One Group Benihana deal should boost shareholder return, says Lake Street

After One Group announced its strategic acquisition of Safflower Holdings, owner of the U.S. teppanyaki and sushi restaurant brands Benihana and RA Sushi, for $365M, Lake Street analyst Mark Smith said the firm views the economics of the deal as “attractive” and that both the acquired brands are highly complementary to the company’s current STK and Kona Grill brands. This deal is “not only expected to immediately enhance the bottom line, but also to significantly increase free cash flow, providing a steady foundation for debt reduction and shareholder returns,” says the firm, which reiterates its Buy rating and $8 price target on One Group shares.