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Ark Restaurants (ARKR)
NASDAQ:ARKR
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Ark Restaurants
(NASDAQ:ARKR)
46Neutral
Ark Restaurants (ARKR) vs. S&P 500 (SPY)
Market Cap
$36.40M
Dividend Yield7.51%
Average Volume (3M)4.79K
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth-2.05%
EPS Growth66.57%
CountryUS
Employees1,826
SectorConsumer Cyclical
Sector Strength51
IndustryRestaurants & Bars
Share Statistics
EPS (TTM)-0.59
Shares Outstanding3,604,157
10 Day Avg. Volume3,873
30 Day Avg. Volume4,786
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.20
Price to Cash Flow (P/CF)-6.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
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. (ARKR) operates restaurants and bars, fast food concepts, catering operations, and banquet facilities. The company is primarily focused on the hospitality and dining sector, offering a diverse range of dining experiences across various locations. Ark Restaurants owns and operates establishments in high-traffic locations such as casinos, resorts, shopping malls, and urban centers, providing patrons with a variety of cuisines and dining atmospheres.
How the Company Makes MoneyArk Restaurants makes money primarily through the operation of its owned and managed restaurant and bar locations. Revenue is generated from sales of food and beverages to customers dining in their establishments. The company also earns income from hosting private events and banquets in its facilities. Additionally, Ark Restaurants benefits from strategic partnerships with property owners in high-traffic locations, such as casinos and resorts, which help drive customer traffic to its establishments. These partnerships often involve revenue-sharing agreements or lease arrangements that are financially beneficial to the company. Furthermore, Ark Restaurants may engage in catering services for special events, which also contributes to its revenue streams.
Ark Restaurants Financial Statement Overview
Summary
Ark Restaurants is currently facing significant financial challenges. While the company has a strong gross profit margin, operational inefficiencies and high leverage are major concerns. The negative net income and declining revenues highlight profitability issues, while cash flow challenges pose risks to financial stability. The company needs to address these issues to improve its financial health and investor confidence.Income Statement
Ark Restaurants' income statement reveals significant challenges. The TTM (Trailing-Twelve-Months) data shows a negative EBIT and net income, indicating ongoing issues with profitability despite a strong gross profit margin. Revenue growth has been inconsistent, with recent declines. The company's EBITDA margin is also low, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows a concerning debt-to-equity ratio, indicating high leverage which could pose risks in economic downturns. The equity ratio is modest, suggesting a relatively balanced asset financing structure. However, the declining stockholders' equity over time reflects financial pressure.50
Neutral
Cash Flow
Ark Restaurants faces cash flow challenges, with negative free cash flow in the TTM period and a declining operating cash flow. The free cash flow to net income ratio is unfavorable, indicating cash flow issues despite attempts to manage capital expenditures. These trends raise concerns about liquidity and financial flexibility.40
Negative
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 181.05M | 183.54M | 184.79M | 183.67M | 131.87M | 106.49M | Gross Profit |
| 58.46M | 68.18M | 45.38M | 71.10M | 50.34M | 36.93M | EBIT |
| -208.00K | -4.29M | 5.16M | 7.44M | 6.21M | -7.80M | EBITDA |
| 4.07M | 151.00K | 634.00K | 17.98M | 22.10M | -2.94M | Net Income Common Stockholders |
| -2.10M | -3.90M | -5.93M | 9.28M | 12.89M | -4.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 13.10M | 10.27M | 13.41M | 28.46M | 19.17M | 16.89M | Total Assets |
| 154.64M | 156.04M | 176.96M | 209.53M | 161.22M | 153.32M | Total Debt |
| 91.77M | 95.81M | 107.35M | 128.64M | 91.20M | 101.15M | Net Debt |
| 78.67M | 85.53M | 93.93M | 105.20M | 72.03M | 84.26M | Total Liabilities |
