GEN Restaurant Group Inc (GENK) 2025 Q1 法說會逐字稿

Good afternoon, everyone, and welcome to the GEN Restaurant Group Incorporated first quarter 2025 earnings call.

大家下午好，歡迎參加 GEN Restaurant Group Incorporated 2025 年第一季財報電話會議。

(Operator Instructions) At this time, I would like to turn the floor over to Tom Croal, the company's Chief Financial Officer. Sir, you may begin.

（操作員指示）現在，我想把發言權交給公司財務長湯姆‧克羅爾 (Tom Croal)。先生，您可以開始了。

Thank you, operator, and good afternoon. By now everyone should have access to our first quarter 2025 earnings release. If not, it can be found at www.genkoreanbbq.com in the investor relations section.

謝謝接線員，下午好。現在每個人都應該可以看到我們 2025 年第一季的收益報告。如果沒有，您可以在 www.genkoreanbbq.com 的投資者關係部分找到。

Before we begin our formal remarks, I need to remind everyone that our discussions today will include forward-looking statements within the meaning of Federal Securities Laws, including but not limited to statements regarding growth plans and potential new store openings, as well as those types of statements identified in our quarterly report on Form 10-Q for the period ended March 31, 2025.

在我們開始正式發言之前，我需要提醒大家，我們今天的討論將包括聯邦證券法所定義的前瞻性陳述，包括但不限於有關增長計劃和潛在新店開業的陳述，以及我們在截至 2025 年 3 月 31 日的 10-Q 表季度報告中確定的那些類型的陳述。

And our subsequent reports filed with the SEC. These forward-looking statements are not guarantees of future performance and therefore you should not put undue reliance on them. These statements represent our views only as of the date of this call and are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we currently expect.

以及我們隨後向美國證券交易委員會提交的報告。這些前瞻性陳述並不能保證未來的表現，因此您不應過度依賴它們。這些聲明僅代表我們截至本次電話會議之日的觀點，並且還受到許多風險和不確定因素的影響，可能導致實際結果與我們目前的預期有重大差異。

We refer you to our recent SEC filings, including our annual report on Form 10-K for a more detailed discussion of the risks that could impact our future operating results and financial condition. Except as required by law, we undertake no obligation to update or revise these forward-looking statements in light of new information or future events.

請您參閱我們最近向美國證券交易委員會 (SEC) 提交的文件，包括 10-K 表格年度報告，以便更詳細地討論可能影響我們未來經營業績和財務狀況的風險。除法律要求外，我們不承擔根據新資訊或未來事件更新或修改這些前瞻性聲明的義務。

During today's call, we will discuss some non-GAAP financial measures which we believe can be useful in evaluating our performance. The presentation of this information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.

在今天的電話會議中，我們將討論一些我們認為有助於評估我們績效的非公認會計準則財務指標。這些資訊的呈現不應被孤立地看待，也不應將其視為根據 GAAP 編制的結果的替代品。

Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are available in our earnings press release and our SEC filings, which are available in the Investor Relations section of our website.

非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳表可在我們的收益新聞稿和 SEC 文件中查閱，這些文件可在我們網站的「投資者關係」部分查閱。

Now I'd like to turn it over to our Chairman and CEO David Kim.

現在我想把發言權交給我們的董事長兼執行長 David Kim。

Thank you, Tom, and good afternoon, everyone. In the first quarter of 2025, despite economic pressures and slow consumer demand, we generated a 13% year over year increase in total revenues to $57.3 million. This increase was driven by our growing footprint of restaurants and the continued success of our existing locations.

謝謝你，湯姆，大家午安。2025 年第一季度，儘管面臨經濟壓力和消費需求放緩，我們的總收入仍年增 13%，達到 5,730 萬美元。這一增長得益於我們餐廳數量的不斷增長以及現有門市的持續成功。

We're pleased with our execution in the first quarter and the continued progress we're making across our strategic priorities. We believe our value price. All-inclusive dining model continues to resonate with guests and positions us for durable long-term growth.

我們對第一季的執行情況以及我們在策略重點方面取得的持續進展感到滿意。我們相信我們的價值價格。全包式餐飲模式繼續引起客人的共鳴，並為我們實現長期持久的成長奠定了基礎。

We opened six restaurants in the first quarter, bringing GEN's footprint to 49 stores. These new openings represent a balanced geographic mix including both new and existing markets. With this latest round of openings, we remain on pace to meet our target of 12 to 13 total new stores by the end of 2025.

我們在第一季開設了 6 家餐廳，使 GEN 的門市總數達到 49 家。這些新店開業體現了包括新市場和現有市場的均衡地理分佈。透過最新一輪的開店，我們預計將實現到 2025 年底共開設 12 至 13 家新店的目標。

We have six restaurants under construction in addition to the six we opened in the first quarter. We made significant improvements both year over year and sequentially in same store sales growth. For the first quarter, same store sales were down a very small modest 0.7% compared to being down 5.6% for all of 2024.

除了第一季開業的六家餐廳外，我們還有六家餐廳正在興建中。我們的同店銷售額同比增長和環比增長均取得了顯著進步。第一季度，同店銷售額僅小幅下降 0.7%，而 2024 年全年則下降 5.6%。

This is a tremendous improvement. Restaurant level adjusted even a margin for the quarter was slightly off our overall annual goal of 17% to 18%, coming in at around 15.6% due to higher costs for new restaurant openings. While our same short sales have dramatically improved year over year and are presently better than many of our competitors in the industry.

