CERRITOS, Calif., April 24, 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, will hold a conference call on Tuesday, May 13, 2025, at 5:00 p.m. Eastern time to discuss its financial results for the first quarter ended March 31, 2025. The results will be reported in a press release prior to the conference call. Chairman and Chief Exec ...

CERRITOS, Calif., March 31, 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 the opening of its first North Carolina location in Cary. "Entering new states is a key milestone in our strategic growth plan, and we're excited to introduce North Carolina as the eleventh state where GEN Korean BBQ now operates," said David ...

GEN is Continuing Texas Expansion with Austin Following Success Across the StateCERRITOS, Calif., March 19, 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 a new restaurant location in Austin, Texas, which opened on March 12, 2025. “We are making strong progress in expanding across the state of Texas,” said David Kim ...

CERRITOS, Calif., March 13, 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, announced today that its board of directors approved a stock repurchase program authorizing the repurchase of up to $5.0 million worth of shares of the Company’s outstanding Class A common stock, par value $0.001 (“Common Stock”). The stock repurchase progra ...

Expansion Plans - As of December 31, 2024, GEN Inc. operates 43 company-owned restaurants across multiple states, with plans for continued expansion into new markets[21]. - The company plans to open 10 to 13 new locations in 2025, with a long-term goal of opening 10 to 12 new restaurants annually starting in 2026[27]. - GEN Inc. is introducing international expansion into South Korea with at least two company-owned locations slated to open in 2025[28]. - The company opened six new restaurants in 2023 and 2024, indicating ongoing expansion efforts[59]. - The company plans to continue expanding into new markets, which may lead to unpredictable operating results due to unfamiliarity with local conditions and consumer preferences[62]. Financial Performance - New restaurants opened in 2022 generated an average Payback Period of approximately 1.9 years, equating to an ROI of over 50%, while those opened in 2023 and 2024 had a Payback Period of approximately 2.2 years and an ROI of about 45%[22]. - The average Net Build-Out Costs for new restaurants increased from approximately $1.9 million in 2022 to $2.2 million in 2024, with a target of less than $3.0 million going forward[29]. - The percentage of sales for food costs increased from 32.2% in 2023 to 33.0% in 2024, while payroll and benefits costs decreased from 31.4% to 30.9%[58]. - The company’s growth strategy may be impacted by future changes in tax laws or effective tax rates, potentially reducing net returns to stockholders[59]. - The average restaurant sales and comparable restaurant sales may not increase at historical rates, impacting overall business performance[66]. Cost Management - During 2024, Sysco accounted for approximately 76.3% of food costs, highlighting the company's reliance on key suppliers for food products[35]. - The company has established a strong supplier network, with Pacific Global and Wise Universal providing significant portions of total operating expenses and food costs[34]. - The company has experienced inflationary pressures affecting costs for food, labor, and utilities, which may impact revenues and results of operations[55]. - Labor costs are a primary component of operating expenses, and increases in minimum wage could adversely affect profitability[115]. - California's minimum wage has increased routinely over the past three years, significantly impacting labor costs[122]. Regulatory and Compliance Risks - The company is subject to various federal, state, and local regulations that could delay restaurant openings or operations[43]. - Compliance with evolving nutritional labeling laws may incur additional costs and operational challenges for the company[96]. - The company is subject to various federal, state, and local regulations that could affect its ability to open new restaurants[127]. - Compliance with environmental laws may result in significant fines and penalties for noncompliance[130]. Market and Economic Conditions - Economic conditions, including unemployment and consumer confidence, significantly influence consumer discretionary spending, which could adversely affect restaurant traffic and sales[63]. - Economic conditions, such as low consumer confidence and high unemployment, could lead to decreased sales as consumers dine out less frequently[88]. - Intense competition in the restaurant industry may impact the company's financial condition, with competitors increasing their product offerings and opening new locations[84]. Operational Challenges - The company may face challenges in successfully expanding operations due to uncertainties in site selection and market conditions[60]. - The company faces risks related to supply chain disruptions, as reliance on a limited number of suppliers could lead to increased costs and shortages[77][81]. - The company may need to invest more in advertising and promotional activities in new markets to build brand awareness, potentially affecting profitability[62]. - The company relies on technology and equipment for restaurant operations, and mechanical failures could result in significant operational disruptions and financial losses[98]. Internal Controls and Governance - The company has completed remediation of two material weaknesses in internal control over financial reporting as of December 31, 2024[60]. - The company identified two material weaknesses in its internal control over financial reporting in 2023, which were remediated in 2024[185]. - The company may incur additional costs if it fails to maintain effective internal controls, which could adversely affect its financial reporting and market confidence[192]. - The company is classified as an "emerging growth company" and a "smaller reporting company," allowing it to follow reduced disclosure requirements[187]. Tax and Financial Liabilities - GEN Inc. anticipates future payments under the Tax Receivable Agreement to total approximately $99.6 million based on an assumed Class A common stock price of $12.00 per share[145]. - Payments under the Tax Receivable Agreement will be 85% of the net cash tax savings realized by GEN Inc., which could significantly reduce available cash for reinvestment or dividends[144]. - The actual amount and timing of payments under the Tax Receivable Agreement will vary based on multiple factors, including stock price and tax attributes[146]. - Future changes to tax laws could materially and adversely affect the company and reduce net returns to stockholders[153]. Cybersecurity and Data Privacy - The company has faced past security breaches and cyber incidents, highlighting the need for effective cybersecurity measures[200]. - The company is subject to numerous privacy laws, which may require significant changes to data handling practices and incur additional costs[207]. - The company has a risk management program focused on cybersecurity, with oversight from the Board of Directors[214]. Management and Leadership - The company has co-CEOs, which may lead to management challenges and affect operational efficiency[198]. - The company is dependent on the continued service of its senior management team, and their departure could adversely impact business prospects[198].

