Of Rayk Riechmann

What about the steak and a show for dinner and the best growth of dessert?

Investors can only enjoy the Group Hospitality, Inc. (NASDAQ: STKS), operator of 167 dining rooms driven by experience, under a combination of ownership models between 32 states and 12 countries. Demand for experiential luxury foods, also known as a “environment” dining room, increases, especially among higher households. STKS is perfectly positioned to benefit from this change with a prominent brand of Stk Steakhouse and Kona Grill – along with Newly acquired saffron holiesBenhahana relative of world fame (known for the performances of chefs of the Hibachi band) and Ra Sushi.

Multiple forces feed our prospects for 2025. First is the acquisition of saffron of $ 365 million last year, which increased 100% of revenue and an increase of 130% in Ebitda. Benihana brings more than 80 places to the STKS portfolio, which also has some franchise restaurants that allow an internationally assets expansion of light. The margin profile of these restaurants is even better than the existing portfolio, which will help increase global profitability.

The agreement also generated efficiency: the adjusted expenses of G&A and the cost of sales decreased in a percentage of sales, reflecting a successful performance of synergy. Diversification in digital sales and out of premise with Benihana (take away and deliver 12% of income) and Sushi RA (20% digital sales and out of premise) balances the predominantly nature of Stk and Kona Grill.

In order to achieve its long -term growth goal of reducing $ 5 billion in the entire system, the company devised a strategy focused on both financial and growth. Stks plans to promote sales from the same store, cut out general costs and expand their footprint through licensing and management offers.

Throughout 2024, institutional owners such as Goldman Sachs, JPMORGAN Chase & Co and Jane Street have increased their property. Some made very important purchases, such as Deutsche Bank, which increased their participation by 839%.

At the moment, STKS shares are on sale. The company is traded with a business value, adjusted by debt, only 5.2 times Ebitda. It is less than half of the multiple commanded by Brinker International, Inc. and The Cheesecake Factory Inc.

The guests are trapped by sushi, steak and seafood, and investors for an attractive valuation with many growth levers. The appetites for delights and returns are equally satisfied. Click below to read our detailed starting report.