GEN Restaurant Group, Inc. Class A (GENK)
NASDAQ:GENK
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GEN Restaurant Group, Inc. Class A
(NASDAQ:GENK)
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Rating:42Neutral
Price Target:
$1.50
▲(0.00% Upside)
Action:ReiteratedDate:04/02/26
GENK scores low primarily due to weak financial performance (losses, sharply negative free cash flow, and high leverage with limited equity cushion). Technicals also point to a continuing downtrend with muted momentum. Earnings-call guidance and CPG expansion plans are constructive but are outweighed by current same-store sales declines and liquidity risk; valuation support is limited due to a negative P/E and only modest yield.
Positive Factors
High Average Unit Volume
Average unit volumes north of $5M indicate strong per-store revenue potential and attractive unit economics. Over the medium term this supports margin recovery as traffic normalizes, funds incremental corporate investment, and makes each new or converted location more likely to be cash-accretive.
Negative Factors
High Financial Leverage
Very high leverage materially constrains financial flexibility; interest and lease obligations reduce free cash available for reinvestment. In a prolonged traffic downturn, the thin equity cushion raises refinancing or covenant risk and forces reliance on external funding to execute strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
High Average Unit Volume
Average unit volumes north of $5M indicate strong per-store revenue potential and attractive unit economics. Over the medium term this supports margin recovery as traffic normalizes, funds incremental corporate investment, and makes each new or converted location more likely to be cash-accretive.
Read all positive factors
GEN Restaurant Group, Inc. Class A (GENK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$49.39M
Dividend Yield1.27%
Average Volume (3M)63.36K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth9.36%
EPS Growth-249.08%
CountryUS
Employees289
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.14
Shares Outstanding5,364,141
10 Day Avg. Volume57,604
30 Day Avg. Volume63,364
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.78
Price to Sales (P/S)0.05
P/FCF Ratio-0.45
Enterprise Value/Market Cap4.74
Enterprise Value/Revenue1.10
Enterprise Value/Gross Profit12.25
Enterprise Value/Ebitda-44.06
Forecast
1Y Price Target
$2.50Price Target Upside66.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.16
Revenue Forecast (FY)$238.90M
GEN Restaurant Group, Inc. Class A Business Overview & Revenue Model
Company Description
GEN Restaurant Group, Inc. operates restaurants in California, Arizona, Hawaii, Nevada, New York, and Texas. Its restaurants specialize in various flavored meats for Korean barbeque. The company was founded in 2011 and is based in Cerritos, Califo...
How the Company Makes Money
GEN Restaurant Group primarily makes money by operating company-owned restaurants. Its core revenue stream is food and beverage sales to dine-in guests (including fixed-price and/or à la carte menu items, along with alcoholic and non-alcoholic bev...
GEN Restaurant Group, Inc. Class A Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Negative
The call presented a mixed picture: meaningful operational and strategic progress in retail/CPG expansion, strong Costco gift card growth and continued unit expansion were offset by material near-term weaknesses — a significant same-store sales decline, deteriorating margins, large quarterly and annual net losses, one-time impairment charges, and a thin cash position. Management provided constructive 2026 guidance and a path to improved margins, but current financial performance and liquidity constraints are notable risks.Positive Updates
CPG (Retail) Early Traction and Aggressive Growth Plan
Expanded CPG distribution from initial Southern California test to over 800 supermarket locations in early 2026; targeting 1,500–2,000 locations by end of 2026 and 7,000–8,000 by end of 2027. Company projects a potential run rate >$100 million annual retail revenue within ~3 years and estimates retail EBITDA margins in the high teens (after slotting/promotional costs). Management expects retail revenue of roughly $10 million in 2026 and working toward a $20 million run rate by year-end.
Negative Updates
Quarterly Revenue Decline
Total revenue for Q4 2025 was $49.7 million versus $54.6 million in Q4 2024, a decrease of $4.9 million (≈9.0% YoY decline).
