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]

Core Insights - GEN Restaurant Group, Inc. is expanding its presence in Texas with a new location in Austin, which opened on March 12, 2025, following previous successes in the state [1][2] - The Austin location is part of a broader strategy to operate in all four major metropolitan areas of Texas, capitalizing on the state's growth opportunities [2] - Austin is recognized as a top foodie destination, making it a strategic choice for GEN's expansion [2] Company Overview - GEN Korean BBQ is one of the largest Asian casual dining concepts in the U.S., founded in 2011, with over 40 company-owned locations [4] - The dining experience features a "grill at your table" concept, allowing guests to prepare their meals, which includes a diverse menu of traditional Korean and Korean-American dishes [4] - The brand aims to provide an engaging and interactive dining atmosphere that appeals to a wide demographic [4]

Core Viewpoint - GEN Restaurant Group, Inc. has announced a stock repurchase program authorizing the repurchase of up to $5.0 million worth of its Class A common stock, indicating confidence in its financial position and commitment to shareholder value [1][2]. Stock Repurchase Program - The stock repurchase program allows the company to buy back shares through various means, including open market transactions and privately negotiated transactions, with the timing and number of shares to be determined at the company's discretion [2]. - The program may be suspended or discontinued at any time, and there is no obligation for the company to acquire a specific number of shares [1][2]. Trading Plan - The company plans to adopt a trading plan in accordance with Rule 10b5-1 of the Securities Exchange Act, which will allow for repurchases during periods when the company might otherwise be restricted from trading due to insider trading laws [3]. - This trading plan will be managed by an independent broker and will adhere to specific price, market volume, and timing restrictions [3]. Company Overview - GEN Korean BBQ is one of the largest Asian casual dining concepts in the U.S., founded in 2011, with over 40 company-owned locations [4]. - The restaurant offers a unique dining experience where guests grill their own meals at the table, featuring a menu that includes traditional Korean and Korean-American dishes [4]. - The brand's modern décor and lively atmosphere cater to a broad demographic, enhancing its appeal in the casual dining market [4].

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]

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 [7] - Restaurant-level EBITDA for the year was 17.7%, slightly below the estimated range of 17% to 18% [8] - The company achieved a total adjusted EBITDA of $16.7 million for the year, with a net income before income tax of $4.9 million, equating to $0.13 per diluted share [13][29] - In the fourth quarter, revenue increased by 21.2% year-over-year to $54.7 million [25] 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 [14] - Comparable same-store sales for 2024 were down 5.6% year-over-year, but the company is focusing on expanding store count rather than relying on same-store sales growth [16] - The restaurant-level adjusted EBITDA margin for the full year was 17.7%, consistent with expectations [30] Market Data and Key Metrics Changes - The company reported a 21% year-over-year total revenue growth in the fourth quarter [11] - The cost of goods sold as a percentage of company restaurant sales increased by 160 basis points in the fourth quarter compared to the previous year [25] - Payroll and benefits as a percentage of company restaurant sales decreased by 130 basis points in the fourth quarter [26] Company Strategy and Development Direction - The company aims to open 10 to 13 new restaurants in 2025, with a long-term goal of reaching around 75 total restaurants by the end of 2026 [21][35] - The company is also planning international expansion, with at least two locations in South Korea planned for 2025 [22] - A stock buyback program for up to $5 million has been approved by the board of directors, reflecting confidence in the company's future [18] Management's Comments on Operating Environment and Future Outlook - Management noted that the delays in new restaurant openings were due to local and state government permit issues, but overall revenue goals were still achieved [9][10] - The company is optimistic about returning to comparable restaurant sales growth, with a 1% increase in the first two months of 2025 [18] - The company expects to generate total revenue between $245 million and $250 million for 2025, with a restaurant-level adjusted EBITDA margin of approximately 18% [35] Other Important Information - The company reported a net loss before income taxes of $1.2 million in the fourth quarter, primarily due to preopening costs [28] - The company has a healthy liquidity position with $23.7 million in cash and cash equivalents and no material long-term debt aside from government-funded loans [32][33] - The company has signed or is finalizing 13 leases for new restaurant locations, with an additional 16 leases in negotiations [20] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the Q&A session may not have included detailed inquiries or responses [36][37]