Financial Data and Key Metrics Changes - For the full year 2024, the company reported revenue of $208 million, exceeding the guidance range of $200 million to $205 million [8] - Restaurant-level adjusted EBITDA for the year was $36.9 million, with a margin of 17.7%, aligning with expectations [31] - Total adjusted EBITDA for 2024 was $16.7 million, a decrease from $18.8 million in 2023, primarily due to increased preopening costs [32] Business Line Data and Key Metrics Changes - The company opened six new restaurants in 2024, with three additional openings in January 2025, bringing the total to 46 locations [15] - Comparable same-store sales for 2024 were down 5.6% year-over-year, but early 2025 saw a return to growth with positive 1% comp figures [17][19] Market Data and Key Metrics Changes - The company experienced a 21% year-over-year total revenue growth in Q4 2024, with revenue reaching $54.7 million [12][26] - The cost of goods sold as a percentage of restaurant sales increased by 160 basis points in Q4 2024 compared to the previous year [26] Company Strategy and Development Direction - The company aims to open 10 to 13 new restaurants in 2025, with a medium-term goal of around 75 total restaurants by the end of 2026 [22][36] - The company is planning international expansion, with at least two locations in South Korea planned for 2025 [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the business model does not rely on comparable restaurant sales growth but focuses on expanding store count [17] - The board approved a stock buyback program for up to $5 million, reflecting confidence in the company's future [19] Other Important Information - The company reported a net loss before income taxes of $1.2 million in Q4 2024, attributed to preopening costs [29] - The company maintains a healthy liquidity position with $23.7 million in cash and cash equivalents and no material long-term debt aside from government-funded loans [33][34] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the Q&A session may not have occurred or was not included in the records [38]

Revenue Performance - Total revenue for 2024 reached $208.4 million, a 15.1% increase from $181.0 million in 2023[5] - Fourth quarter revenue grew 21.2% year-over-year to $54.7 million, compared to $45.1 million in Q4 2023[8] - Revenue for Q4 2024 reached $54.654 million, a 21.1% increase from $45.108 million in Q4 2023[29] Comparable Restaurant Sales - Comparable restaurant sales decreased 5.6% for the full year 2024 and 4.8% in Q4 2024[13][8] - Comparable restaurant sales performance declined by 4.8% in Q4 2024, compared to a decrease of 0.2% in Q4 2023[31] Profitability Metrics - Adjusted EBITDA for 2024 was $16.7 million, representing 8.0% of revenue, down from $18.8 million and 10.4% in 2023[15] - Adjusted EBITDA for Q4 2024 was $2.056 million, representing a margin of 3.8%, slightly up from 3.6% in Q4 2023[31] - Restaurant-level Adjusted EBITDA for Q4 2024 was $9.305 million, with a margin of 17.0%, compared to 16.0% in Q4 2023[34] - Net income margin for the year ended December 31, 2024, was 2.2%, down from 6.3% in 2023[31] - Net loss for Q4 2024 was $1.397 million, compared to a loss of $0.193 million in Q4 2023[29] - Adjusted net income for Q4 2024 was $(694) thousand, compared to $536 thousand in Q4 2023[36] Expenses and Financial Position - General and administrative expenses increased to $18.3 million in 2024, up from $12.6 million in 2023[13] - Total restaurant operating expenses for Q4 2024 were $49.581 million, up 21.3% from $40.878 million in Q4 2023[29] - Cash and cash equivalents as of December 31, 2024, were $23.7 million, with no material long-term debt[16] - Total assets increased to $240.415 million in 2024 from $183.870 million in 2023[31] Expansion Plans - The company opened nine new locations since March 2024, with plans to open 10-13 new units in 2025[5] - The company plans to expand internationally with at least two new locations in South Korea in 2025[5] - The number of restaurants at the end of Q4 2024 was 43, up from 37 in Q4 2023[31] Special Programs - The company initiated a successful gift card program with Costco in 2024[5]

