The ONE Group (STKS) Q4 Earnings: What To Expect

Kayode Omotosho /
2024/03/13 3:01 am EDT

Upscale restaurant company The One Group Hospitality (NASDAQ:STKS) will be announcing earnings results tomorrow after market close. Here's what to expect.

Last quarter The ONE Group reported revenues of $76.88 million, up 5.3% year on year, missing analyst expectations by 7.7%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.

Is The ONE Group buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting The ONE Group's revenue to grow 11% year on year to $98.04 million, improving on the 5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.

The ONE Group Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates five times over the last two years.

Looking at The ONE Group's peers in the sit-down dining segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Cracker Barrel delivered top-line growth of 0.2% year on year, beating analyst estimates by 1.9% and The Cheesecake Factory reported revenue decline of 1.8% year on year, exceeding estimates by 0.1%. Cracker Barrel traded up 1.3% on the results, and The Cheesecake Factory was up 3.2%.

Read our full analysis of Cracker Barrel's results here and The Cheesecake Factory's results here.

There has been positive sentiment among investors in the sit-down dining segment, with the stocks up on average 5% over the last month. The ONE Group is down 10% during the same time, and is heading into the earnings with analyst price target of $8.5, compared to share price of $3.51.

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