GEN Korean BBQ has signed a binding letter of intent to sell operations at 47 U.S. restaurants to Chubby Cattle Group in a $100 million transaction — a deal that would take the publicly traded company out of day-to-day restaurant operations almost entirely and push it toward its packaged-goods business.

The board approved the agreement unanimously. Chubby Cattle takes over the restaurants in four phases over 12 months, and the companies aim to close the deal within 30 days.

For GEN, the math is straightforward. The company carries roughly $160 million in restaurant lease liabilities, and those obligations shrink as leases transfer to Chubby Cattle with each location. GEN keeps the Korean BBQ brand itself, its entire CPG division, and about three restaurants — including the Cerritos, California location — for product development, training, and staffing.

"Securing a binding LOI with Chubby is a major milestone for GEN as part of the Company's continued evolution into a premier CPG brand," chairman and CEO David Kim said in a statement. "This transaction would substantially reduce our restaurant lease obligations while giving GEN the option to participate in Chubby's growth."

What does this change for GEN shareholders?

Plenty. GEN stays publicly traded, but its corporate infrastructure will be restructured around retail. Senior staff will focus on expanding branded products rather than running a national restaurant system.

That pivot didn't come from a position of strength. Same-store sales fell 9.3 percent in the second quarter, and GEN posted a $4.6 million net loss — wider than the $1.7 million loss a year earlier. Total revenue edged up 1.2 percent to $55.7 million, held up by CPG growth and new openings. The company had already exited six underperforming locations during the quarter.

The retail side is the growth story now:

• The CPG division, launched in late 2025, spans frozen meats, beef jerky, snack chips, sauces, beverages, frozen sides, and GENJU-branded soju.
• The portfolio stood at 56 SKUs earlier this year, with distribution at Costco, Albertsons, and BevMo.
• GEN projects 7,000 to 8,000 retail locations nationwide after 2027, potentially supporting an annual revenue run rate above $100 million within three years — matching the entire price of the restaurant sale.

Who is Chubby Cattle — and who pays for conversions?

Founded in 2016, Chubby Cattle runs more than 70 restaurants across over 25 brands, including Chubby Cattle, NIKU X, Wagyu House, and The X Pot, spanning fine dining, casual dining, and fast casual. It reported $233 million in revenue in 2025 — more than 10 times its 2021 figure — and recently closed a capital raise at a $500 million valuation. Its 2026 targets: 100 operating restaurants and one million Chubby Club loyalty members.

Under the deal, Chubby Cattle assumes restaurant-level operating responsibilities and lease obligations at each location, and will fund conversions and buildouts with its own capital. The announcement doesn't say whether all 47 units will carry Chubby Cattle branding. What's clear is the menu direction: wagyu-focused, layered on top of the Korean BBQ format guests already know.

"Acquiring these 47 restaurants gives Chubby an established, high-traffic platform to accelerate our national growth," founder David Zhao said in a statement. "We are committed to completing this acquisition and executing a disciplined, phased transition."

The deal builds on an existing relationship. Earlier this year, GEN and Chubby Cattle formed a joint venture around five restaurants transitioning to the Chubby Cattle brand — GEN holds 49 percent, Chubby Cattle 51 percent and operating control. That JV stays separate from the new transaction.

If the deal closes on schedule, GEN enters 2027 as a CPG company with a licensed-out brand, while Chubby Cattle gets an instant national footprint to build toward its 100-restaurant target.