GEN Restaurant Group (NASDAQ:GENK – Get Free Report) issued its quarterly earnings results on Thursday. The company reported ($0.14) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.07), FiscalAI reports. The business had revenue of $53.90 million for the quarter, compared to analysts’ expectations of $57.00 million. GEN Restaurant Group had a negative return on equity of 1.24% and a negative net margin of 1.42%.
Here are the key takeaways from GEN Restaurant Group’s conference call:
- GEN reported a same-store sales decline of 8.8% in Q1 2026, although that was an improvement from the 11.7% decline in Q4 2025. Management said customer traffic remains pressured by macro factors, especially higher fuel prices in California.
- Restaurant profitability weakened as rising food and occupancy costs, plus lower sales, drove restaurant-level adjusted EBITDA down to $4 million, or 7.4% of revenue, versus $9 million and 15.6% a year ago. Total adjusted EBITDA was negative $3.2 million.
- The company is slowing restaurant expansion to 5-7 openings in 2026 and has suspended construction on six additional stores, which management framed as disciplined capital allocation to protect the balance sheet and reduce near-term expenses.
- GEN is pushing its CPG and grocery-store expansion, including tests and launches with Costco, BevMo!, and an Albertsons regional rollout, and said it expects to disclose a financial forecast for the division by the end of Q2. Management reiterated confidence in a long-term revenue run rate above $100 million for the retail business.
- The company ended the quarter with $4.4 million in cash and $15.5 million available on its revolving credit facility. It also expects Q2 to benefit somewhat from pricing actions, while still targeting full-year 2026 revenue of $215 million-$225 million and restaurant-level adjusted EBITDA margins of 15%-15.5% in the second half.
GEN Restaurant Group Price Performance
Shares of GENK stock traded down $0.12 on Thursday, reaching $2.14. 35,683 shares of the company were exchanged, compared to its average volume of 42,149. The company has a market cap of $70.45 million, a price-to-earnings ratio of -3.69 and a beta of 0.79. The business has a 50-day moving average price of $1.77 and a 200 day moving average price of $2.13. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.40 and a current ratio of 0.42. GEN Restaurant Group has a 1 year low of $1.43 and a 1 year high of $4.99.
Analysts Set New Price Targets
Read Our Latest Report on GENK
Institutional Investors Weigh In On GEN Restaurant Group
Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. boosted its stake in GEN Restaurant Group by 29.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 53,573 shares of the company’s stock worth $296,000 after purchasing an additional 12,296 shares during the last quarter. XTX Topco Ltd acquired a new stake in GEN Restaurant Group during the 2nd quarter worth $49,000. Finally, Jones Financial Companies Lllp boosted its stake in GEN Restaurant Group by 1,376,466.7% during the 1st quarter. Jones Financial Companies Lllp now owns 41,297 shares of the company’s stock worth $228,000 after purchasing an additional 41,294 shares during the last quarter. Institutional investors and hedge funds own 10.22% of the company’s stock.
About GEN Restaurant Group
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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