GENK's Q4 2024 EPS did not exceed forecasts, as the latest report period shows an EPS of $54.65 million for the fourth quarter, which does not provide enough information to determine the cause of the EPS not meeting forecasts1. However, we can infer that the following factors may have contributed to the challenging EPS situation:
- Increased Costs: Rising operational expenses, such as utility rates and costs related to new restaurant openings, may have squeezed profit margins and negatively impacted EPS2.
- New Restaurant Openings: The costs associated with opening new restaurants, including preopening expenses, may have weighed heavily on the company's financial performance during the quarter3.
- Decline in Comparable Sales: Despite a 5.6% decline in comparable restaurant sales in 2024, the first two months of 2025 showed a promising turnaround with a 1% increase, which could indicate a potential recovery in sales performance but may not have been enough to fully compensate for the challenges faced in Q43.
In summary, the Q4 2024 EPS of GENK did not exceed forecasts due to a combination of increased costs, new restaurant openings, and a decline in comparable sales.