ONE Group Q1 adjusted EBITDA beats expectations

One Hospitality

06/05/2026 21:57

Overview

US restaurant operator's Q1 revenue rose 0.8% yr/yr but missed analyst expectations

Q1 adjusted EBITDA grew 12% and beat analyst expectations

Company attributed margin gains to cost controls and menu refinement

Outlook

ONE Group sees Q2 revenue at $202 mln to $206 mln

Company expects 2026 revenue of $840 mln to $855 mln

ONE Group targets 2026 adjusted EBITDA of $100 mln to $110 mln

Result Drivers

MARGIN EXPANSION - Margin improvement attributed to food and beverage cost controls, menu refinement, integration synergies, and supply chain optimization, per CEO Emanuel Hilario

PORTFOLIO OPTIMIZATION - Closure and conversion of underperforming Grill Concepts restaurants contributed to improved profitability

ASSET-LIGHT EXPANSION - Reduced capital expenditures and focus on conversion-driven growth supported free cash flow and margin gains

Company press release: ID:nBw7Fx6sKa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$212.8 mln
$218.55 mln (5 Analysts)
Q1 EPS
-$0.20
Q1 Net Income
$3.2 mln
Q1 Adjusted EBITDA
Beat
$28.8 mln
$27.74 mln (4 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 170.3% above its May 5 closing price of $1.85

The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)