The ONE Group Hospitality (NASDAQ:STKS) reported preliminary 2025 revenue of approximately $805 million on Monday, marking a 20% increase as the company digests its transformational acquisition of Benihana.
Despite the double-digit top-line growth, the dining giant navigated a complex fourth quarter defined by portfolio pruning and a significant shift in its fiscal calendar.
Total GAAP revenues for the full year rose from $673 million in 2024, largely buoyed by a full year of contributions from the Benihana and RA Sushi brands acquired in May 2024.
However, the expansion was offset by a 3.7% decline in comparable sales for the year.
The fourth quarter proved particularly volatile, with revenue sliding 6.8% to $207 million—a drop management attributed to the strategic closure of underperforming Kona Grill and RA Sushi locations, as well as a calendar quirk that moved the lucrative New Year’s Eve holiday into the 2026 fiscal year.
"Since the onset of the fourth quarter, sales trends have improved," Chief Executive Officer Emanuel "Manny" Hilario said in a statement, noting a four-point sequential improvement in comparable sales from the third quarter.
The company’s flagship STK brand returned to positive territory with 0.3% comparable sales growth—its first positive quarter since 2023—while the Benihana brand remained flat.
The Denver-based company is now pivoting toward a leaner, "asset-light" growth strategy.
In October, it completed its first conversion of an RA Sushi location into a high-margin STK in Scottsdale, Arizona, and plans to convert up to nine additional underperforming sites into either STK or Benihana formats by the end of 2026.
These conversions typically require significantly less capital than new builds and offer a faster payback period.
The ONE Group also highlighted a major development milestone: a new agreement to open 10 Benihana and Benihana Express locations in the San Francisco Bay Area through a mix of franchises and joint ventures.
This push into licensed and managed formats is intended to strengthen the balance sheet following the debt-heavy acquisition of Benihana.
Management will present more details on the 2026 outlook at the ICR Conference today.
The company expects to report finalized 2025 results on February 24, with a focus on how the portfolio optimization is translating to improved EBITDA margins.