GEN Restaurant Group, Inc. Announces Fourth Quarter and Full Year 2024 Financial Results
GEN Restaurant Group (GENK) reported strong financial results for Q4 and full year 2024. Total revenue grew 21.2% year-over-year to $54.7 million in Q4 and increased 15.1% to $208.4 million for 2024, exceeding company guidance. The company achieved restaurant-level adjusted EBITDA margins of approximately 18% for 2024.
Key highlights include: opening nine new locations since March 2024, launching international expansion into South Korea with two planned locations in 2025, and initiating a successful Costco gift card program. The company maintains a strong financial position with $23.7 million in cash and no material long-term debt.
However, comparable restaurant sales decreased 4.8% in Q4 2024 compared to the same period last year. The Board approved a $5 million stock buyback program, and Q1 2025 is showing positive momentum with comparable restaurant sales increasing 1% through February.
GEN Restaurant Group (GENK) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024. Il fatturato totale è cresciuto del 21,2% rispetto all'anno precedente, raggiungendo i 54,7 milioni di dollari nel Q4 e aumentando del 15,1% a 208,4 milioni di dollari per il 2024, superando le previsioni aziendali. L'azienda ha raggiunto margini EBITDA rettificati a livello di ristorante di circa il 18% per il 2024.
Tra i punti salienti ci sono: l'apertura di nove nuove sedi da marzo 2024, il lancio dell'espansione internazionale in Corea del Sud con due sedi pianificate per il 2025 e l'avvio di un programma di buoni regalo Costco di successo. L'azienda mantiene una posizione finanziaria solida con 23,7 milioni di dollari in contante e nessun debito a lungo termine significativo.
Tuttavia, le vendite dei ristoranti comparabili sono diminuite del 4,8% nel Q4 2024 rispetto allo stesso periodo dell'anno scorso. Il Consiglio ha approvato un programma di riacquisto di azioni da 5 milioni di dollari, e il primo trimestre del 2025 mostra un slancio positivo con un aumento delle vendite dei ristoranti comparabili dell'1% fino a febbraio.
GEN Restaurant Group (GENK) informó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. Los ingresos totales crecieron un 21.2% interanual, alcanzando los 54.7 millones de dólares en el Q4 y aumentando un 15.1% a 208.4 millones de dólares para 2024, superando las expectativas de la empresa. La compañía logró márgenes de EBITDA ajustados a nivel de restaurante de aproximadamente el 18% para 2024.
Los aspectos destacados incluyen: la apertura de nueve nuevas ubicaciones desde marzo de 2024, el lanzamiento de la expansión internacional hacia Corea del Sur con dos ubicaciones planeadas para 2025, y el inicio de un exitoso programa de tarjetas de regalo de Costco. La empresa mantiene una sólida posición financiera con 23.7 millones de dólares en efectivo y sin deuda a largo plazo significativa.
No obstante, las ventas de restaurantes comparables disminuyeron un 4.8% en el Q4 2024 en comparación con el mismo período del año pasado. La Junta aprobó un programa de recompra de acciones de 5 millones de dólares, y el primer trimestre de 2025 muestra un impulso positivo con un aumento del 1% en las ventas de restaurantes comparables hasta febrero.
GEN Restaurant Group (GENK)는 2024년 4분기 및 연간 실적이 강력하다고 보고했습니다. 총 수익은 지난해 대비 21.2% 증가하여 4분기에 5470만 달러에 달했으며, 2024년에는 15.1% 증가한 2억 840만 달러를 기록하여 회사의 가이던스를 초과했습니다. 회사는 2024년 기준으로 약 18%의 조정된 EBITDA 마진을 달성했습니다.
주요 하이라이트로는 2024년 3월 이후 9개의 새로운 매장을 열고, 2025년에는 한국으로의 국제 확장을 위한 두 개의 매장을 계획하고 있으며, 성공적인 Costco 기프트 카드 프로그램을 시작한 것입니다. 회사는 2370만 달러의 현금을 보유하고 있으며, 중대한 장기 부채가 없는 강력한 재무 위치를 유지하고 있습니다.
