GEN Restaurant Group Reports Third Quarter 2026 Financial Results
Key Highlights
- ➤Chubby LOI values sale of 47 U.S. restaurants at up to $100 million
- ➤Q3 revenue $48.7 million, down 3.3% year over year
- ➤Q3 net loss $5.5 million, or $0.16 per share, versus $3.6 million loss
- ➤CPG revenue $4.7 million, versus zero in the prior-year quarter
- ➤Total debt $26.8 million, up from $14.6 million at December 31, 2025
Expert Statements
David Kim, Chairman and CEO of GEN Restaurant Group
“In many ways, the third quarter marked the beginning of a new GEN.”
David Kim, Chairman and CEO of GEN Restaurant Group
“With our binding letter of intent with Chubby Group signed and definitive agreements under negotiation, we are moving to monetize the restaurant operations we spent fifteen years building, while our shareholders retain full ownership of the GEN brand and our rapidly growing CPG business.”
David Kim, Chairman and CEO of GEN Restaurant Group
“Under the agreed terms, the restaurants would transition to Chubby in four phases over twelve months, GEN would keep the operating profits until each takeover, and Chubby would fund every conversion and buildout with its own capital.”
David Kim, Chairman and CEO of GEN Restaurant Group
“Chubby's payments to us would be guaranteed by its parent and secured by the restaurants themselves.”
David Kim, Chairman and CEO of GEN Restaurant Group
“As we have said from the start, we look forward to closing with Chubby.”
David Kim, Chairman and CEO of GEN Restaurant Group
“At the same time, as CEO, I always have backup plans - Korean brands are in demand in today's market, and we are comfortable that GEN has meaningful optionality.”
David Kim, Chairman and CEO of GEN Restaurant Group
“We expect it to substantially reduce our operating lease liabilities, allow us to eliminate our outstanding debt and add a guaranteed, secured receivable as an asset.”
David Kim, Chairman and CEO of GEN Restaurant Group
“The goal is a lean, debt-free GEN whose CPG growth translates into net income for my fellow shareholders.”
David Kim, Chairman and CEO of GEN Restaurant Group
“That is where our growth is - and we are seeking not just revenue, but profitable revenue.”
David Kim, Chairman and CEO of GEN Restaurant Group
“Most CPG brands spend years buying awareness. Millions of guests have already cooked at a GEN grill, so when they see our package in the freezer case, we are being recognized - not introduced.”
David Kim, Chairman and CEO of GEN Restaurant Group
“Between the proceeds of the Chubby note and what we expect to be a very profitable CPG business, we believe GEN will have choices, including returning capital to shareholders - whether through a dividend or, if we feel our share price does not reflect the value of this business, share repurchases.”
David Kim, Chairman and CEO of GEN Restaurant Group
“No decisions have been made, and retiring our debt comes first, but these are decisions we are taking very seriously as we evaluate how to best drive shareholder value creation.”
David Kim, Chairman and CEO of GEN Restaurant Group
“To conclude, with a binding letter of intent in hand, a far stronger balance sheet ahead of us and a CPG business adding distribution every month and building toward profitable scale, we believe the most valuable chapter of GEN's story is the one we are writing now.”
CERRITOS, CA / ACCESS Newswire / November 10, 2026 / GEN Restaurant Group, Inc. ("GEN" or the "Company") (Nasdaq:GENK), a leader in at-home Korean BBQ, today reported its financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 & Subsequent Operational Highlights: * Signed a binding letter of intent with Chubby Group, Inc. ("Chubby") for the sale of operations at 47 U.S. GEN Korean BBQ restaurants in a transaction valued at up to $100 million. The parties are negotiating definitive agreements. * GEN will remain publicly traded and retain full ownership of the GEN brand, its CPG business and its restaurant in Cerritos, California, which will support training, staffing, and CPG research and development. * The transaction is expected to substantially reduce GEN's operating lease liabilities and add a secured note as an asset, and GEN expects to eliminate its outstanding debt as it receives payments from Chubby. Thereafter, the Company expects to have flexibility in how it allocates capital, including the potential return of capital to shareholders in the form of a buyback or dividend. Restaurants will transition in four phases over 12 months. * Began reducing corporate overhead to align with a much leaner CPG business, with general and administrative expenses already down 15% year over year, prior to a meaningful reduction in the corporate workforce expected as restaurants transfer to Chubby. Under the letter of intent, Chubby would continue the employment of the team members at each restaurant it acquires. * Generated CPG revenue of $4.7 million in the third quarter of 2026, compared to no CPG revenue in the prior-year period. Third quarter results do not yet reflect a significant number of newly secured placements scheduled to reach shelves beginning in the second quarter 2027. * The Company continues to expect to reach a CPG revenue run rate of $40 million per year and positive consolidated net income on a run-rate basis by the end of 2027, based on doors secured to date and stores currently in its pipeline, and assuming completion of the Chubby transaction and the planned restructuring of its corporate overhead. The Company is focused on profitable revenue, not revenue alone. * Expanded retail distribution to more than 2,000 doors nationwide, adding all 14 Bristol Farms stores, 55 Vallarta Supermarkets locations and Olé City Market, and entered university dining and live-entertainment venues for the first time with UCLA Dining and SoFi Stadium. Management Commentary
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