GEN Restaurant Group Reports Third Quarter 2026 Financial Results

Corporate cost reductions accompanied lower restaurant sales, while CPG revenue reached $4.7 million versus none a year earlier.

Rhea-AI Summary

GEN Restaurant Group (GENK) reported third-quarter 2026 revenue of $48.7 million, down 3.3% from the same year-ago quarter. Restaurant revenue fell 12.7% to $44.0 million, with comparable sales down 9.2%; consumer-packaged goods (CPG) revenue reached $4.7 million versus none a year earlier. Net loss widened to $5.5 million from $3.6 million.

A binding letter of intent with Chubby Group covers the sale of operations at 47 U.S. restaurants for up to $100 million, with definitive agreements under negotiation. Transfers would occur in four phases over 12 months. GEN would retain its brand, CPG business and Cerritos restaurant. GEN expects debt elimination as payments arrive and continues to target a $40 million annual CPG revenue run rate and positive consolidated net income on a run-rate basis by end-2027, assuming the transaction and overhead restructuring are completed. Debt reached $26.8 million, versus $14.6 million at year-end 2025.

15 points · 0 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 25 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointBinding letter of intent covers selling 47 restaurants' operations to Chubby Group for up to $100 million. 2.1× market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Operating lease liabilities are expected to fall substantially through the proposed transaction.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Debt elimination is expected as Chubby payments arrive; potential buybacks or dividends remain undecided and secondary to repayment.
• Moderate pointCPG revenue reached $4.7 million in third-quarter 2026, compared with none in the prior-year period.
• Moderate point. Forward-looking: it has not happened yet and may not happen.End-2027 targets remain $40 million annual CPG revenue run rate and positive consolidated net income on a run-rate basis.

10 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Restaurant operating profits would remain with GEN until each restaurant transfers; Chubby would fund conversions and buildouts.
• Minor point. Forward-looking: it has not happened yet and may not happen.Chubby payments would carry a parent guarantee and restaurant security, adding a secured note asset for GEN.
• Minor point. Forward-looking: it has not happened yet and may not happen.Newly secured retail placements are scheduled to reach shelves beginning in second-quarter 2027.
• Minor pointGeneral and administrative expenses fell 15.3% year over year to $5.5 million in third-quarter 2026.
• Minor pointCash and cash equivalents rose to $2.9 million at September 30, 2026, from $2.8 million at December 31, 2025.
• Minor pointThird-quarter payroll and benefits fell to $13.997 million from $14.390 million a year earlier.
• Minor pointThird-quarter occupancy expenses fell to $5.076 million from $5.427 million a year earlier.
• Minor pointThird-quarter pre-opening costs fell to $1.274 million from $2.315 million a year earlier.
• Minor pointNine-month payroll and benefits fell to $46.888 million from $49.140 million in 2025.
• Minor pointNine-month pre-opening costs fell to $4.383 million from $7.015 million in 2025.

Negative

• Moderate pointDefinitive Chubby agreements remain under negotiation; no restaurants had transferred, and transitions would span four phases over 12 months.
• Moderate pointThird-quarter revenue declined 3.3% year over year to $48.7 million from $50.4 million.
• Moderate pointThird-quarter net loss widened to $5.5 million, or $0.16 per share, from $3.6 million, or $0.11.
• Moderate pointDebt outstanding increased to $26.8 million at September 30, 2026, from $14.6 million at December 31, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.End-2027 targets depend on completing the Chubby transaction and planned corporate overhead restructuring.

