GEN Restaurant Group, Inc. (NASDAQ: GENK ) is definitely not one of my go-to picks. Honestly, both Wall Street and I have been going in circles trying to land on a fair target price for this all-you-can-eatI’m an equity analyst and founder of Goulart’s Restaurant Stocks, a research firm focused on the U.S. restaurant industry — from quick-service and fast casual to fine dining and niche concepts. I lead all thematic research and valuation efforts, applying advanced financial modeling, sector-specific KPIs, ...

GEN Restaurant Group, Inc. (NASDAQ: GENK ) is definitely not one of my go-to picks. Honestly, both Wall Street and I have been going in circles trying to land on a fair target price for this all-you-can-eatI’m an equity analyst and founder of Goulart’s Restaurant Stocks, a research firm focused on the U.S. restaurant industry — from quick-service and fast casual to fine dining and niche concepts. I lead all thematic research and valuation efforts, applying advanced financial modeling, sector-specific KPIs, ...

France's Thales and its partners are talking to several European and other nations about potential new SAMP/T deals after Denmark picked the Franco-Italian air defence system over the U.S. Patriot, a ... ...

CERRITOS, Calif., Sept. 15, 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, today announced that ready to cook meats will be sold through the Pavilions Grocery stores. “We are proud to announce the launch of ready to cook meats for sale at Pavilions Grocery Stores in 31 Southern California locations. With four product choices of rea ...

Core Insights - GEN Restaurant Group, Inc. has opened two new international locations in South Korea, marking a significant milestone in its expansion strategy [1][2] - The company now operates a total of six international locations, reflecting its commitment to establishing a strong presence in the South Korean market [2] - GEN Korean BBQ is recognized as one of the largest Asian casual dining concepts in the United States, with a total of 56 company-owned locations [3] Company Overview - GEN Korean BBQ was founded in 2011 by two Korean immigrants in Los Angeles and has grown to become a popular dining concept [3] - The restaurant offers a unique "grill at your table" experience, allowing guests to prepare their own meals on embedded grills [3] - The menu features a variety of traditional Korean and Korean-American dishes, including high-quality meats, poultry, seafood, and mixed vegetables [3]

Core Insights - GEN Restaurant Group, Inc. has announced the grand opening of three new international locations in South Korea, marking its entry into the South Korean market and its 55th location overall [1][2] Company Overview - 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 [2] - The brand has expanded to over 53 company-owned locations, offering a unique dining experience where guests grill their own meals at the table [2] - The menu features traditional Korean and Korean-American dishes, including high-quality meats, poultry, seafood, and mixed vegetables [2] Expansion Details - The new locations include two GEN Korean BBQ restaurants and one KAN Sushi [2] - The expansion is seen as a significant milestone for the company, reflecting its confidence in the South Korean market [2]

Financial Data and Key Metrics Changes - The company generated a 2.2% year-over-year increase in total revenue to $55 million for Q2 2025, attributed to new restaurant openings [15][61] - Cost of goods sold as a percentage of restaurant sales increased by 97 basis points to 33.8% in Q2 2025, reflecting inflationary cost increases and more new restaurants in operation [16][61] - The company reported a net loss before income taxes of $1.8 million, equating to $0.05 per diluted share, compared to a net income of $2.1 million or $0.06 per diluted share in Q2 2024 [18][63] - Adjusted net income was $1.2 million or $0.04 per diluted share in Q2 2025, down from $4.4 million or $0.13 per share in the same period last year [19][64] - Restaurant level adjusted EBITDA was 16.3% for Q2 2025, an increase of 70 basis points from the previous year [20][65] Business Line Data and Key Metrics Changes - The company opened seven new restaurants in 2025, with a total of nine new restaurants opened year-to-date, on pace to exceed the target of 12 to 13 new stores [5][51] - The average unit volume (AUV) revenue is $5.3 million per restaurant, which is considered elite