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ONE Group (STKS) to Report Q4 Earnings: What's in the Cards?
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The ONE Group Hospitality, Inc. (STKS - Free Report) is scheduled to release fourth-quarter 2023 results on Mar 14. In the last reported quarter, the company posted a negative earnings surprise of 260%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at 14 cents, indicating a decline of 26.3% from 19 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $97 million. The metric suggests growth of 9.8% from the year-ago quarter’s figure.
The ONE Group Hospitality, Inc. Price and EPS Surprise
Let’s analyze the factors likely to impact the company’s performance in the quarter to be reported.
Factors at Play
ONE Group’s fourth-quarter top line is expected to increase from the year-ago quarter’s levels, courtesy of strength in digital engagement, momentum in event bookings and new store openings. This and the emphasis on planned seasonal offerings at STK and Kona Grill (for Thanksgiving, Christmas and New Year's Eve) and pricing optimizations are likely to have aided the company’s performance in the to-be-reported quarter.
The emphasis on everyday value offerings through the Happy Hour program, the night out menu featuring a comprehensive meal package at favorable prices and the promotion of happy hour deals via digital marketing efforts are likely to have attracted more customers in the reported quarter.
The Zacks Consensus Estimate for fourth-quarter owned restaurant revenues is pegged at $93 million, suggesting an increase from $84 million reported in the prior-year quarter.
Challenges such as wage inflation, elevated marketing expenses, and additional investments for new restaurant openings are expected to have exerted downward pressure on the company's bottom line in the fourth quarter.
What Our Model Says
Our proven model does not predict an earnings beat for ONE Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: ONE Group has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
McDonald's Corporation (MCD - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, MCD reported adjusted EPS of $2.95, outpacing the Zacks Consensus Estimate of $2.81. Adjusted earnings increased 11% year over year.
Quarterly net revenues of $6.4 billion missed the consensus mark of $6.5 billion. The top line rose 8% year over year. The upside was backed by menu price increases, effective marketing campaigns and continued digital and delivery growth.
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the top and the bottom line increased on a year-over-year basis.
During the quarter, YUMC reported adjusted EPS of 25 cents, beating the Zacks Consensus Estimate of 13 cents. The bottom line surged 92.3% from 13 cents reported a year ago.
Quarterly revenues of $2.5 billion outpaced the consensus mark of $2.4 billion. The top line rose 19.4% on a year-over-year basis. Excluding foreign currency translation, revenues increased 21% year over year. The upside can be attributed to net new unit contribution (12%) and same-store sales growth (4%).
Brinker International, Inc. (EAT - Free Report) reported mixed second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis. Effective marketing and pricing strategies backed the upside. Sequential improvements in guest traffic bode well.
During the quarter, EAT reported adjusted EPS of 99 cents, surpassing the Zacks Consensus Estimate of a loss of $1.47. The company reported adjusted EPS of 76 cents in the prior-year quarter.
Quarterly revenues of $1.07 billion missed the Zacks Consensus Estimate of $1.08 billion. However, the top line increased 5.4% on a year-over-year basis. EAT gained from Chili's solid performance.
Image: Bigstock
ONE Group (STKS) to Report Q4 Earnings: What's in the Cards?
The ONE Group Hospitality, Inc. (STKS - Free Report) is scheduled to release fourth-quarter 2023 results on Mar 14. In the last reported quarter, the company posted a negative earnings surprise of 260%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at 14 cents, indicating a decline of 26.3% from 19 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $97 million. The metric suggests growth of 9.8% from the year-ago quarter’s figure.
The ONE Group Hospitality, Inc. Price and EPS Surprise
The ONE Group Hospitality, Inc. price-eps-surprise | The ONE Group Hospitality, Inc. Quote
Let’s analyze the factors likely to impact the company’s performance in the quarter to be reported.
Factors at Play
ONE Group’s fourth-quarter top line is expected to increase from the year-ago quarter’s levels, courtesy of strength in digital engagement, momentum in event bookings and new store openings. This and the emphasis on planned seasonal offerings at STK and Kona Grill (for Thanksgiving, Christmas and New Year's Eve) and pricing optimizations are likely to have aided the company’s performance in the to-be-reported quarter.
The emphasis on everyday value offerings through the Happy Hour program, the night out menu featuring a comprehensive meal package at favorable prices and the promotion of happy hour deals via digital marketing efforts are likely to have attracted more customers in the reported quarter.
The Zacks Consensus Estimate for fourth-quarter owned restaurant revenues is pegged at $93 million, suggesting an increase from $84 million reported in the prior-year quarter.
Challenges such as wage inflation, elevated marketing expenses, and additional investments for new restaurant openings are expected to have exerted downward pressure on the company's bottom line in the fourth quarter.
What Our Model Says
Our proven model does not predict an earnings beat for ONE Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: ONE Group has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Retail-Wholesale Releases
McDonald's Corporation (MCD - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, MCD reported adjusted EPS of $2.95, outpacing the Zacks Consensus Estimate of $2.81. Adjusted earnings increased 11% year over year.
Quarterly net revenues of $6.4 billion missed the consensus mark of $6.5 billion. The top line rose 8% year over year. The upside was backed by menu price increases, effective marketing campaigns and continued digital and delivery growth.
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the top and the bottom line increased on a year-over-year basis.
During the quarter, YUMC reported adjusted EPS of 25 cents, beating the Zacks Consensus Estimate of 13 cents. The bottom line surged 92.3% from 13 cents reported a year ago.
Quarterly revenues of $2.5 billion outpaced the consensus mark of $2.4 billion. The top line rose 19.4% on a year-over-year basis. Excluding foreign currency translation, revenues increased 21% year over year. The upside can be attributed to net new unit contribution (12%) and same-store sales growth (4%).
Brinker International, Inc. (EAT - Free Report) reported mixed second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis. Effective marketing and pricing strategies backed the upside. Sequential improvements in guest traffic bode well.
During the quarter, EAT reported adjusted EPS of 99 cents, surpassing the Zacks Consensus Estimate of a loss of $1.47. The company reported adjusted EPS of 76 cents in the prior-year quarter.
Quarterly revenues of $1.07 billion missed the Zacks Consensus Estimate of $1.08 billion. However, the top line increased 5.4% on a year-over-year basis. EAT gained from Chili's solid performance.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.