하지만, 2024년 4분기 비교 가능한 레스토랑 매출은 지난해 같은 기간 대비 4.8% 감소했습니다. 이사회는 500만 달러 규모의 자사주 매입 프로그램을 승인했으며, 2025년 1분기는 2월까지 비교 가능한 레스토랑 매출이 1% 증가하는 긍정적인 모멘텀을 보이고 있습니다.
GEN Restaurant Group (GENK) a annoncé des résultats financiers solides pour le quatrième trimestre et pour l'année complète 2024. Le chiffre d'affaires total a augmenté de 21,2 % d'une année sur l'autre, atteignant 54,7 millions de dollars au Q4 et augmentant de 15,1 % à 208,4 millions de dollars pour 2024, dépassant les prévisions de l'entreprise. La société a atteint des marges EBITDA ajustées au niveau des restaurants d'environ 18 % pour 2024.
Les points forts incluent : l'ouverture de neuf nouveaux établissements depuis mars 2024, le lancement d'une expansion internationale en Corée du Sud avec deux établissements prévus pour 2025, et le lancement d'un programme de cartes-cadeaux Costco réussi. L'entreprise maintient une solide position financière avec 23,7 millions de dollars en liquidités et aucune dette à long terme significative.
Cependant, les ventes comparables des restaurants ont diminué de 4,8 % au Q4 2024 par rapport à la même période l'année dernière. Le Conseil a approuvé un programme de rachat d'actions de 5 millions de dollars, et le premier trimestre 2025 montre une dynamique positive avec une augmentation des ventes comparables des restaurants de 1 % jusqu'en février.
GEN Restaurant Group (GENK) hat starke finanzielle Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 gemeldet. Der Gesamtumsatz stieg im Jahresvergleich um 21,2 % auf 54,7 Millionen USD im 4. Quartal und um 15,1 % auf 208,4 Millionen USD für 2024, was die Unternehmensprognosen übertraf. Das Unternehmen erreichte eine bereinigte EBITDA-Marge auf Restaurantebene von etwa 18 % für 2024.
Zu den wichtigsten Highlights gehören: die Eröffnung von neun neuen Standorten seit März 2024, der Start der internationalen Expansion nach Südkorea mit zwei geplanten Standorten im Jahr 2025 und die Einleitung eines erfolgreichen Costco-Geschenkkartenprogramms. Das Unternehmen hat eine starke finanzielle Position mit 23,7 Millionen USD in bar und keinen wesentlichen langfristigen Schulden.
Die vergleichbaren Restaurantumsätze sanken jedoch im 4. Quartal 2024 um 4,8 % im Vergleich zum gleichen Zeitraum des Vorjahres. Der Vorstand genehmigte ein Aktienrückkaufprogramm in Höhe von 5 Millionen USD, und das 1. Quartal 2025 zeigt mit einem Anstieg der vergleichbaren Restaurantumsätze um 1 % bis Februar einen positiven Trend.
- Revenue grew 21.2% YoY to $54.7M in Q4
- Full year revenue increased 15.1% to $208.4M
- Strong 18% restaurant-level adjusted EBITDA margins
- Healthy cash position of $23.7M with no material long-term debt
- International expansion into South Korea planned
- Q1 2025 showing 1% comparable sales growth
- $5M stock buyback program approved
- Comparable restaurant sales declined 4.8% in Q4 2024
- Net loss of $1.2M in Q4 2024
- Cost of goods sold increased 146 basis points in Q4
- Pre-opening expenses increased to $7.6M from $3.7M YoY
- Net income decreased from $11.5M in 2023 to $4.9M in 2024
Insights
GEN Restaurant Group's Q4 and full-year 2024 results demonstrate strong expansion momentum despite same-store sales headwinds. Total revenue grew 21.2% year-over-year to
Restaurant-level adjusted EBITDA margins approaching
What's particularly encouraging is the
With
GEN's Q4 results showcase a restaurant operator executing a textbook growth strategy, balancing aggressive unit expansion with careful attention to unit-level economics. The
The cost structure analysis reveals important operational dynamics: Cost of goods sold increased 146 basis points in Q4 year-over-year, reflecting both new restaurant inefficiencies and their premium menu initiative. However, this was largely offset by a 128-basis-point improvement in labor costs, demonstrating effective scheduling and productivity management despite wage pressures.
