Why The ONE Group (STKS) Stock Is Trading Lower Today

What Happened?

Shares of upscale restaurant company The One Group Hospitality (NASDAQ:STKS) fell 11.1% in the afternoon session after the company reported disappointing second-quarter 2025 financial results that missed analyst expectations on both revenue and earnings. The upscale restaurant operator posted earnings per share of $0.05, which fell significantly short of the $0.09 consensus forecast. While total revenue grew 20.2% year-over-year to $207.4 million, it still missed estimates. A key point of concern for investors was a 4.1% decline in same-store sales, a metric that tracks performance at existing locations. The company’s net loss also widened to $10.1 million from $7.3 million in the prior year, and it issued a weak revenue forecast for the next quarter, signaling potential challenges ahead.

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What Is The Market Telling Us

The ONE Group’s shares are extremely volatile and have had 55 moves greater than 5% over the last year. But moves this big are rare even for The ONE Group and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 13 days ago when the stock dropped 4.8% on the news that investment bank Piper Sandler initiated coverage on the stock with a "Neutral" rating. The initiation came with a price target of $6.00 per share. While this target suggested potential upside from recent trading levels, the lack of a strong bullish endorsement may have prompted a sell-off from investors who were hoping for a more positive catalyst. Adding to the negative sentiment, an insider, David Kanen, sold a significant number of shares in the preceding days, with transactions totaling over $1.5 million. This series of sales by a key insider likely increased investor concern ahead of the lukewarm analyst report.

The ONE Group is down 4.9% since the beginning of the year, and at $2.69 per share, it is trading 47.6% below its 52-week high of $5.13 from July 2025. Investors who bought $1,000 worth of The ONE Group’s shares 5 years ago would now be looking at an investment worth $1,949.

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