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Ark Restaurants
(NASDAQ:ARKR)
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Rating:42Neutral
Price Target:
$6.00
▼(-7.26% Downside)
Action:Reiterated
Date:06/27/26
The score is held down primarily by deteriorated financial performance (losses, high leverage, and negative free cash flow). Technical signals also remain weak with the stock below key moving averages and negative MACD. Earnings-call updates show operational cost progress, but broad sales declines and ongoing legal/political uncertainties—reinforced by the recent Bryant Park court development—continue to pressure the risk/reward profile.
Positive Factors
Venue-driven business model
Ark’s core model places concepts inside built-in foot-traffic venues, giving steady access to customers without proportionate marketing spend. Concession-style and on-site agreements help sustain volume and conversion over time, supporting revenue resilience if venue partners remain healthy.
Negative Factors
Sharp revenue decline and negative margins
Significant top-line erosion undermines scale economics and leaves fixed costs poorly covered. Persistent sales declines compress margins and force reliance on cost cuts or external capital; without sustained revenue recovery, profitability and cash flow restoration will be difficult to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
Venue-driven business model
Ark’s core model places concepts inside built-in foot-traffic venues, giving steady access to customers without proportionate marketing spend. Concession-style and on-site agreements help sustain volume and conversion over time, supporting revenue resilience if venue partners remain healthy.
Read all positive factors
Ark Restaurants (ARKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.13M
Dividend YieldN/A
Average Volume (3M)5.59K
Price to Earnings (P/E)―
Beta (1Y)0.33
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 Cap4.64
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit1.72
Enterprise Value/Ebitda-49.84
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. is a hospitality company that owns and manages a diverse portfolio of restaurants and bars throughout the United States, primarily operating through its subsidiary companies. By December 20, 2021, its holdings encompassed 17 ...
How the Company Makes Money
Ark Restaurants primarily makes money by selling food and beverages to guests at its owned and operated restaurants and bars. Revenue is generated through (1) dine-in and bar sales, where menu items (meals, appetizers, desserts) and alcoholic/non-...
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
6.51
Negative
6.68
Negative
6.80
Negative
Market Momentum
-0.17
Positive
41.24
Neutral
9.28
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 6.47 is above the 20-day moving average (MA) of 6.12, below the 50-day MA of 6.51, and below the 200-day MA of 6.80, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 9.28 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $46.47M | 16.25 | 19.21% | ― | 3.20% | 9.92% | |
65 Neutral | $83.34M | 13.68 | 9.04% | 1.89% | 5.74% | 47.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $88.09M | -2.35 | 90.61% | ― | -0.12% | 7.25% | |
52 Neutral | $14.89M | 8.07 | 3.18% | ― | -5.12% | 73.41% | |
42 Neutral | $21.13M | -3.40 | -29.84% | ― | -11.28% | 36.59% |
* Consumer Cyclical Sector Average
ARKR
Ark Restaurants
5.86
-3.18
-35.18%
BDL
Flanigan's Enterprises
44.84
16.31
57.19%
GTIM
Good Times Restaurants
1.41
-0.39
-21.67%
RAVE
Rave Restaurant Group
3.27
0.54
19.78%
NDLS
Noodles & Co
14.95
9.27
163.11%
Ark Restaurants Corporate Events
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Ark Restaurants Hit by Mixed Bryant Park Court Ruling
Negative
Jun 26, 2026
Ark Restaurants’ long-term operating agreements for the Bryant Park Grill, Bryant Park Café and The Porch at Bryant Park expired in March and April 2025, after the Bryant Park Corporation selected a new operator under an RFP process. Ar...
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.