The shift to positive comparable sales in early 2025 (
The South Korea expansion represents a fascinating strategic pivot - bringing Korean BBQ back to its cultural origin, but with GEN's Americanized model. This could establish valuable supply chain synergies while providing a showcase market for potential Asian expansion.
The successful Costco gift card program implementation indicates savvy marketing beyond traditional channels, helping drive trial visits and introducing new customers to the high-margin Korean BBQ experience where alcohol and premium proteins drive check averages upward.
2024 Total Revenue of
Strong Start to 2025 with Comparable Restaurant Sales for Q1 Quarter-to-Date Increasing
Company Remains on Track with New Unit Openings for 2025
CERRITOS, Calif., March 06, 2025 (GLOBE NEWSWIRE) -- GEN Restaurant Group, Inc. (“GEN” or the “Company”) (Nasdaq: GENK), owner of GEN Korean BBQ, a fast-growing casual dining concept with an extensive menu and signature “grill at your table” experience, is announcing financial results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter and Full Year 2024 Financial and Recent Operational Highlights
- Total revenue grew
21.2% year-over-year to$54.7 million for the fourth quarter and increased15.1% to$208.4 million for 2024. - Achieved restaurant-level adjusted EBITDA(1) margins approaching
18% of total revenue for 2024. - Adjusted EBITDA(1) increased
25.0% to$2.1 million and3.8% of revenue inclusive of pre-opening expense of$1.6 million for the fourth quarter and was$16.7 million and8.0% of revenue inclusive of pre-opening expense of approximately$5.3 million for the full year. - GEN opened nine new locations since March 2024, including six locations in 2024 and three locations in early 2025 that were originally planned for 2024. The Company expects to open 10-13 new units in 2025, excluding the three delayed locations from 2024.
- Introduces international expansion into South Korea with at least two Company-owned locations slated to open in 2025.
- Net income before income taxes for the full year was
$4.9 million , which equated to$0.13 per diluted share of Class A common stock. - Adjusted net income(1) for the full year of 2024 was
$7.4 million , which equated to$0.21 per diluted share of Class A common stock. - Initiated a successful gift card program with Costco in 2024.
- Cash and cash equivalents at December 31, 2024 was
$23.7 million . - As a sign of confidence in the Company’s future, the Board of Directors have approved a stock buyback program for up to
$5 million .
(1) Adjusted EBITDA, restaurant-level adjusted EBITDA, and adjusted net income are non-GAAP measures. For reconciliations of adjusted EBITDA, restaurant-level adjusted EBITDA, and adjusted net income to the most directly comparable GAAP measure see the accompanying financial tables. For definitions and a discussion of why we consider them useful, see “Non-GAAP Measures” below.
Management Commentary
“Closing out 2024, we achieved our highest total annual revenue figure as a public company while maintaining healthy unit level economics as demonstrated by our results,” said David Kim, Chairman and Chief Executive Officer of GEN. “Driven by the success of new restaurants, for the year we delivered an impressive
“Moving into 2025, our priority remains on executing our growth initiatives and capitalizing on the growing demand for Korean BBQ. We’re very pleased to report that our first quarter comparable restaurant sales through the end of February returned to positive growth of
Fourth Quarter 2024 Financial Results
Total revenue increased
Total restaurant operating expenses (excluding pre-opening expenses) as a percentage of revenue decreased 58 basis points to
- Cost of goods sold increased by 146 basis points compared to the fourth quarter of 2023, largely due to a higher restaurant count and the premium menu.
- Payroll and benefits decreased 128 basis points compared to the fourth quarter of 2023.
- Occupancy costs increased 27 basis points compared to the fourth quarter of 2023, largely due to the six new restaurant openings over the last twelve months.
- Other operating costs decreased by 137 basis points compared to the fourth quarter of 2023.
- Depreciation and amortization increased 34 basis points compared to the fourth quarter of 2023.