in the casual dining space [9][53] Market Data and Key Metrics Changes - The company experienced a sharp downturn in customer traffic in April due to global tariffs and immigration policies affecting regions with a large Hispanic customer base, which accounts for 35 of its 52 restaurants [6][52] - Improvements in sales and costs were noted starting in July, indicating a recovery from the downturn [8][52] Company Strategy and Development Direction - The company is focused on a value-oriented experimental dining model, which is believed to resonate with guests and support long-term growth [5][50] - Plans for international expansion include additional restaurant openings in South Korea, with the first store opened in a suburb of Seoul [5][50] - The company is enhancing its product offerings, including gift cards and packaged products, to diversify revenue streams beyond restaurant sales [12][58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro pressures but expressed confidence in the company's growth strategy and operational efficiencies [4][5] - The company is implementing automation and AI tools to improve labor efficiency and overall margins [36][83] - Management remains committed to their guidance of 17% to 18% on four-wall margins despite recent challenges [81][82] Other Important Information - As of June 30, 2025, the company had $9.6 million in cash and cash equivalents, with only $7 million in long-term bank debt [20][66] - The balance sheet reflects $166 million in lease liabilities, offset by $142 million in operating lease assets, indicating no material debt [21][67] Q&A Session Summary Question: Can you quantify the same store sales progression throughout the quarter and the improvement seen in July? - Management noted a significant decline in sales during April, May, and June, with a bounce back in July, aided by a 2.8% price increase at the beginning of the year [25][28][73] Question: How have the new units from Q1 been performing, and what is the status of the South Korea location? - The new openings from Q1 are performing at an average level, while the South Korea location is seeing slow but improving sales [29][30][76] Question: What is the tracking of premium menu adoption and its implications for COGS? - Management indicated a COGS differential of 0.5% to 1% with an expected sales increase of 5% to 7% as premium menu items are rolled out [31][32][77] Question: Any updates on guidance for revenue and four-wall margin? - Management confirmed that projections for 17% to 18% on four-wall margins remain unchanged despite the challenging quarter [35][81] Question: What operational efficiencies are being implemented to offset macro challenges? - The company is deploying automation and AI tools to enhance labor efficiency, expecting to see benefits in margins in the upcoming quarters [36][83] Question: Is the quality of general managers the biggest challenge to accelerating unit development? - Management stated that the challenge is multifaceted, including the need for quality managers, real estate, and capital [37][85]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited statements present the company's financial position, results of operations, and cash flows for the recent three and six-month periods [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $246.3 million, driven by new property and equipment, while cash and cash equivalents decreased significantly | Balance Sheet Highlights (in thousands) | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $9,610 | $23,675 | | Property and equipment, net | $63,978 | $52,639 | | Operating lease assets | $142,025 | $131,542 | | **Total assets** | **$246,327** | **$240,415** | | **Liabilities & Equity** | | | | Total current liabilities | $37,880 | $41,069 | | Operating lease liabilities, net of current | $159,898 | $147,898 | | **Total liabilities** | **$203,801** | **$194,798** | | **Total permanent equity** | **$41,026** | **$44,117** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenue grew slightly in Q2 2025, but rising operating expenses led to a net loss of $1.7 million, reversing a prior-year profit | Income Statement Summary (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$55,041** | **$53,860** | **$112,377** | **$104,620** | | Total costs and expenses | $56,921 | $52,247 | $116,433 | $102,899 | | (Loss) income from operations | ($1,880) | $1,613 | ($4,056) | $1,721 | | **Net (loss) income** | **($1,698)** | **$2,064** | **($3,662)** | **$5,761** | | Net (loss) income per share (diluted) | ($0.05) | $0.06 | ($0.11) | $0.17 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first half of 2025, significant cash usage in investing activities for expansion led to a net decrease in cash of $14.1 million | Cash Flow Summary (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,480 | $9,070 | | Net cash used in investing activities | ($16,467) | ($11,383) | | Net cash used in financing activities | ($3,228) | ($1,089) | | **Net change in cash and cash equivalents** | **($14,065)** | **($3,402)** | | Cash and cash equivalents at end of period | $9,610 | $29,229 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's expansion to 50 restaurants, significant supplier concentration, and total lease and TRA liabilities - The company expanded to **50 restaurants** in operation as of June 30, 2025, up from 43 at the end of 2024, with six new leases signed in Q2 2025[26](index=26&type=chunk) - The company has a significant concentration risk with its food supplier, Sysco, which accounted for **71.8% of total food costs** for the six months ended June 30, 2025[44](index=44&type=chunk) - Total operating lease liabilities amounted to **$166.2 million** as of June 30, 2025, with a weighted-average remaining lease term of 15.3 years[104](index=104&type=chunk)[106](index=106&type=chunk) - The liability related to the Tax Receivable Agreement (TRA) increased to **$1.1 million** as of June 30, 2025, from $691 thousand at the end of 2024[121](index=121&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses revenue growth from new stores offset by declining comparable sales and rising costs, leading to a net loss and reduced liquidity [Business Trends and Overview](index=36&type=section&id=Business%20Trends%20and%20Overview) The company is focused on aggressive expansion, opening seven new restaurants in the first half of 2025 with seven more under development - The company has grown to **52 company-owned restaurants** across 12 states and South Korea[144](index=144&type=chunk) - In the first half of 2025, **seven new restaurants were opened**, with an additional seven under development for completion by year-end[146](index=146&type=chunk) [Key Performance Indicators](index=38&type=section&id=Key%20Performance%20Indicators) Key performance indicators showed negative trends, with declines in Average Unit Volume, revenue per square foot, and comparable restaurant sales | Key Metrics | Twelve Months Ended June 30, 2025 | Twelve Months Ended June 30, 2024 | | :--- | :--- | :--- | | Average Unit Volume (in thousands) | $5,342 | $5,706 | | Revenue per square foot | $797 | $841 | | Comparable Restaurant Sales Change | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Change (%) | (7.2)% | (4.4)% | | Comparable restaurant base | 36 | 36 | [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Revenue growth from new stores was outpaced by rising operating and administrative expenses, resulting in an operating loss of $4.1 million for H1 2025 - Q2 2025 revenue increased **2.2% YoY**, primarily due to operating 50 restaurants versus 40 in the prior year[179](index=179&type=chunk) - Q2 2025 food costs rose **5.2% YoY**, increasing as a percentage of revenue to 33.8% from 32.9% due to inflation and more restaurants[180](index=180&type=chunk) - General and administrative expenses for H1 2025 increased by **31.3% to $12.8 million**, driven by marketing and personnel costs for expansion[197](index=197&type=chunk) [Non-GAAP Financial Measures](index=47&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP metrics like Adjusted EBITDA and Restaurant-Level Adjusted EBITDA showed significant year-over-year declines in both absolute value and margin percentage | Reconciliation to Adjusted EBITDA (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net (loss) income | ($1,698) | $2,064 | | EBITDA | $376 | $3,548 | | **Adjusted EBITDA** | **$1,854** | **$4,875** | | Adjusted EBITDA Margin | 3.4% | 9.1% | | Reconciliation to Restaurant-Level Adjusted EBITDA (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | (Loss) income from Operations | ($1,880) | $1,613 | | **Restaurant-Level Adjusted EBITDA** | **$8,958** | **$10,243** | | Restaurant-Level Adjusted EBITDA Margin | 16.3% | 19.0% | [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash position declined to $9.6 million due to $16.4 million in capital expenditures