its named executive officers on an advisory basis. In terms of future guidance, The ONE Group Hospitality projects total GAAP revenue between $835 million and $870 million for the full year 2025. The company also plans to open 5 to 7 new venues, focusing on expanding its restaurant portfolio and enhancing its loyalty program.
Lastly, during the earnings call, analysts inquired about consumer behavior trends and the company’s franchising opportunities, which are being actively explored to expand market presence. The ONE Group Hospitality is also focusing on enhancing its marketing efforts, particularly through grassroots initiatives and the launch of its "Friends with Benefits" loyalty program.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.