這是一個巨大的進步。由於新開餐廳的成本較高，本季餐廳層級的調整利潤率略低於我們 17% 至 18% 的年度整體目標，約為 15.6%。而我們的同款賣空業務逐年大幅改善，目前比業界許多競爭對手都要好。

It's not the metrics that we believe captures our success. I can't stress enough. Our business model revolves around growing our footprint to capitalize on the strong EBITDA and resulting swift payback of our initial investment for new restaurants and the extraordinary ROI new stores generate.

我們認為衡量我們成功的並不是這些指標。我再怎麼強調也不為過。我們的商業模式圍繞著擴大我們的業務範圍，以利用強勁的 EBITDA 以及由此產生的對新餐廳的初始投資的快速回報以及新店產生的非凡投資回報率。

We have an impressive 2.1-year payback period run rate on our 2024 new stores, which equates to 40% plus ROI. Our shorter payback period than most competitors allows us to provide a more consistent and efficient return for our investors.

我們 2024 家新店的投資回收期運作率高達 2.1 年，相當於 40% 以上的投資報酬率。我們的投資回收期比大多數競爭對手都短，這使我們能夠為投資者提供更穩定、高效的回報。

Then another way. At the time we went public in June of 2023, we had 33 stores. We have added 16 new stores since then, roughly increasing our store count by 50%. But because of strong internal cash flow, we haven't needed to take any debt or equity to do this.

那就換一種方式吧。到 2023 年 6 月上市時，我們擁有 33 家門市。從那時起，我們又增加了 16 家新店，門市數量增加了約 50%。但由於內部現金流強勁，我們不需要承擔任何債務或股權來實現這一目標。

This proves the value of our high free cash flow model. Having said this, We still deeply focus on ways to drive growth at existing locations and have a number of initiatives to share. First, we only took a 2.8% price increase at the end of 2024 when most companies took 4% to 10% price increases.

這證明了我們的高自由現金流模型的價值。話雖如此，我們仍然高度重視推動現有門市成長的方法，並有許多舉措可以分享。首先，在2024年底大多數公司價格上漲4%至10%的情況下，我們只上漲了2.8%。

We're happy to report that our increase has not influenced customers at all. We remain a high-quality value dining experience for our customers. Thank you we've continued to enhance our training programs. We're spending more time and effort on training in order to build the bench strength necessary to expand new restaurant development and openings around the country and into South Korea.

我們很高興地報告，我們的漲價對顧客沒有任何影響。我們隨時為顧客提供高品質的用餐體驗。謝謝，我們一直在加強我們的培訓計劃。我們在培訓上投入了更多的時間和精力，以建立必要的後備力量，在全國和韓國擴大新餐廳的開發和開業。

And third are incubator projects. Last year, we announced the launch of GEN gift cards at seven to eight Costco locations, all within a 5-mile radius of most of our restaurants across the US. The gift card continuously sells exceptionally well. This quarter we're testing e-gift cards, which will be sold through Costco's website.

第三是孵化器計畫。去年，我們宣佈在七到八家 Costco 門市推出 GEN 禮品卡，這些門市均位於我們美國大部分餐廳 5 英里範圍內。禮品卡一直銷售得非常好。本季我們正在測試電子禮品卡，將透過 Costco 網站出售。

We have also recently signed an agreement to sell gift cards at Sam's Clubs, which we expect to begin by the end of the second quarter or the beginning of the third quarter. Our success in expanding this initiative is a testament to GEN's brand strength and position as a leader in Korean barbecue.

我們最近也簽署了在山姆會員店銷售禮品卡的協議，預計該協議將在第二季末或第三季初開始實施。我們成功擴大這項措施證明了 GEN 的品牌實力及其作為韓國燒烤領導者的地位。

We look forward to expanding this avenue with even more big box retail partners in the near future. Also, I'm pleased to announce one of our incubator projects was the creation of our new dual concept store in Texas. That includes a restaurant we're calling Kan sushi.

我們期待在不久的將來與更多的大型零售合作夥伴一起拓展這一途徑。此外，我很高興地宣布，我們的孵化器項目之一是在德克薩斯州創建新的雙概念商店。其中包括一家我們稱為 Kan 壽司 的餐廳。

Kan is a contemporary medium to high-end sushi restaurant at an average price point of $39 which compares to our gen price point of $30. Kan is an all you can eat concept which, like GEN, is a value-based restaurant concept.

Kan 是一家現代中高級壽司餐廳，平均價格為 39 美元，而我們的正常價格為 30 美元。Kan 是一種自助餐概念，與 GEN 一樣，它是一種基於價值的餐廳概念。

The two restaurants are attached. But have separate entrances and completely different interiors. Most importantly, they've been engineered to create an extremely efficient back of the house set up with one bar, one kitchen, one storage area, and one area for bathrooms for both restaurants.

兩家餐廳是相連的。但有單獨的入口和完全不同的內部空間。最重要的是，他們經過精心設計，打造出一個極其高效的後勤區域，為兩家餐廳設置一個酒吧、一個廚房、一個儲藏區和一個浴室區域。

This model uses one labor force to run two restaurants, which results in a significant improvement in operating margin. Now instead of waiting in long lines, they can choose between two unique concepts that provide value based.

這種模式使用一名勞動力來經營兩家餐廳，從而顯著提高營業利潤率。現在，他們無需排長隊等候，而是可以在兩個提供基於價值的獨特概念之間進行選擇。

The two restaurants together, GEN and Kan, invite more crowds and create an epicenter for consumers. While still early days, we're evaluating a number of additional opportunities to roll out this dual concept. Finally, as a result of another incubator project, we have recently reached an agreement with Cisco for them to sell our proprietary.

