GENK · GEN Restaurant Group, Inc.

GEN Restaurant Group's fourth quarter and full-year 2025 results reflect significant operational challenges, with a net loss of $20.3 million for the year and a 9.0% quarterly revenue decline to $49.7 million. Management attributed the decline to reduced customer traffic among its Hispanic customer base due to immigration enforcement pressures and decreased discretionary spending from higher fuel prices, leading to an 11.6% decrease in same store sales. Despite these headwinds, the company executed on its expansion strategy, opening 15 new locations in 2025 (exceeding its 12-13 store target) and bringing total store count to 57 across eleven states and South Korea. The company is implementing several strategic initiatives to improve profitability, including a joint venture with Chubby Cattle International for five non-performing restaurants (resulting in a $4.5 million write-down), menu streamlining to address food costs, and testing new beverage offerings. A significant growth initiative is the expansion of the Consumer-Packaged-Goods division, which has products in over 800 grocery stores with projections for 1,500-2,000 locations by end of 2026 and 7,000-8,000 by end of 2027. The company's Costco gift card program showed strong performance with $29 million in sales, a 150% increase from 2024. Financially, the company ended 2025 with $2.8 million in cash and almost full access to a $20.0 million line of credit, while restaurant-level adjusted EBITDA margin was 13.8% for the full year.