Here are two brief analogies to describe One Hospitality (STKS):

• Imagine the collection of upscale restaurants and nightclubs you'd find in a major casino resort like MGM Resorts or Caesars Entertainment, but operated by a standalone public company focused solely on those dining and entertainment venues.

• Like Darden Restaurants (operator of Olive Garden and LongHorn Steakhouse), but focused exclusively on high-end, experiential dining and nightlife brands (e.g., TAO, Hakkasan, Lavo).

• Restaurant Operations: Operates and manages a portfolio of upscale, high-energy restaurants and lounges, including brands like STK Steakhouse and Kona Grill.
• Hotel Food & Beverage Services: Provides comprehensive food and beverage concept development, management, and consulting services for luxury hotels.

One Hospitality (STKS) operates a portfolio of full-service restaurants, including brands like STK Steakhouse, Kona Grill, and Ocean Prime. As such, the company primarily sells directly to individuals. Its major customer categories include:

• Leisure and Special Occasion Diners: This category encompasses individuals and groups who visit One Hospitality's restaurants for celebrations such as birthdays, anniversaries, graduations, or simply for a premium dining experience on a night out. Their upscale concepts like STK Steakhouse and Ocean Prime are particularly popular for these types of events.
• Business and Corporate Diners: Many of One Hospitality's restaurants, especially those located in urban centers and business districts, serve professionals and companies utilizing their venues for business meetings, client entertainment, team dinners, and corporate events. The sophisticated ambiance and high-quality offerings cater well to this segment.
• Casual and Everyday Diners: This category includes individuals and families seeking a quality dining experience for regular meals, lunch outings, or less formal dinners. While some brands are more upscale, others like Kona Grill often attract a broader base looking for an elevated yet accessible dining option for everyday occasions.

• Sysco Corporation (SYY)

Emanuel "Manny" Hilario, President and Chief Executive Officer

Mr. Hilario has served as President and Chief Executive Officer of The ONE Group Hospitality, Inc. since October 30, 2017, and has been a member of its board of directors since April 2017. Prior to joining The ONE Group, he held the position of Chief Financial Officer (CFO) at Sizzling Platter. Before that, Mr. Hilario served as Chief Operations Officer for Einstein Noah Restaurant Group, Inc. He also previously served as CFO for Einstein Noah Restaurant Group, Inc., McCormick & Schmick's Seafood Restaurants, Inc., and Angelo and Maxie's, Inc. His career began at McDonald's, where he held various financial roles.

Nicole Thaung, Chief Financial Officer

Ms. Thaung was appointed Chief Financial Officer, effective September 8, 2025. She brings over 15 years of experience from Benihana, where she served as CFO since August 2018. Before becoming CFO at Benihana, Ms. Thaung held progressive leadership roles, including Vice President of Finance and Controller. Prior to joining Benihana in 2009, she spent nearly eight years at Ernst & Young LLP, with her last role as Audit Manager. Her leadership was instrumental in the seamless integration of the Benihana acquisition into The ONE Group Hospitality, Inc.

Caroline O'Mahony Baker, Vice President of Operations

Ms. O'Mahony Baker joined The ONE Group in 2008 and has served as Vice President of Operations since September 2018. With over 18 years of experience in the industry, she has a comprehensive understanding of the hospitality sector and The ONE Group's operations. She has overseen the opening of multiple properties and brands, including STK Miami, Asellina in New York, and the Gansevoort Hotel.

Daniel Cunningham, Chief Information Officer

Mr. Cunningham has served as Chief Information Officer of The ONE Group since January 2019. Before joining the company, he was the Managing Director and Founder of Tack Sharp Consulting LLC. Prior to founding his own firm, Mr. Cunningham held positions as Senior Vice President of Information Technology at Einstein Noah Restaurant Group, Inc. and Vice President of Information at McCormick & Schmick's Seafood Restaurants, Inc.

