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GEN Restaurant Group Reports Q2 GAAP EPS Miss, Revenue Shortfall
ByAinvest
Thursday, Aug 7, 2025 1:23 am ET1min read
GEN Restaurant Group reported Q2 GAAP EPS of -$0.05, missing the consensus by $0.06. Revenue of $55M missed by $5.26M, despite a 2% YoY increase. The company's earnings and revenue fell short of expectations.
GEN Restaurant Group, Inc. (NYSE: GENK) reported its Q2 2025 earnings, which fell short of analyst expectations. The company reported a GAAP EPS of -$0.05, missing the consensus by $0.06. Revenue of $55.0 million missed the estimate by $5.26 million, despite a 2% year-over-year increase. The company's earnings and revenue fell short of expectations, raising concerns among investors.The company's Q2 revenue grew 2.2% to $55.0 million, missing analyst expectations of $60.30 million [3]. The company opened its first restaurant in South Korea, expanding its footprint to 52 locations. However, the company's Adjusted EBITDA fell to $1.85 million in Q2 2025 from $4.55 million in Q2 2024, indicating a significant decline in profitability [3].
The company's comparable restaurant sales dropped 7.2% in Q2 2025, a worse trend than the prior year’s decline of 5.6% in Q2 2024 [4]. The company attributed some of the softness to economic headwinds, tariffs, and slowdowns in guest traffic during May and June. However, there were signs of returning customers in July.
GEN Restaurant Group's CEO, David Kim, noted that the company aims to exceed 12-13 new restaurant openings by year-end 2025 and expects to mitigate economic headwinds through cost savings. The company has 7 additional restaurants under development for completion by 2025 and sees strong cash flow with $9.6 million in cash and no long-term debt [3].
Despite the revenue growth and expansion efforts, the company's Q2 performance highlights challenges in maintaining same-store growth and profitability. Investors will closely examine the company's strategic reset and assess its ability to navigate economic headwinds and maintain profitability.
References:
[1] https://www.marketscreener.com/news/gen-restaurant-s-q2-revenue-misses-expectations-ce7c5ededa81f62c
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX828496:0-gen-restaurant-s-q2-revenue-misses-expectations/
[3] https://www.mitrade.com/insights/news/live-news/article-8-1018841-20250807
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