for new restaurants, resulting in a working capital deficit - Cash and cash equivalents decreased to **$9.6 million** as of June 30, 2025, from $23.7 million at December 31, 2024[209](index=209&type=chunk) - Net cash used in investing activities for H1 2025 was **$16.4 million**, reflecting the purchase of property and equipment for expansion[221](index=221&type=chunk) - In May 2025, the Board declared a **$0.03 per share dividend**, which was paid in June 2025 for a total of $988 thousand[216](index=216&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from commodity price volatility, broad inflation impacting costs, and interest rate changes on its variable-rate debt - Profitability is dependent on reacting to changes in food and beverage costs, which are affected by exchange rates, tariffs, and commodity prices[236](index=236&type=chunk) - Inflation impacts food, labor, and energy costs, and the ability to mitigate this through price increases may be limited[237](index=237&type=chunk)[238](index=238&type=chunk) - The company is exposed to interest rate risk through its line of credit and a **$2.0 million loan**, both with variable interest rates[239](index=239&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls during the quarter - Based on an evaluation, management concluded that disclosure controls and procedures were **effective** as of June 30, 2025[241](index=241&type=chunk) - **No material changes** were made to the company's internal control over financial reporting during the quarter ended June 30, 2025[242](index=242&type=chunk) [PART II. OTHER INFORMATION](index=58&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal claims, including several lawsuits from ex-employees, none of which are expected to be materially adverse - The company is a party to several lawsuits brought by ex-employees in Los Angeles County, California, alleging labor law violations[113](index=113&type=chunk) - Management does not expect the outcome of current legal proceedings to have a **material impact** on the company's financial statements[113](index=113&type=chunk)[245](index=245&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to previously disclosed risk factors, except for the removal of the risk related to not paying dividends - The risk factor stating the company does not intend to pay dividends has been **deleted**, reflecting the recent dividend declaration[246](index=246&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period - Not Applicable[247](index=247&type=chunk) [Item 5. Other Information](index=58&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans during the most recent fiscal quarter - No directors or officers adopted, modified, or terminated any **Rule 10b5-1 trading plans** during the quarter[250](index=250&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including required CEO and CFO certifications and Inline XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to **Sarbanes-Oxley Sections 302 and 906**[253](index=253&type=chunk)

[GEN Restaurant Group Q2 2025 Earnings Release](index=1&type=section&id=GEN%20Restaurant%20Group%20Q2%202025%20Earnings%20Release) The company reports a slight revenue increase alongside a net loss, driven by aggressive expansion and rising operating costs [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company reports a 2.2% revenue increase to $55.0 million, a loss from operations, and significant expansion to 52 stores Q2 2025 Key Financial Metrics | Metric | Value | Percentage of Revenue | | :--- | :--- | :--- | | Total Revenue | $55.0 million | 100% | | Loss from Operations | $1.9 million | 3.4% | | Restaurant-level adjusted EBITDA | $9.0 million | 16.3% | - The company is expanding rapidly, opening its first restaurant in South Korea and seven new locations in the first half of 2025, bringing the **total store count to 52**[7](index=7&type=chunk) - GEN is on pace to **exceed its target of opening 12 to 13 new restaurants** by the end of 2025[6](index=6&type=chunk)[7](index=7&type=chunk) - The company maintained a cash and cash equivalents balance of **$9.6 million** as of June 30, 2025, and paid its first dividend of $0.03 per share during the quarter[7](index=7&type=chunk) [Management Commentary & Business Outlook](index=1&type=section&id=Management%20Commentary%20%26%20Business%20Outlook) Management highlights successful international expansion but acknowledges near-term economic headwinds impacting