Ark Restaurants (ARKR)
NASDAQ:ARKR
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Ark Restaurants
(NASDAQ:ARKR)
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Rating:50Neutral
Price Target:
$7.00
▲(8.19% Upside)
Action:ReiteratedDate:03/19/26
The score is held back primarily by weakened financial performance (recent losses, margin compression, negative free cash flow, and elevated leverage). Technical indicators are neutral with the stock still below its 200-day average, while valuation is supportive due to a low P/E. The latest earnings call suggests modest operational improvement and near-term cash inflection potential, but litigation, regional revenue softness, and possible dilution risks keep the outlook balanced.
Positive Factors
Diversified revenue mix
Ark operates multiple dining concepts plus event catering and supplier/partner relationships across tourist and urban locations. This multi-channel revenue model reduces concentration risk and provides durable demand diversification across dine-in, fast-food and event segments over coming months.
Negative Factors
Revenue & profit deterioration
Sustained revenue decline and a sizable net loss reflect weakening demand and margin pressure. Gross margin roughly halved versus prior years, signaling durable margin compression that will constrain earnings recovery unless pricing power or revenue mix materially improves over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue mix
Ark operates multiple dining concepts plus event catering and supplier/partner relationships across tourist and urban locations. This multi-channel revenue model reduces concentration risk and provides durable demand diversification across dine-in, fast-food and event segments over coming months.
Read all positive factors
Ark Restaurants (ARKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.34M
Dividend YieldN/A
Average Volume (3M)5.59K
Price to Earnings (P/E)6.4
Beta (1Y)0.27
Revenue Growth-9.70%
EPS Growth-194.23%
CountryUS
Employees1,246
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.25
Shares Outstanding3,606,157
10 Day Avg. Volume6,903
30 Day Avg. Volume5,590
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.80
Price to Sales (P/S)0.16
P/FCF Ratio-17.60
Enterprise Value/Market Cap7.10
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit15.45
Enterprise Value/Ebitda-35.57
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ark Restaurants Business Overview & Revenue Model
Company Description
Ark Restaurants Corp. (ARKR) is a diversified restaurant company that operates a portfolio of restaurants, bars, and catering services primarily in the United States. The company is known for its diverse offerings which include casual dining, quic...
How the Company Makes Money
Ark Restaurants generates revenue through multiple streams: primarily from the sales of food and beverages across its restaurant locations, which include a variety of dining concepts ranging from casual eateries to upscale dining experiences. The ...
Ark Restaurants Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 18, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed picture: modest operational and margin improvements (adjusted EBITDA up ~$150k, cost controls reducing cost of sales ~270 bps and payroll ~349 bps), healthy pockets of outperformance (Las Vegas, Hard Rock fast-food) and strategic opportunities (Meadowlands F&B exclusivity, Sequoia turnaround). Offsetting these positives were material revenue declines in Florida (down ~10%–13% with weeks down ~40%), ongoing Bryant Park litigation and related cash drains, inflation-driven margin pressure on specific menu items, and potential dilution tied to Meadowlands financing. Management expects cash to improve after New York build-out completion and anticipates event revenue picking up, but near-term risks and seasonality remain significant.Positive Updates
Adjusted EBITDA Improvement
Adjusted EBITDA improved by approximately $150,000 year-over-year for the quarter, indicating modest operating profit improvement compared to last year.
Negative Updates
Material Revenue Declines in Florida Full-Service Restaurants
Florida full-service restaurants experienced significant revenue weakness, down roughly 10%–13% year-over-year, with weather-driven volatility (recent cold snap) causing declines as steep as ~40% at some locations in a single week.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EBITDA Improvement
Adjusted EBITDA improved by approximately $150,000 year-over-year for the quarter, indicating modest operating profit improvement compared to last year.
