Binding LOI approved by unanimous consent of GEN’s Board of Directors; 47-restaurant transition would reduce restaurant lease obligations, with closing targeted within the next 30 days
CERRITOS, CA / ACCESS Newswire / October 14, 2026 / GEN Restaurant Group, Inc. (“GEN” or the “Company”) (Nasdaq:GENK), a leader in at-home Korean BBQ, today announced that it has signed a binding letter of intent (“LOI”) with Chubby Group (“Chubby”) to sell operations at 47 U.S. restaurants while retaining the GEN brand and the GEN CPG business for $100 million. GEN’s Board of Directors approved the binding LOI by unanimous consent, advancing the transaction with the parties working toward closing within the next 30 days. The transaction is expected to materially strengthen GEN’s balance sheet by substantially reducing its approximately $160 million of lease liabilities and by adding a term note receivable as an asset. GEN expects to eliminate its outstanding debt following the transaction, and the Company may deploy additional capital toward reinvestment in growth, dividends and or share repurchases.
Chubby Group is one of the fastest-growing Asian dining platforms in the United States. Founded in 2016 the company now operates more than 70 locations across 25+ brands, including Chubby Cattle, Wagyu House, The X Pot, NIKU X, Chubby Skewers, and Chubby Bowls. Founders Haibin Yang, David Zhao, and Joyce Li built more than a restaurant company. Chubby owns its supply chain, designs and builds its own stores, runs its own media arm, and connects every guest through the Chubby Club membership app.
Chubby expects 2026 sales of $400 million systemwide and plans to open 30 additional restaurants by year-end. Chubby is also targeting one million Chubby Club members in 2026.
GEN will remain publicly traded and retain full ownership of the GEN brand and the continuously growing Korean CPG business, which it will continue to invest in and grow. GEN will also retain approximately three restaurants to support training, staffing, and CPG research and development. Following the transaction, GEN’s corporate overhead and infrastructure will be fully restructured to solely support the CPG business, and GEN’s senior management will dedicate its full time and capacity to building the CPG platform.
Management Commentary
“This transaction with Chubby is a major milestone for GEN as part of the Company’s continued evolution into a premier Korean consumer-packaged goods platform,” said David Kim, CEO and Chairman of GEN. “This transaction would substantially reduce most of our liabilities on the balance sheet while giving GEN the option to participate in Chubby’s growth. The term note receivable adds a meaningful asset to our balance sheet, and we expect its proceeds to allow us to eliminate our outstanding debt and strengthen our cash position. We are moving quickly toward closing and believe this is the right next step for GEN and our shareholders. This transaction monetizes our restaurant operations while shareholders retain full ownership of our rapidly growing CPG business and full participation in its accelerating growth and rising revenue run rate.”
“Acquiring these 47 restaurants gives Chubby an established, high-traffic platform to accelerate our national growth,” said David Zhao, Founder of Chubby Group. “GEN has built one of the leading Korean BBQ brands in the U.S. As we take over operations, we will build on the Korean BBQ experience these guests know with a wagyu-forward menu, and we are committed to completing this acquisition and executing a disciplined, phased transition.”
The transaction establishes a four-phase, 12-month takeover schedule for the 47 restaurants. Chubby would fund restaurant conversions and buildouts from its own capital. GEN would retain operating profits until each takeover. Upon the completion of the transaction GEN would have the option to convert any unpaid balance of the term note into Chubby Group equity at a $1.5 billion valuation.
Closing remains subject to the customary completion of, license transfers, lease transfers, regulatory approvals, and definitive agreements.
About GEN Restaurant Group Inc
GEN (Nasdaq:GENK) is a consumer-packaged goods company bringing authentic Korean BBQ and other Korean foods into home kitchens nationwide. Founded in 2011 by two Korean immigrants in Los Angeles, GEN built one of the leading Korean BBQ brands in the United States and now packages its signature recipes for at-home dining, led by ready-to-cook marinated meats. GEN products are sold nationwide through the likes of Albertsons, Costco, and other leading warehouse club and grocery retailers. The global rise of Korean culture – from K-pop and K-dramas to film and social media – has fueled robust growth in demand for Korean food, and GEN is positioned to bring that demand into homes across America. For more information, visit investor.genkoreanbbq.com.
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “will,” “may,” “could,” “potential,” and other similar words or expressions that predict or indicate future events. All statements that are not statements of historical fact are forward-looking statements, including any statements regarding the binding letter of intent and the proposed transaction described in this press release, including whether definitive agreements will be negotiated or executed, whether the conditions to completion will be satisfied, whether any transaction will be consummated, and the potential terms, structure, timing or benefits of any such transaction; the amount and timing of any payments to be received by the Company, including payments based on the future performance of the acquired locations; the potential exercise and value of the Company’s option to convert any unpaid balance into equity of Chubby; the timing of the takeover of the Company’s restaurant locations; any statements regarding our strategy, future operations, and growth prospects, including expectations relating to the Company’s CPG division, the anticipated effects on GEN’s balance sheet and liquidity, the timing and extent of reductions in lease liabilities and related right-of-use assets, and the use of cash proceeds; any statements regarding the amount or timing of future revenue or revenue growth; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events.
Forward-looking statements are based on current information available at the time the statements are made and on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements, including, among other things, the risk that the parties do not negotiate or execute definitive agreements with respect to the proposed transaction, or that either party terminates the letter of intent; that required landlord consents, license transfers, lender arrangements, or Board or stockholder approvals are not obtained; that allocations for certain locations are removed from the total consideration; that any transaction is not consummated on the terms contemplated, on the anticipated timeline, or at all; that Chubby does not make payments when due, or that the guarantee and collateral supporting those payments prove insufficient; that the performance of the acquired locations differs from historical results; and that the anticipated benefits of any transaction are not realized.
Additional factors or events that could cause actual results to differ may also emerge from time to time, and it is not possible for the Company to predict all of them. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and our subsequent filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.
Investor Relations Contact
Lucas A. Zimmerman
Managing Director
MZ Group – MZ North America
(949) 259-4987
GENK@mzgroup.us
www.mzgroup.us
SOURCE: GEN Restaurant Group
View the original press release on ACCESS Newswire
Media gallery
