CERRITOS, Calif., March 01, 2024 (GLOBE NEWSWIRE) -- GEN Restaurant Group, Inc. (“GEN” or the “Company”) (NASDAQ: GENK), owner of GEN Korean BBQ, a fast-growing experiential Asian dining concept, today announced that it will host a conference call to discuss the Company’s fourth quarter and full year 2023 financial results on Wednesday, March 6, 2024 at 5:00 PM Eastern Time. A press release with the fourth quarter and full year 2023 financial results will be issued after the market close that same day. Host ...

CERRITOS, Calif., March 01, 2024 (GLOBE NEWSWIRE) -- GEN Restaurant Group, Inc. ("GEN" or the "Company") (NASDAQ:GENK), owner of GEN Korean BBQ, a fast-growing experiential Asian dining concept, today announced that it will host a conference call to discuss the Company's fourth quarter and full year 2023 financial results on Wednesday, March 6, 2024 at 5:00 PM Eastern Time. A press release with the fourth quarter and full year 2023 financial results will be issued after the market close that same day. Hosti ...

Business Operations - GEN Restaurant Group operates 34 company-owned restaurants across multiple states, including California, Texas, and Florida, with plans for continued expansion[144]. - The average payback period for new restaurants is approximately 1.4 years, with new locations typically ranging from 4,700 to 12,000 square feet[145]. - The company signed leases for ten new restaurant locations, with four already opened in 2023, and expects to open three to four additional locations by the end of the year[147]. Financial Performance - Revenue for the three months ended September 30, 2023, was $45.6 million, an increase of $3.1 million or 7.4% compared to $42.4 million for the same period in 2022[179]. - Revenue for the nine months ended September 30, 2023, was $135.9 million, an increase of $13.0 million or 10.6% compared to $122.9 million in the same period of 2022[197]. - Net income for the three months ended September 30, 2023, was $2.6 million, a decrease of 5.0% from $2.8 million in the same period in 2022[179]. - Net income attributable to GEN Restaurant Group, Inc. was $337 thousand, down 85.9% from $2.4 million in the prior year[179]. - Net income attributable to GEN Restaurant Group, Inc. was $8.4 million, a decrease of $2.1 million or 19.6% compared to $10.5 million in the prior year[197]. - Adjusted EBITDA for the nine months ended September 30, 2023, was $17.2 million, down from $19.2 million in the same period of 2022[213]. - Restaurant-Level Adjusted EBITDA margin for the nine months ended September 30, 2023, was 12.7%, down from 15.6% in the prior year[213]. - Restaurant-Level Adjusted EBITDA for Q3 2023 was $8.4 million, with a margin of 18.4%, compared to $8.6 million and 20.3% in Q3 2022[217]. Cost Management - Food costs increased to $14.5 million for the three months ended September 30, 2023, reflecting a 4.1% increase from $14.0 million in 2022, with food costs as a percentage of revenue decreasing from 32.9% to 31.9%[182]. - Payroll and benefits costs rose to $14.4 million, a 14.2% increase from $12.7 million in the prior year, with payroll costs as a percentage of revenue increasing from 29.8% to 31.7%[183]. - Occupancy expenses increased by 19.1% to $3.8 million, up from $3.2 million in 2022, with occupancy expenses as a percentage of revenue rising from 7.5% to 8.3%[184]. - General and administrative expenses surged to $3.8 million, a 73.5% increase from $2.1 million in 2022, with these expenses as a percentage of revenue increasing from 5.2% to 8.3%[188]. - Total restaurant operating expenses increased to $115.5 million, up $13.9 million or 13.8%[197]. - Food costs increased to $43.6 million, up $2.6 million or 6.5%, while as a percentage of revenue, food costs decreased from 33.3% to 32.1%[198]. - Payroll and benefits costs rose to $42.4 million, an increase of $6.3 million or 17.4%, with payroll costs as a percentage of revenue increasing from 29.4% to 31.2%[199]. - Occupancy expenses were $10.9 million, up $1.8 million or 20.2%, with occupancy costs as a percentage of revenue increasing from 7.4% to 8.0%[200]. - General and administrative expenses rose to $7.8 million, an increase of $2.1 million or 36.6%, with these expenses as a percentage of revenue increasing from 4.7% to 5.7%[204]. Funding and Financial Position - The company received $16.8 million in Restaurant Revitalization Fund grants, with $13.0 million recognized as income by December 31, 2021[149]. - A new $20 million line of credit was established on September 29, 2023, with a variable interest rate of 8.750%[151]. - Cash as of September 30, 2023, was $32.1 million, an increase from $11.2 million as of December 31, 2022, while working capital improved to $10.9 million from ($22.5) million[218]. - Net cash provided by operating activities for the nine months ended September 30, 2023, was $13.5 million, compared to $13.8 million in the same period of 2022[227][229]. - Net cash provided by investing activities for the nine months ended September 30, 2023, was $1.4 million, down from $7.7 million in 2022[230][231]. - Net cash provided by financing activities for the nine months ended September 30, 2023, was $6.1 million, primarily due to IPO proceeds, offset by $26.5 million in member distributions[232]. - The company expects to pay approximately $117.2 million in tax benefits through 2037 under the Tax Receivable Agreement, with 85% payable to certain members[222]. - The company had $10.9 million in working capital as of September 30, 2023, a significant improvement from the previous year[218]. - The company anticipates that cash from operating activities and cash on hand will be sufficient to meet lease obligations and capital expenditures for at least the next 12 months[221]. Asset Management - The company recorded no impairment charges for long-lived assets during the periods presented, indicating stable asset valuation[151]. - No impairment loss was recognized during the periods presented, indicating stable asset performance[242]. - The company assesses potential impairments of long-lived assets quarterly, focusing on individual restaurant cash flows for recoverability[241]. Regulatory and Compliance - General and administrative expenses are expected to grow as sales increase, particularly due to compliance costs associated with being a public company[168]. - The company is classified as an "emerging growth company" and has taken advantage of exemptions from certain reporting requirements[243]. - The company adopted ASU 2016-02 on January 1, 2022, which requires recognition of lease obligations and corresponding right-of-use assets on the balance sheet[245]. - The company adopted ASU 2019-12 for income taxes effective in fiscal year 2022, applicable after becoming a publicly traded C corporation in June 2023[246]. Market Conditions - The company has been able to partially offset cost increases in food and beverage by increasing menu prices and making operational adjustments[249]. - Inflation primarily impacts food, beverage, labor, and energy costs, with the company mitigating increased costs through menu price increases[250]. - The company is exposed to interest rate risk, with its line of credit bearing an interest rate at the Wall Street Journal Prime Rate plus 0.25%[252]. - The company has received immaterial rent concessions related to COVID-19 that did not materially impact financial statements[244].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41727 GEN Restaurant Group, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 87-3424935 ( State or other juris ...