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DENVER - The ONE Group Hospitality, Inc. (NASDAQ:STKS) has secured its largest asset-light development agreement to date, planning ten Benihana-branded restaurants across the Greater San Francisco Bay Area, according to a company press release. The expansion comes as the company’s stock trades near its 52-week low of $1.75, down over 56% in the past six months. According to InvestingPro Fair Value analysis, STKS appears undervalued despite facing financial headwinds.
The agreement includes three Benihana franchise locations, two joint venture locations, and five Benihana Express licensed venues. The joint venture locations are expected to open in 2026, with the remaining restaurants scheduled to open over the next seven years.
The company also announced expansion of its presence in professional sports venues, with a renewed three-year concession agreement at Phoenix’s Mortgage Matchup Center and a new three-year Benihana concession at UBS Arena in Elmont, New York.
Two new company-owned STK restaurants opened during the fourth quarter of 2025 - one in Scottsdale, Arizona, converted from a former RA Sushi at a cost of approximately $1 million, and another in Oak Brook, Illinois, with an investment of approximately $1.5 million.
In product innovation, The ONE Group launched Benihana-branded Teriyaki Flavored Crispy Chicken Chips in collaboration with Flock Foods, extending the brand into the better-for-you snack category. The product is currently available online and will reach select retailers in early 2026.
For 2026, the company plans to prioritize capital-efficient growth by focusing on new company-owned locations requiring $1.5 million or less to open. The ONE Group has identified up to nine additional Kona Grill and RA Sushi locations for conversion to either Benihana or STK formats through the end of 2026, with each conversion expected to cost about $1 million.
The ONE Group Hospitality operates several restaurant brands including STK, Benihana, Kona Grill, and RA Sushi across the United States and internationally.
In other recent news, ONE Group Hospitality reported its third-quarter earnings for 2025, which revealed a significant miss in both earnings and revenue compared to forecasts. The company’s earnings per share were reported at -$0.75, which was much lower than the expected -$0.16, resulting in a surprise of -368.75%. Revenue also fell short, coming in at $180.2 million, compared to the anticipated $191.29 million, marking a surprise of -5.8%. These figures indicate a challenging quarter for ONE Group Hospitality. In light of these results, analysts and investors are closely monitoring the company’s future performance. The earnings release has prompted discussions among analysts regarding potential adjustments in stock ratings. Recent developments like these are essential for investors to consider when evaluating their positions. As the company navigates these financial challenges, further updates will be crucial for stakeholders.
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