- Restaurant pre-opening expenses increased to
$2.3 million for the fourth quarter of 2024 from$1.6 million in the fourth quarter of 2023 due to additional new restaurant openings compared to the year ago period.
General and administrative expenses increased to
Net loss before income taxes was
Adjusted EBITDA increased
2024 Financial Results
Revenue increased
Total restaurant operating expenses before pre-opening expenses as a percentage of revenue increased 146 basis points to
- Cost of goods sold increased 76 basis points primarily due to higher costs associated with the launch of the premium menu and increased restaurant count.
- Payroll and benefits decreased 56 basis points.
- Occupancy costs increased 31 basis points primarily due to the six new restaurants opened in the past twelve months.
- Other operating costs increased 37 basis points.
- Depreciation and amortization increased 58 basis points.
- Restaurant pre-opening expenses increased to
$7.6 million for 2024 from$3.7 million in 2023 due to a higher volume of new store openings.
General and administrative expenses excluding non-cash stock compensation expense increased year-over-year to
Net income before income taxes was
Adjusted EBITDA was
As of December 31, 2024, the Company had
Non-GAAP Measures
Restaurant-level adjusted EBITDA represents income (loss) from operations plus adjustments to add-back the following expenses: depreciation and amortization, pre-opening costs, general and administrative expenses, related party consulting fees, management fees and non-cash lease expense. Management believes that restaurant-level adjusted EBITDA is useful to investors because this measure highlights trends in our core business that may not otherwise be apparent to investors when relying solely on GAAP financial measures and enabling investors to more effectively compare the Company’s performance to prior and future periods.
Adjusted EBITDA represents net income (loss) before net interest expense, income taxes, depreciation and amortization, and consulting fees paid to a related party and we also exclude non-recurring items, such as stock-based compensation expense, gain on extinguishment of debt, and Restaurant Revitalization Fund, or RRF, grants, employee retention credits, litigation accruals, aborted deferred IPO costs written off, non-cash lease expenses and non-cash lease expense related to pre-opening costs. Management believes that restaurant-level adjusted EBITDA is useful to investors because this measure highlights trends in our core business that may not otherwise be apparent to investors when relying solely on GAAP financial measures and enabling investors to more effectively compare the Company’s performance to prior and future periods.
Adjusted Net Income represents net income plus non-cash stock-based compensation net of the tax impact. Management believes that adjusted net income is useful to investors because this measure highlights trends in our core business that may not otherwise be apparent to investors when relying solely on GAAP financial measures and enabling investors to more effectively compare the Company’s performance to prior and future periods.
Conference Call
GEN will conduct a conference call today at 5:00 p.m. Eastern time to discuss its financial results for the fourth quarter and full year 2024 ended December 31, 2024.
Chairman and Chief Executive Officer David Kim and Chief Financial Officer Tom Croal will host the conference call, followed by a question-and-answer session.
Date: Thursday, March 6, 2025
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-844-825-9789
International dial-in number: 1-412-317-5180
Conference ID: 10196747
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860.
The conference call will be broadcast live via webcast here and available for replay via the investor relations section of the Company’s website at www.genkoreanbbq.com.
A telephonic replay of the conference call will also be available after 8:00 p.m. Eastern Time on the same day through March 13, 2025.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 10196747
About GEN Restaurant Group, Inc.
GEN Korean BBQ is one of the largest Asian casual dining restaurant concepts in the United States. Founded in 2011 by two Korean immigrants in Los Angeles, the brand has now grown to more than 40 company-owned locations where guests serve as their own chefs, preparing meals on embedded grills in the center of each table. The extensive menu consists of traditional Korean and Korean-American food, including high-quality meats, poultry, seafood and mixed vegetables. With its unique culinary experience alongside its modern décor and lively atmosphere, GEN Korean BBQ delivers an engaging and interactive dining experience that appeals to a vast segment of the population. For more information, GenKoreanBBQ.com and follow the brand on Facebook and Instagram.
