GEN Restaurant Group, Inc. Segments Disclosure
(19) Segment Information
The Company operates 57 Gen Korean BBQ restaurants in the United States and South Korea. The CODM is the . The Company determined it has one reportable segment, as the CODM regularly reviews restaurant operations and financial performance at a consolidated level. The CODM uses net income to allocate resources (including labor, technology and capital resources) for the single segment to make decisions regarding annual budget, new restaurant openings, entering new geographic markets, landlord and vendor negotiation, marketing decisions, pursuing new business ventures, and driving the Company’s mission.
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Year Ended December 31, |
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(in thousands) |
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2025 |
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2024 |
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Segment revenue |
|
$ |
212,541 |
|
|
$ |
208,380 |
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Less: |
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Food cost |
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|
73,790 |
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|
|
68,730 |
|
Payroll and benefits |
|
|
64,943 |
|
|
|
64,322 |
|
Occupancy expenses |
|
|
21,197 |
|
|
|
17,524 |
|
Operating expenses |
|
|
24,176 |
|
|
|
21,538 |
|
Depreciation and amortization |
|
|
9,120 |
|
|
|
6,735 |
|
Pre-opening costs |
|
|
8,317 |
|
|
|
7,607 |
|
Segment Income from Operations |
|
|
10,998 |
|
|
|
21,924 |
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Reconciliation: |
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|
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General and administrative |
|
|
25,935 |
|
|
|
21,326 |
|
Impairment expense |
|
|
5,527 |
|
|
|
— |
|
Gain on lease terminations |
|
|
(471 |
) |
|
|
— |
|
Gain on remeasurement of previously held interest |
|
|
— |
|
|
|
(3,402 |
) |
Interest expense (income), net |
|
|
232 |
|
|
|
(829 |
) |
Other costs |
|
|
346 |
|
|
|
122 |
|
Loss on foreign currency |
|
|
47 |
|
|
|
— |
|
Employee retention credits |
|
|
(313 |
) |
|
|
(199 |
) |
Equity in loss of equity method investee |
|
|
— |
|
|
|
17 |
|
Net (loss) income before taxes |
|
$ |
(20,305 |
) |
|
$ |
4,889 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.