GEN Restaurant Group Drops 15% After Q4 Report

GEN Restaurant Group Inc., parent company of GEN Korean BBQ, reported fourth-quarter revenue fell 9% year-over-year to $50 million.  

The Cerritos-based company cited a slowdown in foot traffic during the fourth quarter – specifically among Hispanic consumers who make up a majority of its customer base, according to Chief Executive David Kim.  

Kim said in a March 31 statement that immigration enforcement as well as increased fuel prices have reduced customer spending, leading to an 11.6% decrease in same-store sales (Nasdaq: GENK). 

GEN also introduced new initiatives designed to improve operations and profitability such as a joint venture with Chubby Cattle International to take over five of its non-performing restaurants, menu adjustments and new online platforms.  

One of these initiatives was revealed last week when GEN announced an expansion of its line of Korean food products sold in grocery stores. The company plans to slow down restaurant development after opening 15 new locations last year.  

Shares dropped 15% to $1.56 apiece during midday trading with a market cap of $52 million.  

For more on GEN Restaurant Group, see the April 6 edition of the Business Journal.