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect”, “will,” “may”, and other similar words or expressions that predict or indicate future events. All statements that are not statements of historical fact are forward-looking statements, including any statements regarding our strategy, future operations, and growth prospects, any statements regarding future economic conditions or performance, any statements of belief or expectation, and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements are based on current information available at the time the statements are made and on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Additional factors or events that could cause actual results to differ may also emerge from time to time, and it is not possible for the Company to predict all of them. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and in our subsequent filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.
Investor Relations Contact:
Cody Slach and Cody Cree
Gateway Group, Inc.
1-949-574-3860
GENK@gateway-grp.com
Media Relations Contact:
Zach Kadletz and Jade Bolton
Gateway Group, Inc.
1-949-574-3860
GENK@gateway-grp.com
| GEN RESTAURANT GROUP Condensed Consolidated Income Statements (in thousands, except per share amounts) | ||||||||||||||||
| Three months ended December 31, | Year ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (unaudited) | ||||||||||||||||
| Revenue | $ | 54,654 | $ | 45,108 | $ | 208,380 | $ | 181,007 | ||||||||
| Restaurant operating expenses: | ||||||||||||||||
| Food cost | 18,620 | 14,707 | 68,730 | 58,322 | ||||||||||||
| Payroll and benefits | 16,831 | 14,470 | 64,322 | 56,889 | ||||||||||||
| Occupancy expenses | 4,726 | 3,777 | 17,524 | 14,653 | ||||||||||||
| Operating expenses | 5,354 | 5,035 | 21,538 | 18,043 | ||||||||||||
| Depreciation and amortization | 1,797 | 1,332 | 6,735 | 4,808 | ||||||||||||
| Pre-opening costs | 2,253 | 1,557 | 7,607 | 3,680 | ||||||||||||
| Total restaurant operating expenses | 49,581 | 40,878 | 186,456 | 156,395 | ||||||||||||
| General and administrative | 6,373 | 5,115 | 21,326 | 12,937 | ||||||||||||
| Consulting fees - related party | — | — | — | 2,325 | ||||||||||||
| Management fees | — | — | — | 1,176 | ||||||||||||
| Depreciation and amortization - corporate | 33 | 26 | 122 | 84 | ||||||||||||
| Total costs and expenses | 55,987 | 46,019 | 207,904 | 172,917 | ||||||||||||
| Income from operations | (1,333 | ) | (911 | ) | 476 | 8,090 | ||||||||||
| Employee retention credits | — | — | 199 | 2,483 | ||||||||||||
| Gain on remeasurement of previously held interest | — | — | 3,402 | — | ||||||||||||
| Interest income (expense), net | 95 | 553 | 829 | 347 | ||||||||||||
| Equity in income (loss) of equity method investee | — | 16 | (17 | ) | 535 | |||||||||||
| Net (loss) income before income taxes | (1,238 | ) | (342 | ) | 4,889 | 11,455 | ||||||||||
| Provision for income taxes | 159 | (149 | ) | 357 | 21 | |||||||||||
| Net income | (1,397 | ) | (193 | ) | 4,532 | 11,434 | ||||||||||
| Less: Net income attributable to noncontrolling interest | (1,193 | ) | (169 | ) | 3,940 | 3,028 | ||||||||||
| Net income attributable to GEN Restaurant Group, Inc. | (204 | ) | (24 | ) | 592 | 8,406 | ||||||||||
| Net income attributable to Class A common stock per share - basic and diluted(1) | $ | (204 | ) | (24 | ) | $ | 592 | 324 | ||||||||
| Weighted-average shares of Class A common stock outstanding - basic(1) | 4,913 | 4,140 | 4,668 | 4,140 | ||||||||||||
| Weighted-average shares of Class A common stock outstanding - diluted(2) | 4,913 | 4,140 | 4,668 | 4,140 | ||||||||||||
| Net income before taxes per share | $ | (0.04 | ) | $ | (0.01 | ) | $ | 0.13 | $ | 0.08 | ||||||
| Net income per share of Class A common stock - diluted | $ | (0.04 | ) | $ | (0.01 | ) | $ | 0.13 | $ | 0.08 | ||||||
(1) (2) Basic and diluted net income per share of Class A common stock is presented only for the period after the Company’s organization transactions.
