The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s take a look at how The ONE Group (NASDAQ:STKS) and the rest of the sit-down dining stocks fared in Q3.

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 14 sit-down dining stocks we track reported a mixed Q3; on average, revenues missed analyst consensus estimates by 0.8% Stocks have faced challenges as investors prioritize near-term cash flows, but sit-down dining stocks held their ground better than others, with the share prices up 13.6% on average since the previous earnings results.

Weakest Q3: 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 $76.88 million, up 5.3% year on year, falling short of analyst expectations by 7.7%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.

“Over the last 120 days, we have made significant progress on our long-term growth strategy and opened Kona Grill Riverton, STK Charlotte and Kona Grill Phoenix, all of which are off to strong starts. In addition, we anticipate opening five additional STK locations within the next six months, positioning us to capture great returns on already deployed capital for these locations. We are laser-focused on cost initiatives to improve restaurant-level margins and leverage our G&A while also delivering exceptional and unforgettable guest experiences to drive top-line momentum as we navigate this challenging environment. Our comparable sales and traffic results are significantly outperforming the industry when compared to the 2019 pre-pandemic base levels and our industry leading average unit volumes across both STK and Kona Grill provide us with great confidence in our long-term investment model,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.

The ONE Group delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. The stock is down 3.3% since the results and currently trades at $4.42.

Is now the time to buy The ONE Group? Access our full analysis of the earnings results here, it's free.

Best Q3: First Watch (NASDAQ:FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $219.2 million, up 17.3% year on year, outperforming analyst expectations by 1.2%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

The stock is up 27% since the results and currently trades at $21.24.

Is now the time to buy First Watch? Access our full analysis of the earnings results 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 $318.6 million, up 2.3% year on year, falling short of analyst expectations by 2.2%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is up 46.8% since the results and currently trades at $34.64.

Read our full analysis of BJ's's results here.

Red Robin (NASDAQ:RRGB)

Known for its bottomless steak fries, Red Robin (NASDAQ:RRGB) is a chain of casual restaurants specializing in burgers and general American fare.

Red Robin reported revenues of $277.6 million, down 3.2% year on year, in line with analyst expectations. It was a mixed quarter for the company, with revenue narrowly exceeding expectations, driven by better-than-expected same-store sales growth. On the other hand, its gross margin and adjusted EBITDA missed analysts' expectations.

The stock is up 22.9% since the results and currently trades at $9.86.

Read our full, actionable report on Red Robin here, it's free.

Cracker Barrel (NASDAQ:CBRL)

Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ:CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.

Cracker Barrel reported revenues of $823.8 million, down 1.9% year on year, falling short of analyst expectations by 0.5%. It was a weaker quarter for the company, with a miss of analysts' earnings estimates and full-year revenue guidance missing analysts' expectations.

The stock is down 1.1% since the results and currently trades at $74.32.

Read our full, actionable report on Cracker Barrel here, it's free.

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The author has no position in any of the stocks mentioned