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GEN Restaurant Group, Inc. Class A (GENK)
NASDAQ:GENK
RESEARCH TOOLSreports
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GEN Restaurant Group, Inc. Class A
(NASDAQ:GENK)
Rating:67Neutral
Price Target:
$5.00
▲(19.05%Upside)
GEN Restaurant Group, Inc. Class A (GENK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$137.76M
Dividend Yield0.71%
Average Volume (3M)61.87K
Price to Earnings (P/E)36.3
Beta (1Y)1.20
Revenue Growth14.40%
EPS Growth-114.79%
CountryUS
Employees289
SectorConsumer Cyclical
Sector Strength71
IndustryRestaurants
Share Statistics
EPS (TTM)0.04
Shares Outstanding5,038,461
10 Day Avg. Volume79,144
30 Day Avg. Volume61,870
Financial Highlights & Ratios
PEG Ratio0.78
Price to Book (P/B)0.45
Price to Sales (P/S)0.00
P/FCF Ratio-1.91
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit7.65
Enterprise Value/Ebitda2.26
Forecast
1Y Price Target
$8.00Price Target Upside90.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
GEN Restaurant Group, Inc. Class A Business Overview & Revenue Model
Company DescriptionGEN 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, California.
How the Company Makes MoneyGEN Restaurant Group, Inc. generates revenue primarily through the operation of its Korean BBQ restaurants. The company's main revenue stream comes from the sale of food and beverages to customers dining in its establishments. Additionally, GENK may earn income from catering services and special events hosted at its locations. The company benefits from its unique dining concept, which attracts a diverse clientele seeking both the novelty and social aspect of Korean BBQ. Strategic locations in high-traffic areas and a commitment to maintaining high service standards contribute significantly to its earnings. Partnerships with suppliers ensure a steady supply of quality ingredients, which is crucial for maintaining customer satisfaction and repeat business.
GEN Restaurant Group, Inc. Class A Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -16.00%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
GEN Restaurant Group demonstrated strong revenue growth and strategic expansion efforts, particularly with new store openings and international expansion plans. However, the company faces challenges with a net loss in Q1 2025, potential impacts from tariffs, and a decline in same-store sales in recent months. While there is significant potential for growth, these challenges pose risks to achieving financial targets.Q1-2025 Updates
Positive Updates
Year-over-Year Revenue Growth
GEN Restaurant Group reported a 13% increase in total revenues year-over-year, reaching $57.3 million in Q1 2025, driven by the expansion of new stores and success of existing locations.
Store Expansion and Strategic Growth
The company opened six new restaurants in Q1 2025, bringing the total to 49 stores, with plans to open 12 to 13 new stores by the end of 2025. This includes international expansion into South Korea.
Improved Same-Store Sales
Same-store sales improved significantly from a 5.6% decline in 2024 to a modest 0.7% decline in Q1 2025.
Strong ROI and Cash Flow Model
GEN achieved a 40% ROI with a 2.1-year payback period on new stores opened in 2024, and has grown its store count by 50% since going public in 2023 without taking on long-term debt.
Innovative Dual-Concept Store
The introduction of a dual-concept store model combining GEN Korean BBQ and Kan Sushi to enhance operational efficiency and customer choice.
Negative Updates
Net Loss in Q1 2025
Reported a net loss before income taxes of $2.1 million in Q1 2025, compared to a net income of $3.8 million in Q1 2024, partly due to higher costs from new restaurant development.
Challenges with Tariffs and Costs
Potential impacts from tariffs on equipment and construction materials sourced from China could affect new restaurant development costs and ROI.
Decreased Adjusted EBITDA
Adjusted EBITDA for Q1 2025 was $1.2 million, down from $6.4 million in Q1 2024, excluding a one-time gain of $3.4 million from 2024.
Same-Store Sales Decline in Q1 2025
Same-store sales were slightly negative in March 2025, and continued negative in April and May, attributed to macroeconomic factors.