| GEN RESTAURANT GROUP Selected Balance Sheet Data and Selected Operating Data (in thousands, except restaurants and percentages) | ||||||||
| Twelve months ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| (amounts in thousands) | ||||||||
| Selected Balance Sheet Data: | ||||||||
| Cash and cash equivalents | $ | 23,675 | $ | 32,631 | ||||
| Total assets | $ | 240,415 | $ | 183,870 | ||||
| Total liabilities | $ | 194,798 | $ | 146,352 | ||||
| Total Stockholders' equity | $ | 44,117 | $ | 36,018 | ||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Selected Operating Data | ||||||||||||||||
| Restaurants at end of period | 43 | 37 | 43 | 37 | ||||||||||||
| Comparable restaurant sales performance | (4.8 | )% | (0.2 | )% | (5.6 | )% | 0.5 | % | ||||||||
| Net income | $ | (1,397 | ) | $ | (193 | ) | $ | 4,532 | $ | 11,434 | ||||||
| Net income margin | (2.6 | )% | (0.4 | )% | 2.2 | % | 6.3 | % | ||||||||
| Adjusted EBITDA | $ | 2,056 | $ | 1,645 | $ | 16,735 | $ | 18,848 | ||||||||
| Adjusted EBITDA margin | 3.8 | % | 3.6 | % | 8.0 | % | 10.4 | % | ||||||||
| Income from operations | $ | (1,333 | ) | $ | (911 | ) | $ | 476 | $ | 8,090 | ||||||
| Income from operations margin | (2.4 | )% | (2.0 | )% | 0.2 | % | 4.5 | % | ||||||||
| Restaurant level Adjusted EBITDA | 9,305 | 7,196 | 36,943 | 33,479 | ||||||||||||
| Restaurant level Adjusted EBITDA margin | 17.0 | % | 16.0 | % | 17.7 | % | 18.5 | % | ||||||||
| GEN RESTAURANT GROUP Reconciliation of Net Income to EBITDA and Adjusted EBITDA (in thousands, except percentages) | ||||||||||||||||
| (amounts in thousands) | Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (unaudited) | ||||||||||||||||
| EBITDA: | ||||||||||||||||
| Net income | $ | (1,397 | ) | $ | (193 | ) | $ | 4,532 | $ | 11,434 | ||||||
| Net Income Margin | (2.6 | )% | (0.4 | )% | 2.2 | % | 6.3 | % | ||||||||
| Interest income (expense), net | (95 | ) | (553 | ) | (829 | ) | (347 | ) | ||||||||
| Provision for income taxes | 159 | (149 | ) | 357 | 21 | |||||||||||
| Depreciation and amortization | 1,830 | 1,358 | 6,857 | 4,892 | ||||||||||||
| EBITDA | $ | 497 | $ | 463 | $ | 10,917 | $ | 16,000 | ||||||||
| EBITDA Margin | 0.9 | % | 1.0 | % | 5.2 | % | 8.8 | % | ||||||||
| Adjustments to EBITDA: | ||||||||||||||||
| EBITDA | $ | 497 | $ | 463 | $ | 10,917 | $ | 16,000 | ||||||||
| Stock-based compensation expense(1) | 734 | 759 | 2,986 | 1,517 | ||||||||||||
| Consulting fees - related party(2) | — | — | — | 2,325 | ||||||||||||
| Employee retention credits(3) | — | — | (199 | ) | (2,483 | ) | ||||||||||
| Non-cash lease expense(4) | 182 | 77 | 677 | 379 | ||||||||||||
| Non-cash lease expense related to pre-opening costs(5) | 643 | 346 | 2,354 | 1,110 | ||||||||||||
| Adjusted EBITDA | $ | 2,056 | $ | 1,645 | $ | 16,735 | $ | 18,848 | ||||||||
| Adjusted EBITDA Margin | 3.8 | % | 3.6 | % | 8.0 | % | 10.4 | % | ||||||||
| Reconciliation of Income from Operations to Restaurant-level Adjusted EBITDA (in thousands, except percentages; unaudited) | ||||||||||||||||
| Three months ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (unaudited) | ||||||||||||||||
| Income from Operations | $ | (1,333 | ) | $ | (911 | ) | $ | 476 | $ | 8,090 | ||||||
| Income Margin from Operations | (2.4 | )% | (2.0 | )% | 0.2 | % | 4.5 | % | ||||||||
