GEN Restaurant Group, Inc. announced its financial results for the third quarter ended September 30, 2024. Total revenue increased by 7.8% year-over-year, reaching $49.1 million, primarily driven by the addition of new restaurants. The company's restaurant-level adjusted EBITDA margin was reported above 18%, reflecting strong performance from new locations.
Despite revenue growth, comparable restaurant sales decreased by 9.6% in the third quarter of 2024 compared to the prior year. Net income for the quarter was $0.2 million, or $0.01 per diluted share, a decrease from $2.6 million, or $0.08 per diluted share, in the third quarter of 2023. This decline was largely attributed to increased expenses associated with new restaurant development.
Adjusted EBITDA for the quarter was $3.4 million, representing 7.0% of revenue, inclusive of approximately $1.8 million in pre-opening expenses. Cash and cash equivalents stood at $22.1 million as of September 30, 2024, a decrease from $29.2 million at June 30, 2024, due to internal financing of new restaurant openings. The company confirmed it remains on pace to open 10 to 11 new locations in 2024 and noted the successful launch of GEN gift cards at Costco.
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