GEN 和 Kan 這兩家餐廳攜手合作，吸引了更多顧客，為消費者打造了一個中心。雖然仍處於早期階段，但我們正在評估推出這一雙重概念的許多其他機會。最後，作為另一個孵化器計畫的成果，我們最近與思科達成協議，由他們出售我們的專有技術。

GEN Korean barbecue meat products to third parties such as grocery and big store retailers. This is in the early stages and will provide more information on future calls. Turning back to new restaurant expansion, we're also making tangible progress on our international expansion into South Korea, where we plan to open three new restaurants in 2025.

GEN 韓國燒烤肉品銷售給第三方，例如雜貨店和大型商店零售商。目前尚處於早期階段，我們將在未來的通話中提供更多資訊。回到新餐廳擴張的問題，我們在國際擴張到韓國方面也取得了實際進展，我們計劃在 2025 年在韓國開設三家新餐廳。

The first one is on track to open at the end of second quarter. With the other two expected later in the year. These units will be built at approximately 1/3 the cost of our US stores, offering even more compelling potential returns, which are not subject to the volatility of the current tariffs.

第一家預計將於第二季末開業。另外兩部預計將於今年稍後推出。這些單位的建設成本約為我們美國商店的 1/3，提供更具吸引力的潛在回報，而且不受當前關稅波動的影響。

Additionally, by opening in Korea, we hope to see early culinary, cultural, and experimental trends. That might translate well for us in our US locations. Given the strong momentum in our development pipeline, we remain on pace to open 12 to 13 new restaurants in 2025.

此外，透過在韓國開業，我們希望看到早期的烹飪、文化和實驗趨勢。這對我們在美國的分公司來說可能是個好消息。鑑於我們開發通路的強勁勢頭，我們仍計劃在 2025 年開設 12 至 13 家新餐廳。

We expect to achieve restaurant level adjusted even a margin between 17% and 18% and revenue between $245 and $250 million for full year of 2025. By the end of 2025, we anticipate being at an annual run rate approaching $300 million of revenue when all new restaurants are opened.

我們預計，到 2025 年全年，餐廳層級的調整後利潤率將達到 17% 至 18% 之間，營收將達到 2.45 億美元至 2.5 億美元之間。到 2025 年底，當所有新餐廳都開業時，我們預計年收入將接近 3 億美元。

Another topic I want to address is the potential impact of recent announced tariffs. There could be a material impact on equipment costs and construction materials sourced from China, but still, at a very early stage to quantify the extent.

我想討論的另一個主題是最近宣布的關稅的潛在影響。這可能會對來自中國的設備成本和建築材料產生重大影響，但量化其程度仍處於非常早期的階段。

If [Paris] begin to significantly affect our new restaurant development costs, which would reduce our ROI, we may decide to slow or pause the pace of new unit expansion until conditions improve or stabilize. Overall, our first quarter marks a strong start to the year and reinforces the strategic foundation we've built to build and support the long-term growth.

如果[巴黎]開始顯著影響我們新餐廳的開發成本，從而降低我們的投資回報率，我們可能會決定放慢或暫停新餐廳擴張的步伐，直到情況改善或穩定下來。總體而言，我們的第一季標誌著今年的強勁開局，並鞏固了我們為建立和支持長期成長而建立的策略基礎。

Backed by a healthy balance sheet, strong unit level returns and rising brand momentum. We believe GEN is well positioned to deliver on our 2025 goals and continue expanding our presence across both domestic and international markets. Thank you for your continued support. We remain excited about the opportunities ahead and confident in the road we're on.

以健康的資產負債表、強勁的單位水平回報和不斷上升的品牌勢頭為後盾。我們相信，GEN 已做好準備，實現我們的 2025 年目標，並繼續擴大我們在國內和國際市場的影響力。感謝您一直以來的支持。我們對未來的機會感到興奮，對我們所走的道路充滿信心。

Tom will now provide a detailed look at our first quarter financial performance.

湯姆現在將詳細介紹我們的第一季財務表現。

Thank you, David. David discussed revenue in his opening remarks, so I will start with expenses. Cost of goods sold as a percentage of company restaurant sales increased by 20 basis points to 33.6% in the first quarter of 2025 compared to the first quarter last year.

謝謝你，大衛。大衛在開場白中討論了收入，因此我將從支出開始。2025 年第一季度，銷售成本占公司餐廳銷售額的百分比與去年第一季相比增加了 20 個基點，達到 33.6%。

This minor increase is primarily attributable to inflationary pressure and a minor impact from our premium menu. Costs of goods sold decreased by 50 basis points compared to the fourth quarter of 2024, primarily due to improved margin from our premium menu.

這一小幅增長主要歸因於通膨壓力和高級菜單的輕微影響。與 2024 年第四季相比，銷售成本下降了 50 個基點，這主要是由於我們的高級菜單利潤率提高。

Payroll and benefits as a percentage of company restaurant sales decreased by 10 basis points in the first quarter of 2025 to 31.7% compared to the first quarter of last year. Occupancy expenses as a percentage of company restaurant sales increased by 40 basis points to 8.9% compared to the first quarter of last year due to new restaurant opening.

