ONE Group Hospitality (NASDAQ:STKS) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded ONE Group Hospitality (STKS) from "hold" to "strong sell"; MarketBeat shows a consensus "Reduce" rating with a $4.50 target and analysts split (1 buy, 1 hold, 2 sell).
• Q1 results disappointed—EPS of ($0.20) versus a $0.12 consensus and revenue of $212.8M vs. $218.6M—leaving a negative net margin; management guided Q2 revenue of $202M–$206M, which is below street estimates and raises near-term top‑line risk.
• Shares trade around $1.91 with a market cap of about $60M and a 52‑week range of $1.65–$5.26, and institutional investors own roughly 29% of the stock, underscoring low valuation and concentrated ownership risk.

ONE Group Hospitality (NASDAQ:STKS - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Wednesday,Zacks.com reports.

Several other analysts also recently weighed in on STKS. Weiss Ratings restated a "sell (d-)" rating on shares of ONE Group Hospitality in a research note on Thursday, January 22nd. Lake Street Capital decreased their target price on ONE Group Hospitality from $5.00 to $4.00 and set a "buy" rating for the company in a research note on Friday, January 16th. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, ONE Group Hospitality currently has a consensus rating of "Reduce" and a consensus target price of $4.50.

ONE Group Hospitality Stock Performance

ONE Group Hospitality stock opened at $1.91 on Wednesday. The business's 50-day simple moving average is $1.82 and its 200-day simple moving average is $1.98. The firm has a market capitalization of $59.94 million, a PE ratio of -0.47, a PEG ratio of 0.24 and a beta of 1.29. ONE Group Hospitality has a 52 week low of $1.65 and a 52 week high of $5.26.

ONE Group Hospitality (NASDAQ:STKS - Get Free Report) last announced its earnings results on Wednesday, May 6th. The restaurant operator reported ($0.20) earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.32). ONE Group Hospitality had a negative net margin of 11.15% and a negative return on equity of 8.53%. The business had revenue of $212.82 million for the quarter, compared to the consensus estimate of $218.55 million. Research analysts forecast that ONE Group Hospitality will post 0.38 earnings per share for the current year.

Hedge Funds Weigh In On ONE Group Hospitality

Several large investors have recently added to or reduced their stakes in STKS. McGowan Group Asset Management Inc. raised its holdings in ONE Group Hospitality by 12.7% in the 4th quarter. McGowan Group Asset Management Inc. now owns 945,000 shares of the restaurant operator's stock valued at $1,654,000 after acquiring an additional 106,665 shares in the last quarter. Jane Street Group LLC raised its holdings in ONE Group Hospitality by 423.5% in the 2nd quarter. Jane Street Group LLC now owns 101,174 shares of the restaurant operator's stock valued at $410,000 after acquiring an additional 81,848 shares in the last quarter. Piedmont Capital Management LLC NC acquired a new position in ONE Group Hospitality in the 4th quarter valued at approximately $104,000. CastleKnight Management LP raised its holdings in ONE Group Hospitality by 4.7% in the 4th quarter. CastleKnight Management LP now owns 1,286,991 shares of the restaurant operator's stock valued at $2,252,000 after acquiring an additional 58,015 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new position in ONE Group Hospitality in the 3rd quarter valued at approximately $170,000. Institutional investors and hedge funds own 29.14% of the company's stock.

Trending Headlines about ONE Group Hospitality

Here are the key news stories impacting ONE Group Hospitality this week:

• Positive Sentiment: Q2 operating income rose ~30% and management highlighted expansion driving margin improvement, a sign the company’s unit growth and cost leverage are working and could support future profitability. The ONE Group Q2 Operating Income Soars 30% Amid Expansion
• Neutral Sentiment: FULL-YEAR revenue guidance of $840M–$855M is roughly in line with consensus, indicating management expects recovery/steady growth for fiscal 2026 even as quarterly timing varies. The ONE Group projects Q2 2026 revenue of $202M-$206M while targeting $840M-$855M for fiscal 2026
• Negative Sentiment: Q2 revenue guidance of $202M–$206M comes in below the consensus of ~$213.8M, raising concerns about near-term top-line momentum and making the upcoming quarter a risk for the stock. The ONE Group projects Q2 2026 revenue of $202M-$206M while targeting $840M-$855M for fiscal 2026
• Negative Sentiment: Q1 results disappointed: reported EPS of ($0.20) missed the $0.12 consensus and revenue of $212.8M trailed estimates, leaving the company with a negative net margin and pressuring near-term sentiment. The ONE Group Hospitality, Inc. (STKS) Reports Q1 Loss, Lags Revenue Estimates
• Negative Sentiment: Analyst revisions: Sidoti cut Q3 2026 EPS estimates (and trimmed other near-term forecasts), signaling reduced confidence among some sell-side analysts and adding downward pressure on expectations.

ONE Group Hospitality Company Profile

ONE Group Hospitality Inc is a full-service hospitality company primarily engaged in the development, ownership and operation of upscale restaurant and lounge concepts. The company's flagship brand, STK, combines a modern steakhouse menu with a high-energy lounge atmosphere, offering signature cuts of beef, fresh seafood, sushi selections, craft cocktails and an extensive wine program. ONE Group's concept emphasizes a seamless blend of fine dining and nightlife, catering to guests seeking both culinary excellence and an immersive social experience.

Headquartered in El Segundo, California, ONE Group deploys a mixed model of company-owned and franchised locations across multiple markets.

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