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Mar 31
Gen Q1 2025 Earnings Report
GEN Restaurant Group reported a 13% year-over-year revenue increase in Q1 2025, despite a net loss due to pre-opening costs and expansion efforts.
Key Takeaways
GEN Restaurant Group began 2025 with strong top-line growth, driven by new restaurant openings, including a dual-concept store in Austin. However, the company posted a net loss due to higher costs associated with expansion and development.
Revenue increased 13% year-over-year to $57.3 million.
Net loss attributable to GEN Restaurant Group was $0.3 million, largely due to pre-opening and development costs.
Adjusted EBITDA came in at $1.25 million despite elevated expenses from six new openings.
Comparable restaurant sales decreased slightly by 0.7% in Q1 2025.
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Forward Guidance
GEN expects to open 12 to 13 new locations in fiscal 2025, including its first three in South Korea, and projects full-year revenue between $245 and $250 million.
Positive Outlook
- On track to open 12–13 new restaurants including international expansion
- Strong early performance of dual-concept format
- Cash and cash equivalents of $15.4 million with no long-term debt
- Restaurant-level adjusted EBITDA margin guidance of 17–18%
- Full-year revenue outlook of $245 to $250 million with run rate approaching $300 million
Challenges Ahead
- Net loss driven by higher pre-opening and development costs
- Comparable sales slightly declined by 0.7%
- Adjusted EBITDA margin decreased from prior year
- Increase in occupancy and other operating costs
- Lower overall net income due to lack of one-time gains seen in prior year