Read all updates
Q4-2025 Updates
Positive
Negative
CPG (Retail) Early Traction and Aggressive Growth Plan
Expanded CPG distribution from initial Southern California test to over 800 supermarket locations in early 2026; targeting 1,500–2,000 locations by end of 2026 and 7,000–8,000 by end of 2027. Company projects a potential run rate >$100 million annual retail revenue within ~3 years and estimates retail EBITDA margins in the high teens (after slotting/promotional costs). Management expects retail revenue of roughly $10 million in 2026 and working toward a $20 million run rate by year-end.
Read all positive updates
Company Guidance
GEN guided full‑year 2026 revenue of $215–$225 million and a restaurant‑level adjusted EBITDA margin target of 15.0%–15.5%, with management expecting an annual run‑rate approaching $250 million by year‑end; they expect retail/CPG to contribute roughly $10 million in 2026 (targeting a $20 million run‑rate by year‑end), plan to expand CPG to ~1,500–2,000 locations by end‑2026 and 7,000–8,000 by end‑2027 with a potential CPG run‑rate >$100 million within about three years and EBITDA margins in the high‑teens after slotting/promotional costs. Management is slowing restaurant growth (five stores under construction, possibly 1–2 more), has a JV covering five underperforming restaurants (GEN 49%/Chubby Cattle 51%) that created a $4.5 million write‑down, and reiterated headwinds (Q4 same‑store sales down 11.6%); liquidity stood at $2.8 million cash with most of a $20 million revolver available and lease liabilities of $173 million offset by $146 million of lease assets.GEN Restaurant Group, Inc. Class A Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
24
Negative
Cash Flow
30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 212.54M | 208.38M | 181.01M | 163.73M | 140.56M |
| Gross Profit | 19.47M | 21.92M | 24.61M | 27.61M | 28.14M |
| EBITDA | -3.99M | 18.96M | 21.61M | 19.47M | 57.88M |
| Net Income | -3.03M | 592.00K | 8.41M | 10.28M | 49.86M |
Balance Sheet | |||||
| Total Assets | 259.86M | 240.41M | 183.87M | 138.88M | 53.84M |
| Cash, Cash Equivalents and Short-Term Investments | 2.82M | 23.68M | 32.63M | 11.20M | 9.89M |
| Total Debt | 187.22M | 163.01M | 123.77M | 126.08M | 14.90M |
| Total Liabilities | 231.85M | 196.30M | 147.85M | 145.64M | 43.14M |
| Stockholders Equity | 14.02M | 12.73M | 7.47M | -10.01M | 8.89M |
Cash Flow | |||||
| Free Cash Flow | -24.32M | -6.00M | 5.01M | 15.29M | 38.52M |
| Operating Cash Flow | 3.41M | 17.83M | 22.16M | 23.40M | 39.80M |
| Investing Cash Flow | -27.73M | -26.80M | -6.31M | 2.57M | -18.53M |
| Financing Cash Flow | 3.46M | 18.00K | 5.58M | -24.66M | -18.54M |
GEN Restaurant Group, Inc. Class A Technical Analysis
Negative
1.50
Price Trends
1.81
Negative
2.10
Negative
2.72
Negative
Market Momentum
-0.08
Positive
39.84
Neutral
16.45
Positive
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 1.5 is below the 20-day moving average (MA) of 1.74, below the 50-day MA of 1.81, and below the 200-day MA of 2.72, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 16.45 is Positive, 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 Risk Analysis
GEN Restaurant Group, Inc. Class A disclosed 68 risk factors in its most recent earnings report. GEN Restaurant Group, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences, may have a material adverse impact on our business, financial condition, and results of operations. Q4, 2025
GEN Restaurant Group, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $33.40M | 18.57 | 19.70% | ― | 0.35% | 9.25% | |
65 Neutral | $58.73M | 17.07 | 8.92% | 1.89% | 8.99% | 49.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | $47.67M | -0.76 | 132.11% | ― | -0.35% | -37.02% | |
45 Neutral | $53.43M | -0.60 | -51.90% | ― | 51.57% | -367.14% | |
44 Neutral | $62.00M | -3.16 | 25.76% | ― | -3.61% | 2.06% | |
42 Neutral | $49.39M | -1.46 | -8.89% | 1.27% | 9.36% | -249.08% |
* Consumer Cyclical Sector Average
GENK
GEN Restaurant Group, Inc. Class A
1.50
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.