20 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Corporate workforce reductions are expected as restaurants transfer to Chubby.
• Minor pointRestaurant revenue fell 12.7% to $44.0 million; comparable restaurant sales declined 9.2% in third-quarter 2026.
• Minor pointThird-quarter operating loss widened to $6.046 million from $3.739 million a year earlier.
• Minor pointThird-quarter adjusted EBITDA loss, a non-GAAP measure, widened to $642,000 from $245,000 a year earlier.
• Minor pointThird-quarter restaurant-level adjusted EBITDA, a non-GAAP measure, fell to $4.181 million from $7.084 million.
• Minor pointThird-quarter food costs increased to $19.026 million from $17.538 million a year earlier.
• Minor pointThird-quarter restaurant operating expenses line increased to $6.585 million from $6.174 million a year earlier.
• Minor pointThird-quarter lease termination and asset impairment recorded a $937,000 loss versus a $471,000 gain a year earlier.
• Minor pointThird-quarter net interest expense increased to $481,000 from $121,000 a year earlier.
• Minor pointNine-month revenue fell to $158.368 million from $162.795 million in 2025.
• Minor pointNine-month net loss widened to $17.303 million from $7.289 million in 2025.
• Minor pointNine-month operating loss widened to $18.406 million from $7.796 million in 2025.
• Minor pointNine-month adjusted EBITDA, a non-GAAP measure, fell to a $3.849 million loss from $2.858 million income.
• Minor pointNine-month restaurant-level adjusted EBITDA, a non-GAAP measure, fell to $14.486 million from $25.002 million.
• Minor pointNine-month food costs increased to $61.304 million from $55.422 million in 2025.
• Minor pointNine-month occupancy expenses increased to $16.188 million from $15.639 million in 2025.
• Minor pointNine-month restaurant operating expenses line increased to $19.823 million from $18.005 million in 2025.
• Minor pointNine-month general and administrative expenses increased to $19.485 million from $19.239 million in 2025.
• Minor pointNine-month lease termination and asset impairment recorded a $1.548 million loss versus a $471,000 gain in 2025.
• Minor pointNine-month net interest expense reached $1.021 million versus $7,000 net interest income in 2025.

News Explained

At September 30, GEN reported $2.9 million in cash and $26.8 million in debt; no restaurants had transferred, and the company expects to eliminate debt as Chubby payments arrive.

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On Nov 11, the first trading day after this news, the latest delayed price for GENK is 13.91% below the previous close. Our momentum scanner has recorded 4 alerts for this stock so far that day. The latest delayed price is $1.30. Relative volume is exceptionally heavy at 8.5x what this stock usually trades by this time of day.

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Key Figures

Restaurant operations transaction: Up to $100 million CPG revenue: $4.7 million Total revenue: $48.7 million vs. $50.4 million; down 3.3% +5 more

Restaurant operations transaction

Up to $100 million

Binding letter of intent for operations at 47 U.S. restaurants; definitive agreements remain under negotiation

CPG revenue

$4.7 million

Third quarter 2026, compared with no CPG revenue in the prior-year period

Total revenue

$48.7 million vs. $50.4 million; down 3.3%

Third quarter 2026 compared with the same year-ago quarter

Restaurant revenue

$44.0 million; down 12.7%

Third quarter 2026

Loss from operations

$6.0 million vs. $3.7 million

Third quarter 2026 compared with the same year-ago quarter

Net loss

$5.5 million, or $0.16 per share, vs. $3.6 million, or $0.11 per share

Third quarter 2026 compared with the same year-ago quarter

Total debt outstanding

$26.8 million

As of September 30, 2026, compared with $14.6 million as of December 31, 2025

CPG revenue run rate outlook

$40 million per year

Company expects to reach this run rate by the end of 2027, subject to stated assumptions

Previous Earnings Reports

1 past event · Latest: Aug 10

Same Type 1 event

1. Aug 10

   Q2 earnings

   24h Move

   +9.9%

   Revenue rose 1.2%, but comparable restaurant sales fell 9.3% and the company reported operating and net losses.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted EBITDA, non-GAAP, operating lease liabilities, secured note

4 terms

adjusted EBITDA financial

"Adjusted EBITDA, a non-GAAP measure, reflected a $0.6 million loss"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP financial

"Adjusted EBITDA, a non-GAAP measure"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

operating lease liabilities financial

"substantially reduce GEN's operating lease liabilities"

Long-term lease payments a company is legally committed to because it rents assets such as offices, factories, or equipment; under modern accounting rules these future rent obligations are recorded on the balance sheet as liabilities. Investors care because operating lease liabilities act like debt that drains future cash, affects measures of leverage and borrowing capacity, and can change profitability and valuation — think of them as a company’s large, ongoing rent payments that limit its financial flexibility.

secured note financial

"add a secured note as an asset"

A secured note is a loan-like obligation where the borrower pledges specific assets as a guarantee, so if they fail to pay, the lender can seize those assets to recover money owed. For investors, this matters because the pledged assets lower the risk of losing principal compared with unsecured debt, usually leading to clearer recovery prospects and often a different interest rate and priority in repayment if the borrower faces financial trouble.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CERRITOS, CA / ACCESS Newswire / November 10, 2026 / GEN Restaurant Group, Inc. ("GEN" or the "Company") (Nasdaq:GENK), a leader in at-home Korean BBQ, today reported its financial results for the third quarter ended September 30, 2026.

