Core Insights - GEN Restaurant Group, Inc. has opened its 13th location in Texas, specifically in El Paso, marking it as the 9th new restaurant opened by the company this year, indicating strong growth momentum [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, and has expanded to over 50 company-owned locations [3] - The restaurant offers a unique dining experience where guests serve as their own chefs, cooking meals on embedded grills at their tables, featuring a menu that includes traditional Korean and Korean-American dishes [3] Strategic Importance - The El Paso location is strategically positioned to attract customers from both Texas and the surrounding communities, including New Mexico and Mexico, enhancing the company's reach [2] - The CEO of GEN highlighted the strong demand for the brand's cuisine and value proposition in Texas, emphasizing the significance of this new location [2]

Expansion Throughout Texas Proves Strong, Continued Growth in the StateCERRITOS, Calif., July 10, 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 Waco, Texas location. This opening represents the Company’s 8th new restaurant in 2025. “Continuing our expansion in Texas is a result of our strong perf ...

Milestone Marks GEN’s Entry into Global Market and 50th Location, Signaling Strong Growth and Continued Expansion MomentumCERRITOS, Calif., June 16, 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 grand opening of its first international location in Ilsan, South Korea. “We are excited to return to our roots as we ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a 13% year-over-year increase in total revenues to $57.3 million, driven by restaurant expansion and existing location success [5][18] - Same store sales decreased by 0.7% in Q1 2025, a significant improvement from a 5.6% decline in 2024 [6][7] - Restaurant level adjusted EBITDA margin was 15.6%, slightly below the annual goal of 17-18% due to costs from new openings [7][20] - The company experienced a net loss before income taxes of $2.1 million in Q1 2025, compared to a net income of $3.8 million in Q1 2024, which included a one-time gain [22][23] Business Line Data and Key Metrics Changes - The company opened six new restaurants in Q1 2025, increasing the total to 49 locations, with plans for 12-13 new stores by February 2026 [6][28] - Adjusted EBITDA for Q1 2025 was $1.2 million, down from $6.4 million in Q1 2024, but improved when excluding a one-time gain [23][24] Market Data and Key Metrics Changes - The company is expanding into South Korea, planning to open three new restaurants in 2025, with the first expected by the end of Q2 [15][16] - The construction cost for new units in South Korea is projected to be 25-30% lower than in the US, enhancing potential returns [58] Company Strategy and Development Direction - The company focuses on a value-priced all-inclusive dining model, which is expected to support long-term growth [5][18] - Initiatives include enhancing training programs, expanding gift card sales through major retailers, and testing dual concept stores [11][12][13] - The company is prepared to pause new unit expansion if tariffs significantly impact construction costs [17][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic pressures affecting consumer demand, particularly in recent months [32][33] - The company remains confident in achieving revenue targets of $245-250 million for 2025 and an annual run rate approaching $300 million by year-end [16][28] Other Important Information - The company has a strong liquidity position with $15.4 million in cash and only $5 million in long-term debt [24][27] - The founding group retains 85% ownership, aligning their interests with public shareholders [25] Q&A Session Summary Question: Can you discuss same store sales progression in Q1 and current trends? - Management noted strong performance in January and February, but a slight decline in March and continuing negative trends in April and May [32][33] Question: What gives confidence in achieving the 17-18% EBITDA margin target for 2025? - Management indicated that Q1 is typically the lowest quarter and expects to improve margins as the year progresses [47][48] Question: What are the expectations regarding the impact of tariffs on new builds? - Management expressed uncertainty about price increases for equipment and materials from China but is prepared to pause construction if necessary [50][51] Question: How are the new restaurant openings performing? - Management stated it is too early to assess performance, with mixed results from the new locations [52] Question: Can you