Loading...
•
Jun 30, 2024
Gen Q2 2024 Earnings Report
Announced second quarter 2024 financial results, highlighting a revenue increase and strategic expansion efforts.
Key Takeaways
GEN Restaurant Group reported a 15.9% increase in total revenue to $53.9 million for the second quarter of 2024. The company's net income was $2.1 million, with adjusted EBITDA at $4.9 million. The company opened one new location and is increasing its guidance to open 10 to 11 new locations by the end of 2024.
Total revenue increased by 15.9% to $53.9 million compared to the second quarter of 2023.
Income from operations was $1.6 million, representing 3.0% of revenue.
Adjusted EBITDA was $4.9 million, or 9.1% of revenue, inclusive of pre-opening expenses of approximately $1.6 million.
The company opened one new location in Jacksonville, Florida and anticipates opening 10 to 11 total new locations in 2024.
Gen
Gen
Forward Guidance
GEN Restaurant Group anticipates opening 10 to 11 new locations by the end of 2024 and remains focused on expansion and delivering a value-focused dining experience.
Positive Outlook
- Increasing guidance to open 10 to 11 new locations by the end of 2024.
- Three new locations already completed.
- Seven new locations currently under construction.
- Focus on expansion and delivering an exceptional dining experience.
- Strong balance sheet and profitable operating model.
Challenges Ahead
- Broader environment experiencing a pullback in consumer spending.
- Persistent inflationary pressures.
- Comparable restaurant sales decreased 5.6% in the second quarter of 2024.
- Restaurant pre-opening expenses increased to $1.6 million for the second quarter of 2024 from $0.9 million in the second quarter of 2023.
- Net income decreased due to higher expenses for new restaurant development and increased general and administrative expenses from being a public company.