GEN Restaurant (US:GENK)2026-03-31 20:05Financial Performance - Total revenue decreased 9.0% quarter-over-quarter to $49.7 million for Q4 2025, while full year revenue increased 2.0% to $212.5 million[5]. - Net loss before income taxes for the full year was $20.3 million, equating to ($0.59) per diluted share of Class A common stock[26]. - Loss from operations was $12.2 million for Q4 2025, or (24.5)% of total revenue, with restaurant-level adjusted EBITDA margin at 13.8% for the full year[5][21]. - Adjusted EBITDA was negative $2.7 million for Q4 2025, compared to a positive $2.0 million in the prior year[24]. - Net loss for Q4 2025 was $12,086,000, compared to a net loss of $1,397,000 in Q4 2024, reflecting a significant decline in profitability[39]. - Adjusted EBITDA for Q4 2025 was $(2,670,000), down from $2,056,000 in Q4 2024, indicating operational challenges[43]. - The company reported a net loss margin of 24.3% for Q4 2025, compared to 2.6% in Q4 2024[41]. - The net loss for the twelve months ended December 31, 2025, was $19,375,000, compared to a net income of $4,532,000 for the previous year[46]. - Adjusted Net Loss Income attributable to GEN Restaurant Group, Inc. for the three months ended December 31, 2025, was $(757,000), translating to an adjusted net loss per share of $(0.14)[46]. Revenue and Sales - Revenue for Q4 2025 was $49,746,000, a decrease of 9.8% compared to $54,654,000 in Q4 2024[39]. - Gift card sales to Costco totaled $29 million in 2025, a 150% increase from 2024[5][8]. - Comparable restaurant sales performance declined by 11.7% in Q4 2025, compared to a 4.8% decline in Q4 2024[41]. Operational Metrics - The company opened 15 new locations in 2025, exceeding its target of 12 to 13 new stores, bringing the total to 57 locations[5]. - The number of restaurants at the end of Q4 2025 was 57, an increase from 43 in Q4 2024[41]. - Total restaurant operating expenses for Q4 2025 were $49,673,000, slightly up from $49,581,000 in Q4 2024[39]. - For the three months ended December 31, 2025, the company reported a loss from operations of $12,197,000, resulting in an operating margin of -24.5%[44]. - The Restaurant-Level Adjusted EBITDA for the twelve months ended December 31, 2025, was $29,380,000, with a margin of 13.8%[44]. Expenses and Liabilities - General and administrative expenses increased to $25.9 million in 2025, up from $21.3 million in 2024, primarily due to increased marketing fees[25]. - Total assets increased to $259,856,000 as of December 31, 2025, up from $240,415,000 in 2024[41]. - Total liabilities rose to $231,850,000 as of December 31, 2025, compared to $194,798,000 in 2024[41]. - The company incurred impairment expenses of $5,527,000 during the twelve months ended December 31, 2025[44]. - Pre-opening costs for the twelve months ended December 31, 2025, amounted to $8,317,000, compared to $7,607,000 in the previous year[44]. - Stock-based compensation expenses for the twelve months ended December 31, 2025, totaled $2,936,000[46]. - The company recognized a non-cash lease expense of $474,000 for the twelve months ended December 31, 2025[44]. Strategic Initiatives - The Consumer-Packaged-Goods (CPG) division is projected to expand to 1,500 to 2,000 grocery locations by the end of 2026, and 7,000 to 8,000 locations by the end of 2027[5][16]. - The CPG business is expected to be a meaningful growth driver with strong margins, and the company plans to work with investment bankers to explore growth opportunities[18]. - The company is managing its restaurant portfolio and has entered into a joint venture with Chubby Cattle International for 5 non-performing restaurants[6]. - The company plans to continue expanding its restaurant locations and enhancing its product offerings in the future[36]. Legal and Settlement - The company recorded a legal settlement gain of $346,000 for the twelve months ended December 31, 2025[46].