STK and its sibling concepts gain momentum

STK and its sibling concepts gain momentum

Joe Guszkowski

Thu, August 6, 2026 at 7:44 PM GMT+3 3 min read

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The One Group said all of its restaurant brands gained market share last quarter.

Traffic was up at STK, Benihana, Kona Grill, and Ra Steak & Sushi during the three months ended June 28, an encouraging sign after a sluggish few years for the company.

STK same-store sales rose 3.2% year over year, while Benihana same-store sales increased by 0.8%. Same-store sales for Kona and Ra declined a combined 2.9%.

Consolidated same-store sales rose 0.9%, their first increase since the first quarter of 2023.

Traffic might have been even better had it not been for the World Cup, which drew customers away in the evenings and on weekends toward the end of the quarter. A heat wave in some Benihana markets also kept some customers away, executives said.

Executives credited a bevy of efforts to drive traffic, particularly a focus on value.

A "$3 $6 $9 Happy Hour" at STK has been popular, for instance, as has a Steak Night promotion offering a three-course dinner for $49 per person on weeknights.

At the same time, customers have been willing to spend more on special occasions. Mother's Day, Father's Day, and graduation season were strong across all of One Group's brands.

The company has also been making strides on the bottom line thanks to better "operational discipline," and that continued in the second quarter.

One Group's consolidated restaurant-level margins improved to 16.4%, from 15.3% a year ago. STK's improved by 130 basis points, to 17.4%.

And the company's operating cash flow for the first six months of 2026 reached $33 million, up from $11 million last year. It used $6 million of that to pay down debt.

However, overall revenue declined by 3.3% in the quarter, to $200.5 million, mainly due to the closure of Kona and Ra locations, five of which that are set to be converted to STKs or Benihanas.

One Group also downgraded its revenue expectations for the year by $35 million and narrowed its same-store sales growth expectations to 1% to 2%, from 1% to 3%.

Executives said the downgrade reflects the company's shift toward franchising. Most of One Group's openings for the rest of the year will be franchisee-operated, and it is also considering franchising some of the converted Benihanas and STKs. Some of those conversions have been pushed back to the end of the year.

"The trade-off here is that we'll have less revenues, and the efficiencies will drive the royalties without having to spend the capital," CEO Manny Hilario said during a call with analysts Wednesday, according to a transcript from financial services site AlphaSense.

The company is particularly excited about franchising opportunities for Benihana Express, a fast-casual version of the Japanese concept that does not include teppanyaki grills or a bar. The smaller restaurants can generate $1 million a year with lower costs for construction, food, and labor.

"We believe these economics will make the Benihana Express plan highly marketable to the franchise community and its flexible footprint is easy and replicable in many markets," Hilario said.

There is currently one company-owned Express open with another under construction, while a franchised location is in development.

Denver-based One Group has 157 locations in 31 states and 11 countries.