Benchmark reiterated a Hold rating on GEN Restaurant Group (NASDAQ:GENK) following the company’s first-quarter fiscal 2026 results released after the close on May 14.
The restaurant operator reported revenue of $53.9 million, missing the consensus estimate of $57.0 million. Same-store sales declined 8.8%, compared with the consensus expectation of an 8.0% decline. The company attributed the shortfall to rising fuel prices and their impact on discretionary spending, particularly in California, where 45% of its U.S. stores operate.
Restaurant-level EBITDA margin came in at 7.4%, well below the consensus expectation of 11.7%. Adjusted earnings per share of negative $0.22 missed the consensus estimate of negative $0.07. Adjusted EBITDA of negative $3.2 million also fell short of the consensus estimate of $0.2 million.
Benchmark analyst Todd Brooks cited major changes to the company’s operating model going forward as a reason for maintaining the Hold rating. The stock has declined 46% over the past year.
GEN Korean BBQ reported a Q1 2026 net loss of $7.5 million, worsening from a $2.1 million loss a year earlier.
