GEN Restaurant reviewing proposal to sell US restaurant operations
GENK•Outlook
- Company estimates CPG division forward 12-month revenue run rate of $35 mln to $40 mln
- Company is reviewing a proposal to sell U.S. restaurant operations and focus on CPG business
Overview
- US Korean BBQ and CPG operator's Q2 revenue rose 1.2% yr/yr to $55.7 mln
- Restaurant-level adjusted EBITDA for Q2 rose to $6.3 mln, with sequential margin improvement
- Company received non-binding offer to sell US restaurant operations, reviewing potential shift to CPG focus
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Miss | $55.70 mln | $57.20 mln (2 Analysts) |
| Q2 Net Loss | $4.60 mln | ||
| Q2 Pretax Loss | Miss | $4.84 mln | $3.90 mln (2 Analysts) |
| Q2 Income from Operations | -$5.20 mln |
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the restaurants & bars peer group is "buy"
- Wall Street's median 12-month price target for GEN Restaurant Group Inc is $2.50, about 27.6% above its August 7 closing price of $1.96
