One Group Hospitality reports Q3 EPS ($2.75), consensus (17c)

Reports Q3 revenue $180.2M, consensus $191.1M. Q3 Consolidated comparable sales decreased 5.9%. “Our third-quarter performance was impacted by external factors that temporarily reduced traffic in certain markets among our target demographics. These challenges created revenue headwinds. Additionally, rising commodity costs outpaced our pricing adjustments, putting further pressure on profitability,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group. “We completed a comprehensive review of our Grill portfolio and made the strategic decision to close six underperforming locations-five in the second quarter and one in the third quarter. We plan to convert up to an additional nine Grill units to either Benihana or STK formats by the end of 2026. Our first RA Sushi to STK conversion opened in October in Scottsdale, Arizona. These conversions take approximately eight to twelve weeks with a payback period of approximately one year. Once all conversions are complete, we expect that our Grill portfolio will consist of all profitable units, enhancing overall portfolio quality and driving improved margin performance. We also expect to reduce capital expenditures across all brands in the coming year, which will strengthen our balance sheet and enhance financial flexibility.”