NASDAQ$GENK

Gen Restaurant Group Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

GEN Restaurant Group reported financial results for Q3 2023, showing increased revenue but a decrease in comparable restaurant sales.

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.

Headline financials

Total Revenue

$45.6M

Previous: $42.4M+7.4%
EPS (adj)

$0.08

Previous: $0.66-87.9%
Adjusted EBITDA

$5M

No prior period
Comparable restaurant sales

-1.2%

No prior period
Restaurant operating expenses

$86.20

No prior period
Capital Expenditures

-$9.46M

No prior period
Free Cash Flow

-$9.13M

No prior period
Net Income

$337K

Previous: $2.39M-85.9%
Operating Income

$2.47M

Previous: $2.85M-13.5%
Gross Profit

$6.29M

Previous: $28.5M-77.9%
Cash & Equivalents

$32.1M

No prior period
Total Assets

$176M

No prior period
Stock-Based Comp

$759K

No prior period

Revenue & EPS history

Gen · Revenue · Quarterly

$45.6M

Q3 2023+7.4%vs Q3 2022
Beat estimate in 5 of 11 quarters(45%)
ActualEstimate

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.

Tailwinds

  • 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.

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 Q3 2023

Historical avgQ3 2023

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro