GEN Restaurant Group Sells 47 US Locations To Chubby Group In $100 Million Deal

Genk (The Brussels Morning Newspaper) October 16, 2026 – GEN Restaurant Group, Inc. has agreed to sell the restaurant operations of 47 US locations to Chubby Group for $100 million in a binding transaction. Under the agreement, GEN retains full ownership of its corporate brand and consumer packaged goods business, while restructuring its overhead to focus on packaged product expansion. Chubby Group will fund location conversions over a four-phase, 12-month schedule, expanding its nationwide Asian dining portfolio.

GEN Restaurant Group, Inc. (Nasdaq: GENK), the operator behind GEN Korean BBQ, officially announced that its Board of Directors has unanimously approved a binding letter of intent (LOI) to transfer operational rights for 47 of its nationwide restaurant venues to Chubby Group. The total consideration for the corporate transaction is valued at $100 million.

Following the announcement, public trading for GEN shares experienced a significant initial uptick on the NASDAQ exchange, rising by as much as 29.6 per cent during early market sessions.

Under the terms of the binding agreement, GEN retains full, unencumbered ownership of the GEN brand name, intellectual property, and its consumer packaged goods (CPG) division. To support corporate training, operational research, and ongoing research and development for the CPG product pipeline, GEN will retain direct ownership and operational control of approximately three physical restaurant units.

The transaction is structured around a four-phase operational transition plan that will span a period of 12 months. Throughout this transition window, Chubby Group will independently fund all restaurant conversions, structural renovations, and menu buildouts using its own corporate capital. Concurrently, GEN will continue to collect and retain all operating profits generated by each individual restaurant until its formal operational hand-over to Chubby Group is completed.

From a balance sheet perspective, the deal allows GEN to eliminate its existing financial indebtedness while substantially alleviating long-term operational liabilities. The transfer of the 47 restaurant leases is projected to remove approximately $160 million in lease liabilities from GEN’s financial statements. The purchase price structure includes a term note receivable, which will be recorded as an asset on GEN’s balance sheet.

Furthermore, the transaction terms specify that upon completion of the operational transfer, GEN holds an option to convert any remaining unpaid balance of the term note into equity in Chubby Group, evaluated at a $1.5 billion corporate valuation.

Commenting on the rationale behind the transaction, David Kim, Chief Executive Officer and Chairman of GEN Restaurant Group, stated: “This transaction monetizes our restaurant operations while shareholders retain full ownership of our rapidly growing CPG business”.

Upon the final closing of the transaction, GEN’s corporate management and infrastructure will undergo a comprehensive restructuring to align corporate overhead exclusively with the CPG division. Company executives and senior management will allocate their full time and operational capacity towards expanding retail distribution for the packaged meat and Korean food line. In recent quarterly financial disclosures, GEN reported that its CPG sales increased 341 per cent sequentially, establishing product presence across nearly 2,000 retail store locations with an anticipated run rate of $35 million to $40 million.

Capital generated from the deal that remains after complete debt elimination may be allocated toward CPG reinvestment, potential dividend distributions to shareholders, or corporate share repurchases, according to company filings.

For Chubby Group, the agreement adds 47 established dining units to its national footprint. Founded in 2016 by Haibin Yang, David Zhao, and Joyce Li, Chubby Group operates more than 70 dining locations across more than 25 distinct brand concepts, including Chubby Cattle, Wagyu House, The X Pot, NIKU X, Chubby Skewers, and Chubby Bowls.

“Acquiring these 47 restaurants gives Chubby an established, high-traffic platform to accelerate our national growth,” said David Zhao, Founder of Chubby Group. Chubby Group plans to introduce a wagyu-focused menu across the newly acquired venues while preserving elements of the existing Korean barbecue dining model.

Chubby Group expects systemwide sales to reach $400 million in 2026, supported by plans to open 30 additional dining locations prior to the end of the year and a target to reach one million members on its Chubby Club membership application platform.