Overview
GEN Q2 revenue grew 2.2% to $55 mln, missing analyst expectations
Company opened first restaurant in South Korea, expanding to 52 locations
Outlook
GEN aims to exceed 12-13 new restaurant openings by year-end 2025
Company expects to mitigate economic headwinds through cost savings
GEN has 7 additional restaurants under development for completion by 2025
Company sees strong cash flow with $9.6 mln in cash and no long-term debt
Result Drivers
NEW RESTAURANT OPENINGS - Revenue growth driven by opening of new restaurants, including first location in South Korea
ECONOMIC HEADWINDS - Tariffs and immigration concerns impacted same-store sales traffic, per CEO David Kim
COST INCREASES - Losses attributed to higher costs from new restaurant openings and inflationary pressures
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $55.04 mln | $60.30 mln (3 Analysts) |
Q2 Net Income | -$1.70 mln | ||
Q2 Adjusted EBITDA | Miss | $1.85 mln | $4.55 mln (3 Analysts) |
Q2 Adjusted EBITDA Margin | 3.4% | ||
Q2 Income from Operations | -$1.88 mln | ||
Q2 Operating Expenses | $5.90 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for GEN Restaurant Group Inc is $8.00, about 50.1% above its August 5 closing price of $3.99
Press Release: ID:nGNXXH5tV
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)