The ONE Group Hospitality (STKS) Moves to Strong Buy: Rationale Behind the Upgrade

Written by Emily J. Thompson, Senior Investment Analyst

Source: NASDAQ.COM

Updated: Jun 24 2025

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STKS+0.99%

Should l Buy STKS?

Source: NASDAQ.COM

Zacks Rank Upgrade: The ONE Group Hospitality, Inc. has been upgraded to a Zacks Rank #1 (Strong Buy) due to a significant increase in earnings estimates, indicating positive sentiment about its earnings outlook and potential stock price growth.
Earnings Estimate Revisions: Analysts have raised their earnings estimates for the company by 184.9% over the past three months, suggesting that the stock is positioned for near-term gains as it ranks among the top 5% of stocks based on estimate revisions.

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Analyst Views on STKS

Wall Street analysts forecast STKS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STKS is 5.00 USD with a low forecast of 5.00 USD and a high forecast of 5.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Analyst Rating

2 Buy

0 Hold

0 Sell

Moderate Buy

Current: 2.020

Low

5.00

Averages

5.00

High

5.00

Current: 2.020

Low

5.00

Averages

5.00

High

5.00

Lake Street

Buy

downgrade

2025-11-07

Reason

Lake Street

Price Target

AI Analysis

2025-11-07

downgrade

Buy

Reason

Lake Street lowered the firm's price target on One Group Hospitality to $5 from $5.50 and keeps a Buy rating on the shares after the company announced Q3 results that were lower than the firm's expectations.

Piper Sandler

Neutral

downgrade

$6 -> $5

2025-08-06

Reason

Piper Sandler

Price Target

$6 -> $5

2025-08-06

downgrade

Neutral

Reason

Piper Sandler lowered the firm's price target on One Group Hospitality to $5 from $6 and keeps a Neutral rating on the shares following quarterly results. On a positive note, same-store sales were positive at the Benihana brand for the second consecutive quarter. In addition, while same-store sales at the STK brand were firmly negative, traffic was positive for the third consecutive quarter; as management continues to run activities to drive traffic during the week, at the expense of average check. Finally, from a full year 2025e guidance perspective, the total revenue and adjusted EBITDA ranges were both reaffirmed, which is a good thing in this environment, Piper adds.

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About STKS

The ONE Group Hospitality, Inc. is an international restaurant company, which develops and operates upscale and polished casual, high-energy restaurants and lounges and provides hospitality management services for hotels, casinos, and other high-end venues. Its primary restaurant brands are STK, an American steakhouse concept featuring premium steaks, seafood and specialty cocktails; Benihana, an interactive dining destination with skilled chefs preparing food in front of guests and served in an energetic atmosphere alongside fresh sushi and cocktails; Kona Grill, a polished casual bar-centric grill concept featuring sushi, and specialty cocktails in a polished casual atmosphere, and RA Sushi, a Japanese cuisine concept that offers a bar-forward, upbeat, and vibrant dining atmosphere anchored by sushi, inventive drinks, and service. It owns, operates, manages, and franchises approximately 167 venues, including 30 STKs, 85 Benihanas, 27 Kona Grills and 16 RA Sushis.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

The ONE Group Hospitality, Inc. to Hold Earnings Conference Call and Webcast for Q3 2025 at 4:30 PM ET on November 6, 2025

Nov 05 2025Newsfilter

Conference Call Announcement: The ONE Group Hospitality, Inc. will host a conference call on November 6, 2025, at 4:30 PM ET to discuss its third quarter 2025 financial results, with a press release issued after market close that day.
Access Information: The conference call can be accessed by phone or via a webcast on The ONE Group's Investor Relations website, with replay options available until November 20, 2025.
Company Overview: The ONE Group is an international restaurant company known for upscale dining experiences, operating brands like STK, Benihana, and Kona Grill, and recognized as one of "America's Greatest Companies" by Newsweek in 2025.
Diverse Restaurant Concepts: The ONE Group offers a variety of dining experiences, including interactive teppanyaki at Benihana, modern steakhouses at STK, and vibrant sushi bars at RA Sushi, catering to both casual and upscale markets.

The ONE Group Hospitality, Inc. Names Nicole Thaung as CFO

Sep 08 2025Newsfilter

New CFO Appointment: Nicole Thaung has been appointed as Chief Financial Officer of The ONE Group Hospitality, effective September 8, 2025, succeeding Tyler Loy, who is leaving for other opportunities.
Experience and Impact: Thaung brings over 15 years of experience with Benihana, where she has served as CFO since 2018, and is expected to play a crucial role in realizing $20 million in synergies from the Benihana acquisition, which now constitutes over 55% of the company's total revenues.

Benihana Express Opens Second Location in Miami

Jul 28 2025Newsfilter

New Benihana Express Location: The ONE Group has opened a new Benihana Express in Miami's Bayside Marketplace, offering a fast casual dining experience with popular hibachi menu items. This is the second location in Miami, with plans for more openings in the future.
Franchise Growth Strategy: The CEO of The ONE Group emphasized that expanding Benihana Express through franchise agreements is crucial for their growth strategy, aiming to bring the brand's unique dining experience to a wider audience in a more accessible format.

Zacks Investment Ideas feature highlights: The ONE Group Hospitality and Legacy Education

Jul 09 2025NASDAQ.COM

Investment Opportunities: The ONE Group Hospitality (STKS) and Legacy Education Inc. (LGCY) are highlighted as promising small-cap stocks with strong growth forecasts, favorable valuations, and positive analyst sentiment amid a recovering market.
Market Performance: STKS has shown significant earnings improvement and technical momentum, while LGCY benefits from steady demand in healthcare education, making both companies attractive options for investors seeking breakout potential.