The ONE Group Hospitality Inc. Common Stock (STKS)

FairStock Score: 17/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable earning power, honest accounting, and a margin of safety. The ONE Group is a restaurant operator with brands like STK, Benihana, and Kona Grill; restaurants can be good cash businesses, but they are competitive, capital-hungry, and cyclical. The filed record is troubling. In fiscal 2025, the year ended 2025-12-28, revenue was $805.7 million but net income was a loss of $92.2 million, or diluted EPS of -$4.05. In fiscal 2023, the year ended 2023-12-31, the company earned $4.7 million, or $0.15 per diluted share. In the latest filed quarter, fiscal Q2 2026 ended 2026-06-28, revenue was $200.5 million and net loss was $2.1 million. FairStock calculations at the 2026-10-13 close of $1.50 show a negative P/E of -0.39, ROE of -54.11%, ROCE of 2.52%, debt-to-equity of 5.78, and an Altman Z-score of 0.05, signals of financial fragility. The Piotroski F-score is 4/9, and the FairStock score is 17/100. One bright spot: trailing free cash flow is $3.5 million, a 7.3% FCF yield, and EV/EBITDA is 8.52. But a $47.5 million market cap against heavy debt and losses leaves little margin of safety. This is a Lynch turnaround, not a proven compounder. I would need evidence that losses are shrinking, debt is manageable, and cash flow persists before calling it a Graham-style bargain.

In plain English: The company runs restaurant brands including STK, Benihana and Kona Grill. It has been losing money, carries a lot of debt, and the latest reported quarter also showed a small loss. At its 2026-10-13 close of $1.50, the price looks cheap compared with the cash the business still produces, but very risky given the weak profits and heavy borrowing.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-28) · fiscal Q1 2026 10-Q (period ended 2026-03-29) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-12-28) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer