Q1 Rundown: The ONE Group (NASDAQ:STKS) Vs Other Sit-Down Dining Stocks
Let's dig into the relative performance of The ONE Group (NASDAQ:STKS) and its peers as we unravel the now-completed Q1 sit-down dining earnings season.
Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.
The 12 sit-down dining stocks we track reported a mixed Q1; on average, revenues missed analyst consensus estimates by 1%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the sit-down dining stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.8% on average since the previous earnings results.
The ONE Group (NASDAQ:STKS)
Doubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ:STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill.
The ONE Group reported revenues of $85 million, up 3% year on year, falling short of analysts' expectations by 3%. It was a slower quarter for the company, with a miss of analysts' earnings and revenue estimates.
"We grew our top-line, held restaurant-level margins stable, improved G&A as a percentage of revenue, and delivered adjusted EBITDA nearly even with the prior year despite the choppy consumer environment. We are pleased that the cost savings initiatives implemented in 2023 are working effectively and they will be even more evident upon the return to a more normalized sales environment. Our priorities remain driving sales through initiatives such as our elevated food program, national happy hour offerings, and social media-driven marketing campaigns, while maintaining disciplined control over restaurant-level operating costs and general and administrative expenses,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.
The ONE Group achieved the highest full-year guidance raise of the whole group. The stock is up 13.9% since the results and currently trades at $5.48.
Read our full report on The ONE Group here, it's free.
Best Q1: BJ's (NASDAQ:BJRI)
Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.
BJ's reported revenues of $337.3 million, down 1.2% year on year, in line with analysts' expectations. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 4.9% since the results and currently trades at $34.35.
Is now the time to buy BJ's? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Dine Brands (NYSE:DIN)
Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.
Dine Brands reported revenues of $206.2 million, down 3.5% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company, with a miss of analysts' revenue and earnings estimates.
The stock is down 10.2% since the results and currently trades at $39.2.
Read our full analysis of Dine Brands's results here.
Bloomin' Brands (NASDAQ:BLMN)
Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Bloomin' Brands reported revenues of $1.20 billion, down 4% year on year, inline with analysts' expectations. It was a slower quarter for the company, with underwhelming earnings guidance for the next quarter and a miss of analysts' earnings estimates.
The stock is down 15.1% since the results and currently trades at $21.2.
Read our full, actionable report on Bloomin' Brands here, it's free.
Chuy's (NASDAQ:CHUY)
Known for its ‘Big As Yo' Face’ burritos, Chuy’s (NASDAQ:CHUY) is a casual restaurant chain that specializes in Tex-Mex fare, which combines elements of traditional Mexican cuisine with Southern American cooking.
Chuy's reported revenues of $110.5 million, down 1.8% year on year, falling short of analysts' expectations by 1.1%. It was a solid quarter for the company, with an impressive beat of analysts' gross margin estimates and a decent beat of analysts' earnings estimates.
The stock is down 12.7% since the results and currently trades at $26.01.
Read our full, actionable report on Chuy's here, it's free.
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