10 Best Restaurant Stocks To Buy According to Analysts

6. GEN Restaurant Group, Inc. (NASDAQ:GENK)

Average Share Price Upside Potential as of November 12: 28.86%

GEN Restaurant Group, Inc. (NASDAQ:GENK) owns GEN Korean BBQ, which is a cook-it-yourself casual dining restaurant serving Korean and American-Korean cuisine. The company operates 43 restaurants located in Arizona, California, Florida, Hawaii, Nevada, New York, Texas, Oregon, and Washington.

It offers guests a dining experience where they serve as their chefs, preparing their meals on a grill at the center of the table, using pre-prepared ingredients provided by the restaurant. This helps GEN Restaurant Group, Inc. (NASDAQ:GENK) reduce its operating expenses by eliminating the need to hire professional chefs, often the highest-paid restaurant employees.

On November 12, GEN Restaurant Group, Inc. (NASDAQ:GENK) announced financial results for the third quarter of 2024. Revenue increased 7.8% year-over-year to $49.1 million, driven by the success of newer restaurants. It delivered $0.2 million in net income, translating to $0.01 of diluted earnings per share. Adjusted net income was posted at $0.9 million, or $0.03 of adjusted diluted earnings per share, beating expectations of a loss for the quarter.

The cost of goods sold declined to 31.4% in Q3 compared to 31.9% during the same period last year. Payroll and benefits expenses dropped 120 basis points to 30.5%. In contrast, general and administrative expenses as a share of total revenue stood at 9.1%, increasing from 8% in the previous quarter due to investments in infrastructure to support future growth and rising insurance costs.

GEN Restaurant Group, Inc. (NASDAQ:GENK) has opened three new restaurants recently, including two in October, which have performed exceptionally well. One of these, depending on how well the holiday season goes, is on track to become the new number one in terms of revenue. The other two are also likely to be in the top ten list. There is also a strong expansion plan in place, to open 10 to 11 restaurants this year. By 2026, the company expects to have 75 to 80 outlets.

GEN Restaurant Group, Inc. (NASDAQ:GENK) is one of the best restaurant stocks to buy according to analysts, with a consensus Strong Buy rating.