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GEN Restaurant Group, Inc. Class A (GENK)
:GENK
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GEN Restaurant Group, Inc. Class A
(NASDAQ:GENK)
Select Model
Select Model
Rating:45Neutral
Price Target:
$3.00
▲(9.09% Upside)
GEN Restaurant Group, Inc. Class A faces significant challenges, primarily driven by financial instability and valuation concerns. Despite strong revenue growth and strategic expansions, the company's high leverage, negative profitability, and liquidity issues pose substantial risks. Technical indicators suggest a bearish trend, while the earnings call reflects mixed sentiment with notable operational challenges.
GEN Restaurant Group, Inc. Class A (GENK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$97.35M
Dividend Yield1.11%
Average Volume (3M)61.97K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth10.67%
EPS Growth-181.88%
CountryUS
Employees289
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.02
Shares Outstanding5,249,566
10 Day Avg. Volume45,804
30 Day Avg. Volume61,965
Financial Highlights & Ratios
PEG Ratio0.94
Price to Book (P/B)2.75
Price to Sales (P/S)0.17
P/FCF Ratio-5.82
Enterprise Value/Market Cap2.18
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit11.05
Enterprise Value/Ebitda21.69
Forecast
1Y Price Target
$6.00Price Target Upside118.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
GEN Restaurant Group, Inc. Class A Business Overview & Revenue Model
Company DescriptionGEN Restaurant Group, Inc. Class A (GENK) is a multi-concept restaurant company that operates a diverse portfolio of dining establishments, focusing on delivering high-quality culinary experiences across various market segments. With a commitment to innovation and customer satisfaction, GENK encompasses fast-casual, fine dining, and themed restaurants, catering to a wide range of consumer preferences. The company leverages its expertise in food service management, menu development, and operational efficiency to stay competitive in the dynamic restaurant industry.
How the Company Makes MoneyGEN Restaurant Group generates revenue through multiple streams, primarily from the sale of food and beverages across its various restaurant concepts. Each location operates under a unique brand identity, allowing for targeted marketing and customer engagement. The company also benefits from strategic partnerships with suppliers and distributors, enabling cost-effective procurement of high-quality ingredients. Additionally, GENK may generate income through catering services, special events, and franchise operations, further diversifying its revenue sources. Seasonal promotions, loyalty programs, and collaborations with local businesses can also enhance customer retention and drive sales growth.
GEN Restaurant Group, Inc. Class A Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call reflected both positive and negative aspects. While there were significant advancements in new store openings, international expansion, and improved labor efficiencies, these were offset by challenges such as same-store sales decline, increased operating costs, and a net loss before income taxes.Q2-2025 Updates
Positive Updates
New Store Openings and International Expansion
GEN Restaurant Group opened 7 new restaurants in the first half of 2025, including its first international expansion in South Korea. Plans are in place to open more restaurants in South Korea in the third quarter of 2025.
Strong AUV Revenue
Average Unit Volume (AUV) revenue is $5.3 million per restaurant, a high level in the casual dining space, driving strong margins and cash flow.
Efficient Payback Period
The company is on track for a 2.3-year payback period for new stores opened in 2024, allowing expansion with limited debt.
Gift Card and Product Line Expansion
GEN expanded gift card sales to Sam's Club locations and is developing additional product lines, including packaged meats and sauces, to be sold through various channels.
Improved Labor Efficiencies
Payroll and benefits as a percentage of sales decreased by 29 basis points year-over-year and 163 basis points from Q1 2025 due to rolled out labor efficiencies.
Negative Updates
Same-Store Sales Decline
A sharp downturn in restaurant customer traffic was observed in April, resulting in a drop in same-store sales, influenced by global tariffs and immigration policies.
Increased Operating Costs
Cost of goods sold increased by 97 basis points to 33.8% due to inflationary pressures and the operation of more new restaurants.
Net Loss Before Income Taxes
There was a net loss before income taxes of $1.8 million in Q2 2025, compared to a net income of $2.1 million in Q2 2024.
Decreased Adjusted EBITDA
Adjusted EBITDA decreased to $3.3 million in Q2 2025 from $5.9 million in Q2 2024, after removing preopening costs.