2025 年第一季度，薪資和福利占公司餐廳銷售額的百分比與去年第一季相比下降了 10 個基點，至 31.7%。由於新餐廳開業，入住費用占公司餐廳銷售額的百分比與去年第一季相比增加了 40 個基點，達到 8.9%。

Other operating expenses as a percentage of company restaurant sales increased 30 basis points to 10.3% compared to the first quarter of last year. G&A, excluding stock-based compensation during the first quarter, was $5.6 million or 9.8% of revenue. Compared to $3.9 million or 7.7% of revenue in the year ago period.

其他營業費用占公司餐廳銷售額的百分比與去年第一季相比增加了 30 個基點，達到 10.3%。第一季度，一般及行政費用（不包括股票薪酬）為 560 萬美元，佔收入的 9.8%。相比之下，去年同期的營收為 390 萬美元，佔 7.7%。

During the first quarter of 2025, we opened six new restaurants compared to only two new restaurants in the first quarter last year. This tripling of new store openings is a main driver of higher G&A and includes hires across construction, regional operations, and training.

2025 年第一季度，我們開設了 6 家新餐廳，而去年第一季僅開設了 2 家新餐廳。新店開業數量增加兩倍是 G&A 成長的主要動力，其中包括建築、區域營運和培訓領域的招聘。

To a much lesser extent, the first quarter also reflected increased marketing expenses. In the first quarter we had a net loss before income taxes of $2.1 million, which equated to a loss per share of $0.06. Compared to net income before income taxes of $3.8 million which equated to an EPS of $0.11 per share in the first quarter of 2024.

第一季也反映出行銷費用的增加，但幅度較小。第一季度，我們的稅前淨虧損為 210 萬美元，相當於每股虧損 0.06 美元。相比之下，2024 年第一季的稅前淨收入為 380 萬美元，相當於每股收益 0.11 美元。

However, 2024 included a one-time gain related to the buyout of our partner in Hawaii of $3.4 million. In addition, the first quarter of 2025 reflects higher costs associated with new restaurant development, including $2.6 million in pre-opening costs.

然而，2024 年包括與收購我們在夏威夷的合作夥伴相關的 340 萬美元的一次性收益。此外，2025 年第一季新餐廳開發相關成本將有所增加，其中包括 260 萬美元的開業前成本。

If you look at adjusted net income, a non-GAAP measure, we generated net income of $1.4 million or an EPS of $0.04 per share in the first quarter of 2025 compared to net income of $2.9 million or an EPS of $0.09 per share in the first quarter last year.

如果查看非 GAAP 指標——調整後的淨收入，我們會發現 2025 年第一季我們的淨收入為 140 萬美元，即每股收益 0.04 美元，而去年第一季的淨收入為 290 萬美元，即每股收益 0.09 美元。

Since going public in 2023, we have grown gin from 33 restaurants to 49, a 50% increase without incurring any long-term debt. If we stopped all new restaurant development, we estimate we could have generated a $2.5 million profit in the first quarter along with an additional $4 million of EBITDA or cash flow.

自 2023 年上市以來，我們的餐廳數量已從 33 家增加到 49 家，增加了 50%，且沒有產生任何長期債務。如果我們停止所有新餐廳的開發，我們估計我們可以在第一季產生 250 萬美元的利潤以及額外的 400 萬美元的 EBITDA 或現金流。

This figure strips out all pre-opening costs and a reduction in G&A. Total adjusted EBITDA for the first quarter of 2025 was $1.2 million, down from $6.4 million in the first quarter of 2024. However, excluding the one-time gain of $3.4 million I just discussed, adjusted EBITDA for the first quarter of 2024 was only $3 million.

該數字剔除了所有開業前成本以及一般行政費用的減少。2025 年第一季的調整後 EBITDA 總值為 120 萬美元，低於 2024 年第一季的 640 萬美元。然而，除去我剛才討論的 340 萬美元的一次性收益，2024 年第一季的調整後 EBITDA 僅為 300 萬美元。

Additionally, after removing pre-opening costs, adjusted EBITDA for the first quarter of 2025 decreased only slightly to $3.3 million compared to $3.6 million in the fourth quarter of 2024. Turning to our liquidity position, as of March 31, 2025, we had $15.4 million in cash and cash equivalents.

此外，扣除開業前成本後，2025 年第一季的調整後 EBITDA 僅略微下降至 330 萬美元，而 2024 年第四季為 360 萬美元。談到我們的流動性狀況，截至 2025 年 3 月 31 日，我們擁有 1540 萬美元的現金和現金等價物。

And only long-term debt we carry is $5 million. We have fully available all of our $20 million revolving line of credit. During the first quarter, we repurchased 33,400 shares of our Class A common stock at an average cost of $5.94 per share.

我們承擔的長期債務只有 500 萬美元。我們已充分利用了全部 2000 萬美元的循環信用額度。第一季度，我們以每股 5.94 美元的平均成本回購了 33,400 股 A 類普通股。

As of March 30, 2025, we had $4.8 million remaining under our repurchase authorization. Remember that we have $33 million shares outstanding, including our A&B shares. The founding group continues to own 85% of the company.

截至 2025 年 3 月 30 日，我們的回購授權餘額為 480 萬美元。請記住，我們有價值 3300 萬美元的流通股，包括 A 股和 B 股。創始集團繼續擁有該公司 85% 的股份。

Because of the founders' strong ownership position, their interests are consistently aligned with those of the public shareholders, and they are fully vested in successfully growing GEN. Before concluding, I want to address investor questions we've received recently regarding long-term lease obligations.

