GEN Restaurant (US:GENK)2025-03-07 01:28Financial 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]