Ark Restaurants (ARKR)
NASDAQ:ARKR
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Ark Restaurants
(NASDAQ:ARKR)
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Rating:43Neutral
Price Target:
$6.50
▲(0.46% Upside)
Action:Reiterated
Date:05/15/26
The score is primarily held down by deteriorated financial performance (losses, high leverage, and negative free cash flow). Technicals also lean bearish with price below key moving averages and slightly negative MACD. Offsetting factors are limited to modestly improving operational discipline and near-term initiatives discussed on the earnings call, plus an oversold stochastic reading.
Positive Factors
Access to targeted financing
A $5.0 million draw to fund Las Vegas leasehold improvements demonstrates the company’s ability to access capital for strategic investment. Durable impact: targeted capex can reposition a hospitality location to drive multi-month traffic gains and supports execution of growth plans without immediate equity dilution.
Negative Factors
Elevated leverage
A TTM debt-to-equity near 2.7x is high for a restaurant operator and materially constrains financial flexibility. Persistently elevated leverage increases interest and covenant risk, limiting the firm’s ability to invest or absorb revenue shocks if the recent sales declines persist over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Access to targeted financing
A $5.0 million draw to fund Las Vegas leasehold improvements demonstrates the company’s ability to access capital for strategic investment. Durable impact: targeted capex can reposition a hospitality location to drive multi-month traffic gains and supports execution of growth plans without immediate equity dilution.
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)―
Beta (1Y)0.30
Revenue Growth-11.28%
EPS Growth36.59%
CountryUS
Employees1,246
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-1.74
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 Cap4.07
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit1.73
Enterprise Value/Ebitda-50.34
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
ARKR primarily makes money by selling food and beverages to guests at its company-operated venues. Its core revenue streams typically include (1) on-premise dining and bar sales (meals, alcoholic and non-alcoholic beverages), (2) event-driven reve...
Ark Restaurants Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Negative
The call reflects a company with a stable balance sheet and focused operational improvements (cost controls in Las Vegas, management changes in D.C., planned Las Vegas reopening) but facing persistent, broad-based sales declines across key markets and material external risks (ongoing litigation at Bryant Park and political uncertainty for Meadowlands). While management is taking positive steps to improve cash flow and drive future traffic, current revenue pressures and prolonged legal/political risks weigh on near-term performance.Positive Updates
Strong Liquidity Position and Controlled Leverage
Cash at the end of the quarter was $11.05 million and debt was $7.6 million, with management describing the balance sheet as stable and uneventful.
Negative Updates
Systemwide Sales Pressure
Management reported broad sales weakness across markets, describing it as a sales problem affecting multiple regions and driven by customers' higher household costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Liquidity Position and Controlled Leverage
Cash at the end of the quarter was $11.05 million and debt was $7.6 million, with management describing the balance sheet as stable and uneventful.
Read all positive updates
Company Guidance
In the Q2 FY2026 call management offered mainly status updates rather than forward changes: the balance sheet is “stable” after a $5.0 million drawdown to fund Las Vegas leasehold improvements, ending the quarter with $11.05 million of cash and $7.6 million of debt; they reported essentially unchanged check averages and no measurable menu price increases. Same-store sales were down broadly—Las Vegas ≈11% (but cash flow improved via tighter payroll/expense controls), Florida ≈10% and Washington, D.C. ≈5% (new DC management and lower payrolls have reduced losses vs. last year). They expect to open the new Las Vegas concept in early July; Bryant Park litigation could go to trial in late 2026/early 2027 with appeals adding ~12–18 months; Meadowlands referendum polling shows one survey at 51%–49% and two others at 62%–66% in favor.Ark Restaurants Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
32
Negative
Cash Flow
34
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 158.37M | 165.75M | 183.54M | 184.79M | 183.67M | 131.87M |
| Gross Profit | 57.09M | 58.98M | 68.18M | 68.85M | 71.10M | 50.34M |
| EBITDA | -1.97M | -16.00K | 591.00K | 634.00K | 17.98M | 22.10M |
| Net Income | -6.28M | -11.47M | -3.90M | -5.93M | 9.28M | 12.89M |
Balance Sheet | ||||||
| Total Assets | 131.76M | 133.50M | 156.04M | 176.96M | 209.53M | 161.22M |
| Cash, Cash Equivalents and Short-Term Investments | 11.49M | 11.32M | 10.27M | 13.41M | 28.46M | 19.17M |
| Total Debt | 86.70M | 85.74M | 95.81M | 107.35M | 128.64M | 91.20M |
| Total Liabilities | 100.46M | 101.39M | 112.40M | 125.23M | 149.42M | 109.76M |
| Stockholders Equity | 31.88M | 32.73M | 44.14M | 50.29M | 59.80M | 50.41M |
Cash Flow | ||||||
| Free Cash Flow | -3.86M | -1.50M | 2.19M | 4.53M | 17.65M | 7.16M |
| Operating Cash Flow | 969.00K | 1.75M | 4.65M | 8.39M | 20.35M | 9.29M |
| Investing Cash Flow | -3.18M | 3.43M | -2.39M | 1.28M | -7.76M | -3.45M |
| Financing Cash Flow | 2.57M | -4.13M | -5.40M | -19.69M | -8.32M | -3.56M |
Ark Restaurants Technical Analysis
Negative
6.47
Price Trends
6.83
Negative
6.79
Negative
6.91
Negative
Market Momentum
-0.07
Positive
46.58
Neutral
33.29
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 6.47 is below the 20-day moving average (MA) of 6.84, below the 50-day MA of 6.83, and below the 200-day MA of 6.91, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 33.29 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $42.07M | 11.28 | 19.21% | ― | 3.20% | 9.92% | |
62 Neutral | $56.25M | 5.01 | 8.92% | 1.89% | 5.74% | 47.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $65.40M | -3.67 | 90.61% | ― | -0.12% | 7.25% | |
52 Neutral | $13.83M | 20.73 | 3.18% | ― | -5.12% | 73.41% | |
43 Neutral | $24.34M | -3.44 | -29.84% | ― | -11.28% | 36.59% |
* Consumer Cyclical Sector Average
ARKR
Ark Restaurants
6.60
-5.36
-44.82%
BDL
Flanigan's Enterprises
32.42
6.47
24.91%
GTIM
Good Times Restaurants
1.28
-0.26
-16.88%
RAVE
Rave Restaurant Group
2.89
0.11
3.96%
NDLS
Noodles & Co
10.65
4.71
79.17%
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.