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:48Neutral
Price Target:
$2.00
▲(26.58% Upside)
Action:Reiterated
Date:05/15/26
The score is held down primarily by weak financial performance (recent losses, high leverage, and deeply negative free cash flow). Technical indicators are moderately supportive in the near term, while valuation is only modestly supported due to a negative P/E despite a ~1.4% dividend yield. The latest earnings call adds both upside potential (CPG traction and margin targets) and material execution/liquidity risk, resulting in a mixed impact.
Positive Factors
CPG / Retail Expansion Potential
A successful CPG rollout would diversify GENK away from sole reliance on company restaurants, creating a scalable, high‑margin wholesale revenue stream. If placements reach stated targets, retail business could materially shift revenue mix and margins over 12–36 months, improving cash generation.
Negative Factors
Profitability Deterioration
Earnings have meaningfully reversed from prior positive periods to sustained losses, compressing margins and undermining internal funding. Persistent negative operating profitability weakens reinvestment ability, increases reliance on external financing, and elevates execution risk if revenue recovery lags.
Read all positive and negative factors
Positive Factors
Negative Factors
CPG / Retail Expansion Potential
A successful CPG rollout would diversify GENK away from sole reliance on company restaurants, creating a scalable, high‑margin wholesale revenue stream. If placements reach stated targets, retail business could materially shift revenue mix and margins over 12–36 months, improving cash generation.
Read all positive factors
GEN Restaurant Group, Inc. Class A (GENK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.46M
Dividend Yield1.27%
Average Volume (3M)63.36K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth-2.72%
EPS Growth-1962.01%
CountryUS
Employees289
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.74
Shares Outstanding5,364,808
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 Cap3.18
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit17.15
Enterprise Value/Ebitda-25.38
Forecast
1Y Price Target
$2.50Price Target Upside58.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.28
Revenue Forecast (FY)$218.35M
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 that generate revenue from on-premise food and beverage sales to guests. Key revenue streams include (1) food sales (including Korean BBQ meats and other menu items)...
GEN Restaurant Group, Inc. Class A Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: near-term operating performance is weak with meaningful declines in same-store sales, rising food costs and negative adjusted EBITDA driving a larger net loss and tight liquidity. Offsetting these pressures, management has enacted defensive actions (slowing new openings, JV conversions), is executing a broad set of operational improvements, and is demonstrating significant momentum in a high-potential CPG/retail expansion (Costco wins, gift card traction, and aggressive rollout plans) that could materially shift revenue mix and margins over the next 12–36 months. Given the balance between sizable current financial headwinds and substantial strategic growth opportunities, the overall tone is cautiously constructive but uncertain.Positive Updates
CPG (Retail) Expansion with Large Upside
Company expects CPG run rate of over 2,000 supermarket locations by end of 2026 and 7,000–8,000 locations by end of 2027, targeting a potential >$100 million annual revenue run rate within ~3 years and projected EBITDA margins in the high teens after slotting/promotional costs.
Negative Updates
Significant Same-Store Sales Decline
Same-store sales decreased approximately 8.8% in Q1 2026, though improving from an 11.7% decline in Q4 2025 — indicating ongoing traffic and demand pressure, especially in core California markets.
Read all updates
Q1-2026 Updates
Positive
Negative
CPG (Retail) Expansion with Large Upside
Company expects CPG run rate of over 2,000 supermarket locations by end of 2026 and 7,000–8,000 locations by end of 2027, targeting a potential >$100 million annual revenue run rate within ~3 years and projected EBITDA margins in the high teens after slotting/promotional costs.
Read all positive updates
Company Guidance
The company guided to full-year 2026 revenue of $215–$225 million and an annual run rate approaching $250 million by year‑end, with 5–7 restaurant openings planned in 2026 (construction on 6 stores suspended) and a target restaurant‑level adjusted EBITDA margin of 15.0%–15.5% in the second half of 2026. For CPG, management expects placement in over 2,000 supermarket locations by end‑2026 and 7,000–8,000 by end‑2027, a potential >$100 million annual revenue run rate in as soon as three years with projected EBITDA margins in the high‑teens after slotting/promotions; near‑term retail wins include a Southern CA/Hawaii Costco PO for ~40 warehouses, a multi‑region Costco road show (OR/WA/AK/TX), an Albertsons test in 150 stores, cumulative Costco gift card sales >$30 million, and a 56‑SKU product lineup (6 core frozen meats, 6 beef jerkies, 12 frozen meat/sides, 6 snack chips, 6 sauces/seasonings, 9 RTD beverages, 11 Soju). Q1 financial context behind the guidance: same‑store sales down ~8.8% (improved from -11.7% in Q4 2025); cost of goods at 38% of company restaurant sales (vs 33.6% a year ago, +~440 bps); payroll 32.1% (vs 31.7%); occupancy 10.7% (+184 bps year‑over‑year, -45 bps vs Q4 2025); restaurant adjusted EBITDA $4.0M (7.4% of revenue) vs $9.0M (15.6%) year‑ago; total adjusted EBITDA -$3.2M (adjusted -$2.1M ex pre‑opening) vs $1.2M/$3.3M; net loss before tax $7.5M ($0.22/sh) vs $2.1M ($0.06); adjusted net loss $4.5M ($0.14) vs adjusted net income $1.4M ($0.04); cash of ~$4.4M with $15.5M available on the revolver; implemented a $1 price increase (~2.5% avg) and recorded a $4.5M write‑down related to a 5‑restaurant JV (GEN retains 49%).GEN Restaurant Group, Inc. Class A Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
24
Negative
Cash Flow
28
Negative
| Breakdown | Mar 2026 | 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
Positive
1.58
Price Trends
1.82
Positive
1.95
Positive
2.42
Negative
Market Momentum
0.17
Negative
66.78
Neutral
81.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GENK, the sentiment is Positive. The current price of 1.58 is below the 20-day moving average (MA) of 2.03, below the 50-day MA of 1.82, and below the 200-day MA of 2.42, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 66.78 is Neutral, neither overbought nor oversold. The STOCH value of 81.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks
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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $42.07M | 11.28 | 19.21% | ― | 3.20% | 9.92% | |
62 Neutral | $56.25M | 5.01 | 8.92% | 1.89% | 5.74% | 47.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $65.40M | -3.67 | 90.61% | ― | -0.12% | 7.25% | |
51 Neutral | $86.21M | -8.55 | 27.56% | ― | -4.49% | 64.71% | |
51 Neutral | $62.18M | 4.35 | -65.14% | ― | 0.99% | -217.64% | |
48 Neutral | $78.46M | -2.24 | -27.46% | 1.27% | -2.72% | -1962.01% |
* Consumer Cyclical Sector Average
GENK
GEN Restaurant Group, Inc. Class A
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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.