sales - The company successfully opened its first restaurant in South Korea, demonstrating its **ability to expand internationally**[5](index=5&type=chunk) - Management acknowledged economic headwinds, including tariffs and immigration concerns, which led to a **decrease in same-store sales traffic** in May and June, though customer traffic began to return in July[5](index=5&type=chunk) - The development pipeline remains strong, with plans to exceed the target of 12-13 new restaurants in 2025, supported by **7 additional restaurants currently under development**[6](index=6&type=chunk) - The company is in a strong financial position with **$9.6 million in cash**, no material long-term debt, and full availability of a $20 million line of credit, enabling it to execute strategic priorities[6](index=6&type=chunk)[8](index=8&type=chunk) [Detailed Financial Performance Analysis](index=2&type=section&id=Detailed%20Financial%20Performance%20Analysis) An analysis of revenue growth, rising operating expenses, and the resulting decline in profitability and net income [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Total revenue increased 2.2% year-over-year to $55.0 million, driven by the addition of new restaurant locations Revenue Comparison (Q2 2025 vs Q2 2024) | Period | Revenue | Year-over-Year Growth | | :--- | :--- | :--- | | Q2 2025 | $55.0 million | 2.2% | | Q2 2024 | $53.9 million | - | - The revenue growth was a result of having **50 restaurants open in Q2 2025** versus 40 restaurants in Q2 2024[9](index=9&type=chunk) [Operating Expenses & Profitability](index=2&type=section&id=Operating%20Expenses%20%26%20Profitability) Higher costs for goods, occupancy, and pre-opening activities drove operating expenses up and led to a loss from operations - Total restaurant operating expenses as a percentage of revenue **increased by 416 basis points** year-over-year, from 87.6% to 91.7%[10](index=10&type=chunk) Year-over-Year Change in Operating Expense Components (as % of Revenue) | Expense Category | Basis Point Change (YoY) | Primary Driver | | :--- | :--- | :--- | | Cost of goods sold | +97 bps | New restaurants and inflation | | Payroll and benefits | -29 bps | Labor efficiencies | | Occupancy costs | +116 bps | New restaurant openings | | Other operating costs | +78 bps | N/A | | Depreciation and amortization | +87 bps | N/A | Profitability Comparison (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | (Loss) Income from Operations | $(1.9) million | $1.6 million | | (Loss) Income from Operations Margin | (3.4)% | 3.0% | | Adjusted EBITDA | $1.9 million | $4.9 million | | Adjusted EBITDA Margin | 3.4% | 9.1% | [Net Income (Loss) & EPS](index=2&type=section&id=Net%20Income%20(Loss)%20%26%20EPS) The company reported a net loss before taxes of $1.8 million, a significant decline from the prior year's net income Net (Loss) Income & EPS Comparison (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (Loss) Income before Taxes | $(1.8) million | $2.1 million | | Net (Loss) per Share (Diluted) | $(0.05) | $0.06 | | Adjusted Net Income | $1.2 million | $4.4 million (recalculated from table) | | Adjusted Net Income per Share (Diluted) | $0.04 | $0.13 | - The decrease in net income was primarily due to **higher costs related to new restaurant development**, including pre-opening and occupancy expenses for ten additional stores[12](index=12&type=chunk) [Balance Sheet & Liquidity](index=3&type=section&id=Balance%20Sheet%20%26%20Liquidity) The company maintains a solid liquidity position with $9.6 million in cash, no material long-term debt, and a full credit line - The company had **$9.6 million in cash and cash equivalents** as of June 30, 2025[15](index=15&type=chunk) - GEN operates with **no material long-term debt** and has access to $20.0 million in total available liquidity through its line of credit[15](index=15&type=chunk) [Financial Statements & Reconciliations](index=5&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section provides detailed unaudited financial statements and reconciliations of GAAP to non-GAAP measures [Condensed Consolidated Income Statements](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statements) The income statement details a shift from a $2.1 million net income in Q2 2024 to a $1.7 million net loss in Q2 2025 Q2 Income Statement Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $55,041 | $53,860 | | Total costs and expenses | $56,921 | $52,247 | | (Loss) income from operations | $(1,880) | $1,613 | | Net (loss) income | $(1,698) | $2,064 | [Selected Balance Sheet & Operating Data](index=6&type=section&id=Selected%20Balance%20Sheet%20%26%20Operating%20Data) Key balance sheet data shows total assets of $246.3 million, while operating data reveals a 7.2% decline in comparable sales Selected Balance Sheet Data (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $9,610 | $23,675 | | Total assets | $246,327 | $240,415 | | Total liabilities | $203,801 | $194,798 | Q2 Selected Operating Data | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Restaurants at end of period | 50 | 40 | | Comparable restaurant sales | (7.2)% | (5.6)% | | Restaurant level Adj. EBITDA margin | 16.3% | 19.0% | [Non-GAAP Reconciliations](index=7&type=section&id=Non-GAAP%20Reconciliations) Tables reconcile GAAP measures like Net Loss to non-GAAP metrics such as Adjusted EBITDA and Adjusted Net Income Q2 2025 Non-GAAP Reconciliation Summary (in thousands) | GAAP Measure | GAAP Value | Non-GAAP Measure | Non-GAAP Value | | :--- | :--- | :--- | :--- | | Net (loss) income | $(1,698) | Adjusted EBITDA | $1,854 | | (Loss) income from Operations | $(1,880) | Restaurant-Level Adjusted EBITDA | $8,958 | | Net (loss) income | $(1,698) | Adjusted Net income | $1,244 | [Non-GAAP Financial Measures Definitions](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) The company defines non-GAAP metrics used to help investors understand core business performance trends - **Restaurant-level adjusted EBITDA** is defined as income from operations adjusted for depreciation and amortization, pre-opening costs, general and administrative expenses, and non-cash lease expense[16](index=16&type=chunk) - **Adjusted EBITDA** is defined as net income before net interest expense, income taxes, depreciation and amortization, and other specific adjustments like stock-based compensation and litigation accruals[17](index=17&type=chunk) - **Adjusted Net Income** is defined as net income adjusted for items such as pre-opening costs, non-cash stock-based compensation, and their related tax impacts[18](index=18&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Details for the Q2 2025 earnings conference call, including date, time, and access information, are provided - A conference call was scheduled for **August 6, 2025, at 5:00 p.m. ET** to discuss Q2 2025 results[20](index=20&type=chunk)[21](index=21&type=chunk)

Core Insights - GEN Restaurant Group, Inc. reported a total revenue increase of 2.2% year-over-year to $55.0 million for Q2 2025, driven by the expansion of its restaurant count from 40 to 50 locations [6][7][23] - The company opened its first restaurant in South Korea and plans to exceed its target of 12 to 13 new restaurants by the end of 2025, with 7 additional locations currently under development [4][5][7] - Despite facing economic headwinds, including tariffs and immigration concerns, the company remains optimistic about its growth trajectory, supported by strong cash flow and a robust development pipeline [4][5] Financial Performance - The loss from operations for Q2 2025 was $1.9 million, representing 3.4% of revenue, compared to an income from operations of $1.6 million in Q2 2024 [7][10][28] - Restaurant-level adjusted EBITDA was $9.0 million, or 16.3% of revenue, for the quarter, showing an improvement from 15.6% in Q1 2025 [7][8][28] - General and administrative expenses increased to $6.4 million, or 11.6% of revenue, in Q2 2025, up from $5.1 million, or 9.4% of revenue, in Q2 2024 [9][10] Operational Highlights - The company has a total of 52 locations across eleven states and South Korea as of July 2025, with plans for further expansion [7][19] - Cash and cash equivalents stood at $9.6 million as of June 30, 2025, with no material long-term debt and full access to a $20 million line of credit [5][11][27] - The company paid its first dividend of $0.03 per share during the second quarter [7][11] Cost Structure - Total restaurant operating expenses as a percentage of revenue increased to 91.7% in Q2 2025 from 87.6% in Q2 2024, primarily due to higher costs associated with new restaurant openings [8][9] - Payroll and benefits decreased by 29 basis points compared to Q2 2024, indicating improved labor efficiencies [13][28] - Pre-opening expenses rose to $2.1 million in Q2 2025 from $1.6 million in Q2 2024, reflecting the company's aggressive expansion strategy [13][28]