1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Capital Structure
3. Valuation
Discussion
Symbol
GENK
Event Date
2023-06-28
Sector
Consumer
Subsector
Hotels, Restaurants & Leisure
Offer Range
$12.00
Shares Offered
3.6M
Shares Outstanding Pre-IPO
28.14M
31.14M
$352.8M
11.6%
Implied Upside vs Midpoint
Description
GEN Korean BBQ is one of the largest Asian casual dining restaurant concepts by total revenue in the United States. Founded by two Korean immigrants, since the opening of our first restaurant in September 2011 we have grown to 34 company-owned restaurants as of June 14, 2023 by delivering an engaging and interactive dining experience where our guests serve as their own chefs. We offer an extensive menu of traditional Korean and Korean-American food, including high-quality meats, poultry, seafood and mixed vegetables, all at a superior value. Our restaurants have modern décor, lively Korean pop music playing in the background and embedded grills in the center of each table. Our food is served family style and requires guests to share and coordinate their cooking responsibilities, which fosters more meaningful interaction than traditional casual dining. We believe our unique culinary experience appeals to a vast segment of the population, particularly Millennials and Gen Z. Our co-founders, Jae Chang and David Kim, both highly experienced and successful restaurateur, joined forces to create our new Korean barbeque concept, opening our first restaurant in 2011 in Tustin, California. Since then, we have successfully opened profitable restaurants in multiple new markets. As of June 14, 2023, we operated 34 locations across California, Arizona, Nevada, Hawaii, Texas, New York and Florida. Our revenues in the year ended December 31, 2022 surpassed the revenue levels in 2021. As of the year ended December 31, 2022, we achieved a Net Income Margin of 6.3%, an Income Margin from Operations of 7.5%, a Restaurant-Level Adjusted EBITDA Margin of 20.5% and an Adjusted EBITDA Margin of 13.1%. In the three months ended March 31, 2023, we achieved a Net Income Margin of 9.4%, an Income Margin from Operations of 7.2%, a Restaurant-Level Adjusted EBITDA Margin of 19.2% and an Adjusted EBITDA Margin of 11.9%. --- GEN Inc. was incorporated in Delaware on October 28, 2021 as a Delaware corporation. It had no business operations prior to this offering. In connection with the consummation of this offering, GEN Inc. will become the managing member of GEN LLC. Our principal executive offices are located at 11480 South Street Suite 205, Cerritos, CA 90703 and our telephone number is (562) 356-9929. Our website address is www.genkoreanbbq.com.
Post-IPO economic shares by class, valued at the offer midpoint.
| Class | Shares | % Economic | Est. value |
|---|---|---|---|
Class A Common Stock (listed) 1 vote per share | 3M | 9.6% | $36.0M |
Class B Common Stock 1 vote per share (same as Class A); combined with GEN LLC Class B units · Each Class B share plus one GEN LLC Class B unit may be exchanged for one Class A share (or cash equivalent) | 28.14M | 90.4% | $337.7M |
| Total economic shares | 31.14M | 100% | $373.7M |
GEN Restaurant Group, Inc. annual income statement and balance sheet, FY 2022 to FY 2025, as reported in SEC filings.
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenue | $164M | $181M | $208M | $213M |
| Operating income | $12.4M | $8.1M | $476K | ($20.0M) |
| Net income | $10.3M | $8.4M | $592K | ($3.0M) |
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Total assets | $139M | $184M | $240M | $260M |
| Total liabilities | $144M | $146M | $195M | $232M |
| Total equity | ($6.8M) | $36.0M | $44.1M | $26.5M |
| Cash & equivalents | $11.2M | $32.6M | $23.7M | $2.8M |