Company Guidance
During the first quarter of 2025, GEN Restaurant Group reported a 13% year-over-year increase in total revenues, reaching $57.3 million, driven by an expanded footprint and successful existing locations. Despite a modest same-store sales decline of 0.7%, this was a marked improvement from the 5.6% decrease in 2024. The company opened six new restaurants, bringing its total to 49, and aims to achieve 12 to 13 openings by year-end. GEN anticipates full-year revenues of $245 million to $250 million with a restaurant-level adjusted EBITDA margin of 17% to 18%. The company also reported a net loss before income taxes of $2.1 million, equating to a loss per share of $0.06, affected by pre-opening costs. GEN's high free cash flow model allowed it to grow its store count by 50% since going public in 2023 without incurring long-term debt. The company is also exploring international expansion into South Korea, with plans to open three new restaurants in 2025.GEN Restaurant Group, Inc. Class A Financial Statement Overview
Summary
GEN Restaurant Group exhibits revenue growth yet struggles with profitability and leverage. Positive operating cash flow and EBITDA margins reflect operational efficiencies, but high debt levels and negative net income pose challenges.Income Statement
GEN Restaurant Group shows a mixed financial performance. The TTM revenue increased from the previous year, indicating growth. However, profitability remains a concern with a negative net income and EBIT. The gross profit margin is positive but has declined compared to prior years, reflecting increased cost pressures. EBITDA margin remains healthy, suggesting operational efficiency despite net losses.65
Positive
Balance Sheet
The balance sheet highlights a high debt-to-equity ratio, signaling potential financial risk due to significant leverage. The equity position has improved over the years, moving from negative to positive, but overall returns on equity remain weak due to net losses. The equity ratio is low, indicating a reliance on debt financing.55
Neutral
Cash Flow
Cash flow analysis reveals a challenging environment with negative free cash flow, though operating cash flow remains positive, supporting day-to-day operations. The company has managed to maintain a positive operating cash flow to net income ratio, suggesting effective working capital management despite profitability issues.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 208.38M | 181.01M | 163.73M | 140.56M | 62.66M |
| Gross Profit | 21.92M | 24.61M | 109.37M | 95.87M | 41.94M |
| EBITDA | 18.96M | 21.61M | 19.29M | 57.40M | -3.78M |
| Net Income | 592.00K | 8.41M | 10.28M | 49.86M | 224.00K |
Balance Sheet | |||||
| Total Assets | 240.41M | 183.87M | 138.88M | 31.99M | 33.13M |
| Cash, Cash Equivalents and Short-Term Investments | 23.68M | 32.63M | 11.20M | 9.57M | 7.15M |
| Total Debt | 163.01M | 121.07M | 121.64M | 15.32M | 22.63M |
| Total Liabilities | 194.80M | 146.35M | 144.14M | 39.32M | 38.80M |
| Stockholders Equity | 12.70M | 8.97M | -10.01M | -1.17M | -8.04M |
Cash Flow | |||||
| Free Cash Flow | -6.00M | 5.01M | 15.29M | 30.32M | -2.34M |
| Operating Cash Flow | 17.83M | 22.16M | 23.40M | 31.60M | -2.05M |
| Investing Cash Flow | -26.80M | -6.31M | 2.57M | -10.33M | -4.09M |
| Financing Cash Flow | 18.00K | 5.58M | -24.66M | -18.54M | 6.61M |
GEN Restaurant Group, Inc. Class A Technical Analysis
Positive
4.20
Price Trends
3.89
Positive
4.45
Negative
5.99
Negative
Market Momentum
0.08
Negative
56.04
Neutral
57.18
Neutral
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 4.2 is above the 20-day moving average (MA) of 3.92, above the 50-day MA of 3.89, and below the 200-day MA of 5.99, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 57.18 is Neutral, 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 Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $39.79M | 15.01 | 21.75% | ― | 2.93% | 20.81% | |
75 Outperform | $381.38M | 8.99 | 117.47% | ― | -3.96% | 1036.87% | |
67 Neutral | $137.76M | 36.29 | -1.62% | 0.71% | 14.40% | -114.79% | |
63 Neutral | $17.10B | 10.79 | -8.01% | 2.94% | 1.62% | -25.73% | |
59 Neutral | $237.80M | 14.12 | -63.40% | ― | -0.53% | -24.19% | |
56 Neutral | $123.62M | ― | 92.02% | ― | -1.68% | -140.83% | |
48 Neutral | $101.67M | ― | -9.31% | ― | 138.50% | -60576.19% |
* Consumer Cyclical Sector Average
Performance Comparison
GENK
GEN Restaurant Group, Inc. Class A
4.20
-3.72
-46.97%
DENN
Denny's
4.23
-3.22
-43.22%
RAVE
Rave Restaurant Group
3.01
1.13
60.11%
RRGB
Red Robin Gourmet
6.97
1.21
21.01%
PBPB
Potbelly
12.64
5.42
75.07%
STKS
The ONE Group Hospitality
3.29
-1.89
-36.49%
GEN Restaurant Group, Inc. Class A Corporate Events
Executive/Board ChangesShareholder Meetings
GEN Restaurant Group Approves Key Proposals at Annual Meeting
Neutral
Jun 20, 2025
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.
Dividends
GEN Restaurant Group Announces Special Cash Dividend
Positive
May 28, 2025
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.
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.