Gen Restaurant Group, Inc. · NASDAQ:GENK
Gen Restaurant — Investor Presentation (November 2023)
24 slides from Gen Restaurant's investor presentation, Nov 15, 2023
Slide 1: Investor Overview November 2023
Investor Overview November 2023 Exhibit 99.1
Slide 2: Legal Disclaimer
This presentation may include “forward-looking statements” with the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Exchange Act of 1934, as amended. All forward-looking statements are subject to a number of risks, uncertainties and assumptions, and
Slide 3: Company Overview
KOREAN BBQ HOUSE Company Overview
Slide 4: Founder-Led Management Team
Joined GEN shortly after opening of first restaurant in September 2011 Former CEO of La Salsa, Inc. and Baja Fresh Enterprises and seasoned restaurateur and entrepreneur Founder of Kim Family Foundation, supporting various charitable causes related to scholastic achievement and leadership Founder-Le
Slide 5: About Us
Founded by two Korean immigrants in 2011 Engaging and interactive dining experience where guests serve as their own chefs 35 company-owned restaurants across seven states One of the largest Asian casual dining restaurant concepts by total revenue in the United States Passionate and loyal following o
Slide 6: Revenue and Adjusted EBITDA Margin by Quarter
Revenue and Adjusted EBITDA Margin1 by Quarter 6 2020: $62.7M Restaurant-Level Adjusted EBITDA Margin1 Adjusted EBITDA Margin1 COVID-19 Impacted Strong Emergence From COVID-19 $ in Millions 2021: $140.6M 2022: $163.7M YTD 2023: $122.9M Non-GAAP financial measures. See appendix for definitions and re
Slide 7: Comparable Restaurant Sales Growth
Q3 Q4 Q1 Q1 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q2 Q1 Q3 Comparable Restaurant Sales Growth1 7 2020 2021 2022 2023 COVID-19 Impacted See page 22 for an explanation of how we calculate Comparable Restaurant Sales Growth. Compared to Corresponding Period in Prior Year Compared to Corresponding Period in 2019
Slide 8: Operational Highlights
KOREAN BBQ HOUSE Operational Highlights
Slide 9: The GEN Dining Experience
Diverse Assortment of Side Dishes, or Banchan Family-Style Food Served on Embedded Table-Top Grills Unlimited Amount of Any Food Item for an Affordable, All-Inclusive Price Differentiated Culinary Experience with Enthusiastic Patrons Modern and Vibrant Décor and Atmosphere Engaging the Senses Meanin
Slide 10: Unlimited Food Items at An Affordable, All-Inclusive Price
Garlic Calamari Marinated Garlic Calamari Cajun Shrimp Marinated Shrimp with Cajun Rub Smoked Garlic Samgyupsal Marinated Pork Belly with Smoked Garlic Spicy Pork Bulgogi Thinly Sliced Marinated Spicy Pork Beef Chadol Thinly Sliced Premium Beef Brisket Spicy Chicken Marinated Spicy Chicken Beef Bulg
Slide 11: Efficient Back-of-House Operations
Efficient Back-of-House Operations 11 We receive ready-to-serve proteins and fresh produce from our suppliers typically two to three times per week Simple transfer from package to plate Guests grill food to their liking on their table-top grill Established relationships with prospective suppliers Re
Slide 12: In-House Design and Fabrication Capabilities
Greater control than our competition over quality, costs and lead times Well-functioning ventilation systems are critical to Korean barbeque restaurant concepts We do not rely on prohibitively expensive third-party contractors who require lengthy lead times We design and fabricate ventilation system
Slide 13: Customer Reviews on Yelp and Google
Yelp(1) Total Number of Reviews: 87,000+ Average Star Rating: 4.0 Google(1) Total Number of Reviews: 40,000+ Average Star Rating: 4.2 “Food is always so good and it's so much fun making it on your own. Took my family for the first time and they had a blast. Will definitely be going back soon! Servic
Slide 14: Expansion Strategy
KOREAN BBQ HOUSE Expansion Strategy
Slide 15: Flexible Real Estate Footprint
Flexible Real Estate Footprint 15 Our restaurants fit in a wide variety of retail footprints Henderson, NV Torrance, CA West Covina, CA Tustin, CA Houston, TX Pearlridge, HI Webster, TX Huntington Beach, CA Select Locations Standalone Mid Cap End Cap Chino Hills, CA Las Vegas, NV Carrollton, TX Temp
Slide 16: Strong Unit Economics
Strong Unit Economics 2022 Unit Metrics Targeted New Unit Metrics(1) Average Unit Volume (AUV)(2) $5.9 Million $5.0 Million Revenue per Square Foot(3) $890 $800+ Restaurant-Level Adjusted EBITDA Margin(4) 20.5% 20.0% Cash-on-Cash Returns(5) 85%+ 40%+ Payback Period(6) 1.4 Years 2.5 Years Note: These
Slide 17: Expansion Strategy To Achieve Long-Term Potential
35 Units(1) in 7 States Potential for 250+ Restaurants in the U.S.(3) = 17 Proven Existing Markets Near-Term New Markets FL VA NY CA NV AZ TX OR WA UT D.C. CO NJ MA OK Expansion Strategy To Achieve Long-Term Potential 2-3 Additional Units in 2023(2) Current Footprint 10-12 Units in 2024 Near-Term Gr
Slide 18: Strong Unit Pipeline For Additional Restaurants
Westheimer (Houston) – Opened October 2023 Arlington Dallas 18 8 signed leases across 5 states Locations Texas Florida Washington Hawaii Maui Kapolei TX Proven Existing Markets Near-Term New Markets WA New York Jacksonville Orlando New York City Seattle NY Strong Unit Pipeline For Additional Restaur
Slide 19: Appendix
: a Z KOREAN BBQ HOUSE Appendix
Slide 20: Adjusted EBITDA definition
Adjusted EBITDA is not recognized under GAAP. We define Adjusted EBITDA as net income (loss) before net interest expense, income taxes, depreciation and amortization and consulting fees paid to a related party. We also exclude non-recurring items, such as gain on extinguishment of debt, and Restaura
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures 21 The following tables reconcile revenue to Restaurant-Level Adjusted EBITDA and net income to Adjusted EBITDA for the years ended December 31, 2022, December 31, 2021, December 31, 2020, Year-to-date as of June 30, 2022 and 2023 and Last Twelve Months as of June 30, 202
Slide 22: Non-GAAP Financial Measures by Quarter
Non-GAAP Financial Measures 22 The following tables reconcile revenue to Restaurant-Level Adjusted EBITDA and net income to Adjusted EBITDA for each quarter of 2020, 2021, 2022 and 2023 respectively:
Slide 23: Additional Financial Metrics and Other Data
Additional Financial Metrics and Other Data “Average Unit Volume” or “AUV” means the average annual restaurant sales for all restaurants open for a full 18 months before the end of the period measured. We have not made any adjustments to exclude restaurants in 2021 that experienced temporary closure
Slide 24: Investor Relations Contact
Investor Relations Contact 24 Investor Relations Contact: Jeff Priester ICR investor@genbbqoffice.com
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