Here's a growth and perhaps value stock idea. I can't say I understand "growing new restaurant chain" stocks well, so keep that in mind.
Korean BBQ chain GenK. They are growing and profitable. They are using cash flows from existing restaurants to fund new restaurant launch.
GEN Korean BBQ Opens New Location in Maui, Hawaii
Illustrated by today’s opening in Hawaii, the Company continues to confidently track toward its goal of opening a total of 10-11 new GEN Korean BBQ locations across the country by year’s end. The Company’s long-term objective is to have a total of 75-80 locations by the end of 2026. GEN also anticipates further expansion in Hawaii, with its next target being the Big Island.
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A great thing (perhaps) about the stock is the valuation. Market Cap is $275m, cash is $28m, no debt, sales in 2024 look to be about $230m, and growing. I compare them to growing rotating sushi chain restaurant where 2024 sales are going to be about $270m, and the market cap is $930m.
Or compare them to stagnant more mature El Pollo Loco where 2024 sales are going to be about $490m and the market cap is $400m and they've got $80m debt.
GenK is at stagnant mature El Pollo Loco's valuation, but it's new and growing sales and restaurants at a nice clip. If GenK can just grow within their plan for two years, and head somewhere between KRUS and LOCO's valuation, it's an easy double in share price.
Korean restaurants. Why not?
https://finance.yahoo.com/news/gen-korean-bbq-opens-location-123000611.html |