由於創辦人擁有強大的所有權地位，他們的利益與公眾股東的利益始終保持一致，並且他們全心投入 GEN 的成功發展。在結束之前，我想回答我們最近收到的投資者關於長期租賃義務的問題。

To reiterate what we said on our last call. GAAP accounting under ASC 842 requires us to record our restaurant lease obligations as a liability with an offsetting operating lease asset. The $147 million in lease liabilities are offset by $130 million in operating lease assets on our balance sheet.

重申我們上次通話中所說的話。根據 ASC 842 的 GAAP 會計要求我們將餐廳租賃義務記錄為負債，並抵銷營業租賃資產。在我們的資產負債表上，1.47 億美元的租賃負債被 1.3 億美元的營業租賃資產所抵銷。

This is a GAAP requirement. These lease liabilities are not bank or institutional long-term debt and should not be considered as such when evaluating our company. We have only $5 million of long-term debt.

這是 GAAP 的要求。這些租賃負債不是銀行或機構的長期債務，在評估我們公司時不應將其視為此類債務。我們的長期債務只有 500 萬美元。

We also received questions about our return on tangible asset metrics. It's important to note that using total assets as a proxy for invested capital is inflated because it includes the operating lease asset of $126 million.

我們也收到了有關有形資產回報指標的問題。值得注意的是，使用總資產作為投資資本的代理是誇大的，因為它包括 1.26 億美元的營業租賃資產。

This incorrect assumption artificially lowers our tangible asset return metrics. All of these points highlight the fact that GEN has no material long-term debt and produces strong returns from restaurant development.

這種錯誤的假設人為地降低了我們的有形資產報酬指標。所有這些觀點都凸顯了 GEN 沒有重大長期債務並從餐廳開發中獲得了豐厚回報的事實。

To reiterate what David said earlier, our financial outlook for the remainder of 2025 remains strong. We continue to anticipate opening between 12 and 13 new restaurants, which includes our first three international units in South Korea.

重申 David 之前所說的話，我們對 2025 年剩餘時間的財務前景依然強勁。我們預計將開設 12 至 13 家新餐廳，其中包括我們在韓國開設的首三家國際餐廳。

We're targeting full year revenues of $245 million to $250 million and achieving restaurant level adjusted EBITDA margins in the 17% to 18% range. By the end of 2025, we anticipate being at an annual run rate approaching $300 million in revenue when all the new restaurants are open.

我們的目標是全年營收達到 2.45 億美元至 2.5 億美元，並實現餐廳級調整後 EBITDA 利潤率達到 17% 至 18% 之間。到 2025 年底，當所有新餐廳都開業時，我們預計年收入將接近 3 億美元。

This concludes our prepared remarks. We'd like to thank you again for joining us on the call today. We are now happy to answer any questions that you may have. Operator, please open the line for questions.

我們的準備好的演講到此結束。我們再次感謝您今天參加我們的電話會議。我們現在很樂意回答您可能提出的任何問題。接線員，請打開熱線來回答問題。

(Operator Instructions)

（操作員指示）

Our first question today comes from Todd Brooks from the Benchmark Company. Please go ahead with your question.

我們今天的第一個問題來自 Benchmark Company 的 Todd Brooks。請繼續提問。

Hey, thanks for taking my questions. Good to speak with you both. Want to lead off, Tom, if you could talk to maybe the same store sales progression across the course of the first quarter. I know a lot of companies saw, material dips in business in February, so I didn't know if you were willing to give us any color there and then maybe quarter to date commentary on what you've seen so far in, fiscal future.

嘿，謝謝你回答我的問題。很高興與你們交談。湯姆，您能否先談談第一季同一家商店的銷售進度？我知道許多公司 2 月份的業務都出現了實質性下滑，所以我不知道您是否願意就此給我們提供一些細節，並就您迄今為止看到的財務未來情況提供一些季度評論。

Yeah, hi Todd. January and February were pretty strong months. I think we talked about those on our last call. March things dipped. I think through February we were positive and at the end of March we ended up being slightly negative. And it has continued negative in April and the beginning of May.

是的，你好，托德。一月和二月是相當強勁的月份。我想我們在上次通話中討論過這些問題。三月份的情況有所下滑。我認為整個二月我們的表現都是正面的，但三月底我們的表現卻略微消極。四月份和五月初，該數字仍為負值。

Okay, and if you're looking at kind of causality does it just feel macro to you or I guess the speculation, but what do you, what are you guys attributing the recent weakness over the last couple of months, so.

好的，如果您正在研究因果關係，它對您來說是否只是宏觀的，或者我猜是推測，但是您認為過去幾個月的疲軟現象歸因於什麼呢？

Yeah, we, it's macro. It definitely is macro based on what's going on in the economy and in the world. The impact of how our customers are feeling.

是的，我們，這是宏觀的。它絕對是基於經濟和世界情勢的宏觀因素。我們的客戶感受的影響。

Okay, fair enough and then David for you. I was wondering if you give us a framework that a lot of exciting initiatives within the incubator when you guys are talking to a $300 million revenue run rate exiting 2025, how should we think about that as kind of new revenue opportunities driven by the incubator versus revenue that's generated by the core enfranchise.

好的，夠公平了，然後大衛為你服務。我想知道，當你們談論到 2025 年結束時 3 億美元的收入運行率時，您是否能給我們提供一個框架，其中包含孵化器內的許多令人興奮的舉措，我們應該如何將其視為孵化器推動的一種新收入機會，而不是核心特許經營產生的收入。

So the incubators are just new projects that we want to try and see if we can enhance our brand, but all that growth of incremental sales reaching the $300 million is purely all coming from new store, restaurants and existing restaurants.

