Corrected: GEN Restaurant reviewing proposal to sell US restaurant operations

GEN Restaurant

10/08/2026 21:28

Corrects second bullet of Overview section to say "Restaurant-level adjusted EBITDA" rose, not "adjusted EBITDA"

Overview
US Korean BBQ and CPG operator's Q2 revenue rose 1.2% yr/yr to $55.7 mln
Restaurant-level adjusted EBITDA for Q2 rose to $6.3 mln, with sequential margin improvement
Company received non-binding offer to sell US restaurant operations, reviewing potential shift to CPG focus

Outlook
Company estimates CPG division forward 12-month revenue run rate of $35 mln to $40 mln
Company is reviewing a proposal to sell U.S. restaurant operations and focus on CPG business

Result Drivers
CPG EXPANSION - Revenue growth driven by rapid expansion of CPG division, including new distribution agreements and increased retail placements
WEAK RESTAURANT SALES - Comparable restaurant sales fell 9.3% yr/yr, weighing on overall revenue
STORE EXITS - Closure of six underperforming restaurants reduced revenue, but expected to improve restaurant-level performance in future periods

Company press release: ID:nACShrr3fa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$55.70 mln
$57.20 mln (2 Analysts)
Q2 Net Loss
 
$4.60 mln
 
Q2 Pretax Loss
Miss
$4.84 mln
$3.90 mln (2 Analysts)
Q2 Income from Operations
 
-$5.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for GEN Restaurant Group Inc is $2.50, about 27.6% above its August 7 closing price of $1.96

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)