Third Quarter 2026 & Subsequent Operational Highlights:

• Signed a binding letter of intent with Chubby Group, Inc. ("Chubby") for the sale of operations at 47 U.S. GEN Korean BBQ restaurants in a transaction valued at up to $100 million. The parties are negotiating definitive agreements.
• GEN will remain publicly traded and retain full ownership of the GEN brand, its CPG business and its restaurant in Cerritos, California, which will support training, staffing, and CPG research and development.
• The transaction is expected to substantially reduce GEN's operating lease liabilities and add a secured note as an asset, and GEN expects to eliminate its outstanding debt as it receives payments from Chubby. Thereafter, the Company expects to have flexibility in how it allocates capital, including the potential return of capital to shareholders in the form of a buyback or dividend. Restaurants will transition in four phases over 12 months.
• Began reducing corporate overhead to align with a much leaner CPG business, with general and administrative expenses already down 15% year over year, prior to a meaningful reduction in the corporate workforce expected as restaurants transfer to Chubby. Under the letter of intent, Chubby would continue the employment of the team members at each restaurant it acquires.
• Generated CPG revenue of $4.7 million in the third quarter of 2026, compared to no CPG revenue in the prior-year period. Third quarter results do not yet reflect a significant number of newly secured placements scheduled to reach shelves beginning in the second quarter 2027.
• The Company continues to expect to reach a CPG revenue run rate of $40 million per year and positive consolidated net income on a run-rate basis by the end of 2027, based on doors secured to date and stores currently in its pipeline, and assuming completion of the Chubby transaction and the planned restructuring of its corporate overhead. The Company is focused on profitable revenue, not revenue alone.
• Expanded retail distribution to more than 2,000 doors nationwide, adding all 14 Bristol Farms stores, 55 Vallarta Supermarkets locations and Olé City Market, and entered university dining and live-entertainment venues for the first time with UCLA Dining and SoFi Stadium.

Management Commentary

David Kim, Chairman and CEO of GEN, said: "In many ways, the third quarter marked the beginning of a new GEN. With our binding letter of intent with Chubby Group signed and definitive agreements under negotiation, we are moving to monetize the restaurant operations we spent fifteen years building, while our shareholders retain full ownership of the GEN brand and our rapidly growing CPG business. Under the agreed terms, the restaurants would transition to Chubby in four phases over twelve months, GEN would keep the operating profits until each takeover, and Chubby would fund every conversion and buildout with its own capital. Chubby's payments to us would be guaranteed by its parent and secured by the restaurants themselves. As we have said from the start, we look forward to closing with Chubby. At the same time, as CEO, I always have backup plans - Korean brands are in demand in today's market, and we are comfortable that GEN has meaningful optionality.

"The transaction also transforms our balance sheet. We expect it to substantially reduce our operating lease liabilities, allow us to eliminate our outstanding debt and add a guaranteed, secured receivable as an asset. We began reducing corporate costs in the third quarter. As the transition progresses, we will restructure our overhead and infrastructure around a much leaner CPG business, including a substantial reduction in our corporate workforce, and our senior management team will put its full time and capacity behind building it. The goal is a lean, debt-free GEN whose CPG growth translates into net income for my fellow shareholders.

"That is where our growth is - and we are seeking not just revenue, but profitable revenue. GEN products are now in more than 2,000 doors nationwide - from Costco and Albertsons banners to new placements at Bristol Farms, Vallarta Supermarkets and Olé City Market, along with our first university dining and live-entertainment venue accounts at UCLA and SoFi Stadium. We have also locked in a significant number of new placements that are not on shelves yet - they begin reaching stores in the second quarter of 2027, so our third quarter CPG revenue does not yet reflect them. Most CPG brands spend years buying awareness. Millions of guests have already cooked at a GEN grill, so when they see our package in the freezer case, we are being recognized - not introduced.

"Between the proceeds of the Chubby note and what we expect to be a very profitable CPG business, we believe GEN will have choices, including returning capital to shareholders - whether through a dividend or, if we feel our share price does not reflect the value of this business, share repurchases. No decisions have been made, and retiring our debt comes first, but these are decisions we are taking very seriously as we evaluate how to best drive shareholder value creation.

