GEN Restaurant Group, Inc. Class A (GENK) AI Stock Analysis

• Market Cap: $111.97M
• Dividend Yield: 0.88%
• Average Volume (3M): 81.32K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 1.13
• Revenue Growth: 10.67%
• EPS Growth: -181.88%
• Country: US
• Employees: 289
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): 0.04
• Shares Outstanding: 5,249,566
• 10 Day Avg. Volume: 119,201
• 30 Day Avg. Volume: 81,317
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 11.05
• Enterprise Value/Ebitda: 21.69
• 1Y Price Target: $5.13
• Price Target Upside: 50.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 46 Neutral
• Price Target: $3.50 ▲(2.94% Upside)

GEN Restaurant Group, Inc. Class A faces significant financial and operational challenges, reflected in its low financial performance score. While there are positive signs in terms of expansion and product development, the technical indicators and valuation suggest caution. The special dividend and analyst rating provide some optimism, but the overall risk profile remains high.

GEN Restaurant Group, Inc. Class A Business Overview & Revenue Model

Company Description

GEN Restaurant Group, Inc. Class A (GENK) operates in the restaurant industry, focusing on providing a unique dining experience through its Korean BBQ restaurant concept. The company is dedicated to delivering high-quality food and exceptional service, offering a distinctive blend of traditional Korean flavors with a modern twist. GEN Restaurant Group is committed to expanding its footprint by opening new locations and enhancing its brand presence in the competitive dining market.

How the Company Makes Money

GEN Restaurant Group, Inc. primarily generates revenue through the operation of its Korean BBQ restaurants. The company's revenue model is based on direct sales from dining experiences provided at its locations. Customers pay for a combination of food and beverages, including an all-you-can-eat option that is popular in Korean BBQ settings. The company may also explore additional revenue streams such as catering services and branded merchandise sales. Key factors contributing to its earnings include strategic location selection, effective marketing campaigns, and maintaining a high standard of food quality and customer service. Partnerships with suppliers to source quality ingredients at competitive prices also play a role in optimizing operational costs and enhancing profitability.

GEN Restaurant Group, Inc. Class A Financial Statement Overview

Summary

GEN Restaurant Group faces challenges across its financial statements. Despite modest revenue growth, profitability is a concern with negative net income and declining margins. High leverage and low equity position pose financial risks, and negative free cash flow highlights liquidity issues. The company needs to improve operational efficiency and manage its debt to enhance financial stability.

Income Statement

GEN Restaurant Group shows a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 3.16% compared to the previous annual period, but the company is currently operating at a net loss with a negative net profit margin of -0.09%. The gross profit margin is relatively low at 9.93%, and both EBIT and EBITDA margins have declined, with EBIT being negative. This suggests challenges in managing operational costs and achieving profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to significant leverage, with total debt far exceeding stockholders' equity. The equity ratio is low at 18.41%, indicating a heavy reliance on debt financing. Return on equity is negative, reflecting the company's struggles with profitability and potential financial instability.

Cash Flow

Cash flow analysis shows a decline in free cash flow, turning negative in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income, but the free cash flow to net income ratio is negative due to high capital expenditures. This suggests cash flow management issues and potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	216.14M	208.38M	181.01M	163.73M	140.56M	62.66M
Gross Profit	19.17M	21.92M	24.61M	109.37M	95.87M	41.94M
EBITDA	9.76M	18.96M	21.61M	19.29M	57.40M	-3.78M
Net Income	-741.00K	592.00K	8.41M	10.28M	49.86M	224.00K
Balance Sheet
Total Assets	246.33M	240.41M	183.87M	138.88M	31.99M	33.13M
Cash, Cash Equivalents and Short-Term Investments	9.61M	23.68M	32.63M	11.20M	9.57M	7.15M
Total Debt	174.10M	163.01M	121.07M	121.64M	15.32M	22.63M
Total Liabilities	203.80M	194.80M	146.35M	144.14M	39.32M	38.80M
Stockholders Equity	15.30M	12.70M	8.97M	-10.01M	-1.17M	-8.04M
Cash Flow
Free Cash Flow	-17.65M	-6.00M	5.01M	15.29M	30.32M	-2.34M
Operating Cash Flow	14.24M	17.83M	22.16M	23.40M	31.60M	-2.05M
Investing Cash Flow	-31.89M	-26.80M	-6.31M	2.57M	-10.33M	-4.09M
Financing Cash Flow	-2.12M	18.00K	5.58M	-24.66M	-18.54M	6.61M

GEN Restaurant Group, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GENK, the sentiment is Negative. The current price of 3.4 is below the 20-day moving average (MA) of 3.90, below the 50-day MA of 3.91, and below the 200-day MA of 5.66, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 36.52 is Neutral, neither overbought nor oversold. The STOCH value of 21.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GENK.

GEN Restaurant Group, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	78 Outperform	$39.37M	14.69	21.75%	―	2.93%	20.81%
PBPB	67 Neutral	$388.85M	35.81	19.65%	―	-1.72%	-70.31%
Sector *	63 Neutral	AU$3.11B	28.69	25.32%	4.52%	2.39%	-30.11%
DENN	59 Neutral	$207.54M	13.06	-63.40%	―	0.06%	-12.14%
RRGB	50 Neutral	$109.25M	―	92.02%	―	-3.09%	-30.16%
GENK	46 Neutral	$111.97M	36.29	-5.04%	0.88%	10.67%	-181.88%
STKS	42 Neutral	$84.51M	―	-7.81%	―	96.64%	-292.65%

GEN Restaurant Group, Inc. Class A Corporate Events

GEN Restaurant Group Approves Key Proposals at Annual Meeting

GEN Restaurant Group, Inc. held its 2025 Annual Meeting of Stockholders virtually on June 18, 2025. During the meeting, stockholders voted on two proposals: the election of David Kim as a Class III director until the 2028 Annual Meeting and the ratification of CBIZ CPAs P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Both proposals were approved by the stockholders.

The most recent analyst rating on (GENK) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on GEN Restaurant Group, Inc. Class A stock, see the GENK Stock Forecast page.

GEN Restaurant Group Announces Special Cash Dividend

GEN Restaurant Group, Inc. has announced a special cash dividend of $0.03 per share for its Class A common stock, payable on June 23, 2025, to shareholders of record as of June 9, 2025. Additionally, GEN Restaurant Companies, LLC will distribute $0.03 per Class A and Class B Common Unit, with the total aggregate amount of these distributions reaching approximately $984 thousand.

The most recent analyst rating on (GENK) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on GEN Restaurant Group, Inc. Class A stock, see the GENK Stock Forecast page.