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GEN Restaurant Group, Inc. Class A (GENK)
NASDAQ:GENK
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GEN Restaurant Group, Inc. Class A
(NASDAQ:GENK)
Select Model
Select Model
Rating:44Neutral
Price Target:
$3.00
▲(0.33% Upside)
GEN Restaurant Group, Inc. Class A faces significant financial challenges, including high leverage and negative profitability, which are the most impactful factors in the overall score. Technical analysis indicates bearish momentum, further weighing on the stock's outlook. The valuation is constrained by a negative P/E ratio, although the dividend yield offers slight relief. The earnings call provided mixed insights, but its weight was redistributed due to the absence of corporate events.
GEN Restaurant Group, Inc. Class A (GENK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$96.49M
Dividend Yield1.02%
Average Volume (3M)58.17K
Price to Earnings (P/E)36.3
Beta (1Y)0.95
Revenue Growth10.67%
EPS Growth-181.88%
CountryUS
Employees289
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.04
Shares Outstanding5,249,566
10 Day Avg. Volume88,738
30 Day Avg. Volume58,167
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.19
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit11.05
Enterprise Value/Ebitda21.69
Forecast
1Y Price Target
$5.50Price Target Upside83.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
GEN Restaurant Group, Inc. Class A Business Overview & Revenue Model
Company DescriptionGEN 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 MoneyGEN 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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
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 rapid revenue growth but faces significant challenges in profitability and financial stability. High leverage and negative profitability metrics indicate potential risks, while the cash flow situation suggests liquidity concerns. The company needs to improve cost management and reduce debt to enhance financial health.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
2.99
Price Trends
3.48
Negative
3.72
Negative
4.87
Negative
Market Momentum
-0.12
Negative
36.71
Neutral
34.32
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 2.99 is below the 20-day moving average (MA) of 3.12, below the 50-day MA of 3.48, and below the 200-day MA of 4.87, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 36.71 is Neutral, neither overbought nor oversold. The STOCH value of 34.32 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 49.03M | 18.54 | ― | ― | -1.30% | 9.43% | |
68 Neutral | 515.34M | 47.84 | 69.01% | ― | -1.72% | -70.31% | |
60 Neutral | 274.49M | 17.28 | -63.40% | ― | 0.06% | -12.14% | |
55 Neutral | 125.01M | -2.05 | 92.02% | ― | -3.09% | -30.16% | |
47 Neutral | 76.15M | -1.65 | -8.10% | ― | 96.64% | -292.65% | |
44 Neutral | $96.49M | 36.29 | -5.04% | 1.02% | 10.67% | -181.88% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
GENK
GEN Restaurant Group, Inc. Class A
2.93
-5.45
-65.04%
DENN
Denny's
5.33
-1.12
-17.36%
RAVE
Rave Restaurant Group
3.45
1.42
69.95%
RRGB
Red Robin Gourmet
6.98
2.57
58.28%
PBPB
Potbelly
17.03
8.69
104.20%
STKS
The ONE Group Hospitality
2.36
-1.32
-35.87%
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.