"To conclude, with a binding letter of intent in hand, a far stronger balance sheet ahead of us and a CPG business adding distribution every month and building toward profitable scale, we believe the most valuable chapter of GEN's story is the one we are writing now," concluded Kim.

Third Quarter 2026 Financial Results

Revenue for the third quarter of 2026 totaled $48.7 million, as compared to $50.4 million in the same year-ago quarter, a decrease of 3.3%. Restaurant revenue was $44.0 million, a decrease of 12.7%, reflecting a 9.2% decline in comparable restaurant sales and fewer restaurants in the base. No restaurants have yet transferred to Chubby Group, so third quarter results reflect the Company's full restaurant portfolio.

Loss from operations was $6.0 million, or 12.4% of revenue, in the third quarter of 2026, as compared to $3.7 million, or 7.4% of revenue, in the same year-ago quarter.

General and administrative expenses totaled $5.5 million, or 11.2% of revenue, as compared to $6.5 million, or 12.8% of revenue, in the same year-ago quarter. The 15.3% decrease reflects reductions in corporate costs and lower stock-based compensation, which more than offset continued investment in the Company's CPG go-to-market efforts.

Net loss for the third quarter of 2026 was $5.5 million, or $0.16 per basic and diluted share of Class A common stock, as compared to a net loss of $3.6 million, or $0.11 per basic and diluted share of Class A common stock, in the same year-ago quarter.

Adjusted EBITDA, a non-GAAP measure, reflected a $0.6 million loss for the third quarter of 2026, as compared to a $0.2 million loss in the same year-ago quarter.

Turning to the balance sheet. Cash and cash equivalents as of September 30, 2026 totaled $2.9 million, as compared to $2.8 million as of December 31, 2025. Total debt outstanding was $26.8 million, as compared to $14.6 million as of December 31, 2025.

Conference Call

GEN will host an investor conference call at 5:00 p.m. Eastern time today, Tuesday, November 10, 2026 to discuss the Company's third quarter 2026 financial results, provide an update on its transformation into a Korean CPG company, and conclude with Q&A from telephone participants. Chairman and CEO David Kim and CFO Luke Hewko will host the call. To participate, please use the following information:

Q3 2026 Earnings Conference Call

Date: Tuesday, November 10, 2026
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
U.S. Dial-in: 1-800-717-1738
International Dial-in: 1-646-307-1865
Webcast: GENK Q3 2026 Earnings Conference Call

Please join at least five minutes before the start of the call to ensure timely participation.

A playback of the call will be available through Tuesday, November 24, 2026. To listen, please call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay ID 1168975. A webcast replay will also be available using the webcast link above.

About GEN Restaurant Group, Inc.

GEN (Nasdaq:GENK) is a consumer-packaged goods company bringing authentic Korean BBQ and other Korean foods into home kitchens nationwide. Founded in 2011 by two Korean immigrants in Los Angeles, GEN built one of the leading Korean BBQ brands in the United States and now packages its signature recipes for at-home dining, led by ready-to-cook marinated meats. GEN products are sold nationwide through the likes of Albertsons, Costco, and other leading warehouse club and grocery retailers. The global rise of Korean culture - from K-pop and K-dramas to film and social media - has fueled robust growth in demand for Korean food, and GEN is positioned to bring that demand into homes across America. For more information, visit investor.genkoreanbbq.com.

Use of Non-GAAP Financial Measures

This press release includes the following non-GAAP measures - adjusted EBITDA and restaurant-level adjusted EBITDA - which are not measures of financial performance under GAAP and should not be considered as alternatives to net (loss) income or (loss) income from operations as measures of financial performance. Adjusted EBITDA represents net (loss) income excluding interest, income taxes, depreciation and amortization, stock-based compensation and certain other non-cash and non-recurring items; restaurant-level adjusted EBITDA represents (loss) income from operations before depreciation and amortization, pre-opening costs, general and administrative expenses and certain other items. The Company believes these non-GAAP measures, when considered together with the corresponding GAAP measures, provide useful information to investors and management regarding trends in its business. However, these measures have significant limitations in that they do not reflect all the costs and other items associated with the operation of the Company's business as determined in accordance with GAAP, and they may be calculated differently than similar measures used by other companies. For a reconciliation of each measure to its most directly comparable GAAP measure, please see the reconciliation tables shown in this press release below. Prior-year adjusted EBITDA and restaurant-level adjusted EBITDA have been recast to exclude a $0.5 million gain on lease termination recorded in the third quarter of 2025, consistent with the Company's current definitions of these measures. As previously reported, adjusted EBITDA and restaurant-level adjusted EBITDA for the third quarter of 2025 were $0.2 million and $7.6 million, respectively.

