GEN Restaurant Group (GENK) investor relations material

Executive summary

• Q4 2025 revenue declined to $49.7M, down 9% quarter-over-quarter, but full-year revenue grew 2% to $212.5M; challenges included reduced customer traffic from immigration enforcement and higher fuel prices, yet the company executed its business plan with new store openings and brand initiatives.

• Opened 15 new restaurants in 2025 (6 in South Korea), reaching 57 total across 11 states and South Korea; 2 more opened in Q1 2026, and a joint venture was formed for 5 non-performing restaurants.

• Launched operational initiatives: menu streamlining, enhanced manager incentives, new beverage offerings, digital platform, loyalty program, and cryptocurrency payments.

• Expanded CPG division, with products in over 800 supermarket locations and plans to reach 1,500–2,000 by end of 2026.

• Costco gift card sales surged 150% year-over-year to $29M in 2025.

Financial highlights

• Q4 2025 revenue was $49.7M, down from $54.6M in Q4 2024; full-year 2025 revenue was $212.5M, up 2% year-over-year.

• Same-store sales dropped 11.6% in Q4 2025 and 7.9% for the full year; new restaurant openings contributed $14M in revenue, offset by a $10M decline in same-store sales.

• Restaurant-level adjusted EBITDA margin was 13.8% for 2025 (down from 17.7% in 2024), and 7.9% for Q4 2025.

• Net loss before income taxes in Q4 2025 was $12.5M ($0.36/share), compared to $1.2M loss in Q4 2024; full-year net loss before taxes was $20.3M ($0.59/share).

• Adjusted net loss for Q4 2025 was $5M ($0.09/share); full-year adjusted net loss was $3M ($0.09/share).

• Adjusted EBITDA for Q4 2025 was negative $2.7M, compared to positive $2.0M in Q4 2024; full-year Adjusted EBITDA was $0.7M, down from $13.3M in 2024.

• Cash and equivalents at year-end 2025 were $2.8M, with nearly full access to a $20M revolving credit facility.

Outlook and guidance

• 2026 revenue guidance is $215–225M, with restaurant-level adjusted EBITDA margins targeted at 15–15.5%.

• By end of 2026, annual run rate expected to approach $250M in revenue.

• Retail (CPG) business expected to reach $10M in 2026, with a $20M run rate by year-end; high teens EBITDA margin projected for CPG.

• CPG products projected to reach 1,500–2,000 locations by end of 2026 and 7,000–8,000 by end of 2027, with $100M+ annual revenue run rate in 3 years.

• Restaurant development to slow as focus shifts to operational efficiency and CPG growth.