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GEN Restaurant Group, Inc. Class A
(NASDAQ:GENK)
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Rating:43Neutral
Price Target:
$1.50
▼(-24.24% Downside)
Action:Reiterated
Date:09/30/26
The score is held down primarily by weak financial quality (margin compression, operating losses, negative operating cash flow/free cash flow, and leverage risk). Technicals also point to a downtrend with negative momentum. These are partially offset by encouraging earnings-call momentum around CPG scaling and reaffirmed revenue guidance, while recent financing events provide liquidity flexibility but introduce dilution overhang.
Positive Factors
CPG Scaling
Rapid CPG growth and broadening retail distribution create a second revenue channel beyond restaurants. Nearly 2,000 doors, a substantial forward run-rate, and additional buyer outreach indicate potential for durable scale if execution maintains current momentum.
Negative Factors
Persistent Losses and Margin Compression
Top-line growth has not translated into durable profitability: gross margin has compressed sharply and operating losses remain substantial. Continued cost pressure reduces the ability to self-fund expansion and makes the business more vulnerable if CPG investments take longer to mature.
Read all positive and negative factors
Positive Factors
Negative Factors
CPG Scaling
Rapid CPG growth and broadening retail distribution create a second revenue channel beyond restaurants. Nearly 2,000 doors, a substantial forward run-rate, and additional buyer outreach indicate potential for durable scale if execution maintains current momentum.
Read all positive factors
GEN Restaurant Group, Inc. Class A (GENK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.93M
Dividend Yield0.7%
Average Volume (3M)35.13K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth-2.94%
EPS Growth-462.05%
CountryUS
Employees2,726
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.83
Shares Outstanding7,299,135
10 Day Avg. Volume17,967
30 Day Avg. Volume35,130
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 Cap3.40
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit18.69
Enterprise Value/Ebitda-18.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.32
Revenue Forecast (FY)$216.90M
GEN Restaurant Group, Inc. Class A Business Overview & Revenue Model
Company Description
GEN Restaurant Group, Inc. operates restaurants in the United States. The company offers meats, poultry, and seafood. GEN Restaurant Group, Inc. was founded in 2011 and is based in Cerritos, California....
How the Company Makes Money
GEN Restaurant Group primarily generates revenue from restaurant sales at its GEN Korean BBQ House locations. The core revenue stream is food and beverage sales to guests, typically through dine-in service, which may include set-price dining and/o...
GEN Restaurant Group, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call presents a strong strategic pivot toward a rapidly scaling CPG business with clear early indicators of traction: very large sequential CPG revenue growth (341%), nearly 2,000 retail doors, and a projected $35M–$40M 12-month run rate. Management reinforced capital discipline, improved cash versus year-end, and noted sequential improvement in restaurant-level margins. Offsetting these positives are near-term profitability pressures (widening net loss), higher COGS driven largely by retail COGS for CPG, increased debt to fund inventory, and execution risks related to scaling new SKUs and an uncertain nonbinding LOI to sell restaurant operations. Taken together, the material momentum and sizable growth runway in CPG materially outweigh the near-term earnings and balance-sheet pressures.Positive Updates
CPG Revenue Surge and Traction
CPG revenue grew 341% sequentially from Q1 to Q2 2026; June was the biggest month with CPG revenue surpassing $2.0M. Management reports nearly 2,000 retail doors already carrying GEN products and a 12-month revenue run rate estimate of $35M–$40M based on current pipeline.
Negative Updates
Widening Net Loss and Operating Loss
Net loss widened to $4.6M in Q2 2026 compared to $1.7M in Q2 2025 (increase of $2.9M, ~171%). Loss from operations was $5.2M (9.2% of revenue) versus a loss of $1.9M (3.4% of revenue) a year ago.
Read all updates
Q2-2026 Updates
Positive
Negative
CPG Revenue Surge and Traction
CPG revenue grew 341% sequentially from Q1 to Q2 2026; June was the biggest month with CPG revenue surpassing $2.0M. Management reports nearly 2,000 retail doors already carrying GEN products and a 12-month revenue run rate estimate of $35M–$40M based on current pipeline.