NET LOSS TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(in thousands)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net loss		$	(5,472	)		$	(3,628	)		$	(17,303	)		$	(7,289	)
Interest expense (income), net			481				121				1,021				(7	)
Benefit for income taxes			(623	)			(271	)			(1,087	)			(540	)
Depreciation and amortization			2,419				2,318				7,208				6,602
Stock-based compensation			328				734				1,796				2,202
Employee retention credits			-				-				-				(313	)
Loss on lease termination and impairment of long-lived assets			937				(471	)			1,548				(471	)
Gain on deconsolidation of restaurants			-				-				(53	)			-
Non-cash lease expense			122				195				321				413
Non-cash lease expense included in pre-opening costs			923				718				2,457				1,922
Litigation settlements			243				39				243				339
Adjusted EBITDA (Non-GAAP)		$	(642	)		$	(245	)		$	(3,849	)		$	2,858

LOSS FROM OPERATIONS TO RESTAURANT-LEVEL ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(in thousands)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Loss from operations		$	(6,046	)		$	(3,739	)		$	(18,406	)		$	(7,796	)
Depreciation and amortization			2,419				2,318				7,208				6,602
Pre-opening costs			1,274				2,315				4,383				7,015
Loss on lease termination and impairment of long-lived assets			937				(471	)			1,548				(471	)
Gain on deconsolidation of restaurants			-				-				(53	)			-
General and administrative			5,475				6,466				19,485				19,239
Non-cash lease expense			122				195				321				413
Restaurant-Level Adjusted EBITDA (Non-GAAP)		$	4,181			$	7,084			$	14,486			$	25,002

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements may be identified by the use of words such as "believe," "intend," "expect," "will," "may," "could," "potential," and other similar words or expressions that predict or indicate future events. All statements that are not statements of historical fact are forward-looking statements, including statements regarding the binding letter of intent with Chubby Group and the transactions contemplated thereby, including the negotiation and execution of definitive agreements, the satisfaction of closing conditions, the timing of the phased takeover of the Company's restaurant locations, the amount and timing of payments to be received by the Company, the potential exercise and value of the Company's option to convert any portion of the outstanding balance into equity of Chubby Group, and the anticipated effects of the transaction on the Company's balance sheet, liquidity, lease liabilities, indebtedness and cost structure; and statements regarding the Company's strategy, future operations and growth prospects, including expectations relating to its CPG business, the timing of new retail placements, its forward revenue run rate estimate, its estimated consolidated net income run rate, its anticipated profitability, and its potential uses of capital, including any return of capital to shareholders through dividends or share repurchases.

Forward-looking statements are based on current information available at the time they are made and on management's reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company's control, that could cause actual results to differ materially from those expressed in or suggested by the forward-looking statements, including the risk that the parties do not enter into definitive agreements, or that either party terminates the letter of intent; that required landlord consents, license transfers, lender arrangements, or regulatory or stockholder approvals are not obtained; that allocations for certain locations are removed from the total consideration; that the transaction is not consummated on the terms contemplated, on the anticipated timeline, or at all; that Chubby Group does not make payments when due, or that the guarantee and collateral supporting those payments prove insufficient; that the performance of the acquired restaurants, on which the sweep payments depend, differs from historical results; that the anticipated benefits of the transaction are not realized; that the Company does not reduce its corporate overhead as planned; risks relating to the growth and profitability of the Company's CPG business, including the risk that the Company does not achieve its anticipated revenue run rate, consolidated net income run rate or net margin on the anticipated timeline or at all; and the risk that the Company does not pay any dividend, repurchase any shares or otherwise return capital to shareholders. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement, except as may be required by applicable law. Investors are referred to the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent filings with the Securities and Exchange Commission, available at www.sec.gov, for additional information regarding these risks and uncertainties.

