As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at sit-down dining stocks, starting with The ONE Group (NASDAQ: STKS).
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 13 sit-down dining stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 2.4% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.5% since the latest 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 $221.9 million, up 147% year on year. This print exceeded analysts’ expectations by 1.9%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates and full-year EBITDA guidance slightly missing analysts’ expectations.
“We were pleased that annual revenue and adjusted EBITDA reached the higher end of our guided ranges. These achievements were due to a sequentially stronger fourth quarter characterized by our best comparable sales of the year, positive transactions at STK, and improved sales performance at Benihana fueled by our new initiatives. For both the full year and recent quarter, adjusted EBITDA growth exceeded top-line growth, showcasing our capability to achieve greater profitability through the elimination of duplicate administrative costs, supply chain synergies, and tight cost management within our preexisting business. By year-end 2026, we intend to capture $20 million in total savings across these three areas,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.
The ONE Group scored the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 13.7% since reporting and currently trades at $2.60.
Read our full report on The ONE Group here, it’s free.
Best Q4: Brinker International (NYSE: EAT)
Founded by Norman Brinker in Dallas, Brinker International (NYSE: EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Brinker International reported revenues of $1.36 billion, up 26.5% year on year, outperforming analysts’ expectations by 9.6%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Brinker International scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 13.7% since reporting. It currently trades at $133.46.
Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $972 million, down 18.6% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.
Bloomin' Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 33.4% since the results and currently trades at $7.93.
Read our full analysis of Bloomin' Brands’s results here.
Texas Roadhouse (NASDAQ: TXRH)
With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.
Texas Roadhouse reported revenues of $1.44 billion, up 23.5% year on year. This number surpassed analysts’ expectations by 2%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
The stock is down 2.2% since reporting and currently trades at $167.90.
Read our full, actionable report on Texas Roadhouse here, it’s free.
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 $344.3 million, up 6.4% year on year. This result beat analysts’ expectations by 2.3%. Overall, it was a stunning quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ same-store sales estimates.
The stock is down 10.9% since reporting and currently trades at $31.81.
Read our full, actionable report on BJ's here, it’s free.
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