因此，孵化器只是我們想要嘗試的新項目，看看是否可以提升我們的品牌，但達到 3 億美元的增量銷售額的增長純粹全部來自新店、餐廳和現有餐廳。

Yeah, that's great to hear. Thanks. And then just quickly and I'll hop back into you if we think about con sushi in the dual blended restaurant, I know it's early, I think you spoke, I'm just wondering operation, I think you spoke about both menus being available.

是的，聽到這個消息真是太好了。謝謝。然後很快地，如果我們考慮雙混合餐廳中的壽司，我會跳回到你身邊，我知道現在還早，我想你說過，我只是想知道操作，我想你說過兩種菜單都可以使用。

But does Kan sushi actually have grills in the tables in them, or how do you make the GEN menu, and the GEN experience available to that customer and then just how many of these Kan sushi's do you foresee, the market supporting things.

但是 Kan 壽司的餐桌上真的有烤架嗎？或者您如何製作 GEN 菜單，以及如何讓客戶獲得 GEN 體驗，然後您預見到有多少家 Kan 壽司，市場會支持這些事情。

In the past experience before GEN, there's a lot of national concepts and smaller concepts that I was involved with, where dual concepts did not work. And there's a lot of studies done on why it doesn't work. So with that experience, knowing what I know of what didn't work for most concepts, it's a very different model.

在加入 GEN 之前的經驗中，我參與過許多國家概念和較小的概念，其中雙重概念不起作用。並且已經有大量研究表明它為何不起作用。因此，根據那次經驗，我知道大多數概念都是行不通的，這是一個非常不同的模型。

Where when a guest comes in, it's a very different restaurant. One cannot tell that one is a Kan, all you can eat, and one is a GEN all you Kan eat. It's very different. There are no grills on the side because you don't cook anything. So there's a little bit of complexity in making sushi, but we've deployed a lot of technology to where we can cut down a lot of the labor side to execute our operations on the con side.

當客人進來時，這是一家截然不同的餐廳。看不出來一個是Kan, all you can eat，一個是GEN all you Kan eat。這非常不同。旁邊沒有烤架，因為你不需要烹飪任何東西。因此，製作壽司有一點複雜，但我們已經部署了大量技術，可以減少大量的勞動力來執行我們的操作。

But in terms of numbers coming in, they're coming in much better than we thought. It's a very short number, but we're extremely optimistic on it. Why this was created is I want to try to explain it in a simpler way. It's like the wingman for GEN.

但從數字來看，情況比我們想像的要好得多。這是一個非常短的數字，但我們對此非常樂觀。我之所以創建這個是因為我想嘗試用一種更簡單的方式來解釋它。它就像是 GEN 的僚機。

Many times we come across larger spaces that we have to let go and not do because the landlord wants us to take a bigger space. And to achieve this, if we were to have two concepts where one concept supports the let's say the long line of gen Korean barbecue. Instead of losing those customers to another competitor, they now we can capture those customers by coming into our concept that's right next door.

很多時候，我們會遇到更大的空間，但我們不得不放棄而不是這樣做，因為房東希望我們佔用更大的空間。為了實現這一目標，如果我們有兩個概念，其中一個概念支持韓國燒烤的長線。現在，我們可以透過隔壁的理念來吸引這些客戶，而不是將這些客戶輸給其他競爭對手。

And we've, this is not all theory. These were all thought through, planned through, looked at a sample of some of our restaurants, especially our headquartered restaurant where another all you can eat sushi. And our customers, we were losing to them. So we said, let's try this and see if it will work. So operationally wise, construction wise, it's a little more expensive, not that expensive, and it's basically we're getting two for one in terms of labor cost.

我們知道，這並不全是理論。這些都是經過深思熟慮和計劃的，我們查看了我們一些餐廳的樣本，特別是我們總部的餐廳，那裡還有另一家提供無限量壽司的餐廳。而我們的客戶，我們正在失去他們。所以我們說，讓我們嘗試一下，看看它是否有效。因此從營運和建造角度來看，成本會稍微高一點，但也不是那麼貴，而且從勞動成本方面來說，我們基本上是獲得了雙倍的收益。

The food cost is almost the same in terms of percentage. It's slightly higher on the sushi side. So, Are we going to test more of these? We would, we are going to test more of these because in case there is a GEN where it doesn't perform as much, we can always counter that with and hedge it with another concept right next to us.

從百分比來看，食品成本幾乎相同。壽司方面稍微高一點。那麼，我們要進行更多測試嗎？我們會，我們會測試更多這些，因為如果出現 GEN 表現不佳的情況，我們總是可以用我們旁邊的另一個概念來應對和對沖它。

Okay perfect thanks guys.

好的，非常感謝大家。

Thank you, Todd.

謝謝你，托德。

Our next question comes from George Kelly from ROTH Capital Partners. Please go ahead with your question.

我們的下一個問題來自 ROTH Capital Partners 的 George Kelly。請繼續提問。

Hey everybody, thanks for taking my questions. Maybe to start one for Tom, just curious, the four target that you gave 17% to 18% for fiscal year '25. Just wondering what gives you confidence in that number.

大家好，感謝你們回答我的問題。也許可以為湯姆開始一個，只是好奇，你為 25 財年設定的四個目標是 17% 到 18%。只是想知道是什麼讓您對這個數字有信心。

1Q was below target and you just commented that that counts were negative in April and May. So just curious what you're seeing or planning that gives you confidence that it'll.

