GEN Restaurant Group Inc. Class A Common Stock (GENK)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I start with business quality. GEN Restaurant Group operates U.S. restaurants, with fiscal 2025 revenue of $212.5M, but it reported a net loss of $3.0M for fiscal 2025, down from net income of $592,000 in fiscal 2024. In the latest quarter, fiscal Q2 2026, revenue was $55.7M and net income was -$754,000, versus fiscal Q2 2025 revenue of $55.0M and net income of -$261,000. Growth is not translating into profits. That pattern suggests little durable competitive advantage; restaurants are competitive, and the company lacks demonstrated pricing power or cost discipline. Financial health is poor: FairStock's trailing free cash flow is -$19.5M, FCF yield -250.4%, ROE -96.66%, ROCE -5.88%, D/E 11.79, Piotroski 4/9, and Altman Z-Score -0.02. Those are not marks of a fortress balance sheet. On valuation, using the 2026-10-13 close of $1.45, FairStock calculates P/B at 0.64, so it sells below book, but negative earnings make P/E -1.73 meaningless. FairStock Score is 33/100, and the Lynch category is TURNAROUND — loss in latest year after earlier profits. A Graham bargain needs assets and earning power; here book value may be shrinking, and cash burn is large relative to the $7.8M market cap. I see a speculative turnaround, not a safe value investment.

In plain English: GEN Restaurant Group runs restaurants in the United States, serving meats, seafood, appetizers, sauces, vegetables and other food. The business looks weak: it had revenue of $212.5M in fiscal 2025 but swung to a net loss of $3.0M, and it burned cash over the past year. At $1.45, the stock looks cheap compared with its book value, but the losses and cash burn mean that cheapness may not be a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer