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Ark Restaurants (ARKR)
NASDAQ:ARKR
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Ark Restaurants
(NASDAQ:ARKR)
Rating:46Neutral
Price Target:
$7.00
▼(-0.57% Downside)
Ark Restaurants (ARKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.86M
Dividend Yield2.67%
Average Volume (3M)14.09K
Price to Earnings (P/E)―
Beta (1Y)0.26
Revenue Growth-6.89%
EPS Growth-42.75%
CountryUS
Employees1,246
SectorConsumer Cyclical
Sector Strength70
IndustryRestaurants
Share Statistics
EPS (TTM)-0.96
Shares Outstanding3,606,157
10 Day Avg. Volume14,175
30 Day Avg. Volume14,090
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap4.16
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit1.79
Enterprise Value/Ebitda90.74
Forecast
1Y Price Target
$7.00Price Target Upside-0.57% Downside
Rating ConsensusHold
Number of Analyst Covering0
Ark Restaurants Business Overview & Revenue Model
Company DescriptionArk Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. As of December 20, 2021, it owned and operated 17 restaurants and bars, including four restaurants located in New York City; one in Washington, D.C.; five in Las Vegas, Nevada; one in Atlantic City, New Jersey; four on the east coast of Florida; and two on the gulf coast of Alabama, as well as had 17 fast food concepts and catering operations. The company was incorporated in 1983 and is based in New York, New York.
How the Company Makes MoneyArk Restaurants generates revenue primarily through its network of restaurants and food service operations. Key revenue streams include sales from dining services, catering contracts, and food concessions. The company benefits from its strategic locations in high-traffic areas, which drive substantial foot traffic and customer engagement. Additionally, partnerships with entertainment venues, hotels, and casinos further enhance revenue opportunities, as these collaborations allow Ark Restaurants to tap into a steady flow of customers seeking dining options while attending events. Seasonal promotions and special events also contribute to revenue, as they attract both new and repeat customers.
Ark Restaurants Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q3-2025)
| % Change Since: 0.43%|
Next Earnings Date:Dec 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a strong financial position and positive performance in specific restaurants, notably in Las Vegas and New York. However, these positives are tempered by significant challenges, including an impairment charge and visitor declines affecting some locations. The potential casino license presents a future opportunity, but current operational challenges remain substantial.Q3-2025 Updates
Positive Updates
Strong Balance Sheet
The company has a cash position of $12 million at the quarter end and a debt of $3.9 million. The credit agreement was extended through June 2028 with $20 million of capacity.
Individual Restaurant Performance
Las Vegas and New York restaurants are performing above expectations. Robert in New York and Rustic in Fort Lauderdale continue to do well despite a general slowdown in visitor numbers.
Potential Casino License Opportunity
There is optimism about obtaining a casino license in Meadowlands, New Jersey, as the state considers expanding gaming in the northern part of the state.
Negative Updates
Sequoia Leasehold Impairment
An additional impairment charge of $4.7 million was recorded for Sequoia's leasehold improvements due to a cash flow analysis.
Decline in Restaurant Visitors
There is a reported 15% to 20% decline in headcounts and visitorship in some areas, particularly affecting restaurants in Florida.
Challenges at Sequoia and Bryant Park
Sequoia in Washington, D.C. is suffering from low visitor numbers and a decline in its event business. Bryant Park is facing litigation issues, with a long legal process anticipated.
Company Guidance
During the Ark Restaurants Third Quarter 2025 Results Conference Call, the company provided several key metrics and insights into its financial health and operational performance. The balance sheet showed $12 million in cash and $3.9 million in debt, with a credit agreement extended through June 1, 2028, offering $20 million of capacity. The company also reported a $4.7 million impairment on Sequoia's leasehold improvements and right-of-use assets. Despite a general decline in visitor numbers, Las Vegas operations continue to perform well, and restaurants like Robert in New York and Rustic in Fort Lauderdale are exceeding expectations. Meanwhile, challenges persist at Sequoia in Washington, D.C., due to a drop in event business, and at Bryant Park, where the company is engaged in litigation. Additionally, Ark Restaurants sees potential opportunities with a possible casino license for Meadowlands, contingent on New Jersey's legislative moves following New York's casino license announcements.Ark Restaurants Financial Statement Overview
Summary
Ark Restaurants faces financial challenges, with declining revenue, negative EBIT, and net profit margins, indicating operational inefficiencies. High leverage with a debt-to-equity ratio of 2.35 and negative return on equity further highlights financial risk. Despite these challenges, the company maintains positive operating cash flow, showing 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 | Dec 2024 | Dec 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 | 17.57M | 71.10M | 15.92M | 2.73M |
| 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
7.04
Price Trends
8.56
Negative
9.36
Negative
10.50
Negative
Market Momentum
-0.45
Negative
34.22
Neutral
32.58
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 7.04 is below the 20-day moving average (MA) of 7.63, below the 50-day MA of 8.56, and below the 200-day MA of 10.50, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 34.22 is Neutral, neither overbought nor oversold. The STOCH value of 32.58 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $38.94M | 17.43 | 21.75% | ― | 2.93% | 20.81% | |
69 Neutral | $57.25M | 13.25 | 6.88% | 1.73% | 8.83% | 41.90% | |
61 Neutral | $17.42B | 12.39 | -5.38% | 3.12% | 1.53% | -15.37% | |
52 Neutral | $18.15M | 14.77 | 3.85% | ― | 1.84% | 12.10% | |
46 Neutral | $25.86M | ― | -33.50% | 2.67% | -6.89% | -42.75% | |
45 Neutral | $33.95M | ― | 38.50% | 169.66% | 0.96% | -57.29% | |
39 Underperform | $33.07M | ― | -978.37% | ― | -1.23% | -68.38% |
* Consumer Cyclical Sector Average
Performance Comparison
ARKR
Ark Restaurants
7.04
-6.15
-46.63%
BDL
Flanigan's Enterprises
31.76
6.02
23.39%
GTIM
Good Times Restaurants
1.82
-1.19
-39.53%
RAVE
Rave Restaurant Group
3.15
1.35
75.00%
NDLS
Noodles & Co
0.72
-0.82
-53.25%
FAT
Fat Brands
1.76
-1.10
-38.46%
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.