Read all positive updates
Company Guidance
The company said adjusted EBITDA improved by about $150,000 year‑over‑year, cash on the balance sheet was roughly $9 million and debt about $3 million, and management expects cash to begin improving in the next couple of months (March is their typical annual low point) as the MGM New York-New York build‑out (the “redo of America”) finishes and the new facility opens in April; operational metrics showed Las Vegas performing well despite the Strip being down ~11%, Florida full‑service revenues were down roughly 10–13% (with some Florida locations down as much as ~40% in a cold week), cost of sales fell ~270 basis points quarter‑to‑quarter and payroll improved by over ~300–349 basis points, menu price increases have been modest overall (with select items like king crab up from ~$99 pre‑COVID to ~$235), Bryant Park litigation remains ongoing but management expects improved event/corporate/social revenue this year after 1.5 years of operating the restaurants, and the Meadowlands effort just commenced a 1–1.5 month public survey (possible referendum in November) that could lead to a casino deal that preserves Ark’s exclusive F&B rights but may dilute its roughly ~8% ownership stake depending on the capital structure.Ark Restaurants Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
42
Neutral
Cash Flow
35
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 161.51M | 165.75M | 183.54M | 184.79M | 183.67M | 131.87M |
| Gross Profit | 11.19M | 58.98M | 15.35M | 17.57M | 22.80M | 15.92M |
| EBITDA | -4.86M | -16.00K | 591.00K | 634.00K | 17.98M | 22.10M |
| Net Income | -13.73M | -11.47M | -3.90M | -5.93M | 9.28M | 12.89M |
Balance Sheet | ||||||
| Total Assets | 130.44M | 133.50M | 156.04M | 176.96M | 209.53M | 161.22M |
| Cash, Cash Equivalents and Short-Term Investments | 9.14M | 11.32M | 10.27M | 13.41M | 28.46M | 19.17M |
| Total Debt | 157.72M | 85.74M | 95.81M | 107.35M | 128.64M | 91.20M |
| Total Liabilities | 97.34M | 101.39M | 112.40M | 125.23M | 149.42M | 109.76M |
| Stockholders Equity | 33.65M | 32.73M | 44.14M | 50.29M | 59.80M | 50.41M |
Cash Flow | ||||||
| Free Cash Flow | -1.46M | -1.50M | 2.19M | 4.53M | 17.65M | 7.16M |
| Operating Cash Flow | 2.55M | 1.75M | 4.65M | 8.39M | 20.35M | 9.29M |
| Investing Cash Flow | -2.33M | 3.43M | -2.39M | 1.28M | -7.76M | -3.45M |
| Financing Cash Flow | -4.18M | -4.13M | -5.40M | -19.69M | -8.32M | -3.56M |
Ark Restaurants Technical Analysis
Positive
6.47
Price Trends
6.78
Positive
6.83
Positive
7.36
Negative
Market Momentum
<0.01
Positive
53.42
Neutral
28.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKR, the sentiment is Positive. The current price of 6.47 is below the 20-day moving average (MA) of 6.83, below the 50-day MA of 6.78, and below the 200-day MA of 7.36, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.42 is Neutral, neither overbought nor oversold. The STOCH value of 28.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $36.81M | 18.57 | 19.70% | ― | 0.35% | 9.25% | |
65 Neutral | $57.99M | 17.07 | 8.92% | 1.89% | 8.99% | 49.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $55.19M | -0.76 | 203.92% | ― | -0.35% | -37.02% | |
50 Neutral | $24.34M | 6.41 | -29.84% | ― | -9.70% | -194.23% | |
48 Neutral | $12.67M | 17.64 | 3.18% | ― | 1.84% | 12.10% |
* Consumer Cyclical Sector Average
ARKR
Ark Restaurants
6.75
-3.02
-30.91%
BDL
Flanigan's Enterprises
31.20
6.13
24.45%
GTIM
Good Times Restaurants
1.20
-1.20
-50.00%
RAVE
Rave Restaurant Group
2.59
-0.19
-6.83%
NDLS
Noodles & Co
9.43
>-0.01
-0.11%
Ark Restaurants Corporate Events
Executive/Board ChangesShareholder Meetings
Ark Restaurants Shareholders Reelect Board and Ratify Auditor
Positive
Mar 18, 2026
On March 17, 2026, Ark Restaurants Corp. held its Annual Meeting of Shareholders, where investors voted on the election of six directors to serve until the next annual meeting and on the ratification of the company’s independent auditor for ...
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.