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Ark Restaurants (ARKR)
NASDAQ:ARKR
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Ark Restaurants
(NASDAQ:ARKR)
Rating:46Neutral
Price Target:
$9.50
▲(4.97%Upside)
Ark Restaurants (ARKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.63M
Dividend Yield2.07%
Average Volume (3M)4.62K
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth-3.61%
EPS Growth-36.65%
CountryUS
Employees1,246
SectorConsumer Cyclical
Sector Strength61
IndustryRestaurants
Share Statistics
EPS (TTM)-2.57
Shares Outstanding3,606,157
10 Day Avg. Volume10,354
30 Day Avg. Volume4,617
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.86
Price to Sales (P/S)0.00
P/FCF Ratio88.93
Enterprise Value/Market Cap3.41
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit1.86
Enterprise Value/Ebitda83.60
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Ark Restaurants Business Overview & Revenue Model
Company DescriptionArk Restaurants Corp. (NASDAQ: ARKR) operates a diverse portfolio of dining establishments across the United States. Founded in 1983 and headquartered in New York City, the company owns and operates restaurants and bars in high-traffic areas, including New York, Washington D.C., Las Vegas, and Florida. Ark Restaurants is known for its unique dining concepts and high-quality food and beverage offerings, focusing on providing memorable dining experiences in prime locations such as casinos, shopping malls, and popular tourist destinations.
How the Company Makes MoneyArk Restaurants generates revenue primarily through the operation of its owned and managed restaurant locations. The company's revenue streams are mainly derived from food and beverage sales, which are driven by customer traffic in its strategically located dining establishments. Additionally, Ark Restaurants benefits from leasing arrangements and management contracts in certain venues, which provide supplemental income. The company's earnings are significantly influenced by its ability to attract customers through its appealing restaurant concepts and strategic partnerships with venues like casinos and entertainment centers, which help increase foot traffic and, consequently, sales.
Ark Restaurants Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q2-2025)
| % Change Since: -18.25%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with positive operational improvements and financial management, offset by significant impairments and ongoing legal disputes. The positive aspects, such as increased cash flow and reduced debt, are balanced by the challenges posed by the goodwill impairment and Bryant Park lease issues.Q2-2025 Updates
Positive Updates
Increased Cash Balance
The company's cash balance increased by approximately $900,000 from year-end, reaching $11.1 million.
Debt Reduction
The company's debt decreased to $4.3 million due to principal payments made during the quarter.
Las Vegas Performance Improvement
Significant improvement in cash flows from Las Vegas operations, with steady volumes and increased efficiencies.
Operating Cash Flow Ahead of Projections
Operating cash flow is running $2 million ahead of projections for the fiscal year.
Potential New Credit Facility
The company is finalizing a new credit facility with existing lenders, estimated to provide $15 million to $20 million in total capacity.
Negative Updates
Goodwill Impairment
A goodwill impairment of $3.4 million was recorded due to a decline in stock price.
Deferred Tax Assets Valuation Allowance
A full valuation allowance of $4.8 million was placed on deferred tax assets due to a cumulative loss position.
Legal and Consultancy Fees Impact on EBITDA
EBITDA was negatively affected by $650,000 in consultancy and legal fees related to the Bryant Park lease dispute.
Bryant Park Lease Dispute
Ongoing legal dispute over the Bryant Park lease, with allegations of a corrupted RFP process and the company being a holdover tenant.
Company Guidance
In the Ark Restaurants Second Quarter 2025 Results Conference Call, the company provided several key financial metrics and guidance. At the end of the quarter, the company reported a cash balance of $11.1 million, which increased by approximately $900,000 from the previous year-end. Their debt was reduced to $4.3 million due to principal payments. Ark Restaurants is finalizing a new credit facility that will offer $15 million to $20 million in total capacity, with the current debt termed out over three years. A significant noncash goodwill impairment of $3.4 million was recorded due to a decline in stock price, alongside a full valuation allowance of $4.8 million on deferred tax assets, impacting their tax rate. EBITDA was negatively affected by $650,000 in consultancy and legal fees related to the Bryant Park lease dispute. Despite these challenges, the company is running $2 million ahead in operating cash flow compared to projections, with improvements seen particularly in Las Vegas and Florida venues. The company is actively seeking deals and anticipates potential developments related to the Bryant Park lease and New Jersey casino licenses.Ark Restaurants Financial Statement Overview