break down Q1 performance in terms of average check versus traffic? - Management reported a 2.5% increase in average check but a 10-11% reduction in customer traffic, resulting in a less than 1% overall decline [56] Question: What are the expectations for the South Korean market? - Management highlighted the competitive landscape and lower construction costs, indicating potential for strong returns despite economic pressures [58][60] Question: What is the current redemption rate for gift cards? - Management reported stabilization around 65%, with indications that gift card users tend to spend more during visits [61][62]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a 13% year-over-year increase in total revenues to $57.3 million, driven by restaurant expansion and success in existing locations [5][19] - Same store sales decreased by 0.7% in Q1 2025, a significant improvement from a 5.6% decline in 2024 [7] - Restaurant level adjusted EBITDA margin was approximately 15.6%, slightly below the annual goal of 17-18% due to costs from new restaurant openings [7][19] - The company reported a net loss before income taxes of $2.1 million, compared to a net income of $3.8 million in Q1 2024, which included a one-time gain [21][22] Business Line Data and Key Metrics Changes - The company opened six new restaurants in Q1 2025, increasing the total to 49, with plans to open 12-13 new stores by February 2026 [6][16] - Adjusted EBITDA for Q1 2025 was $1.2 million, down from $6.4 million in Q1 2024, but adjusted EBITDA excluding one-time gains was $3.3 million, only slightly down from $3.6 million in Q4 2024 [22] Market Data and Key Metrics Changes - The company is expanding into South Korea, planning to open three new restaurants in 2025, with the first expected to open by the end of Q2 [15][16] - The construction cost for new units in South Korea is projected to be 25-30% lower than in the US, providing compelling potential returns [55] Company Strategy and Development Direction - The company focuses on a value-priced all-inclusive dining model, which is expected to support long-term growth [5] - The dual concept store model, combining Jen and Con Sushi, aims to capture more customers and improve operational efficiency [13][14] - The company is exploring partnerships for gift card sales to enhance brand strength and customer engagement [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic pressures affecting consumer demand, particularly in early 2025 [30][31] - The company remains confident in achieving its revenue target of $245-250 million for 2025 and aims for an annual run rate approaching $300 million by the end of the year [16][26] - Management is prepared to pause new restaurant development if tariff-related cost increases significantly impact ROI [17][47] Other Important Information - The company has a strong liquidity position with $15.4 million in cash and only $5 million in long-term debt [23][25] - The founder's ownership of 85% aligns their interests with public shareholders, supporting long-term growth strategies [24] Q&A Session Summary Question: Can you discuss same store sales progression in Q1 and current trends in Q2? - Management noted strong performance in January and February, but a slight decline in March and continued negative trends in April and May [30][31] Question: What gives confidence in achieving the 17-18% EBITDA margin target for 2025? - Management indicated that Q1 is typically the lowest quarter and expects to improve margins as the year progresses [43][44] Question: What are the expectations for build costs in 2025 amid tariff impacts? - Management expressed uncertainty about price increases for kitchen equipment and construction materials from China, indicating a potential pause in construction if costs rise significantly [47][48] Question: How are the new restaurant openings performing? - Management stated it is too early to assess performance, with mixed results from the new locations [49] Question: Can you break down Q1 performance in terms of average check versus traffic? - Management reported a 2.5% increase in average check but a 10-11% reduction in customer traffic, resulting in a net decline of less than 1% [52] Question: What are the prospects for the South Korean market? - Management highlighted the competitive landscape and lower construction costs, indicating a cautious but optimistic approach to expansion in South Korea [55][56] Question: What is the current redemption rate for gift cards? - Management indicated that the redemption rate has stabilized around 65%, which is above the industry average [58]

