10-Q · May 14, 2026
GEN Restaurant Group's Q4 2026 financials showed significant revenue decline and deeper losses compared to the prior periods. Revenue was reported at $49.7 million, falling short of expectations while the diluted EPS…
Earnings analysis · 10-Q
GENK earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
GEN reported $55.7 million of Q2 revenue and a diluted EPS loss of $0.06, with sequential improvement in revenue, EPS, and operating margin but continued restaurant weakness. CPG momentum was strong, including 341%…
Read full summary
GEN reported $55.7 million of Q2 revenue and a diluted EPS loss of $0.06, with sequential improvement in revenue, EPS, and operating margin but continued restaurant weakness. CPG momentum was strong, including 341% sequential growth and more than 100 Costco warehouse commitments, while comparable restaurant sales declined 9.3%. Liquidity remains exposed to variable-rate debt, including $19.7 million of identified borrowings, and the DOJ’s inquiry concerns approximately $39.8 million of historical PPP and RRF proceeds. The filing provided no new total-company numeric guidance; the disclosed CPG run-rate outlook was $35 million-$40 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.06
- Operating margin
- -9.2%
- Segment
- CPG: revenue increased 341% sequentially; management estimated a forward 12-month CPG revenue run rate of $35 million-$40 million and cited more than 100 Costco warehouse commitments.
- Segment
- Restaurants: comparable restaurant sales declined 9.3%.
What stood out
-
Revenue improved sequentially
Revenue was $55.7 million, up from $54 million in the prior quarter and approximately $55 million in the prior-year quarter, but below the $56.76 million consensus estimate.
-
EPS beat consensus
Diluted EPS was a loss of $0.06 versus a $0.10 estimated loss, representing a $0.04 per-share beat.
-
Operating margin recovered
Operating margin improved to negative 9.2% from negative 13.4% in the prior quarter, although it remained substantially below breakeven.
-
CPG expansion accelerated
CPG revenue increased 341% sequentially, with more than 100 Costco warehouse commitments and a forward 12-month CPG revenue run rate estimated at $35 million-$40 million.
-
Controls remained effective
Management reported that disclosure controls were effective at the reasonable assurance level as of June 30, 2026, and stated there were no material changes in internal control during the quarter.
What to watch
-
Restaurant traffic remains weak
Comparable restaurant sales declined 9.3%, while operating margin remained negative at 9.2%, indicating continued pressure in the core restaurant business.
-
Floating-rate debt exposure
Variable-rate borrowings included $12.1 million under the line of credit and $7.6 million of term loans, both priced at the Wall Street Journal Prime Rate plus 0.25%; a 100-basis-point rate increase would raise annual interest expense by approximately $0.2 million.
-
DOJ inquiry creates legal uncertainty
The DOJ issued a civil investigative demand in June 2026 concerning PPP loans and RRF grants received before the IPO; the amounts at issue were approximately $23.0 million of PPP proceeds and $16.8 million of RRF grants.
-
Risk-factor changes were limited
The filing states there were no material changes from the 2025 Form 10-K risk factors, except deletion of the risk stating that the company did not intend to pay dividends for the foreseeable future.
Management's outlook
The filing does not provide numeric EPS or total-revenue guidance. The company’s disclosed quantitative outlook was a forward 12-month CPG revenue run rate of $35 million-$40 million; no comparable prior outlook was disclosed.
Earlier filings 4
10-K · March 31, 2026
GEN Restaurant Group positions itself as a fast-growing Asian casual-dining chain with an asset-light, cook-it-yourself model and a new ready-to-cook wholesale channel. The 2025 10-K highlights rapid unit expansion (57…
10-Q · May 13, 2025
GEN Restaurant Group reported revenue of $57,337,000 for the quarter ended March 31, 2025 (up $6,577,000 or ~12.96% vs $50,760,000 in Q1 2024) but swung to an operating loss of $2,176,000 and a net loss attributable to…
10-Q · July 31, 2024
GEN Restaurant Group, Inc. reported strong performance in Q2 2024, with revenue reaching $53.86 million, a significant increase from $46.47 million in Q2 2023. The net income attributable to GEN Restaurant Group, Inc.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.