ONE Group Hospitality Q2 revenue falls more than expected amid restaurant closures

One Hospitality

05/08/2026 21:33

Overview
U.S. restaurant operator's Q2 revenue fell 3.3%, missing analyst expectations
Comparable sales rose 0.9% and restaurant operating profit margin improved to 16.4%
Company reduced capital expenditures by 38% and prioritized asset-light, capital-efficient growth

Outlook
Company sees Q3 revenue of $176 mln to $180 mln
Company expects 2026 revenue of $805 mln to $820 mln
Company targets 2026 adjusted EBITDA of $95 mln to $105 mln

Result Drivers
RESTAURANT CLOSURES - Co said revenue decline was due to permanent and temporary restaurant closures
COMPARABLE SALES GROWTH - Co reported positive comparable sales and transaction growth across all business segments
MARGIN EXPANSION - Co attributed improved margins to execution of operational and strategic initiatives, including portfolio optimization and asset-light expansion

Company press release: ID:nBwmJ27La

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$200.50 mln
$204.21 mln (3 Analysts)
Q2 Restaurant Operating Profit
 
$6.6 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for One Group Hospitality Inc is $5.00, about 185.7% above its August 4 closing price of $1.75

Reuters Recommended Reads
Aug 5 - Dine Brands beats Q2 revenue estimates, maintains 2026 guidance
Aug 5 - Bloomin' Brands Q2 revenue and adjusted EPS beat estimates, raises outlook
Aug 5 - Shake Shack Q2 profit beats on increased sales

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)