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Ark Restaurants (ARKR)
NASDAQ:ARKR
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Ark Restaurants
(NASDAQ:ARKR)
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Rating:40Underperform
Price Target:
$5.50
▼(-14.99% Downside)
Ark Restaurants' overall stock score is primarily driven by its financial performance and technical analysis. The company faces significant financial challenges, including declining revenue and profitability, which are reflected in its low financial performance score. Technical indicators suggest a bearish trend, further impacting the stock's attractiveness. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield. These factors collectively contribute to a low overall stock score.
Positive Factors
Stable Cash Reserves
A stable cash reserve provides financial flexibility and a buffer against economic uncertainties, supporting long-term operational stability.
Positive Cash Flow in Las Vegas
Improved cash flow from Las Vegas operations indicates efficient cost management and potential for sustained profitability in key markets.
Potential Casino Opportunity at Meadowlands
A casino license at Meadowlands could unlock exclusive food and beverage opportunities, enhancing revenue streams and market presence.
Negative Factors
Significant EBITDA Decline
A sharp decline in EBITDA reflects operational inefficiencies and challenges in maintaining profitability, impacting long-term financial health.
Ongoing Litigation at Bryant Park
Costly litigation at Bryant Park creates financial strain and operational uncertainty, hindering strategic planning and resource allocation.
Revenue Deterioration in Florida
Declining revenue in Florida indicates market challenges and potential loss of competitive edge, affecting overall growth prospects.
Ark Restaurants (ARKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.38M
Dividend YieldN/A
Average Volume (3M)5.59K
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth-9.70%
EPS Growth-194.23%
CountryUS
Employees1,246
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.53
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)0.00
Price to Sales (P/S)0.16
P/FCF Ratio0.00
Enterprise Value/Market Cap4.61
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit8.88
Enterprise Value/Ebitda-28.72
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 DescriptionArk 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, quick-service restaurants, and event catering, often situated in high-traffic tourist locations and urban centers. Ark Restaurants focuses on providing high-quality food experiences across various cuisines, enhancing its brand through unique dining atmospheres and exceptional customer service.
How the Company Makes MoneyArk 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 company also earns income from catering services, providing food and beverage services for events, corporate functions, and special occasions. Additionally, Ark Restaurants may benefit from strategic partnerships with suppliers and local businesses that enhance operational efficiency and marketing reach. Seasonal tourism trends and the company’s ability to adapt its menu and services to meet customer preferences also significantly influence its revenue generation.
Ark Restaurants Earnings Call Summary
Earnings Call Date:Dec 15, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 16, 2026
Earnings Call Sentiment Negative
The earnings call highlighted stable cash reserves and potential future opportunities at Meadowlands. However, these positives were overshadowed by significant declines in EBITDA, ongoing litigation issues, and regional performance challenges, contributing to a negative outlook and concerns about the company's stock price and strategic direction.Q4-2025 Updates
Positive Updates
Steady Cash Position
Ark Restaurants maintained a stable cash position of $11.3 million, up from $10.2 million in the previous year.
Positive Cash Flow in Las Vegas
The cash flows from the Las Vegas properties have improved significantly despite a decrease in headcount.
Potential Casino Opportunity at Meadowlands
There is optimism surrounding the Meadowlands Racetrack's potential casino license, which could lead to exclusive food and beverage opportunities.
Negative Updates
Significant EBITDA Decline
Adjusted EBITDA for the full year decreased to $1.4 million from $6.1 million last year, primarily due to issues at Bryant Park and increased legal fees.
Negative EBITDA in Current Quarter
The current quarter reported a negative EBITDA of $1 million compared to a previous positive EBITDA of $500,000.
Challenges in Florida and Washington, D.C.
Revenue deterioration in Florida by 5-7% and difficulties in the Catering business in Washington, D.C. have negatively impacted performance.
Ongoing Litigation at Bryant Park
Litigation regarding the Bryant Park facility has been costly and has affected the ability to book events, creating uncertainty.
Stock Price Concerns
The company's stock price has hit a new low, with concerns about the overall business strategy and market positioning.
