Loading...
•
Jun 30, 2025
Gen Q2 2025 Earnings Report
GEN Restaurant Group announced its financial results for the second quarter ended June 30, 2025.
Key Takeaways
GEN Restaurant Group reported a 2.2% year-over-year increase in total revenue to $55.0 million for the second quarter of 2025. Despite this growth, the company experienced a loss from operations of $1.9 million and a net loss of $1.7 million, primarily due to higher costs associated with new restaurant development and inflationary pressures. However, restaurant-level adjusted EBITDA remained strong at $9.0 million, and the company continues its aggressive expansion, opening seven new locations in the first half of the year and two more in July, with plans to exceed its target of 12-13 new stores by year-end.
Total revenue increased by 2.2% year-over-year, reaching $55.0 million in Q2 2025.
The company reported a net loss of $1.7 million and a loss from operations of $1.9 million for the quarter.
Restaurant-level adjusted EBITDA was $9.0 million, representing a 16.3% margin.
GEN opened its first restaurant in South Korea and expanded its total store count to 52 locations, remaining on track to exceed its new store target for 2025.
Forward Guidance
GEN Restaurant Group maintains a robust development pipeline and is on pace to exceed its target of 12 to 13 new restaurants by the end of 2025, with 7 additional restaurants under development. The company is encouraged by the early success of its dual-concept format and is in a strong financial position with ample cash flow and liquidity to execute its strategic priorities.
Positive Outlook
- On pace to exceed the target of 12 to 13 new restaurants by the end of 2025.
- 7 additional restaurants are currently under development, expected to complete construction by year-end.
- Early success of the dual-concept of GEN Korean BBQ and Kan Sushi format as a potential lever for future growth.
- Strong cash flow and $9.6 million in cash and cash equivalents provide financial stability.
- No material long-term debt and full availability of a $20 million line of credit enhance financial flexibility.
Challenges Ahead
- Current business environment includes implications of tariffs and immigration concerns creating continued economic headwinds.
- Same store sales traffic was down in May and June, indicating recent customer slowdown.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...