The ONE Group Hospitality Shines Despite Challenging Times: Strong Execution and Brand Revitalization Drive Growth
The ONE Group Hospitality recently reported its fourth-quarter earnings, showcasing resilience in a tough market. CEO Nicole Thaung highlighted the company's focus on execution and creating memorable experiences for guests across all brands.
Despite a 20% year-over-year revenue growth to $805 million in full-year 2025, driven primarily by the inclusion of Benihana for all twelve periods, comparable sales declined approximately 3.7%. The fourth-quarter revenue was $207 million compared to $222 million in the prior year quarter.
The decline in revenue was attributed to two main factors: portfolio optimization actions, including the closure of underperforming RA Sushi and Kona Grill locations, which reduced near-term revenue but improved the quality and durability of the portfolio. The fiscal calendar shift also resulted in a fiscal year of only 362 days, with one fewer operating day, affecting quarterly sales.
However, all brands demonstrated sequential improvement in comparable sales during the quarter, with fourth-quarter consolidated comparable sales declining approximately 1.8%, representing about four points of sequential improvement from the third quarter. This momentum has accelerated to 2026, marking a significant inflection point for the business and demonstrating sustained execution.
The company's brands are showing signs of revitalization, with Benihana and STK reporting positive sales year-to-date, and Kona Grill's turnaround gaining traction. While year-to-date comparable sales are down mid-single digits, transactions are positive, representing the best same-store performance for the brand since the beginning of 2023.
CEO Nicole Thaung emphasized that consumer confidence sits at historical lows, making the company's achievement even more meaningful. CFO Manny Hilario also expressed appreciation for the team's execution and commitment to upholding the Vibe Dining experience across all brands.
The ONE Group Hospitality's ability to execute consistently in a challenging environment is a testament to its focus on delivering memorable experiences for guests and driving long-term growth.
