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Ark Restaurants
(NASDAQ:ARKR)
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Rating:42Neutral
Price Target:
$5.00
▼(-6.19% Downside)
Action:Reiterated
Date:08/27/26
ARKR scores low primarily due to weakened financial performance: ongoing losses, high leverage, and a sharp deterioration in free cash flow. Technicals also detract as the stock trades below major moving averages with negative momentum. The earnings call adds modest support from liquidity and cost actions, but is outweighed by declining sales/EBITDA and higher debt; valuation is constrained by a negative P/E tied to losses.
Positive Factors
Venue-Based Restaurant Portfolio
Operating in casinos, racetracks and destination settings can provide access to established customer flows, while standalone and event offerings diversify demand. This venue-based portfolio may support resilience and recurring revenue, although traffic remains execution-dependent.
Negative Factors
Broad Sales Decline
Broad-based sales contraction indicates weaker guest traffic across important markets rather than an isolated unit issue. Persistent declines would reduce operating leverage, limit reinvestment capacity and make recovery dependent on uncertain traffic improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Venue-Based Restaurant Portfolio
Operating in casinos, racetracks and destination settings can provide access to established customer flows, while standalone and event offerings diversify demand. This venue-based portfolio may support resilience and recurring revenue, although traffic remains execution-dependent.
Read all positive factors
Ark Restaurants (ARKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.35M
Dividend YieldN/A
Average Volume (3M)5.59K
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth-9.48%
EPS Growth77.31%
CountryUS
Employees1,566
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.88
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
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:Aug 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 21, 2026
Earnings Call Sentiment Negative
The call presented a mix of positives — adequate cash ($9.4M), targeted cost savings from a Sequoia lease restructure ($200k–$300k annually), operational efficiency improvements at New York-New-York, and potential upside from Bryant Park litigation and new development projects — but was offset by material near-term headwinds: overall sales down ~6%, sharp declines in Las Vegas (~11%) and Florida (~10%), EBITDA down $1.4M, and increased debt (up ~$4.5M to $7.1M). Given the weight of revenue and profitability declines combined with higher leverage and unresolved external uncertainties (Bryant Park lease, Meadowlands referendum), the call leans negative on near-term performance, though there are actionable positives that could mitigate downside over time.Positive Updates
Strong cash position
Cash balance of $9.4 million at quarter end, providing liquidity to support operations and ongoing projects.
Negative Updates
Overall sales decline
Total company sales were down approximately 6% for the quarter versus prior year, reducing top-line performance and contributing to lower profitability.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong cash position
Cash balance of $9.4 million at quarter end, providing liquidity to support operations and ongoing projects.
Read all positive updates
Company Guidance
Management's guidance was largely operational and timing-focused: cash of $9.4M and debt of $7.1M (up ≈$4.5M QoQ after a $5M April draw to finance construction of America in Las Vegas); Q3 (13 weeks) EBITDA was down $1.4M YoY on a ≈6.5% decline in sales and gross margin, with company-wide sales down ~6% (Las Vegas -11%, Florida -10%); payrolls remained “stubborn” (no corresponding decline), while payroll %, COGS %, and occupancy are said to be roughly in line; a Sequoia lease restructure should save ~$200k–$300k annually; America’s partial closure should be fully reopened by September; construction of a new bar at New York‑New York starts in ~2–3 months with opening early next year; two additional Las Vegas venues are under negotiation; Bryant Park litigation yielded a judge’s award of the right to monetary damages with a hearing to set a trial date in September and a likely trial early next year (damages could be significant); Meadowlands casino referendum was not on this year’s ballot but management expects renewed legislative effort next year.Ark Restaurants Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
41
Neutral
Cash Flow
27
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 155.54M | 165.75M | 183.54M | 184.79M | 183.67M | 131.87M |
| Gross Profit | 43.96M | 58.98M | 68.18M | 68.85M | 71.10M | 50.34M |
| EBITDA | 433.00K | -16.00K | 591.00K | 634.00K | 17.98M | 22.10M |
| Net Income | -3.18M | -11.47M | -3.90M | -5.93M | 9.28M | 12.89M |
Balance Sheet | ||||||
| Total Assets | 128.91M | 133.50M | 156.04M | 176.96M | 209.53M | 161.22M |
| Cash, Cash Equivalents and Short-Term Investments | 9.49M | 11.32M | 10.27M | 13.41M | 28.46M | 19.17M |
| Total Debt | 83.99M | 85.74M | 95.81M | 107.35M | 128.64M | 91.20M |
| Total Liabilities | 98.02M | 101.39M | 112.40M | 125.23M | 149.42M | 109.76M |
| Stockholders Equity | 31.52M | 32.73M | 44.14M | 50.29M | 59.80M | 50.41M |
Cash Flow | ||||||
| Free Cash Flow | -6.33M | -1.50M | 2.19M | 4.53M | 17.65M | 7.16M |
| Operating Cash Flow | -239.00K | 1.75M | 4.65M | 8.39M | 20.35M | 9.29M |
| Investing Cash Flow | -5.28M | 3.43M | -2.39M | 1.28M | -7.76M | -3.45M |
| Financing Cash Flow | 2.69M | -4.13M | -5.40M | -19.69M | -8.32M | -3.56M |
Ark Restaurants Technical Analysis
Negative
5.33
Price Trends
5.78
Negative
6.22
Negative
6.51
Negative
Market Momentum
-0.15
Positive
43.36
Neutral
21.56
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 5.33 is below the 20-day moving average (MA) of 5.58, below the 50-day MA of 5.78, and below the 200-day MA of 6.51, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 21.56 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $44.34M | 15.09 | 19.21% | ― | 3.20% | 9.92% | |
67 Neutral | $1.39B | 34.24 | 10.97% | ― | 3.54% | 56.84% | |
67 Neutral | $93.99M | 14.50 | 9.84% | 1.89% | 6.14% | 53.60% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $182.80M | -5.97 | 29.24% | ― | -3.71% | 50.04% | |
46 Neutral | $92.54M | -3.62 | 50.91% | ― | 0.19% | 46.85% | |
42 Neutral | $17.35M | -6.06 | -18.91% | ― | -9.48% | 77.31% |
* Consumer Cyclical Sector Average
ARKR
Ark Restaurants
5.33
-1.54
-22.42%
BJRI
BJ's Restaurants
66.80
33.11
98.28%
BDL
Flanigan's Enterprises
51.77
22.75
78.41%
RAVE
Rave Restaurant Group
3.11
-0.19
-5.76%
RRGB
Red Robin Gourmet
10.09
3.59
55.23%
NDLS
Noodles & Co
14.53
8.93
159.60%
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.