Restaurant Expansion - GEN Restaurant Group opened six new restaurants in Q1 2025, bringing the total to 49 locations, up from 39 in Q1 2024[155]. - The company expects to open a total of 12 to 13 locations in fiscal year 2025[143]. - The company opened six new restaurants in Q1 2025, all of which were self-funded[192]. - The number of restaurants open increased to 49 in the three months ended March 31, 2025, from 39 in the same period of 2024[172]. Financial Performance - Revenue for the three months ended March 31, 2025, was $57.3 million, an increase of $6.5 million or 13.0% compared to $50.8 million in the same period of 2024[172]. - Comparable restaurant sales decreased by 0.7% for the three months ended March 31, 2025, compared to a decline of 1.8% in the same period of 2024[154]. - Adjusted net income attributable to GEN Restaurant Group, Inc. was $216,000 for Q1 2025, down from $383,000 in Q1 2024, reflecting a decrease of approximately 43.5%[190]. - Net loss for the three months ended March 31, 2025, was $1.964 million, a decrease of $5.662 million or 153.1% compared to a net income of $3.698 million in 2024[172]. Expenses and Costs - Total restaurant operating expenses increased by $7.2 million or 15.6%, reaching $53.1 million for the three months ended March 31, 2025, compared to $45.9 million in 2024[172]. - General and administrative expenses rose by $1.7 million or 36.3%, totaling $6.4 million for the three months ended March 31, 2025, compared to $4.7 million in 2024[179]. - Pre-opening costs increased by $747 thousand or 39.3%, amounting to $2.6 million for the three months ended March 31, 2025, compared to $1.9 million in 2024[178]. - Food costs increased by $2.3 million or 13.5%, totaling $19.3 million for the three months ended March 31, 2025, compared to $17.0 million in 2024[173]. - Occupancy expenses rose by $0.8 million or 18.6%, reaching $5.1 million for the three months ended March 31, 2025, compared to $4.3 million in 2024[175]. Cash Flow and Financing - Net cash provided by operating activities was $2.154 million in Q1 2025, down from $3.514 million in Q1 2024, representing a decrease of approximately 38.7%[201]. - Net cash used in investing activities was $6.829 million in Q1 2025, slightly lower than $7.076 million in Q1 2024[204]. - Net cash used in financing activities was $3.636 million in Q1 2025, compared to $947,000 in Q1 2024, indicating a significant increase in financing outflows[205]. - As of March 31, 2025, the company had $15.4 million in cash and negative working capital of $13.0 million, compared to $23.7 million in cash and negative working capital of $7.2 million as of December 31, 2024[191]. - The company had $9.2 million in contractual obligations related to debt as of March 31, 2025, which are expected to be paid within the next 12 months[206]. Credit and Debt - A $20 million line of credit was established with PCB bank, maturing on September 25, 2025, with a variable interest rate of 7.75%[144]. - The company is exposed to market interest rates through its line of credit, which is tied to the Wall Street Journal Prime Rate plus 0.25%[220]. Strategic Outlook - The company has a target Payback Period of less than 3 years for new restaurant units, equating to an ROI of 33% to 40%[142]. - The company expects to pay approximately $99.6 million under the Tax Receivable Agreement through 2037, based on anticipated tax benefits[196]. - The company assessed its financial condition and results of operations in conjunction with its quarterly and annual reports filed with the SEC[140]. - Adjusted EBITDA and Adjusted EBITDA Margin are key performance measures, although specific figures were not disclosed in the provided content[147]. Market Conditions - The company has partially offset inflation and cost changes by gradually increasing menu prices and improving purchasing practices[219]. - There is uncertainty regarding the ability to continue offsetting future cost increases with menu price increases[219]. - Competitive conditions may limit menu pricing flexibility, impacting sales growth[219]. - Macroeconomic conditions could render additional menu price increases imprudent[219]. - The company is classified as an "emerging growth company" and is utilizing certain exemptions from reporting requirements under the JOBS Act[214]. Performance Metrics - Average Unit Volume (AUV) for the twelve months ended March 31, 2025, was $5,403, a decrease from $5,842 in the previous year[151]. - Restaurant-Level Adjusted EBITDA was $8.959 million for the three months ended March 31, 2025, compared to $8.433 million in 2024, reflecting an increase of $526 thousand or 6.2%[188]. - Adjusted EBITDA for the three months ended March 31, 2025, was $1.249 million, a decrease of $1.715 million or 57.8% compared to $2.964 million in 2024[184]. - No impairment charges were recorded for long-lived assets in any of the periods presented[144].

