GENK Earnings Prediction
The chart below shows how GENK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GENK sees a +3.39% change in stock price 10 days leading up to the earnings, and a +5.29% change 10 days following the report. On the earnings day itself, the stock moves by -0.90%. This data can give you a slight idea of what to expect for the next quarter's release.
GENK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
49.10M
7.77%
-8.83%
Gross Margin
65.04%
-0.52%
1.75%
Operating Margin
3.86%
-44.86%
-36.20%
Net Margin
0.34%
-94.12%
-91.12%
EPS
0.01
-87.50%
-83.33%
No Data Available
GENK Earnings Analysis
GEN Restaurant Group, Inc. Class A Common Stock Corporation (GENK.O) Earnings Conference Call
Positive
Revenue Increase Driven by Expansion: Total revenue increased by 7.8% to $49.1 million compared to $45.6 million in Q3 2023, driven by the continued ramp-up of newer restaurants.
Restaurant Openings Performance: The company opened 1 restaurant in Q3 and 2 additional restaurants in October, with strong performance from these openings.
Strong EBITDA Performance: Achieved restaurant-level adjusted EBITDA margins above 18% for Q3 2024, meeting expectations for the quarter.
EBITDA Performance Analysis: Total adjusted EBITDA was $3.4 million, net of pre-opening costs, compared to $5 million for Q3 2023, indicating strong operational efficiency.
Cash for Restaurant Development: As of September 30, 2024, the company had $22.1 million in cash and cash equivalents, enabling funding for new restaurant development costs.
Negative
Quarterly Revenue Increase: Overall, we delivered total revenue of $49.1 million for the third quarter, nearly an 8% increase year-over-year, driven by success of our newer restaurants.
Positive Earnings Surprise: We also delivered $0.2 million in net income or $0.01 of diluted earnings per share, and $0.9 million in adjusted net income or $0.03 of adjusted diluted earnings per share, while estimates had us losing money for the quarter.
Restaurant Openings Update: We opened 1 restaurant in the third quarter and opened 2 restaurants in October.
Same-Store Sales Decline: However, our same-store sales growth declined 9.6% year-over-year.
Mixed Consumer Environment: Consumer environment remained mixed, with ongoing inflationary pressures affecting discretionary spending.
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GENK Earning Call Sentiment
GEN Restaurant Group, Inc (GENK) Q3 2024 Earnings Call Transcript
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GENK.O
1.76%Positive
The earnings call presents mixed signals: strong revenue growth and expansion plans are positive, but same-store sales decline and increased expenses are concerning. The Q&A highlighted temporary disruptions and cannibalization, but also noted improved sales in recent months. The lack of a buyback or dividend program further tempers enthusiasm. Adjusted EBITDA and optimistic guidance provide some support, but the lack of clear guidance on future performance and increased G&A expenses suggest a cautious outlook, leading to a neutral prediction.