ONE Group reports 0.9% same-store sales rise in Q2

The ONE Group Hospitality reported a 0.9% rise in same-store sales for the second quarter, driven by traffic gains across all segments, even as planned closures cut total revenue to $200.5 million, down 3.3% from a year ago.

The company’s recovery reflects a broader stabilization in dining demand, with transactions turning positive after a string of quarterly declines. Despite revenue pressure from permanent closures and a delayed New York STK relocation, management pointed to growing market share and a more selective consumer base. Higher marketing and administrative costs weighed on profits, but procurement savings added 1.1 percentage points to restaurant margins, cushioning the blow.

Restaurant-level profitability improved sharply, with STK leading the rebound at 3.2% same-store sales growth, Benihana up 0.8%, and Grill Concepts narrowing its decline to 2.9%—all while transactions turned positive across the board. Operating cash flow nearly tripled to $33 million in the first half, and capital spending fell 38%, giving the company more flexibility to pay down debt and refinance. The group’s asset-light strategy, including new Benihana Express outlets, is boosting returns and capital efficiency, even as a softer development schedule pushes some growth plans into 2026.

Shares still trade well below book value, but analysts see upside if traffic keeps rising and the company sticks to its lower-capital growth plan. The revised 2026 outlook assumes fewer owned openings and deferred conversions, not weaker demand. With comparable sales now back in positive territory and cash conversion improving, the group is positioning itself for a potential valuation rerating as leverage falls and unit economics tighten.