第一季的數據低於目標，而您剛才評論說，四月和五月的數據為負數。所以我只是好奇你所看到或計劃的事情讓你有信心它會發生。

Yeah, there's a couple of things. One is, last year our first quarter was our lowest quarter as well, and this year our first quarter is lower. So we know that we'll make up for it as the year goes on. We are managing labor costs very tightly and we believe that there's room to improve in the margins there, like we did last year, and we'll do the same thing this year.

是的，有幾件事。一是，去年我們的第一季也是我們業績最低的季度，今年我們的第一季業績更低。所以我們知道，隨著時間的推移，我們會彌補這一點。我們正在嚴格管理勞動成本，我們相信利潤率還有提升的空間，就像我們去年所做的那樣，今年我們也會做同樣的事情。

Okay, understood. And then, second question. On the potential Chinese tariff impact on new builds, David, that you were talking about, what is your expectation for per unit build costs in 2025 and what kind of risk do you see around your target? Just curious, like if you're getting close to having a better sense of how it's going to shake out and what that means for unit growth, etc. So if you could just elaborate on that topic a bit, that would be helpful.

好的，明白了。然後是第二個問題。大衛，關於您談到的中國關稅對新建築的潛在影響，您對 2025 年每單位建築成本的預期是多少，以及您認為您的目標有什麼樣的風險？只是好奇，例如您是否對它將如何發展以及這對單位增長意味著什麼有了更好的了解，等等。因此，如果您可以稍微詳細說明一下這個主題，那將會很有幫助。

The month of April when President Trump announced the tariffs, we have had vendors approach us in all directions with uncertainties of price increases from a lot in the equipment side because most of the kitchen equipment are coming from China.

四月川普總統宣布徵收關稅後，各路供應商都來找我們，他們擔心設備方面的許多產品會漲價，因為大多數廚房設備都來自中國。

Construction materials are coming from China, so we're not sure whether these were just increases because the industry is just taking advantage of the news or actually prices have actually going to be increasing. This is such a fluid every week changes here, and I wish I had a crystal ball myself and to where things will settle. But we are prepared.

建築材料來自中國，因此我們不確定這些價格上漲是否只是因為該行業只是在利用這一消息，還是實際上價格實際上會上漲。這裡每週都在變化，我希望自己有一個水晶球，可以預測事情何時會穩定下來。但我們已經做好準備。

That if prices doesn't settle down to our projection of cost, meaning cost of materials, especially the kitchen and construction, we will pause some construction until there's settlements on pricing, because some pricings we are quoted 100%, some pricing we're quoted.

如果價格沒有穩定下來達到我們預測的成本，即材料成本，特別是廚房和建築成本，我們將暫停一些施工，直到價格確定下來，因為有些價格是我們 100% 報價，有些價格是我們報價。

15% is all over the map right now. So I think with the news that are coming starting last week and this week, I think the consensus is it's going to settle down. Once it settles down, we can start evaluating what next steps we can take.

目前，15% 已遍佈地圖。因此我認為，根據上周和本週傳來的消息，大家的共識是情況將會穩定下來。一旦一切穩定下來，我們就可以開始評估下一步該採取什麼措施。

Okay, understood. And then, one last one is just on the openings, that, just happened in one to six openings. How can you just broadly talk about how they're performing?

好的，明白了。然後，最後一個是關於開場，那隻是發生在一到六個開場。您怎麼能泛泛地談論他們的表現呢？

It's too early to tell. It's a mixture. Some are average, some are above, some are below.

現在下結論還為時過早。這是一種混合物。有些是平均水平，有些是高於平均水平，有些是低於平均水平。

Alright, I have a couple of them have only been open for a month.

好的，我有幾個才開業一個月。

Thanks.

謝謝。

(Operator Instructions)

（操作員指示）

Our next question comes from Will Forsberg from Craig-Hallum. Please go ahead with your question.

我們的下一個問題來自 Craig-Hallum 的 Will Forsberg。請繼續提問。

Hey guys, this is Will on for Jeremy. Thanks for taking my questions. Just like to jump back to the comp trends you have seen. Could you maybe break out what you saw in Q1 in terms of average check versus traffic, and then I guess how that's progressed in the Q2 so far.

嘿，大家好，我是威爾，代替傑瑞米。感謝您回答我的問題。就像回到您所見過的競爭趨勢。您能否從平均支票與流量的角度詳細分析第一季度的情況，然後我猜想一下到目前為止第二季度的進展。

Yeah, I think it overall, we did see as we talked about 2.5% plus increase because of our price. We saw about a 10% to 11% reduction in our just overall customer base, but we saw a 7% improvement from our premium menu. So all in all, we ended up less than 1% off.

是的，我認為總體而言，正如我們所說，由於價格上漲，我們確實看到了 2.5% 以上的成長。我們發現整體顧客群減少了約 10% 至 11%，但我們的高級菜單卻提高了 7%。所以總的來說，我們最終的折扣不到 1%。

Got it, that's a great color. And then going back to unit growth, so we had a schedule here start the year I guess how can we think of cadence the remainder of the year.

明白了，顏色真棒。然後回到單位成長，所以我們在年初有一個時間表，我想我們如何考慮今年剩餘時間的節奏。

And then I guess in the South Korea market what are you seeing there that led you to add another unit to expectations and I guess also would there be anything to note on expected AUVs there?

然後我想，在韓國市場，您看到了什麼，導致您在預期中增加了另一個單位，我想那裡預期的 AUV 有什麼需要注意的嗎？

The market that we found in South Korea, although it's a very competitive market. There is no sizable size 5,000 square feet or larger that is offering GEN's model of all you can eat beef. So we'll be the first ones going in.

