Ark Restaurants (ARKR) AI Stock Analysis

• Market Cap: $26.83M
• Dividend Yield: N/A
• Average Volume (3M): 5.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: -6.89%
• EPS Growth: -42.75%
• Country: US
• Employees: 1,246
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.96
• Shares Outstanding: 3,606,157
• 10 Day Avg. Volume: 6,903
• 30 Day Avg. Volume: 5,590
• PEG Ratio: 0.31
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 19.23
• Enterprise Value/Market Cap: 4.00
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 2.43
• Enterprise Value/Ebitda: -37.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: $7.00 ▼(-5.91% Downside)

Ark Restaurants is currently facing significant financial challenges, with declining revenues, high leverage, and negative cash flow trends. Technical indicators suggest a lack of strong momentum, and the valuation is unattractive due to negative earnings. While the earnings call provided some positive insights, such as a strong cash position, these are outweighed by operational challenges and financial instability.

Ark Restaurants Business Overview & Revenue Model

Company Description

Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. As of December 20, 2021, it owned and operated 17 restaurants and bars, including four restaurants located in New York City; one in Washington, D.C.; five in Las Vegas, Nevada; one in Atlantic City, New Jersey; four on the east coast of Florida; and two on the gulf coast of Alabama, as well as had 17 fast food concepts and catering operations. The company was incorporated in 1983 and is based in New York, New York.

How the Company Makes Money

Ark Restaurants generates revenue primarily through its network of restaurants and food service operations. Key revenue streams include sales from dining services, catering contracts, and food concessions. The company benefits from its strategic locations in high-traffic areas, which drive substantial foot traffic and customer engagement. Additionally, partnerships with entertainment venues, hotels, and casinos further enhance revenue opportunities, as these collaborations allow Ark Restaurants to tap into a steady flow of customers seeking dining options while attending events. Seasonal promotions and special events also contribute to revenue, as they attract both new and repeat customers.

Ark Restaurants Financial Statement Overview

Summary

Ark Restaurants is facing financial challenges across all verticals. The income statement reflects declining revenues and profitability issues, while the balance sheet shows high leverage and negative returns on equity. Cash flow analysis indicates significant declines in free cash flow, raising concerns about liquidity and financial stability. The company needs to address these issues to improve its financial health.

Income Statement

Ark Restaurants has faced declining revenue growth, with a negative growth rate of -3.74% in the TTM period. The company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin has also decreased compared to previous years, reflecting challenges in maintaining cost efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 2.52 in the TTM period, indicating significant leverage and potential financial risk. Return on equity is negative, suggesting inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the high debt levels imply limited equity relative to total assets.

Cash Flow

Ark Restaurants has experienced a significant decline in free cash flow, with a growth rate of -408.70% in the TTM period. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The negative free cash flow to net income ratio further highlights cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	171.83M	183.54M	184.79M	162.35M	159.99M	153.88M
Gross Profit	44.22M	68.18M	17.57M	62.24M	61.33M	59.21M
EBITDA	-2.85M	591.00K	634.00K	8.54M	10.16M	11.32M
Net Income	-14.01M	-3.90M	-5.93M	2.68M	4.66M	4.04M
Balance Sheet
Total Assets	136.34M	156.04M	176.96M	94.65M	84.74M	80.07M
Cash, Cash Equivalents and Short-Term Investments	-21.00K	10.27M	13.41M	7.18M	5.01M	1.41M
Total Debt	87.52M	95.81M	107.35M	26.49M	21.11M	18.20M
Total Liabilities	102.15M	112.40M	125.23M	51.95M	41.00M	37.63M
Stockholders Equity	34.67M	44.14M	50.29M	41.86M	42.30M	40.44M
Cash Flow
Free Cash Flow	-1.14M	2.19M	4.53M	7.20M	4.51M	-3.55M
Operating Cash Flow	1.85M	4.65M	8.39M	10.62M	9.57M	10.35M
Investing Cash Flow	3.47M	-2.39M	1.28M	-3.20M	-5.05M	-14.64M
Financing Cash Flow	-4.46M	-5.40M	-19.69M	-5.25M	-919.00K	-1.54M

Ark Restaurants Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 7.44 is above the 20-day moving average (MA) of 7.15, above the 50-day MA of 7.10, and below the 200-day MA of 9.40, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 54.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARKR.

Ark Restaurants Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDL	―	$58.86M	13.62	6.88%	1.74%	8.83%	41.90%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RAVE	―	$36.67M	13.86	20.12%	―	-1.30%	9.43%
GTIM	―	$16.46M	13.32	3.85%	―	1.84%	12.10%
FAT	―	$32.78M	-0.14	―	168.72%	0.96%	-57.29%
ARKR	―	$26.83M	-1.91	-33.50%	―	-6.89%	-42.75%
NDLS	―	$33.36M	―	―	―	-1.23%	-68.38%

Ark Restaurants Corporate Events

Ark Restaurants Corp. Earnings Call: Mixed Outlook

Ark Restaurants Corp. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company is in a robust financial position, with notable successes in Las Vegas and New York. However, these positives are overshadowed by significant challenges, such as an impairment charge and declining visitor numbers in certain locations. The potential acquisition of a casino license presents a promising future opportunity, yet current operational hurdles remain a concern.

Ark Restaurants Corp. Reports Q3 2025 Financial Results

Ark Restaurants Corp., a company operating a diverse portfolio of dining establishments across the United States, has released its financial results for the third quarter of 2025, highlighting both challenges and areas of resilience.