GEN Restaurant 2025 Q3 Earnings Sharp Net Loss Amid Revenue Growth

GEN Restaurant (GENK) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with a 2.7% revenue increase to $50.42 million but swung to a $0.11 loss per share, marking a 1,200% negative change year-over-year. The company issued full-year revenue guidance of $220–225 million and emphasized strategic expansion, including 15 new restaurant openings in 2025.

Revenue

Total revenue rose to $50.42 million for Q3 2025, a 2.7% increase from $49.10 million in the same period last year, driven by 15 new restaurant openings and geographic diversification.

Earnings/Net Income

The company reported a net loss of $3.63 million, a 2,246.7% deterioration from a $169,000 net income in 2024 Q3. The EPS swung to a loss of $0.11 from $0.01, reflecting significant operational and economic challenges.

Price Action

GENK shares fell 2.88% in a single trading day, 9.55% over the past week, and 7.53% month-to-date, underscoring investor caution amid the earnings report.

Post-Earnings Price Action Review

The strategy of buying GENK shares on the date of its revenue raise announcement and holding for 30 days showed strong short-term returns, with a 15.23% gain in the first year. However, long-term performance weakened, with cumulative returns declining to 2.18% by the end of the third year. This suggests initial market optimism faded as broader economic pressures and unmet growth expectations took hold. Investors must weigh short-term gains against long-term volatility.

CEO Commentary

Wook Kim, Chairman & CEO, highlighted 15 new restaurant openings in 2025, including 8 in Q3, and the launch of ready-to-cook Korean meats in 600 grocery locations. Despite a 9.9% same-store sales decline, Kim emphasized long-term profitability through geographic diversification and operational efficiency.

Guidance

GENK guided to full-year 2025 revenue of $220–225 million, with 15–15.5% restaurant-level adjusted EBITDA margins. The company plans to open 17 total stores in 2025, including 6 in South Korea, and anticipates a $250 million annualized revenue run rate post-new store openings.

Additional News

GEN Restaurant expanded its market reach by securing a partnership with Cisco to sell proprietary Korean barbecue meat products. The company also announced plans to open three new South Korean stores at lower costs than U.S. locations, aiming for 17 total openings in 2025. Additionally, it launched ready-to-cook Korean meats in 600 grocery stores, projecting $100 million in grocery sales over four to five years.

Key Risks and Challenges

• Rising COGS due to inflation and meat prices.

• Macroeconomic pressures affecting consumer spending.

• Potential impact of global tariffs on expansion costs.

• Reliance on new store openings for revenue growth.

GEN Restaurant’s strategic focus on innovation and diversification aims to mitigate these risks, but economic uncertainties and competitive pressures remain critical hurdles.