| 106.10M | 112.40M | 125.23M | 149.42M | 109.76M | 116.16M | Stockholders Equity |
| 47.34M | 44.14M | 50.29M | 59.80M | 50.41M | 36.53M |
| Cash Flow | Free Cash Flow | ||||
| -70.00K | 2.19M | 4.53M | 17.65M | 7.16M | -7.01M | Operating Cash Flow |
| 2.75M | 4.65M | 8.39M | 20.35M | 9.29M | -4.53M | Investing Cash Flow |
| 2.76M | -2.39M | 1.28M | -7.76M | -3.45M | -2.46M | Financing Cash Flow |
| -4.53M | -5.40M | -19.69M | -8.32M | -3.56M | 16.69M |
Ark Restaurants Technical Analysis
Negative
9.99
Price Trends
12.35
Negative
11.80
Negative
12.38
Negative
Market Momentum
-0.59
Positive
35.18
Neutral
12.06
Positive
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 9.99 is below the 20-day moving average (MA) of 10.69, below the 50-day MA of 12.35, and below the 200-day MA of 12.38, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 12.06 is Positive, 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.39B | 14.02 | 41.18% | 2.41% | 4.13% | 56.76% | |
73 Outperform | $6.19B | 24.21 | 2390.91% | ― | 13.67% | 69.41% | |
63 Neutral | $735.16M | 47.46 | 4.54% | ― | 1.81% | -15.53% | |
59 Neutral | $12.43B | 10.56 | 2.81% | 3.69% | 1.58% | -17.58% | |
56 Neutral | $379.97M | 5.79 | -42.81% | 8.35% | -2.26% | -32.36% | |
46 Neutral | $36.40M | ― | -4.24% | 7.51% | -2.05% | 66.57% |
* Consumer Cyclical Sector Average
Performance Comparison
ARKR
Ark Restaurants
10.10
-3.45
-25.46%
BJRI
BJ's Restaurants
32.36
-2.71
-7.73%
EAT
Brinker International
139.41
91.48
190.86%
DIN
Dine Brands Global
24.91
-19.90
-44.41%
CAKE
Cheesecake Factory
46.19
11.33
32.50%
Ark Restaurants Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: -21.21% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there are notable achievements like the Tampa Food Court buyout and operational efficiency improvements, challenges such as the Bryant Park lease situation and demand issues in Washington, DC present significant hurdles.Highlights
Tampa Food Court Buyout
The company received a buyout payment of $5.5 million from the Tampa Food Court landlord, resulting in a gain of $5.2 million on the P&L.
Stable Cash and Debt Position
The cash balance at the end of the quarter was $13.1 million, with a debt of $4.7 million, indicating a stable financial position.
Positive Sales in Select Locations
Sales in Alabama continue to be very good, and Las Vegas is seeing a decent performance, with expectations of a 10-12% increase in business to justify new rents.
Operational Efficiency Improvements
The company is revamping schedules and payrolls to improve operational efficiency, which is expected to show in operating profits in the coming quarters.
Lowlights
Closure and Losses from Rio Grande
The closure of Rio Grande resulted in residual losses of $146,000.
Challenges with Bryant Park Lease
Ark Restaurants is facing challenges retaining their lease at Bryant Park, with the possibility of losing significant operations and revenue.
Demand Issues in Washington, DC
Washington, DC locations are experiencing demand problems, which is affecting overall performance.
Inflated Expenses and Margin Pressures
The company is dealing with increased expenses, particularly in payroll and insurance, leading to squeezed margins.
Company Guidance
During the Ark Restaurants first quarter 2025 results conference call, several key financial metrics and operational strategies were highlighted. The company reported a cash balance of $13.1 million at quarter-end, with $1.9 million owed to minority shareholders. It included a $5.2 million gain from the Tampa Food Court transaction and faced $146,000 in residual losses from the closure of Rio Grande. Ark Restaurants' debt stood at $4.7 million. Sales performance varied by location, with strong sales in Alabama and decent results in Las Vegas, while Washington, DC faced demand challenges. The company is focusing on efficiency improvements in payroll and operations to enhance margins. They are also navigating strategic decisions regarding their operations at Bryant Park amid potential changes in their lease arrangement. Additionally, Ark is exploring capital allocation strategies, contingent on the outcome of the Bryant Park situation, which could impact dividend payouts and stock buybacks.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.