GEN Restaurant (US:GENK)2025-11-07 21:05Financial Performance - Total revenue increased by 2.7% year-over-year to $50.4 million for Q3 2025, compared to $49.1 million in Q3 2024[7] - Loss from operations was $3.7 million, or 7.4% of revenue, for Q3 2025, compared to income from operations of $88 thousand, or 0.2% of revenue, for Q3 2024[8] - Net loss before income taxes was $3.9 million for Q3 2025, compared to net income before income taxes of $284 thousand in Q3 2024[10] - Net loss for the three months ended September 30, 2025, was $3,628,000, compared to a net income of $169,000 in the same period of 2024[26] - Adjusted net loss income attributable to GEN Restaurant Group, Inc. for the three months ended September 30, 2025, was $(107,000), compared to $349,000 in the same period of 2024[31] - Adjusted net loss income per share of Class A common stock for the three months ended September 30, 2025, was $(0.02), compared to $0.07 in the same period of 2024[31] Operational Metrics - Restaurant-level adjusted EBITDA was $7.6 million, or 15.0% of revenue, for Q3 2025, a decrease from 16.3% in Q2 2025[8] - Adjusted EBITDA for the three months ended September 30, 2025, was $226,000, down from $3,436,000 in the same period of 2024[26] - Restaurant-level Adjusted EBITDA margin was 15.0% for the three months ended September 30, 2025, compared to 18.2% in the same period of 2024[27] - Comparable restaurant sales performance declined by 9.9% for the three months ended September 30, 2025, compared to a decline of 9.1% in the same period of 2024[24] Expansion and Development - The company opened 15 new locations in the first nine months of 2025, exceeding its target of 12 to 13 new restaurants by the end of the year[6] - The company plans to open two more stores by the end of 2025, maintaining a strong development pipeline[6] - The number of restaurants increased to 57 as of September 30, 2025, from 41 as of September 30, 2024[24] Financial Position - Cash and cash equivalents at September 30, 2025, were $4.8 million, with total available liquidity of $20.0 million[11] - Cash and cash equivalents decreased to $4,793,000 from $23,675,000 as of December 31, 2024[24] - Total assets increased to $245,539,000 from $240,415,000 as of December 31, 2024[24] - Total liabilities rose to $205,952,000 from $194,798,000 as of December 31, 2024[24] Cost and Expenses - General and administrative expenses totaled $6.5 million, or 12.8% of revenue, for Q3 2025, up from $5.2 million, or 10.6% of revenue, in Q3 2024[9] - Cost of goods sold increased by 334 basis points compared to Q3 2024, primarily due to inflationary cost increases[13] Product Offering - The company is expanding its product offerings, including ready-to-cook meats at over 600 grocery stores in California and Hawaii[5]