Summary
Ark Restaurants is experiencing significant financial challenges, with declining revenue, negative EBIT and net profit margins, and high leverage. However, the company maintains positive operating cash flow, which shows some resilience.Income Statement
Ark Restaurants has shown a decline in revenue with a negative revenue growth rate from 2024 to 2025. The gross profit margin for TTM is approximately 33.55%, but the company is currently operating with negative EBIT and net profit margins, indicating challenges in profitability and operational efficiency. Historically, the company had positive EBIT and net income, suggesting recent operational difficulties.45
Neutral
Balance Sheet
The debt-to-equity ratio is high at approximately 2.35 in TTM, indicating significant leverage which poses financial risk. The return on equity is negative due to the net loss, reflecting poor returns for shareholders. The equity ratio is relatively low at 26.88%, suggesting a reliance on debt financing. These metrics highlight financial risk due to high leverage and negative returns.50
Neutral
Cash Flow
The free cash flow has decreased significantly from previous periods, reflecting challenges in maintaining cash flow. The operating cash flow to net income ratio is negative due to net losses, but the company has managed to maintain positive operating cash flow. This indicates some resilience in cash generation despite profitability issues.60
Neutral
| Breakdown | TTM | Sep 2024 | Sep 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 178.51M | 183.54M | 184.79M | 183.67M | 131.87M | 106.49M |
| Gross Profit | 59.90M | 68.18M | 68.85M | 71.10M | 35.59M | 36.93M |
| EBITDA | 1.18M | 591.00K | 634.00K | 17.98M | 22.10M | -2.94M |
| Net Income | -9.91M | -3.90M | -5.93M | 9.28M | 12.89M | -4.69M |
Balance Sheet | ||||||
| Total Assets | 141.89M | 156.04M | 176.96M | 209.53M | 161.22M | 153.32M |
| Cash, Cash Equivalents and Short-Term Investments | 11.12M | 10.27M | 13.41M | 28.46M | 19.17M | 16.89M |
| Total Debt | 89.59M | 95.81M | 107.35M | 128.64M | 91.20M | 101.15M |
| Total Liabilities | 104.34M | 112.40M | 125.23M | 149.42M | 109.76M | 116.16M |
| Stockholders Equity | 38.15M | 44.14M | 50.29M | 59.80M | 50.41M | 36.53M |
Cash Flow | ||||||
| Free Cash Flow | 368.00K | 2.19M | 4.53M | 17.65M | 7.16M | -7.01M |
| Operating Cash Flow | 3.15M | 4.65M | 8.39M | 20.35M | 9.29M | -4.53M |
| Investing Cash Flow | 2.83M | -2.39M | 1.28M | -7.76M | -3.45M | -2.46M |
| Financing Cash Flow | -5.27M | -5.40M | -19.69M | -8.32M | -3.56M | 16.69M |
Ark Restaurants Technical Analysis
Negative
9.05
Price Trends
10.33
Negative
10.19
Negative
11.10
Negative
Market Momentum
-0.41
Positive
33.47
Neutral
22.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKR, the sentiment is Negative. The current price of 9.05 is below the 20-day moving average (MA) of 9.57, below the 50-day MA of 10.33, and below the 200-day MA of 11.10, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 33.47 is Neutral, neither overbought nor oversold. The STOCH value of 22.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARKR.
Ark Restaurants Risk Analysis
Ark Restaurants disclosed 32 risk factors in its most recent earnings report. Ark Restaurants reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ark Restaurants Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $40.79M | 15.39 | 21.75% | ― | 2.93% | 20.81% | |
81 Outperform | $40.79M | 15.39 | 21.75% | ― | 2.93% | 20.81% | |
63 Neutral | $16.67B | 10.98 | -6.97% | 2.95% | 1.72% | -24.21% | |
58 Neutral | $54.29M | 13.41 | 6.48% | 1.90% | 9.38% | 14.76% | |
58 Neutral | $54.29M | 13.41 | 6.48% | 1.90% | 9.38% | 14.76% | |
55 Neutral | $48.72M | ― | -1.87% | ― | -3.83% | 89.89% | |
55 Neutral | $48.72M | ― | -1.87% | ― | -3.83% | 89.89% | |
46 Neutral | $32.63M | ― | -22.57% | 2.07% | -3.61% | -36.65% | |
45 Neutral | $112.98M | ― | 92.02% | ― | -1.68% | -140.83% | |
45 Neutral | $112.98M | ― | 92.02% | ― | -1.68% | -140.83% | |
41 Neutral | $33.63M | ― | -32.49% | ― | 36.58% | -62.75% | |
41 Neutral | $33.63M | ― | -32.49% | ― | 36.58% | -62.75% |
* Consumer Cyclical Sector Average
Performance Comparison
ARKR
Ark Restaurants
9.05
-4.15
-31.44%
BDL
Flanigan's Enterprises
29.21
3.08
11.79%
BDL
Flanigan's Enterprises
29.21
3.08
11.79%
RAVE
Rave Restaurant Group
2.83
0.99
53.80%
RAVE
Rave Restaurant Group
2.83
0.99
53.80%
RRGB
Red Robin Gourmet
6.37
0.46
7.78%
RRGB
Red Robin Gourmet
6.37
0.46
7.78%
SYPR
Sypris
2.12
0.26
13.98%
SYPR
Sypris
2.12
0.26
13.98%
CENN
Cenntro Electric Group
0.62
-1.08
-63.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.