The ONE Group Hospitality (NASDAQ:STKS) reported a complex fourth quarter for fiscal 2025, marked by a strategic contraction of its portfolio and a calendar shift that dampened its traditional holiday revenue peak.
The Denver-based operator of STK and Kona Grill posted total GAAP revenues of $207 million for the quarter ended December 28, 2025, a 6.7% decrease from the $222 million reported in the prior-year period.
Consolidated comparable sales fell by 1.8%, reflecting a broader softening in the fine-dining sector and the impact of the New Year’s Eve holiday shifting out of the 2025 fiscal calendar.
Management noted that approximately $3 million of the revenue decline was directly attributable to this calendar shift.
The company reported a GAAP net loss of $6 million, compared to a net income of $2 million a year ago.
The swing to a loss was primarily driven by a $7 million non-cash impairment charge related to the company’s "Grill optimization strategy."
This initiative involves the closure of underperforming Grill Concepts restaurants as the company focuses capital on its high-growth, high-margin STK and Kona Grill venues.
Despite the top-line pressure, operational efficiency showed signs of resilience.
Restaurant Operating Profit increased by 10 basis points to 19.5% for owned restaurants (excluding those closed under the optimization plan).
This marginal improvement suggests that the company is successfully managing labor and food costs within its core premium brands.
Adjusted EBITDA decreased to $28 million from $31 million, largely mirroring the revenue loss from the holiday shift.
The ONE Group’s 2025 fiscal year was defined by the massive acquisition and subsequent integration of Benihana and RA Sushi.
While the 2025 results reflect the friction of optimizing a significantly larger footprint, the company remains focused on its long-term target of 10% to 15% annual unit growth.