AI Earnings Predictions for GEN Restaurant Group Inc. (GENK)

EX-99.1

2 genk-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

GEN Restaurant Group Reports Second Financial Results

CPG Momentum Accelerates with Purchase Commitments from More Than 100 Costco Warehouses Nationwide and New Distribution Agreements with United Natural Foods and C&S Wholesale Grocers; Second Quarter Revenue Increased 1.2% Year-Over-Year to $55.7 Million

CERRITOS, CA, August 10, 2026 - GEN Restaurant Group, Inc. (“GEN” or the “Company”) (Nasdaq: GENK), a leader in Korean BBQ both in-restaurant and at home, with 54 GEN Korean BBQ locations and a rapidly growing consumer packaged goods (“CPG”) business, today announced its financial results for the second quarter ended June 30, 2026

Financial Summary:

Q2 2026

Q2 2025

$ in millions (except per share data)

Revenue

$

55.7

$

55.0

Loss from operations

$

(5.2

)

$

(1.9

)

Restaurant-Level Adjusted EBITDA (non-GAAP)

$

6.3

$

9.0

Adjusted EBITDA (non-GAAP)

(0.0)

$

1.9

Net Loss

$

4.6

(1.7

)

Net Loss per Class A Share (Diluted)

$

(0.14

)

$

(0.05

)

Second Quarter 2026 Financial and Recent Operational Highlights

• Total revenue increased 1.2% to $55.7 million for the second quarter of 2026, as compared to $55.0 million in the second quarter of 2025, which reflects growth in the Company's CPG division and revenue from restaurants opened in 2025 and 2026, partially offset by a decline in comparable restaurant sales and the loss of revenue from the six restaurants exited during the quarter. Comparable restaurant sales performance was (9.3)% for the second quarter of 2026, as compared to (8.8)% in the first quarter of 2026 and (7.2)% in the second quarter of 2025. Comparable restaurant sales reflect the year-over-year change in sales for restaurants in operation for at least 18 full months prior to the periods presented.

• Announced receipt of a non-binding letter of intent from a nationwide, multi-concept restaurant operator to acquire the Company’s U.S. restaurant operations — with GEN retaining 100% of its rapidly growing consumer packaged goods (“CPG”) and retail business. The Board of Directors is reviewing the proposal, and no assurance can be given that any transaction will result.

• Secured purchase commitments from approximately 60 to 70 Costco warehouse locations across the Pacific Northwest following the Company’s first Costco roadshow in the region – bringing GEN’s total commitments to more than 100 U.S. Costco warehouses, or over 16% of Costco’s domestic footprint, with Northwest warehouses expected to begin receiving GEN products in their freezer sections starting in August 2026.

• Secured key distribution agreements for the Company’s CPG product lines with United Natural Foods (“UNFI”) and C&S Wholesale Grocers, one of the largest grocery distributors and wholesale grocery supply companies in the United States, respectively.

• Secured retail placement at leading grocers nationally including Save Mart Supermarkets, Smart & Final, Northgate Market and Times Supermarkets – bringing GEN’s door count to nearly 2,000 supermarkets and club stores nationwide.

• Grew CPG division revenue 341% sequentially from the first quarter of 2026, with June representing the division’s largest month to date at more than $2 million of revenue. Based on doors secured to date and the stores currently in its pipeline, GEN estimates a forward 12-month revenue run rate of $35 million to $40 million — with more than 1,000 additional doors already presented to buyers and more than 8,000 further doors in active outreach across grocery and mass retail.

• Cash and cash equivalents were $5.9 million as of June 30, 2026, compared to $2.8 million as of December 31, 2025, with $12.1 million outstanding under the Company’s line of credit, compared to $1.0 million as of December 31, 2025.

Management Commentary

David Kim, Chairman and Chief Executive Officer of GEN, commented: "The defining development of the second quarter was the strategic path it set for GEN. Earlier today, we announced receipt of a non-binding letter of intent from a nationwide, multi-concept restaurant operator to acquire our U.S. restaurant operations, with GEN retaining 100% of its rapidly growing consumer packaged goods and retail business. Our Board of Directors, together with our financial and legal advisors, is carefully reviewing and evaluating the proposal. The letter of intent is non-binding and no assurance can be given that any transaction will result, but we believe a transaction of this nature could make strategic sense — pairing our restaurants with a proven operator equipped to scale them, positioning GEN as a pure-play CPG company, and allowing us to dedicate our people and our capital fully to CPG — the fastest-growing part of the K-Food platform we are building.

"Our confidence in CPG is grounded in the momentum of our retail business, where GEN products are now in nearly 2,000 retail doors nationwide. Our CPG division delivered its best quarter yet, wi

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