The ONE Group's Q2 2025 Earnings Call: Unraveling Contradictions in Franchising, Sales, and Economic Impact

Franchising efforts and strategy, impact of consumer economic environment on traffic, Benihana sales performance and challenges, inflationary pressures and cost management, and liquidity and cash levels are the key contradictions discussed in The ONE Group Hospitality, Inc.'s latest 2025Q2 earnings call.



Revenue Growth and Strategic Initiatives:
- The ONE Group Hospitality, Inc. reported total consolidated GAAP revenues of $207.4 million for Q2 2025, up 20.2% from $172.5 million in the prior year.
- The growth was driven by the successful integration of the Benihana acquisition and continued execution of strategic initiatives, including marketing and operational efficiencies.

Benihana and STK Performance:
- Benihana achieved adjusted EBITDA of 18.5%, and STK locations showed adjusted EBITDA of 15.9%, with positive traffic trends at both brands.
- This performance was attributed to targeted marketing campaigns, enhancements in menu offerings, and operational synergies following the acquisition.

Operational Synergies and Cost Management:
- The company realized $20 million in expected synergies from the Benihana acquisition, with a full realization target by the end of 2026.
- These synergies were driven by operational efficiencies, culinary innovation, and marketing initiatives, contributing to top-line growth and profitability.

Asset-light Growth Strategy and Franchising Efforts:
- The ONE Group opened a new company-owned Benihana in San Mateo, which became the highest performing new location in the brand's history.
- The company is focusing on asset-light growth opportunities through franchising, with significant franchise interest in the Benihana brand, aiming for franchises to represent over 60% of their total footprint.