Challenges in New Markets
The South Korea location reported slow initial sales, though improvements are expected with further openings.
Company Guidance
During the second quarter of 2025, GEN Restaurant Group, Inc. opened nine new restaurants, bringing the total store count to 52, with plans to exceed the target of 12 to 13 new stores by the end of the year. The company's restaurant operations faced challenges such as macro pressures and immigration policies affecting key regions like California, Texas, and Nevada, which account for 35 of their locations. Despite these challenges, the company achieved an average unit volume (AUV) revenue of $5.3 million per restaurant, maintaining strong margins and a payback period of 2.3 years for new stores. Revenue increased by 2.2% year-over-year to $55 million, while the restaurant-level adjusted EBITDA was 16.3% for the quarter. The company incurred a net loss before income taxes of $1.8 million, equating to $0.05 per diluted share. GEN also made strategic moves, such as the international expansion to South Korea and the development of new product lines, including packaged meats and sauces, to boost brand strength. The company continues to invest in AI and automation to improve operational efficiencies and maintains a healthy balance sheet with $9.6 million in cash and minimal debt.GEN Restaurant Group, Inc. Class A Financial Statement Overview
Summary
GEN Restaurant Group, Inc. Class A shows strong revenue growth but faces significant challenges in profitability and financial stability. High leverage and negative profitability metrics indicate potential risks, while cash flow issues suggest liquidity concerns. Improvement in cost management and debt reduction is needed.Income Statement
GEN Restaurant Group, Inc. Class A shows a mixed performance in its income statement. The TTM data indicates a significant revenue growth rate of 54.9%, which is a positive sign. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has also declined over the years, indicating potential cost management issues.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 4.24 in the TTM period, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting losses and inefficiencies in generating returns for shareholders. The equity ratio is low, suggesting a heavy reliance on debt financing.35
Negative
Cash Flow
Cash flow analysis shows a concerning trend with negative free cash flow and a high free cash flow to net income ratio, indicating cash flow issues. Although the operating cash flow is positive, it is not sufficient to cover the net income, suggesting potential liquidity challenges.40
Negative
| 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
Negative
2.75
Price Trends
3.02
Negative
3.38
Negative
4.16
Negative
Market Momentum
-0.06
Positive
37.00
Neutral
24.07
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 2.75 is below the 20-day moving average (MA) of 2.99, below the 50-day MA of 3.02, and below the 200-day MA of 4.16, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 37.00 is Neutral, neither overbought nor oversold. The STOCH value of 24.07 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 Risk Analysis
GEN Restaurant Group, Inc. Class A disclosed 67 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $58.64M | 13.57 | 6.88% | 1.74% | 8.83% | 41.90% | |
68 Neutral | $33.11M | 12.52 | 20.12% | ― | -1.30% | 9.43% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
45 Neutral | $97.35M | ― | -5.04% | 1.11% | 10.67% | -181.88% | |
41 Neutral | $30.62M | ― | ― | ― | -0.35% | -37.02% | |
40 Underperform | $86.15M | ― | ― | ― | -3.09% | -30.16% | |
39 Underperform | $60.67M | ― | -7.81% | ― | 96.64% | -292.65% |
* Consumer Cyclical Sector Average
GENK
GEN Restaurant Group, Inc. Class A
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STKS
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GEN Restaurant Group, Inc. Class A Corporate Events
GEN Restaurant Group’s Earnings Call: Growth Amid Challenges
Aug 8, 2025
In the latest earnings call, GEN Restaurant Group, Inc. Class A presented a mixed sentiment, reflecting strong expansion and product development strategies. However, the company is grappling with challenges such as declining same-store sales and increased operational costs. While international growth and efficient cost management are promising, these are counterbalanced by a net loss and external economic pressures.
GEN Restaurant Group Reports Q2 2025 Financial Results
Aug 7, 2025
GEN Restaurant Group, Inc., a prominent player in the casual dining sector, is known for its GEN Korean BBQ brand, offering a unique ‘grill at your table’ dining experience across multiple locations in the United States and South Korea.
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.