GEN Restaurant Group, Inc.
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Range $3 – $13.5
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About the company
GEN Restaurant Group, Inc. operates restaurants in the United States. The company offers meats, poultry, and seafood.
- CEO
- David Kim
- IPO
- 2023
- Employees
- 2,726
- HQ
- Cerritos, CA, US
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- Market Cap
- $57.19M
- P/E
- -2.07
- PEG
- 0.02
- P/S
- 0.27
- P/B
- 0.68
- EV/EBITDA
- -16.52
- Div Yield
- 0.00%
- Gross Margin
- 5.02%
- Op Margin
- -10.23%
- Net Margin
- -2.09%
- ROE
- -31.91%
- ROIC
- -9.99%
Latest fiscal year · YoY change
- Revenue
- $212.54M+2.0%
- Gross Profit
- $19.47M-11.2%
- Op Income
- $-6,620,000
- Net Income
- $-3,026,000-611.1%
- EPS
- $-0.59-553.8%
- OCF Growth
- -80.8%
- FCF Growth
- -305.5%
- 52W High
- $3.44
- 52W Low
- $1.43
- 50D MA
- $1.97
- 200D MA
- $2.07
- Beta
- 0.95
- RSI (14)
- 37
- Avg Volume
- 181.14K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
GEN Restaurant Group posted modest Q2 revenue growth, but the call was dominated by a rapid CPG expansion and a proposed $100 million sale of its U.S. restaurant operations.· August 10, 2026
- Q2 revenue rose 1.2% to $55.7 million, returning the company to year-over-year growth after a 6% decline in Q1.
- CPG was the standout: management said the business had its best quarter yet, with revenue up 341% sequentially from Q1 and June revenue above $2 million.
- The company reaffirmed full-year 2026 revenue guidance of $215 million to $225 million.
- Management said the nonbinding LOI values the U.S. restaurant operations at about $100 million, while GEN would retain 100% of the CPG business.
- The company said CPG products were in nearly 2,000 retail doors and that the 12-month revenue run rate is estimated at $35 million to $40 million, with current sales largely driving that figure.
Total revenue increased 1.2% to $55.7 million in Q2 2026 from $55.0 million in Q2 2025. Cost of goods sold was 39.1% of revenue versus 33.8% a year ago; payroll and benefits improved to 28.0% from 30.1%; occupancy costs were 9.6% versus 9.3%; other operating costs were 12.1% versus 10.7%; restaurant preopening expenses fell to $1.3 million from $2.1 million. Loss from operations was $5.2 million, or 9.2% of revenue, versus a loss of $1.9 million, or 3.4% of revenue, in the prior-year period. Net loss was $4.6 million versus $1.7 million, and net loss attributable to GEN was negative $0.14 per share versus negative $0.05 per share. Restaurant-level adjusted EBITDA was $6.3 million, or 11.3% of revenue, versus $9.0 million, or 16.3% last year. Cash and cash equivalents were $5.9 million at June 30, 2026, and total debt was $24.0 million. First-half capital expenditures were $5.3 million versus $16.5 million a year ago. For the balance of 2026, management reaffirmed full-year revenue guidance of $215 million to $225 million and said it expects to complete the fifth and final restaurant transfer in Q3.
David Kim framed the quarter as proof that GEN is positioned to benefit from strong consumer demand for Korean food, especially through the freezer aisle and club channel. He emphasized that the company’s CPG business can scale with co-packers and third-party distribution rather than major capital spending, and said the margin profile is structurally better than restaurants, with EBITDA margins expected in the high teens at scale after promotional investment. His tone was highly strategic and optimistic, especially around the proposed separation of the restaurant business from the faster-growing CPG platform.
Luke Hewko highlighted that revenue growth came from CPG and newly opened restaurants, offsetting weaker comparable restaurant sales and the loss of revenue from restaurants contributed to a joint venture. He said gross cost pressure reflected the mix shift into CPG, noting COGS at 39.1% of revenue and that 81% of the $3.2 million increase in food cost dollars came from CPG, while payroll and benefits improved to 28.0% of revenue due to labor efficiencies. He also pointed to $5.9 million of cash, $24.0 million of debt, an $11 million net draw on the line of credit to fund working capital and inventory, and lower first-half capex of $5.3 million. He reaffirmed full-year revenue guidance of $215 million to $225 million and said development spending should stay near maintenance levels.
