GEN Restaurant Group stock price target lowered to $5 from $6 at Roth/MKM

Investing.com - Roth/MKM has lowered its price target on GEN Restaurant Group (LON:RTN) (NASDAQ:GENK) to $5.00 from $6.00 while maintaining a Buy rating on the stock. The company’s shares, which have declined about 29% over the past six months, currently trade at $3.65, significantly below their 52-week high of $10.33.

The research firm cited several ongoing challenges affecting the company’s comparable sales, including uneven macroeconomic conditions, competitive pressure, and deportation fears among its customer base. InvestingPro analysis reveals additional headwinds, including weak gross profit margins of 17.2% and significant debt obligations that may impact interest payment capabilities.

Despite these headwinds, Roth/MKM noted that GEN’s management is taking appropriate actions to preserve four-wall margin at its restaurant locations.

The firm highlighted that GEN’s unit economics remain attractive despite the current challenges, and the stock’s valuation is described as being "near rock-bottom" according to their analysis.

Roth/MKM expects the stock to remain range-bound until the company’s business model stabilizes, which factored into the decision to reduce the price target while maintaining the positive Buy recommendation.

In other recent news, GEN Restaurant Group reported its second-quarter earnings for 2025, revealing a 2.2% year-over-year revenue increase, bringing total revenue to $55 million. Despite facing a net loss of $1.8 million, or $0.05 per diluted share, the company achieved an adjusted net income of $1.2 million, or $0.04 per diluted share. These financial results highlight the company’s ongoing strategic expansions. The earnings report reflects recent developments within GEN Restaurant Group and indicates positive investor sentiment. Notably, the revenue growth is a critical factor for stakeholders evaluating the company’s financial health. Additionally, the adjusted net income suggests operational improvements. These developments are crucial for investors monitoring GEN Restaurant Group’s performance.

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