Core Insights - GEN Restaurant Group, Inc. reported a strong start to 2025 with the opening of six new restaurants, including a dual-concept location in Austin, Texas, combining GEN Korean BBQ and Kan Sushi [4][8] - The company anticipates total revenue for the year to be between $245 million and $250 million, with a restaurant-level adjusted EBITDA margin projected between 17% and 18% [5][8] - Despite a cautious consumer spending environment, the company achieved a 13% increase in total revenue year-over-year for Q1 2025, reaching $57.3 million compared to $50.8 million in Q1 2024 [6][8] Financial Performance - Total revenue increased by 13.0% to $57.3 million in Q1 2025 compared to $50.8 million in Q1 2024 [6][8] - Restaurant-level adjusted EBITDA rose by 6.0% to $9.0 million from $8.4 million in the prior year [8] - The company reported a net loss before income taxes of $2.1 million, equating to $(0.06) per diluted share, compared to a net income of $3.8 million or $0.11 per diluted share in Q1 2024 [11][32] Operational Highlights - The company opened six new locations in Q1 2025, bringing the total to 49 locations across eleven states [8][25] - Comparable restaurant sales decreased by 0.7% in Q1 2025, a slight improvement from a 5.6% decline for all of 2024 [8][25] - The company has a robust development pipeline, aiming to open 12 to 13 new restaurants in fiscal 2025, including three international locations in South Korea [5][8] Cost and Expense Analysis - Total restaurant operating expenses as a percentage of revenue increased by 120 basis points to 88.0% in Q1 2025 from 86.8% in Q1 2024 [7][8] - General and administrative expenses increased to $5.6 million, or 9.8% of total revenue, reflecting increased personnel for new restaurant development and additional marketing expenditures [10][8] - Pre-opening expenses rose to $2.6 million in Q1 2025 from $1.9 million in Q1 2024 due to the opening of six new restaurants [17][8] Cash Position and Liquidity - As of March 31, 2025, the company had $15.4 million in cash and cash equivalents, with no material long-term debt and full access to a $20 million line of credit [13][8] - The company maintains a strong cash flow position, which supports its strategic priorities for growth [5][8]

Exhibit 99.1 GEN Restaurant Group Announces First Quarter 2025 Financial Results CERRITOS, CA, May 13, 2025 - 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 first quarter ended March 31, 2025. First Quarter 2025 Financial and Recent Operational Highlights (1) Adjusted EBITDA, restaurant-level adjusted EBITDA, and adj ...

Core Viewpoint - GEN Restaurant Group, Inc. will hold a conference call on May 13, 2025, to discuss its financial results for Q1 2025, which ended on March 31, 2025 [1] Company Overview - GEN Korean BBQ is one of the largest Asian casual dining restaurant concepts in the U.S., 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 demographic [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] - Date and Time: May 13, 2025, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) [2] - Dial-in numbers: Toll-free 1-844-825-9789, International 1-412-317-5180, with Conference ID 10199261 [2] - A live webcast will be available, and a replay will be accessible through the investor relations section of the company's website [3]

Core Insights - GEN Restaurant Group, Inc. has opened its first location in North Carolina, marking a significant milestone in its strategic growth plan [2] - The new restaurant is located in Cary, strategically positioned to serve a thriving population in the Triangle region of North Carolina [2][3] - GEN Korean BBQ operates over 40 company-owned locations across the United States, offering a unique dining experience where guests grill their own meals at the table [3] Company Overview - GEN Korean BBQ is one of the largest Asian casual dining restaurant concepts in the U.S., founded in 2011 by two Korean immigrants in Los Angeles [3] - The restaurant features an extensive menu that includes traditional Korean and Korean-American dishes, focusing on high-quality meats, poultry, seafood, and mixed vegetables [3] - The dining experience is characterized by modern décor and a lively atmosphere, appealing to a broad segment of the population [3]