RRGB - Restaurant check: GEN Restaurant debuts with 38% pop CAVA still up 100% from IPO price

2023-06-28 12:16:22 ET

GEN Restaurant Group ( NASDAQ: GENK ) became the second IPO in the restaurant sector in a row to skyrocket in opening trading. The restaurant stock rose 38.00% within its first hour of trading and swapped hands as high as $19.99 per share. Earlier in the day, GEN Restaurant Group ( GENK ) priced its IPO of 3.6M Class A common shares at $12 per share, which itself was at the top end of the expected range of $10 to $12.

The company's GEN Korean BBQ is one of the largest Asian casual dining restaurant concepts by total revenue in the United States. Since the opening of the first restaurant in September of 2011, the chain has grown to 34 company-owned restaurants as of June 14. In terms of financials, GEN Restaurant Group ( GENK ) reported revenue of $43.9M in Q1 (+14.7% year-over-year) and a restaurant-level adjusted EBITDA margin of 19.2%. Income from operations increased 28.4% to $3.2M. Revenue per square foot was $890 for the 28 restaurants that were opened for 18 full months prior to December 31, 2022, and revenue per square foot was $899 for the 28 restaurants opened for 18 full months prior to March 31, 2023.

The market cap on GEN Restaurant Group ( GENK ) of just under $500M on the stock's debut gives the company a higher valuation than larger restaurant players such as El Pollo Loco ( LOCO ), Potbelly ( PBPB ), and Red Robin Gourmet Burgers ( RRGB ).

Meanwhile, CACA Group ( CAVA ) fell 4.39% in early afternoon trading, but is still nearly up 100% from the IPO pricing level of $22.

More on CAVA:

• CAVA Group: IPO Feels Like It's 2021 Again
• New York Stock Exchange President sees Cava debut ending drought of IPOs
• CAVA Group financials

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