我們發現韓國市場競爭非常激烈。目前還沒有一家 5,000 平方英尺或更大的餐廳能夠提供 GEN 的無限量牛肉供應模式。因此我們將是第一批進入的人。

We don't, we will open the first one in June 10, and we'll see how those numbers move, but there's a good and a bad about markets like that. The good is, it's on the bottom of their cycle of economic pressure with all the election issues and all that. So we're able to perhaps get better deals in Korea in terms of occupancy.

我們沒有，我們將在 6 月 10 日開設第一個，我們將看看這些數字如何變動，但這樣的市場有好有壞。好消息是，由於選舉問題等許多因素，他們的經濟壓力週期已經到了底層。因此，就入住率而言，我們或許能在韓國獲得更好的優惠。

Although the sales might be lower than the US depending on how our sales come in, the construction of opening a restaurant in South Korea for the same square footage is about 25% to 30%. So for every dollar that we spend in the US, it only costs us $0.25 to $0.30. So we are always looking at an internal rate of return. So for example, if the sales number comes in lower.

雖然根據我們的銷售情況，銷售額可能會低於美國，但在韓國開設相同面積的餐廳的建造成本約為 25% 到 30%。因此，我們在美國花費的每一美元僅花費0.25到0.30美元。因此我們始終關注內部報酬率。例如，如果銷售數字較低。

And our margins are lowered in the US. If we do the mathematics and we can pull our money out in the same projections we gave the street of 2.5 years, we'll continue to look at that and see if that's a better model. But again, it is a very big market. People are very ignorant about some of these markets thinking that they're small. They're not a small market.

而且我們在美國的利潤率降低了。如果我們進行計算，並能按照我們給出的 2.5 年預測來撤出我們的資金，我們將繼續研究這個問題，看看這是否是一個更好的模型。但同樣，這是一個非常大的市場。人們對其中一些市場非常無知，認為它們規模很小。這不是一個小市場。

That market, the way our data has come in, it's about 100 to 200 store market. So it's just way too early to tell, even if we misjudged the South Korean market. The labor cost is substantially lower. Everything it cost is lower. So if we took a very bad approach and everything just failed and didn't go our way, the losses that GEN will be taking will be very small, so that it is worth taking the risk.

根據我們的數據顯示，該市場大約有 100 到 200 家商店。所以現在下結論還為時過早，即使我們誤判了韓國市場。勞動成本大幅降低。所有成本都較低。因此，如果我們採取了非常糟糕的方法，並且一切都失敗了並且沒有按照我們的意願進行，GEN 遭受的損失將會非常小，因此值得冒險。

Got it, and then just one last one for me on the gift cards, I know redemption had been around 50% I believe, have you gotten to a point now where you've kind of seen a more normalized redemption rate that you could share. And also at this time are you able to quantify the lift an average check from gift users versus the baseline customer base?

明白了，然後關於禮品卡，我只想問最後一個問題，我知道兌換率大約是 50%，你現在是否已經看到了一個可以分享的更正常的兌換率。另外，此時您能否量化禮品用戶相對於基線客戶群的平均支票提升？

If the answer the first question, it's stabilized. We think it's going to stabilize around 60%, 65%. The industry is about 70%, 75%. So we're ahead of the industry, it has stabilized a lot. In terms of whether we got incremental sales from that, we don't have that data. But some of the discussions we have with the managers is that consumers that are using the gift card are actually spending more money.

如果回答第一個問題，它就穩定了。我們認為它將穩定在 60%、65% 左右。工業大概是70%、75%。因此，我們領先於整個行業，它已經穩定了很多。關於我們是否從中獲得了增量銷售額，我們沒有相關數據。但我們與管理人員討論的結果顯示，使用禮品卡的消費者實際上花了更多的錢。

When they are dining at our place. How do we know that is we see more sales in premium menus, and we see more sales and drinks for the ones who are using those cards. We don't have raw data on that. We don't track that, but that is what we're hearing from the managers.

當他們在我們家吃飯時。我們如何知道這一點呢？我們看到高級菜單的銷售額更高，而且我們看到使用這些卡的人的銷售額和飲料也更多。我們沒有這方面的原始數據。我們沒有追蹤這一點，但這是我們從經理那裡聽到的。

Got it, appreciate the color. Best of luck.

明白了，欣賞顏色。祝你好運。

Thanks, Will.

謝謝，威爾。

And ladies and gentlemen, with that, we'll be concluding our question-and-answer session at this time. This concludes the, this portion of the conference call and I'd like to turn the floor back over to Mr. Kim for closing remarks.

女士們、先生們，我們的問答環節到此結束。電話會議的這一部分到此結束，我想將發言權交還給金先生，請他作最後發言。

Thank you very much for continuously believing in our company. We are, we will continue to grow this brand and despite some macroeconomics of issues with the tariffs, we think that will all be behind us, and we are not shifting our focus. We're focused on what we're doing every day.

非常感謝您一直以來對我們公司的信任。我們將繼續發展這個品牌，儘管關稅存在一些宏觀經濟問題，但我們認為這一切都將成為過去，我們不會轉移我們的重點。我們專注於每天所做的事情。

Thank you very much.

非常感謝。

Thank you.

謝謝。

And ladies and gentlemen, the conference has now concluded. We do thank you for attending today's presentation. You may now disconnect your lives.

女士們、先生們，會議現已結束。我們非常感謝您參加今天的演講。你們現在可以斷開你們的生活。