GEN Restaurant Group appoints CBIZ CPAs as new auditor

GEN Restaurant Group (LON:RTN), Inc. (NASDAQ:GENK), a company in the retail eating places industry with annual revenue of $208.38 million and a market capitalization of $144.81 million, announced on Monday the appointment of CBIZ (NYSE:CBZ) CPAs P.C. as its new independent registered public accounting firm, effective immediately for the fiscal year ending December 31, 2025. According to InvestingPro data, the company currently operates with a significant debt burden and faces challenges with its financial health metrics. This transition follows the resignation of Marcum LLP, which had served as GEN Restaurant Group’s auditor until April 22, 2025.

The change in the company’s certifying accountant was approved by the Audit Committee of GEN Restaurant Group’s Board of Directors and comes after CBIZ CPAs acquired the attest business of Marcum LLP on November 1, 2024. CBIZ CPAs will begin its services by reviewing the company’s condensed consolidated financial statements for the quarter ended March 31, 2025.

According to the information filed with the Securities and Exchange Commission, Marcum’s reports on GEN Restaurant Group’s financial statements for the years ended December 31, 2024, and 2023, did not contain any adverse opinion or disclaimer of opinion. Furthermore, there were no disagreements between the company and Marcum on any accounting principles or practices, financial statement disclosure, or auditing scope or procedures that would have required Marcum to make reference to such disagreements in their reports.

The only exception noted was the material weaknesses in the company’s internal control over financial reporting that had been previously disclosed in the company’s Annual Report on Form 10-K for the year ended December 31, 2023. GEN Restaurant Group stated that prior to the engagement, they did not consult CBIZ CPAs regarding any accounting principles or auditing issues that would have been significant to the company’s financial statements.

In compliance with regulatory requirements, GEN Restaurant Group provided Marcum with a copy of the Current Report on Form 8-K prior to the filing with the SEC and has included a letter from Marcum in the filing, dated April 22, 2025, confirming their agreement with the statements made in the report.

The company’s business address remains at 11480 South Street, Suite 205, Cerritos, CA 90703, with the business phone number (562) 356-9929. The information regarding these changes is based on a press release statement. It’s worth noting that GEN Restaurant Group’s stock has experienced significant volatility, with a -52.19% return over the past year, while maintaining an overall Financial Health Score of 1.7, categorized as ’WEAK’ by InvestingPro analysts.

In other recent news, GEN Restaurant Group announced a $5 million stock repurchase program, allowing the company to buy back shares of its Class A common stock. The program offers flexibility, enabling GEN Restaurant Group to pause or stop the buybacks at any time. This initiative will be conducted through open market transactions and private deals, with an independent broker administering the plan under certain conditions. In financial updates, GEN Restaurant Group reported fourth-quarter revenues of $54.7 million, surpassing the expected $50 million. The same-store sales also exceeded projections, coming in at negative 4.8% compared to the anticipated negative 6.3%. Despite these positive sales figures, the company’s restaurant-level profitability was slightly below expectations, with margins at 17% versus the forecasted 17.2%. Benchmark analyst Todd Brooks revised the company’s stock price target from $14 to $11 while maintaining a Buy rating, citing a conservative margin outlook for 2025. Brooks highlighted the balance between better-than-expected revenue and softer-than-anticipated margins in his analysis.

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