GEN Restaurant Group Q3 revenue falls 3% on lower restaurant sales
GENK•GEN Restaurant Group’s Q3 revenue fell 3% year over year as restaurant revenue declined 12.7%; CPG revenue was $4.7 million. The company signed a letter of intent to sell 47 restaurants for up to $100 million.
1. Q3 results
GEN Restaurant Group’s revenue fell 3% year over year in Q3, as restaurant revenue declined 12.7%, driven by a 9.2% drop in comparable restaurant sales and fewer locations in operation. The company reported a $5.47 million net loss and a $6.05 million operating loss.
2. Restaurant sale and CPG
The company signed a letter of intent to sell 47 restaurants for up to $100 million. CPG revenue reached $4.7 million, with distribution expanded to more than 2,000 retail doors.
3. Company outlook
GEN expects its CPG business to reach a $40 million annual revenue run rate and expects positive consolidated net income on a run-rate basis by the end of 2027. The company said proceeds from the Chubby deal may allow future buybacks or dividends.