Company Guidance
During the Ark Restaurants Fourth Quarter and Year-End 2025 Results Call, the company provided guidance focusing on their financial performance and strategic outlook. They reported a full year adjusted EBITDA of $1.4 million, a significant decrease from $6.1 million the previous year, primarily attributed to increased legal fees and challenges at Bryant Park. For the current quarter, EBITDA was negative $1 million, compared to $500,000 in the same quarter last year. The company also discussed cash holdings of $11.3 million and debt of $3.6 million. Michael Weinstein highlighted positive cash flow improvements in Las Vegas and Alabama, while noting ongoing revenue challenges in Florida. Additionally, they discussed potential developments at the Meadowlands, including the issuance of casino licenses in New York and upcoming referendums in New Jersey, which could impact their minority ownership in Meadowlands LLC and exclusive food and beverage rights if a casino is built. While litigation issues persist at Bryant Park, corporate events are beginning to show positive traction, covering litigation costs. Overall, Ark Restaurants anticipates a better performance in December compared to the previous year.Ark Restaurants Financial Statement Overview
Summary
Ark Restaurants is facing financial challenges with declining revenue, negative profitability, and high leverage. The company needs to address its cost structure and improve cash flow management to enhance financial stability and performance.Income Statement
Ark Restaurants has faced declining revenue growth, with a negative growth rate of -3.54% in the most recent year. The company has struggled with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has significantly decreased from previous years, indicating challenges in maintaining cost efficiency.45
Neutral
Balance Sheet
The company's balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. Return on equity has been negative, reflecting poor profitability. The equity ratio has been declining, suggesting increased reliance on debt financing.40
Negative
Cash Flow
Ark Restaurants has shown some improvement in free cash flow growth, but overall cash flow metrics remain weak. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio is also concerning, reflecting inefficiencies in cash generation.50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 171.83M | 165.75M | 183.54M | 184.79M | 183.67M | 131.87M |
| Gross Profit | 12.15M | 10.67M | 15.35M | 17.57M | 22.80M | 15.92M |
| EBITDA | -3.76M | -332.00K | 591.00K | 634.00K | 17.98M | 22.10M |
| Net Income | -14.01M | -11.47M | -3.90M | -5.93M | 9.28M | 12.89M |
Balance Sheet | ||||||
| Total Assets | 136.34M | 133.50M | 156.04M | 176.96M | 209.53M | 161.22M |
| Cash, Cash Equivalents and Short-Term Investments | 12.32M | -26.00K | 10.27M | 13.41M | 28.46M | 19.17M |
| Total Debt | 87.52M | 85.74M | 95.81M | 107.35M | 128.64M | 91.20M |
| Total Liabilities | 102.15M | 101.39M | 112.40M | 125.23M | 149.42M | 109.76M |
| Stockholders Equity | 34.67M | 32.73M | 44.14M | 50.29M | 59.80M | 50.41M |
Cash Flow | ||||||
| Free Cash Flow | -1.14M | -1.50M | 2.19M | 4.53M | 17.65M | 7.16M |
| Operating Cash Flow | 1.85M | 1.75M | 4.65M | 8.39M | 20.35M | 9.29M |
| Investing Cash Flow | 3.47M | 3.43M | -2.39M | 1.28M | -7.76M | -3.45M |
| Financing Cash Flow | -4.46M | -4.13M | -5.40M | -19.69M | -8.32M | -3.56M |
Ark Restaurants Technical Analysis
Neutral
6.47
Price Trends
6.84
Negative
6.97
Negative
8.15
Negative
Market Momentum
-0.07
Negative
51.89
Neutral
30.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKR, the sentiment is Neutral. The current price of 6.47 is below the 20-day moving average (MA) of 6.49, below the 50-day MA of 6.84, and below the 200-day MA of 8.15, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 51.89 is Neutral, neither overbought nor oversold. The STOCH value of 30.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $44.77M | 16.35 | 20.05% | ― | 0.35% | 9.25% | |
62 Neutral | $59.76M | 11.87 | 7.97% | 1.89% | 8.99% | 49.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
46 Neutral | $12.35M | 12.24 | 3.85% | ― | 1.84% | 12.10% | |
44 Neutral | $38.83M | -0.85 | ― | ― | -0.35% | -37.02% | |
41 Neutral | $8.79M | -0.03 | ― | 760.71% | -5.26% | -44.78% | |
40 Underperform | $23.38M | -2.10 | -29.84% | ― | -9.70% | -194.23% |
* Consumer Cyclical Sector Average
ARKR
Ark Restaurants
6.70
-7.22
-51.87%
BDL
Flanigan's Enterprises
32.06
7.58
30.96%
GTIM
Good Times Restaurants
1.17
-1.37
-53.94%
RAVE
Rave Restaurant Group
3.20
0.58
22.14%
NDLS
Noodles & Co
0.84
-0.03
-2.90%
FAT
Fat Brands
0.42
-2.64
-86.43%
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.