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Sep 30, 2023
Gen Q3 2023 Earnings Report
GEN Restaurant Group reported financial results for Q3 2023, showing increased revenue but a decrease in comparable restaurant sales.
Key Takeaways
GEN Restaurant Group's Q3 2023 revenue increased by 7.4% to $45.6 million compared to Q3 2022. However, comparable restaurant sales decreased by 1.2%. Net income was $2.6 million, and adjusted EBITDA was $5.0 million.
Revenue increased by 7.4% to $45.6 million compared to the third quarter of 2022.
Comparable restaurant sales decreased by 1.2% compared to fiscal 2022.
Income from operations was $2.5 million, representing 5.4% of revenue.
Restaurant-level adjusted EBITDA was $8.4 million, accounting for 18.4% of revenue.
Gen
Gen
Forward Guidance
The company has signed or is in the final stages of signing 12 leases for new units and has an additional 8 locations in the LOI stage of negotiation, totaling 20 future locations.
Positive Outlook
- Four new restaurants are collectively generating annualized average unit volumes of approximately $5 million.
- New restaurants are currently on track for an average payback period of approximately 2.1 years, in-line with expectations.
- The company already has 12 leases signed or in final signing stages for new units.
- An additional 8 locations are in the LOI stage of negotiation for a total of 20 future locations.
- Leases for the majority of the company's 2024 locations are signed or in final stages of negotiation.