GEN Restaurant Group (NASDAQ:GENK) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS

by · The Markets Daily

GEN Restaurant Group (NASDAQ:GENK – Get Free Report) issued its quarterly earnings data on Tuesday. The company reported ($0.14) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.08), FiscalAI reports. The business had revenue of $49.75 million for the quarter, compared to analysts’ expectations of $58.77 million. GEN Restaurant Group had a negative net margin of 0.61% and a positive return on equity of 0.51%.

Here are the key takeaways from GEN Restaurant Group’s conference call:

  • Same-store sales fell ~11.6% in Q4 2025 as customer traffic declined amid immigration enforcement and higher fuel costs, driving a sharp drop in restaurant-level adjusted EBITDA and contributing to quarterly and annual losses.
  • Liquidity and profitability are strained — FY 2025 net loss before taxes was $20.3M, cash was only $2.8M at year-end, adjusted EBITDA collapsed versus prior year, and management expects to draw on the revolving credit facility.
  • Management is repositioning the portfolio via a joint venture with Chubby Cattle for five underperforming restaurants (GEN retains 49%), taking a $4.5M write-down now but aiming to convert those locations to profitable, EBITDA-generating assets.
  • The CPG/retail initiative is accelerating — products expanded from tests in ~30 stores to >800 locations, with a target of 1,500–2,000 by end-2026 and a long-term goal of 7,000–8,000 stores and a >$100M run rate with high-teens EBITDA margins.
  • Management is implementing operational fixes (menu streamlining, ~2.5% price increase, manager incentives), launching digital/loyalty/crypto and AI cost programs, which could help margins but have uncertain near-term impact.

GEN Restaurant Group Stock Performance

Shares of NASDAQ GENK traded up $0.08 during midday trading on Tuesday, reaching $1.96. The company had a trading volume of 47,340 shares, compared to its average volume of 53,422. GEN Restaurant Group has a 1 year low of $1.50 and a 1 year high of $5.63. The business’s 50-day simple moving average is $1.89 and its 200 day simple moving average is $2.39. The company has a current ratio of 0.33, a quick ratio of 0.30 and a debt-to-equity ratio of 0.16. The stock has a market cap of $64.56 million, a P/E ratio of -7.54 and a beta of 1.46.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on GENK shares. Roth Mkm reduced their target price on GEN Restaurant Group from $5.00 to $3.00 and set a “buy” rating on the stock in a research report on Monday, December 29th. Weiss Ratings reissued a “sell (d)” rating on shares of GEN Restaurant Group in a report on Thursday, January 22nd. Two research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $4.50.

Get Our Latest Stock Analysis on GEN Restaurant Group

Hedge Funds Weigh In On GEN Restaurant Group

Several hedge funds have recently made changes to their positions in the company. XTX Topco Ltd acquired a new stake in GEN Restaurant Group during the 2nd quarter worth about $49,000. Goldman Sachs Group Inc. grew its stake in GEN Restaurant Group by 36.7% during the 4th quarter. Goldman Sachs Group Inc. now owns 75,478 shares of the company’s stock valued at $159,000 after purchasing an additional 20,265 shares during the last quarter. Finally, Jones Financial Companies Lllp increased its holdings in shares of GEN Restaurant Group by 1,376,466.7% in the first quarter. Jones Financial Companies Lllp now owns 41,297 shares of the company’s stock valued at $228,000 after purchasing an additional 41,294 shares during the period. 10.22% of the stock is owned by institutional investors and hedge funds.

GEN Restaurant Group Company Profile

(Get Free Report)

GEN Restaurant Group, Inc, operating as Gen Korean BBQ House, is a restaurant operator specializing in an all-you-can-eat Korean barbecue dining concept. The company offers patrons a hands-on grilling experience with a selection of premium meats, seafood, and vegetables cooked tableside, alongside traditional Korean side dishes and beverages. Gen Korean BBQ House locations feature modern décor and a fast-casual service style designed to appeal to a broad demographic of consumers seeking experiential dining.

The company’s restaurants serve a core menu of marinated and non-marinated proteins, including beef, pork, chicken and plant-based alternatives, complemented by signature banchan (side dishes), sauces and dessert offerings.

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