Investor Relations Contact:

Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
(949) 259-4987
GENK@mzgroup.us
www.mzgroup.us

GEN Restaurant Group, Inc.
Condensed Consolidated Statements of Comprehensive Loss
(Unaudited)
(in thousands, except per share data)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenue		$	48,743			$	50,418			$	158,368			$	162,795
Restaurant operating expenses:
Food cost			19,026				17,538				61,304				55,422
Payroll and benefits			13,997				14,390				46,888				49,140
Occupancy expenses			5,076				5,427				16,188				15,639
Operating expenses			6,585				6,174				19,823				18,005
Depreciation and amortization			2,366				2,277				7,055				6,491
Pre-opening costs			1,274				2,315				4,383				7,015
Total restaurant operating expenses			48,324				48,121				155,641				151,712
General and administrative			5,475				6,466				19,485				19,239
Loss on lease termination and impairment of long-lived assets			937				(471	)			1,548				(471	)
Gain on deconsolidation of restaurants			-				-				(53	)			-
Depreciation and amortization - corporate			53				41				153				111
Total costs and expenses			54,789				54,157				176,774				170,591
Loss from operations			(6,046	)			(3,739	)			(18,406	)			(7,796	)
Employee retention credits			-				-				-				313
Other gain (loss)			(136	)			(39	)			480				(339	)
Gain (loss) on foreign currency			568				-				557				(14	)
Interest (expense) income, net			(481	)			(121	)			(1,021	)			7
Net loss before income taxes			(6,095	)			(3,899	)			(18,390	)			(7,829	)
Benefit for income taxes			(623	)			(271	)			(1,087	)			(540	)
Net loss			(5,472	)			(3,628	)			(17,303	)			(7,289	)
Less: Net loss attributable to non-controlling interest			(4,443	)			(3,062	)			(14,353	)			(6,162	)
Net loss attributable to GEN Restaurant Group, Inc.			(1,029	)			(566	)			(2,950	)			(1,127	)
Weighted-average shares of Class A common stock outstanding - basic and diluted			6,299				5,245				5,669				5,131
Net loss per share of Class A common stock - basic and diluted		$	(0.16	)		$	(0.11	)		$	(0.52	)		$	(0.22	)

GEN Restaurant Group, Inc.
Condensed Consolidated Balance Sheets (Selected Data)
(Unaudited)
(in thousands)

		As of
		September 30, 2026				December 31, 2025
Cash and cash equivalents		$	2,910			$	2,824
Total current assets			15,146				22,746
Property and equipment, net			61,915				65,747
Operating lease assets, net			140,792				146,473
Total assets		$	247,228			$	259,856
Line of credit			15,250				1,000
Notes payable, current			4,361				2,812
Operating lease liabilities, current			6,538				6,707
Gift card liabilities			5,440				14,669
Total current liabilities			61,119				54,074
Notes payable, net of current portion			7,221				10,795
Operating lease liabilities, net of current portion			160,495				165,879
Lease liabilities held for sale			3,692				-
Total liabilities			233,622				231,850
Mezzanine equity			1,500				1,500
Total permanent equity			12,106				26,506
Total liabilities, mezzanine equity and permanent equity		$	247,228			$	259,856

SOURCE: GEN Restaurant Group, Inc.

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were GENK's third-quarter 2026 financial results?

GEN reported $48.7 million revenue and a $5.5 million net loss for the quarter ended September 30, 2026. Revenue declined 3.3% from the same year-ago quarter. The loss was $0.16 per basic and diluted Class A share, compared with $0.11 a year earlier.

What is included in GEN Restaurant Group's proposed Chubby Group transaction?

The binding letter of intent covers the sale of operations at 47 U.S. GEN Korean BBQ restaurants in a transaction valued at up to $100 million. Definitive agreements remain under negotiation. GEN would remain publicly traded and retain its brand, CPG business and Cerritos restaurant.

How would Chubby Group's payments to GEN be protected?

Chubby's payments would be guaranteed by its parent and secured by the restaurants. GEN would retain operating profits until each restaurant's takeover, while Chubby would fund conversions and buildouts with its own capital. These terms accompany the binding letter of intent, with definitive agreements still under negotiation.

Would restaurant employees keep their jobs under GEN's proposed Chubby transaction?

Under the letter of intent, Chubby would continue employing the team members at each restaurant it acquires. Separately, GEN expects a substantial reduction in its corporate workforce as restaurant transfers progress and overhead is restructured around the CPG business.