GEN Restaurant Group (GENK) PT Lowered to $8 at Benchmark

Benchmark analyst Todd Brooks lowered the price target on GEN Restaurant Group (NASDAQ: GENK) to $8.00 (from $11.00) while maintaining a Buy rating.

The analyst commented, "After the market close on May 13th, GEN Restaurant Group (GENK) reported 1Q25 operating results that saw revenue results that were in line with consensus as the company opened six units during the quarter, while generating SSS of (0.7)%. Labor cost pressures, largely driven by inefficiency related to the new store openings accounted for 120bps of the 190bps RLOM shortfall in 1Q, and resulting RLOM of 15.6% delivered EPS of $(0.06) (vs. consensus of $(0.01)) and AEBITDA of $1.2M (vs. consensus of $3.7M). We remain Buy rated on shares of GENK reflecting the long-term potential that we see for the brand, but our lowered of both estimates and the target multiple result in a new price target of $8/share."

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