Analysts focused on how GEN can reach the $35 million to $40 million CPG run-rate and what portion, if any, will come from the new prepared-meal category. Management said the run-rate guidance is based mostly on current sales with little new business included, that June’s $2 million month included a lot of new doors, and that the prepared-meal line was not included in the projection at all because it is still in testing. When asked about SKU rationalization, management said the core focus remains meat products, while the broader Korean incubator SKUs are growing but create longer inventory lead times from South Korea. On the proposed restaurant sale, management said the brand stays with GEN and they are considering ways to collaborate with the buyer if the deal moves forward.
The strongest positive from the call is the pace of CPG growth: nearly 2,000 retail doors, a June revenue month above $2 million, and a stated $35 million to $40 million 12-month run-rate driven mostly by current business. Management also argued that GEN’s brand recognition, retail demos, and existing procurement scale give it an advantage in scaling without heavy capital needs. The proposed restaurant sale could further strengthen the balance sheet and let the company focus capital on the highest-return part of the business.
The restaurant business remains under pressure, with comparable sales declines offsetting new unit growth and quarterly restaurant-level adjusted EBITDA down from last year. Gross margin was pressured by the mix shift into CPG and commodity inflation, and debt increased to $24 million with an $11 million line-of-credit draw to fund working capital. Management also acknowledged execution risk in keeping products on shelf, the longer logistics cycle for South Korea-sourced SKUs, and uncertainty around whether the nonbinding LOI will result in any transaction.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 85.6%
- Shares Outstanding
- 32.96M
- Float Shares
- 28.23M
of shares held by institutions
14 13F filers
Buy/sell ratio 0.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Vanguard Group Inc | 183.56K | ▼ 772 |
Held by 17 ETFs
Biggest fund positions in GENK by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jun 1, 26 | Hewko Luke | other | 0 |
| Jul 25, 25 | Cowan Michael | other | 6,000 |
| May 30, 25 | Cowan Michael | buy | 30,000 |
| May 19, 25 | Croal Thomas | buy | 2,000 |
| May 12, 25 | Kim David Wook Jin | other | 52,127 |
| Jun 27, 23 | Kim David Wook Jin | other | 0 |
| Jun 27, 23 | Kim David Wook Jin | other | 0 |
| Jun 27, 23 | Kim David Wook Jin | other | 586,217 |
| Jun 27, 23 | Chang Jae | other | 0 |
| Jun 27, 23 | Chang Jae | other | 0 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our GENK coverage
Recent articles, reports, and earnings notes.
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GEN Restaurant Group, Inc. (GENK) Q2 2026 Earnings Call Transcript
seekingalpha.com · Aug 10
GEN Restaurant Group Q2 Earnings Call Highlights
marketbeat.com · Aug 10
GEN Restaurant Group, Inc. (GENK) Reports Q2 Loss, Beats Revenue Estimates
zacks.com · Aug 10
GEN Restaurant Group Reports Second Quarter 2026 Financial Results
accessnewswire.com · Aug 10
GEN Restaurant Group Receives Non-Binding Letter of Intent from Nationwide Restaurant Operator for Strategic Sale of U.S. Restaurant Operations
accessnewswire.com · Aug 10
GEN Restaurant Group Appoints CPG Industry Veteran Mark Cutrona as Senior Vice President of Sales and Operations
accessnewswire.com · Aug 7
GEN Restaurant Group to Host Second Quarter 2026 Earnings Call on August 10, 2026 at 5:00 p.m. Eastern Time
accessnewswire.com · Aug 4
GEN Restaurant Group Secures Retail Placement at Northgate Market and Times Supermarkets
accessnewswire.com · Jul 15
Headlines from third-party outlets — TickerSpark isn't affiliated with these sources.
