Gen Restaurant Group, Inc. · NASDAQ:GENK
Gen Restaurant — Investor Presentation (June 2024)
25 slides from Gen Restaurant's investor presentation, Jun 10, 2024
Slide 1: Investor Overview June 2024
Investor Overview June 2024 Exhibit 99.1
Slide 2: Legal Disclaimer
This presentation includes “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements are subject to a number of risks, uncertainties and assump
Slide 3: Company Overview
KOREAN BBQ HOUSE Company Overview
Slide 4: About Us
Founded by two Korean immigrants in 2011 Engaging and interactive dining experience where guests serve as their own chefs 40 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 5: Operational and Financial Highlights
5 Non-GAAP financial measures. See appendix for definitions and reconciliations. As of March 31, 2024. Operational Highlights Opened two new locations during the first quarter of 2024 in Seattle, Washington and Dallas, Texas with a third location in Jacksonville, Florida during April 2024. Launched
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 2023: $181.0M Non-GAAP financial measures. See appendix for definitions and reconc
Slide 7: Operational Highlights
KOREAN BBQ HOUSE Operational Highlights
Slide 8: 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 9: 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 10: New Premium Menu
New Premium Menu 10 Premium meat selection for a $20 upcharge or a la carte options allowing for better segmentation of value and premium guests Available at all 40 locations nationwide Features 10 top shelf proteins including: Wagyu Al pastor Marbling Center Cut Marinated Short Rib Pollo Asado Caju
Slide 11: Efficient Back-of-House Operations
Efficient Back-of-House Operations 11 Simple transfer from package to plate Guests grill food to their liking on their table-top grill Received in ready-to-serve format Engaging and interactive dining experience where guests cook their own food New Sysco partnership allows for efficient nation-wide
Slide 12: Customer Reviews on Yelp and Google
Yelp(1) Total Number of Reviews: 94,500+ Average Star Rating: 4.0 Google(1) Total Number of Reviews: 47,600+ Average Star Rating: 4.1 “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 13: Expansion Strategy
KOREAN BBQ HOUSE Expansion Strategy
Slide 14: Flexible Real Estate Footprint
Flexible Real Estate Footprint 14 Our restaurants fit in a wide variety of retail footprints Henderson, NV Torrance, CA West Covina, CA Tukwila, WA Houston, TX Pearlridge, HI Webster, TX Huntington Beach, CA Select Locations Standalone Mid Cap End Cap Chino Hills, CA Las Vegas, NV Carrollton, TX Tem
Slide 15: Strong Unit Economics
Strong Unit Economics Historical Unit Metrics Targeted New Unit Metrics(1) Average Unit Volume (AUV)(2) $5.9 Million $4-5 Million Revenue per Square Foot(3) $862 $800+ Restaurant-Level Adjusted EBITDA Margin(4) 18.5% 18.0-20.0% Cash-on-Cash Returns(5) ~59% ~40% Payback Period(6) 1.7 Years 2.5 Years
Slide 16: Expansion Strategy To Achieve Long-Term Potential
40 Units(1) in 8 States Potential for 250+ Restaurants in the U.S.(3) = 16 Proven Existing Markets Near-Term Potential New Markets FL NY CA NV AZ TX OR WA NJ MA Expansion Strategy To Achieve Long-Term Potential 10-12 New Units in 2025 Current Footprint Near-Term Growth Plan + + Long-Term Opportunity
Slide 17: The GEN Difference
17 Founder led management team that is well aligned with maximizing shareholder value given their high levels of insider ownership New restaurant average payback period of ~1.4 years historically (1) Strong cash balance, minimal level of debt, and an unused $20M line of credit with self-funding grow
Slide 18: Appendix
: a Z KOREAN BBQ HOUSE Appendix
Slide 19: 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 20: 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 21: 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 22: Non-GAAP Financial Measures (annual)
Non-GAAP Financial Measures 22 The following tables reconcile revenue to Restaurant-Level Adjusted EBITDA and net income to Adjusted EBITDA for the years ended December 31, 2023, December 31, 2022, December 31, 2021 and December 31, 2020, respectively:
Slide 23: Non-GAAP Financial Measures (quarterly)
Non-GAAP Financial Measures 23 The following tables reconcile revenue to Restaurant-Level Adjusted EBITDA and net income to Adjusted EBITDA for each quarter of 2020, 2021, 2022, 2023 and 2024 respectively:
Slide 24: 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 12 months before the end of the period measured. AUV is calculated by dividing annual revenue for the year presented for all such restaurants by th
Slide 25: Investor Relations Contact
Investor Relations Contact 25 Investor Relations Contact: Cody Slach and Cody Cree Gateway Group, Inc. 1-949-574-3860 GENK@gateway-grp.com
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