Here are the key risks to The ONE Group Hospitality (STKS) business:

1. Economic Conditions and Discretionary Spending: The company's performance is highly sensitive to general economic conditions, consumer preferences, and discretionary spending. Economic downturns, high unemployment, inflation, and shifts in consumer behavior towards more casual dining options can significantly reduce traffic and revenue at its upscale and polished casual restaurants.
2. Debt and Financing: The ONE Group Hospitality carries debt obligations, and its ability to manage and refinance this debt is a significant financial risk. High interest expenses have materially impacted the company's bottom line, and failure to successfully refinance these obligations could adversely affect its financial condition and results of operations.
3. Competition: The company operates within a highly competitive restaurant industry, facing numerous competitors across various dining segments. This competition can affect customer acceptance, pricing, and overall market share, particularly as consumers have many choices and may be influenced by promotional activities from lower-end dining establishments.

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Full-Service Restaurants (U.S.)

Hospitality Management Services (U.S.)

Entertainment Component (U.S.)

One Hospitality (STKS) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives aimed at expanding its footprint, optimizing its restaurant portfolio, and enhancing customer engagement.

Here are 3-5 expected drivers of future revenue growth:

1. New Venue Openings: The company plans to open 5 to 7 new venues in fiscal year 2025. This expansion into new locations is a direct driver of increased revenue capacity and market penetration.
2. Strategic Conversions of Underperforming Grill Units: One Hospitality is actively optimizing its portfolio by converting up to nine underperforming Grill units into its higher-performing Benihana or STK formats by the end of 2026. This strategy is expected to enhance overall portfolio quality, improve margin performance, and drive increased revenue from these optimized locations.
3. Accelerated Franchise Expansion: Franchise growth is gaining momentum, with new Benihana Express openings and expansion into non-traditional venues such as stadiums and airports. The company anticipates that franchise licenses and managed locations will account for over 60% of its total footprint, providing an asset-light growth model that contributes to recurring revenue streams.
4. Loyalty Program Growth and Digital Enhancements: The "Friends with Benefits" loyalty program is a significant driver, having reached over 6.5 million members with more than 200,000 new additions in the last quarter. Coupled with digital enhancements across brand websites that improve traffic and conversion rates, these initiatives aim to boost customer retention, engagement, and ultimately, sales.
5. Menu Innovation and Restaurant Redesigns: The introduction of new premium holiday menus, focusing on items like Wagyu and specialty seafood, aligns with consumer trends and is intended to drive higher check averages. Additionally, successful restaurant redesigns, such as the Benihana in San Mateo, which achieved record performance, are being implemented system-wide to increase seating capacity and directly boost revenue potential.

Share Repurchases

• In March 2024, the Board of Directors authorized a $5 million share repurchase program.
• The company repurchased 0.1 million shares for an aggregate consideration of $0.3 million during the first quarter of 2025.
• During the third quarter of 2025, an additional 0.1 million shares were purchased for an aggregate consideration of $0.2 million.

Share Issuance

• In May 2024, The ONE Group Hospitality, Inc. issued $160 million in Series A Preferred Stock, primarily to finance the acquisition of Safflower Holdings Corp.

Outbound Investments

• In May 2024, The ONE Group Hospitality, Inc. acquired Safflower Holdings Corp., which owns the majority of Benihana and all RA Sushi restaurants in the U.S. This acquisition significantly increased the company's total revenue.

Capital Expenditures

• Total capital expenditures (net) are projected to be between $45 million and $50 million for fiscal year 2025, with a focus on high-return opportunities such as new Benihana prototypes and STK restaurants.
• The company plans to open five to seven new venues in 2025, including STK restaurants in California and a Benihana restaurant in San Mateo, California.
• Net capital expenditures for new company-owned locations are estimated at $3-5 million per restaurant, and the company plans to reduce overall capital expenditures in the coming year to strengthen its balance sheet.