GEN Restaurant Group Board Approves Binding LOI with Chubby Group for $100 Million Restaurant Transaction
Key Highlights
- ➤GEN signs $100 million binding LOI to sell operations at 47 U.S. restaurants
- ➤GEN expects to eliminate outstanding debt and substantially reduce approximately $160 million lease liabilities
- ➤GEN retains brand, CPG business, and approximately three restaurants after transaction
- ➤Chubby may acquire 47 restaurants through a four-phase, 12-month takeover schedule
- ➤GEN can convert unpaid term-note balance into Chubby equity at $1.5 billion valuation
Expert Statements
David Kim, CEO and Chairman of GEN Restaurant Group
“This transaction with Chubby is a major milestone for GEN as part of the Company's continued evolution into a premier Korean consumer-packaged goods platform.”
David Kim, CEO and Chairman of GEN Restaurant Group
“This transaction would substantially reduce most of our liabilities on the balance sheet while giving GEN the option to participate in Chubby's growth.”
David Kim, CEO and Chairman of GEN Restaurant Group
“The term note receivable adds a meaningful asset to our balance sheet, and we expect its proceeds to allow us to eliminate our outstanding debt and strengthen our cash position.”
David Kim, CEO and Chairman of GEN Restaurant Group
“We are moving quickly toward closing and believe this is the right next step for GEN and our shareholders.”
David Kim, CEO and Chairman of GEN Restaurant Group
“This transaction monetizes our restaurant operations while shareholders retain full ownership of our rapidly growing CPG business and full participation in its accelerating growth and rising revenue run rate.”
David Zhao, Founder of Chubby Group
“Acquiring these 47 restaurants gives Chubby an established, high-traffic platform to accelerate our national growth.”
David Zhao, Founder of Chubby Group
“GEN has built one of the leading Korean BBQ brands in the U.S.”
David Zhao, Founder of Chubby Group
“As we take over operations, we will build on the Korean BBQ experience these guests know with a wagyu-forward menu, and we are committed to completing this acquisition and executing a disciplined, phased transition.”
CERRITOS, CA / ACCESS Newswire / October 14, 2026 / GEN Restaurant Group, Inc. ("GEN" or the "Company") (Nasdaq:GENK), a leader in at-home Korean BBQ, today announced that it has signed a binding letter of intent ("LOI") with Chubby Group ("Chubby") to sell operations at 47 U.S. restaurants while retaining the GEN brand and the GEN CPG business for $100 million. GEN's Board of Directors approved the binding LOI by unanimous consent, advancing the transaction with the parties working toward closing within the next 30 days. The transaction is expected to materially strengthen GEN's balance sheet by substantially reducing its approximately $160 million of lease liabilities and by adding a term note receivable as an asset. GEN expects to eliminate its outstanding debt following the transaction, and the Company may deploy additional capital toward reinvestment in growth, dividends and or share repurchases.
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