Core Insights - GEN Restaurant Group, Inc. reported total revenue of $208.4 million for 2024, marking a 15% increase year-over-year and exceeding the company's guidance and analysts' expectations [4][7][12] - The company achieved a restaurant-level adjusted EBITDA margin of approximately 18% for 2024, consistent with its outlook [4][7] - Comparable restaurant sales for Q1 2025 have shown a positive growth of 1% through the end of February, a 6% improvement compared to Q4 2024 [1][5] Financial Performance - Total revenue for Q4 2024 was $54.7 million, a 21.2% increase from $45.1 million in Q4 2023 [7][8] - Adjusted EBITDA for Q4 2024 increased by 25% to $2.1 million, representing 3.8% of revenue, while for the full year, adjusted EBITDA was $16.7 million, or 8% of revenue [7][16] - The net income before income taxes for the full year was $4.9 million, equating to $0.13 per diluted share of Class A common stock [15][27] Operational Highlights - The company opened nine new locations since March 2024, including six in 2024 and three in early 2025, with plans to open an additional 10-13 new units throughout 2025 [5][7] - GEN is expanding internationally, with at least two new restaurants planned to open in South Korea in 2025 [5][7] - As of December 31, 2024, the company had $23.7 million in cash and cash equivalents and no material long-term debt, positioning it well for future growth [17][29] Cost Management - Total restaurant operating expenses as a percentage of revenue decreased to 86.6% in Q4 2024 from 87.2% in Q4 2023 [9] - General and administrative expenses increased to $5.6 million in Q4 2024, primarily due to additional personnel for new restaurant development [9][12] - Restaurant pre-opening expenses rose to $2.3 million in Q4 2024 from $1.6 million in Q4 2023, reflecting the higher volume of new store openings [13][14]

Core Viewpoint - GEN Restaurant Group, Inc. will hold a conference call on March 6, 2025, to discuss its financial results for Q4 and the full year ended December 31, 2024 [1]. 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 [3]. - The brand has expanded to over 40 company-owned locations, offering a unique dining experience where guests grill their own meals at the table [3]. - The menu features traditional Korean and Korean-American dishes, including high-quality meats, poultry, seafood, and mixed vegetables [3]. - The restaurant's modern décor and lively atmosphere create an engaging and interactive dining experience appealing to a broad customer base [3]. Conference Call Details - The conference call will be hosted by Chairman and CEO David Kim and CFO Tom Croal, followed by a Q&A session [2]. - The call is scheduled for March 6, 2025, at 5:00 p.m. Eastern time, with a toll-free dial-in number provided for participants [2]. - A live webcast of the conference call will be available, along with a replay option through the investor relations section of the company's website [3].

Core Insights - GEN Restaurant Group, Inc. has opened a new restaurant location in San Antonio, Texas, marking its third opening in January 2025, following successful launches in Edison, New Jersey, and Orlando, Florida [1][2] Company Expansion - The new San Antonio location is part of GEN's strategy to expand its presence in Texas, where existing locations have performed strongly [2] - The company aims to continue its growth momentum throughout 2025, having started the year with three successful openings [2] Unique Dining Experience - GEN Korean BBQ offers a distinctive "grill at your table" experience, which aligns well with San Antonio's rich food culture and love for barbecue [2] - The restaurant features an extensive menu that includes traditional Korean and Korean-American dishes, allowing guests to prepare their meals on embedded grills [4] Company Background - Founded in 2011, GEN Korean BBQ has grown to over 40 company-owned locations across the United States, making it one of the largest Asian casual dining concepts in the country [4] - The brand is known for its engaging and interactive dining experience, appealing to a wide demographic [4]