Read all positive updates
Company Guidance
GEN reaffirmed full-year revenue guidance of $215–$225 million and said it expects its CPG division to deliver EBITDA margins in the high teens at scale; CPG revenue surged 341% sequentially, June topped $2.0 million, GEN products are in nearly 2,000 doors (above its 1,500–2,000 target) and management estimates a 12‑month CPG run rate of $35–$40 million (versus a prior run‑rate disclosure in excess of $20 million), with >1,000 additional doors presented and >8,000 doors in active outreach; the company noted it buys over $40 million of meat annually, reported Q2 total revenue of $55.7 million (+1.2% YoY), COGS 39.1% (vs 33.8% prior year), payroll and benefits 28% (vs 30.1%), occupancy 9.6% (vs 9.3%), other operating costs 12.1% (vs 10.7%), loss from operations $5.2 million (9.2% of revenue), net loss $4.6 million (−$0.14/share), restaurant‑level adjusted EBITDA $6.3 million (11.3%, up from 7.4% in Q1), cash $5.9 million, total debt $24 million (including an $11 million net draw), H1 CapEx $5.3 million (vs $16.5 million prior year), and management expects to complete the fifth restaurant transfer in Q3 while keeping development spending near maintenance levels.GEN Restaurant Group, Inc. Class A Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
27
Negative
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 209.79M | 212.54M | 208.38M | 181.01M | 163.73M | 140.56M |
| Gross Profit | 10.52M | 19.47M | 21.92M | 24.61M | 27.61M | 28.14M |
| EBITDA | -10.90M | -3.99M | 18.96M | 21.61M | 19.47M | 57.88M |
| Net Income | -4.38M | -3.03M | 592.00K | 8.41M | 10.28M | 49.86M |
Balance Sheet | ||||||
| Total Assets | 247.78M | 259.86M | 240.41M | 183.87M | 138.88M | 53.84M |
| Cash, Cash Equivalents and Short-Term Investments | 5.93M | 2.82M | 23.68M | 32.63M | 11.20M | 9.89M |
| Total Debt | 188.19M | 187.22M | 163.01M | 123.77M | 126.08M | 14.90M |
| Total Liabilities | 230.32M | 231.85M | 196.30M | 147.85M | 145.64M | 43.14M |
| Stockholders Equity | 13.57M | 14.02M | 12.73M | 7.47M | -10.01M | 8.89M |
Cash Flow | ||||||
| Free Cash Flow | -19.48M | -24.32M | -6.00M | 5.01M | 15.29M | 38.52M |
| Operating Cash Flow | -2.89M | 3.41M | 17.83M | 22.16M | 23.40M | 39.80M |
| Investing Cash Flow | -16.59M | -27.73M | -26.80M | -6.31M | 2.57M | -18.53M |
| Financing Cash Flow | 16.09M | 3.46M | 18.00K | 5.58M | -24.66M | -18.54M |
GEN Restaurant Group, Inc. Class A Technical Analysis
Negative
1.98
Price Trends
1.82
Negative
1.92
Negative
1.94
Negative
Market Momentum
-0.06
Negative
45.33
Neutral
25.61
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 1.98 is above the 20-day moving average (MA) of 1.66, above the 50-day MA of 1.82, and above the 200-day MA of 1.94, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 45.33 is Neutral, neither overbought nor oversold. The STOCH value of 25.61 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 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $32.69M | 11.36 | 17.95% | ― | 7.23% | 8.40% | |
67 Neutral | $86.97M | 13.11 | 9.84% | 1.28% | 6.14% | 53.60% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $162.76M | -5.09 | 29.24% | ― | -3.71% | 50.04% | |
47 Neutral | $47.53M | -0.39 | -69.17% | ― | -4.06% | -154.36% | |
46 Neutral | $84.85M | -3.55 | 50.91% | ― | 0.19% | 46.85% | |
43 Neutral | $57.93M | -2.00 | -31.91% | 0.70% | -2.94% | -462.05% |
* Consumer Cyclical Sector Average
GENK
GEN Restaurant Group, Inc. Class A
1.66
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RRGB
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NDLS
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STKS
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1.50
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-41.41%
GEN Restaurant Group, Inc. Class A Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
GEN Restaurant Group Announces New Equity Financing Agreement
Positive
Sep 29, 2026
On September 29, 2026, GEN Restaurant Group, Inc. entered into a Common Stock Purchase Agreement and related Registration Rights Agreement with Roth Principal Investments, LLC, giving the company the discretionary right to sell up to $25 million o...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
GEN Restaurant Group Announces ATM Equity Sales Agreement
Positive
Aug 10, 2026
On August 10, 2026, GEN Restaurant Group, Inc. entered into a Sales Agreement with Roth Capital Partners, LLC allowing the company to sell up to $3,740,000 of its Class A common stock in an at‑the‑market offering under an effective she...
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.