| Depreciation and amortization | 1,830 | 1,358 | 6,857 | 4,892 | ||||||||||||
| Pre-opening costs | 2,253 | 1,557 | 7,607 | 3,680 | ||||||||||||
| General and administrative | 6,373 | 5,115 | 21,326 | 12,937 | ||||||||||||
| Consulting fees - related party | — | — | — | 2,325 | ||||||||||||
| Management Fees | — | — | — | 1,176 | ||||||||||||
| Non-cash lease expense | 182 | 77 | 677 | 379 | ||||||||||||
| Restaurant-Level Adjusted EBITDA | $ | 9,305 | $ | 7,196 | $ | 36,943 | $ | 33,479 | ||||||||
| Restaurant-Level Adjusted EBITDA Margin | 17.0 | % | 16.0 | % | 17.7 | % | 18.5 | % | ||||||||
(1) Stock-based compensation expense: During the three and twelve months ended December 31, 2024 and 2023, we incurred expenses related to the granting of Restricted Stock Units (“RSUs”) to employees.
(2) Consulting fees—related party: These costs ended following the completion of the IPO.
(3) Employee retention credits: These are refundable credits recognized under the provisions of the CARES Act.
(4) Non-cash lease expense: This reflects the extent to which lease expense is greater than or less than contractual rent.
(5) Non-cash lease expense related to pre-opening costs: This reflects cost for stores in development in which the lease expense is greater than the contractual rent.
| Reconciliation of Net Income before income taxes to Adjusted Net Income and Adjusted Net Income EPS (in thousands, except percentages; unaudited) | ||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| (in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (unaudited) | ||||||||||||||||
| Net income before income taxes | $ | (1,238 | ) | $ | (342 | ) | $ | 4,889 | $ | 11,455 | ||||||
| Stock based compensation | 734 | 759 | 2,986 | 1,517 | ||||||||||||
| Tax impact of adjustment | (31 | ) | (30 | ) | (125 | ) | (59 | ) | ||||||||
| Provision for income taxes | 159 | (149 | ) | 357 | 21 | |||||||||||
| Adjusted Net income | (694 | ) | 536 | 7,393 | 12,892 | |||||||||||
| Less: Net income attributable to noncontrolling interest | (603 | ) | 467 | 6,427 | 3,028 | |||||||||||
| Net income attributable to GEN Restaurant Group, Inc. | (91 | ) | 70 | 966 | 9,864 | |||||||||||
| Adjusted Net income attributable to Class A common stock per share - basic and diluted(1) | $ | (91 | ) | $ | 70 | $ | 966 | $ | 510 | |||||||
| Weighted-average shares of Class A common stock outstanding - basic(1) | 4,913 | 4,140 | 4,668 | 4,140 | ||||||||||||
| Weighted-average shares of Class A common stock outstanding - diluted(2) | 4,913 | 4,140 | 4,668 | 4,140 | ||||||||||||
| Adjusted Net income per share of Class A common stock - basic(1) | $ | (0.02 | ) | $ | 0.02 | $ | 0.21 | $ | 0.12 | |||||||
| Adjusted Net income per share of Class A common stock - diluted(2) | $ | (0.02 | ) | $ | 0.02 | $ | 0.21 | $ | 0.12 | |||||||
(1) (2) Basic and diluted adjusted net income per share of Class A common stock is presented only for the period after the Company’s organization transactions effective June 30, 2023.
FAQ
What was GEN Restaurant Group's (GENK) total revenue for full year 2024?
How many new restaurants did GENK open in 2024 and what are their expansion plans for 2025?
What is GENK's current cash position and debt status as of December 2024?
How much is GENK's newly announced stock buyback program worth?
What were GENK's comparable restaurant sales in Q4 2024 and early 2025?
