📊 GENK Key Takeaways
Is GEN Restaurant Group, Inc. (GENK) a Good Investment?
GEN Restaurant Group exhibits severe financial distress despite massive revenue growth, with critical liquidity crisis (current ratio 0.29x), inability to cover debt service from operations (interest coverage -40.7x), and persistent unprofitability across all margins. The extreme 91,712% revenue growth likely reflects recent acquisition consolidation, but operational execution remains severely challenged with negative free cash flow and liabilities representing 92% of total assets.
GEN Restaurant Group is showing strong top-line expansion and remains marginally cash-generative from operations, but that growth is not converting into durable profitability or free cash flow. The combination of negative operating income, heavy capital spending, weak liquidity, and very poor interest coverage suggests the balance sheet and cash profile are the main fundamental concerns.
GEN Restaurant Group, Inc. Key Strengths (GENK)
- Positive operating cash flow of 2.7M indicates some cash generation from core operations
- Significant revenue scale at 53.9M provides operational platform for potential recovery
- Moderate debt-to-equity ratio of 0.63x suggests manageable leverage in isolation
- Very strong reported revenue growth indicates continued unit expansion or scaling
- Operating cash flow is positive despite net losses, showing the core business still generates some cash
- Long-term debt is modest relative to equity, limiting balance-sheet leverage risk versus heavily indebted peers
GENK Stock Risks: GEN Restaurant Group, Inc. Investment Risks
- Critical liquidity crisis with current ratio of 0.29x - cannot cover short-term obligations and faces near-term solvency risk
- Negative interest coverage of -40.7x - company cannot service debt from operating income, threatening covenant compliance and refinancing ability
- Severe and persistent unprofitability with -13.4% operating margin and -2.2% net margin despite significant revenues indicates fundamental operational challenges
- Negative free cash flow of -667K while burning through 4.4M cash reserves - unsustainable cash depletion trajectory
- Balance sheet insolvency risk - liabilities of 237.7M represent 91.8% of assets, leaving minimal equity cushion for losses
- Zero insider activity in 90 days suggests management lack of confidence in recovery prospects
- Current ratio and quick ratio are extremely weak, pointing to near-term liquidity pressure
- Operating margin and net margin remain negative, so growth quality is questionable
- Free cash flow is deeply negative due to high capital expenditures, increasing dependence on external funding or better execution
Key Metrics to Watch
- Operating margin trend and path to profitability - requires improvement from -13.4% to positive
- Free cash flow and cash burn rate - current -667K trajectory is unsustainable given 4.4M cash balance
- Current ratio and working capital position - must improve from critical 0.29x to sustainable 1.0x+ range
- Interest coverage ratio and debt service capability from operations - currently -40.7x, must reach positive territory
- Improvement in operating margin and interest coverage
- Liquidity recovery through current ratio, cash balance, and free cash flow trend
GEN Restaurant Group, Inc. (GENK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
GENK Profit Margin, ROE & Profitability Analysis
GENK vs Consumer Sector: How GEN Restaurant Group, Inc. Compares
How GEN Restaurant Group, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GEN Restaurant Group, Inc. Stock Overvalued? GENK Valuation Analysis 2026
Based on fundamental analysis, GEN Restaurant Group, Inc. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
GEN Restaurant Group, Inc. Balance Sheet: GENK Debt, Cash & Liquidity
GENK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: GEN Restaurant Group, Inc.'s revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.13 reflects profitable operations.
GENK Revenue Growth, EPS Growth & YoY Performance
GENK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $53.9M | -$301.0K | $-0.06 |
| Q3 2025 | $49.1M | $25.0K | $0.01 |
| Q2 2025 | $53.9M | -$261.0K | $-0.05 |
| Q1 2025 | $50.8M | -$301.0K | $-0.06 |
| Q3 2024 | $45.6M | $25.0K | $0.01 |
| Q2 2024 | $46.5M | $277.0K | $0.06 |
| Q1 2024 | $43.9M | $496.0K | $0.11 |
| Q3 2023 | $42.4M | $337.0K | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GEN Restaurant Group, Inc. Dividends, Buybacks & Capital Allocation
GENK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for GEN Restaurant Group, Inc. (CIK: 0001891856)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GENK
What is the AI rating for GENK?
GEN Restaurant Group, Inc. (GENK) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GENK's key strengths?
Claude: Positive operating cash flow of 2.7M indicates some cash generation from core operations. Significant revenue scale at 53.9M provides operational platform for potential recovery. ChatGPT: Very strong reported revenue growth indicates continued unit expansion or scaling. Operating cash flow is positive despite net losses, showing the core business still generates some cash.
What are the risks of investing in GENK?
Claude: Critical liquidity crisis with current ratio of 0.29x - cannot cover short-term obligations and faces near-term solvency risk. Negative interest coverage of -40.7x - company cannot service debt from operating income, threatening covenant compliance and refinancing ability. ChatGPT: Current ratio and quick ratio are extremely weak, pointing to near-term liquidity pressure. Operating margin and net margin remain negative, so growth quality is questionable.
What is GENK's revenue and growth?
GEN Restaurant Group, Inc. reported revenue of $53.9M.
Does GENK pay dividends?
GEN Restaurant Group, Inc. pays dividends, with $0.2M distributed to shareholders in the trailing twelve months.
Where can I find GENK SEC filings?
Official SEC filings for GEN Restaurant Group, Inc. (CIK: 0001891856) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GENK's EPS?
GEN Restaurant Group, Inc. has a diluted EPS of $-0.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is GENK's fundamental grade?
Based on our AI fundamental analysis in June 2026, GEN Restaurant Group, Inc. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is GENK stock overvalued or undervalued?
Valuation metrics for GENK: ROE of -5.9% (sector avg: 18%), net margin of -2.2% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is GENK's AI grade for 2026?
Our dual AI analysis gives GEN Restaurant Group, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GENK's free cash flow?
GEN Restaurant Group, Inc.'s operating cash flow is $2.7M, with capital expenditures of $3.4M. FCF margin is -1.2%.
How does GENK compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -2.2% (avg: 8%), ROE -5.9% (avg: 18%), current ratio 0.29 (avg: 1.5).