GEN Restaurant Group, Inc. (GENK) AI Stock Analysis

GEN Restaurant Group, Inc. operates a chain of restaurants across California, Arizona, Hawaii, Nevada, New York, and Texas. Founded in 2011 and based in Cerritos, California, the company offers an interactive dining experience where guests grill a diverse selection of flavored meats directly at their tables. Beyond its core Korean barbecue offerings, the company continually introduces seasonal and contemporary dishes to appeal to a broad audience. GEN Restaurant Group focuses on authentic Korean flavors, high-quality ingredients, attentive customer service, and an engaging dining atmosphere as it works to strategically expand its restaurant footprint across the United States.

Between FY2020 and FY2025, GEN Restaurant Group achieved a 5-year revenue compound annual growth rate of 27.7%. Revenue rose from $140.6M in FY2021 to $212.5M in FY2025, though annual revenue growth slowed to 2.0% in FY2025. Margins contracted steadily over this period; gross margin declined from 20.0% in FY2021 to 9.2% in FY2025, while operating margin fell from 11.9% to -3.1%. Net income dropped from $49.9M in FY2021 to -$3.0M in FY2025, resulting in diluted earnings per share of -$0.08. Over the trailing twelve months, revenue reached $209.8M with an operating margin of -9.2% and EPS of -$0.84. In the latest quarter ended June 30, 2026, quarterly revenue grew 1.3% year-over-year, while quarterly earnings growth declined 93.6%.

As of June 30, 2026, the company held $5.9M in cash and short-term investments against total debt of $188.2M, resulting in net debt of $182.3M. Total assets stood at $247.8M against shareholders' equity of $13.6M, reflecting a debt-to-equity ratio of 13.87 and a current ratio of 0.29. In FY2025, operating cash flow was $3.4M, while capital expenditures reached $27.7M, creating free cash flow of -$24.3M. Cash usage in FY2025 included $987,000 in dividends paid and $90,000 spent on share buybacks.

GEN Restaurant Group has a market capitalization of $55.7M and an enterprise value of $191.4M. The stock trades at a forward P/E of 166.7x, compared to 14.1x for the median of its US-listed Consumer Cyclical peers. Its price-to-sales multiple is 0.3x, below the peer group median of 0.7x, while its EV/EBITDA stands at 28.7x versus the peer median of 11.1x. Over the past year, shares fell 43.9%, compared to a 16.8% gain for the S&P 500 (SPY).

Wall Street coverage includes 1 Strong Buy and 1 Hold rating among analysts. The mean price target is $2.50, which sits 47.9% above the last close price of $1.69. For the fiscal year ending December 31, 2026, consensus estimates project EPS of -$0.45 on revenue of $216.9M. For the following fiscal year, 1 analyst projects EPS of -$0.21 on revenue of $227.5M. The company beat EPS estimates in 1 of the last 4 quarters. The next earnings date is November 6, 2026.

This page is an AI-written research summary of GEN Restaurant Group, Inc. (GENK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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