GEN Restaurant Group Earnings Call Transcripts
Fiscal Year 2026
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Q2 revenue grew 1.2% year-over-year to $55.7M, driven by a 341% sequential surge in CPG sales, now in nearly 2,000 retail doors. A proposed $100M sale of restaurant operations would focus capital on the high-growth, high-margin CPG business, with a projected $35–$40M run rate.
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Q1 2026 saw an 8.8% same-store sales decline amid economic headwinds, but operational improvements and CPG expansion are underway. Full-year revenue is guided at $215–$225 million, with strong retail momentum and disciplined capital allocation.
Fiscal Year 2025
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Q4 2025 saw revenue and same-store sales decline due to economic and demographic pressures, but new restaurant openings and rapid CPG expansion offset some losses. 2026 guidance targets $215M-$225M revenue, with CPG expected to be a key growth driver and margins improving.
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Q3 2025 revenue grew 2.7% to $50.4M, but same-store sales fell 9.9% and margins declined due to inflation and new store costs. Grocery channel expansion and disciplined cost management are key focuses, with 17 new stores expected in 2025 and cautious outlook for 2026 growth.
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Revenue grew 2.2% year-over-year to $55M, but higher new store costs led to a net loss before taxes. Despite macro headwinds, expansion continues with nine new restaurants YTD and margin guidance unchanged at 17%-18%.
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Q1 2025 revenue grew 13% year-over-year to $57.3M, driven by new store openings and improved same-store sales trends. Adjusted EBITDA margin was 15.6%, with full-year guidance reaffirmed for $245–$250M revenue and 17–18% margins. Expansion continues despite macro and tariff risks.
Fiscal Year 2024
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Revenue for 2024 exceeded guidance at $208.4 million, with strong new restaurant openings and a 17.7% restaurant-level adjusted EBITDA margin. Comparable sales returned to growth in early 2025, and guidance for 2025 targets $245–$250 million in revenue and 10–13 new units.
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Q3 revenue rose 7.8% to $49.1M, driven by new restaurant openings, while net income reached $0.2M. Same-store sales fell 9.6% due to weather and cannibalization, but October/November comps improved. Gift card sales at Costco exceeded expectations, supporting growth and margins.
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Q2 revenue grew 16% year-over-year, driven by new store openings and operational efficiencies, while same-store sales declined 5.6% due to competition in select markets. Adjusted EBITDA margin reached 19%, and guidance for 2024 new openings was raised to 10–11, with strong cash flow supporting expansion.