GEN Restaurant Group, Inc. (GENK) operates 59 Gen Korean BBQ restaurants as of Q1 2026 (vs. 49 in Q1 2025 and 57 at December 31, 2025 per the prior 10-K). Under a liquidation lens, the MFFAIS-computed liquidation values are deeply negative: cash liquidation value of approximately -$401M, liquid liquidation value of approximately -$390M, and operating liquidation value of approximately -$389M. These figures reflect the standard asymmetry of the lens: ASC 842 operating lease right-of-use assets and associated lease liabilities dominate the balance sheet of a restaurant operator, and ROU assets receive a 0% recovery as intangibles while the full remaining lease obligation stays at face value as a liability. The company leases all restaurant locations and its corporate office, and discloses $37.8M working capital deficit as of March 31, 2026 (vs. $31.3M working capital deficit at December 31, 2025), a deterioration of $6.5M in one quarter. Cash on hand is thin at $4.4M (vs. $2.8M at December 31, 2025), with operating cash inflow of $2.7M offset by $3.4M capex outflow and partially replenished by $3.5M net draw on the PCB Bank line of credit. Total contractual debt obligations stand at $15.0M, including EIDL loans and $8.3M in PCB Bank term loans bearing interest at WSJ Prime + 0.25%. Net loss for Q1 2026 was $7.2M on $53.9M revenue (13.4% net loss margin), a significant worsening from $2.0M net loss on $57.3M revenue in Q1 2025 (3.4% net loss margin). The primary drivers are food cost inflation (food costs rose to 38.0% of revenue from 33.6%), fixed occupancy cost deleverage as the unit count expanded, and a G&A step-up. EBITDA was negative $4.8M in Q1 2026 vs. negative $149K in Q1 2025. Restaurant-Level Adjusted EBITDA collapsed to $4.0M (7.4% margin) from $9.0M (15.6% margin) year-over-year. The Tax Receivable Agreement discloses a contingent liability of up to approximately $99.6M payable to legacy GEN LLC unitholders through 2037, though the filing notes this is contingent on future taxable income and not separately tagged in XBRL. The prior filing (10-K for December 31, 2025) disclosed a $5.5M tangible asset impairment charge and a March 2026 partnership agreement with Chubby Cattle, Inc. covering five existing restaurants, with a $4.0M asset reserve recorded as of December 31, 2025. TAG_CONTEXT for this filing is empty; no XBRL tags were provided, so no balance-sheet line items can be separately verified or flagged at the tag level. All balance-sheet figures referenced above are drawn from the MD&A and narrative disclosures in the filing body.
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