One Group Hospitality Q3 revenue dips, misses estimates

Overview

• US restaurant operator's Q3 revenue fell 1.8%, missing analyst expectations

• Q3 restaurant operating profit margin expanded by 190 basis points

Outlook

• Company sees full-year 2026 GAAP revenues of $800 mln to $810 mln

• Company expects 2026 consolidated adjusted EBITDA of $95 mln to $100 mln

Result Drivers

• TRANSACTION GROWTH - Co said positive transaction growth and improved margins were driven by operational initiatives and brand strength

• SUPPLY CHAIN AND MENU - Co attributed higher restaurant operating profit margin to beef strategy, supply chain initiatives and menu optimization

• BRAND PERFORMANCE - Co said Benihana brand led transaction growth, with Vibe Dining concepts and value messaging attracting guests

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for One Group Hospitality Inc is $4.40, about 272.9% above its November 3 closing price of $1.18

Reuters Recommended Reads

• Nov 4 - McDonald's Q3 revenue misses estimates on weaker US comparable sales

• Nov 4 - Applebee's owner Dine Brands beats Q3 sales estimates on value, menu innovation

• Nov 3 - Yum Brands tops Q3 adjusted EPS estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)