NASDAQ$GENK

Gen Restaurant Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Announced second quarter 2024 financial results, highlighting a revenue increase and strategic expansion efforts.

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.

Headline financials

Total Revenue

$53.9M

Previous: $46.5M+15.9%
EPS

$0.06

Previous: $0.93-93.6%
Restaurant-Level Adj. EBITDA

$10.2M

No prior period
Restaurant-Level EBITDA Margin

19.0%

No prior period
Adjusted EBITDA

$4.88M

Previous: $6.1M-20.1%
Restaurants at end of period

40

No prior period
Comparable restaurant sales

-5.6%

Previous: 1.4%-500.0%
Restaurant operating expenses

$4.72M

Previous: $84.10+5607510.0%
Capital Expenditures

-$8.41M

Previous: -$4.85M-73.5%
Free Cash Flow

-$8.13M

Previous: -$885K-818.6%
Net Income

$277K

Previous: $3.96M-93.0%
Operating Income

$1.61M

Previous: $3.37M-52.1%
Gross Profit

$6.7M

Previous: $7.38M-9.2%
Cash & Equivalents

$29.2M

Previous: $55M-46.8%
Total Assets

$219M

Previous: $185M+18.5%
Stock-Based Comp

$759K

No prior period

Revenue & EPS history

Gen · Revenue · Quarterly

$53.9M

Q2 2024+15.9%vs Q2 2023
Beat estimate in 5 of 11 quarters(45%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 11 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-5.1%

Avg return

Earnings day

-7.6%

Avg return

5 days after

-7.2%

Avg return

30 days after

25%

3 / 12 earnings

Positive

+22.8%

Q4 2024

Best reaction

-18.8%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.1%+0.5%-4.5%
Q4 2025-2.7%-20.9%-16.8%
Q3 2025-6.0%-1.5%-14.8%
Q2 2025-15.3%-18.1%-25.1%
Q1 2025-15.8%-19.4%-20.0%
Q4 2024+22.8%+14.5%-12.4%
Q3 2024-15.2%-15.0%-15.9%
Q2 2024+14.4%+0.5%+9.2%
Q1 2024+7.7%+6.2%-6.5%
Q4 2023-18.8%-16.9%+61.3%
Q3 2023-14.8%-8.9%-13.8%
Q2 2023-13.5%-12.6%-26.9%
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
Q4 2020

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