GEN Restaurant Group (GENK) investor relations material

Executive summary

• Q4 2025 revenue declined to $49.7 million, with full-year revenue up 2% to $212.5 million year-over-year, but net loss before income taxes widened to $12.5 million for Q4 and $20.3 million for the year, driven by reduced customer traffic, immigration enforcement, and higher fuel prices.

• Opened 15 new restaurants in 2025, including six in South Korea, bringing the total to 57, with two more opened in early 2026, surpassing targets.

• Significant CPG expansion placed products in over 800 supermarket locations, with projections to reach 1,500–2,000 by end of 2026 and 7,000–8,000 by end of 2027.

• Strategic initiatives included a joint venture with Chubby Cattle International for five non-performing restaurants, menu streamlining, digital enhancements, and an AI program to improve efficiency.

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

Financial highlights

• Q4 2025 revenue was $49.7 million, down from $54.6 million in Q4 2024; full-year 2025 revenue was $212.5 million, 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 $14 million in revenue, offset by a $10 million decline in same-store sales.

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

• Net loss before income taxes was $12.5 million in Q4 2025 ($0.36 per share), and $20.3 million for the year ($0.59 per share).

• Adjusted EBITDA for 2025 was $0.7 million, or $6.3 million excluding pre-opening costs, down from $13.3 million and $18.6 million, respectively, in 2024.

Outlook and guidance

• 2026 revenue guidance is $215 million–$225 million, with retail (CPG) expected to contribute $10 million and restaurants $205 million at the low end.

• CPG products projected to reach 1,500–2,000 locations by end of 2026 and 7,000–8,000 by end of 2027, with a $100 million annual revenue run rate possible within three years.

• Restaurant-level adjusted EBITDA margin targeted at 15%–15.5% for 2026; annual run rate approaching $250 million in revenue by year-end.

• High teens EBITDA margin expected for CPG segment after slotting fees and promotions.

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