Gen Restaurant Group, Inc. (NASDAQ: GENK) disclosed its first-quarter 2026 financial results, highlighting a downturn in revenue and a substantial increase in net loss amid higher costs and softer comparable sales.44
Financial Highlights
Total revenue decreased 6.0% year-over-year to $53.9 million, down from $57.3 million in Q1 2025. The decline stemmed from an 8.8% drop in comparable restaurant sales across a base of 38 locations, partially offset by expansion to 59 restaurants from 49 a year earlier.44
Net loss expanded to $7.2 million, or 13.4% of revenue, compared to $2.0 million in the prior-year quarter. Net loss attributable to Class A shareholders reached $1.2 million, or $0.22 per share, versus $0.06 per share last year.44
Key expense pressures included food costs at 38.0% of revenue (up from 33.6%), occupancy at 10.7% (up from 8.9%), and operating expenses at 12.0% (up from 10.3%). Adjusted EBITDA turned negative at $(3.2) million, while restaurant-level adjusted EBITDA was $4.0 million, or 7.4% margin.44
Earnings Conference Call
The company hosted its Q1 2026 earnings call on May 14, 2026. Thomas Croal, CFO and Secretary, opened the discussion, noting that the earnings release is available in the Investor Relations section of www.genkoreanbbq.com.
Croal reminded participants that the call contains forward-looking statements under federal securities laws, covering topics like growth plans and new store openings. These statements carry risks detailed in the company’s Form 10-K for the year ended December 31, 2025, and subsequent SEC filings. Actual results may differ materially due to uncertainties, and the company does not plan to update them unless required by law.30
Wook Kim, Chairman, CEO, and Founder, joined Croal for prepared remarks. Analysts Todd Brooks of The Benchmark Company, LLC Research Division, and John-Paul Wollam of ROTH Capital Partners, LLC Research Division, participated in the Q&A session.
Operational Updates
GEN Restaurant Group added two new locations in Q1 2026, bringing the total to 59. Average unit volume for the twelve months ended March 31, 2026, stood at $5.07 million, down from $5.40 million prior year. As of quarter-end, cash stood at $4.4 million, with a $4.5 million line of credit balance.44
