Ark Restaurants AI Stock Analysis
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Ark Restaurants (ARKR) AI Stock Analysis
Ark Restaurants
(NASDAQ:ARKR)
The score is held down primarily by weak financial performance (loss-making margins, high leverage, and negative TTM free cash flow) and a bearish technical setup (price below key moving averages with negative MACD). Valuation offers limited support due to a negative P/E, while the earnings call adds modest incremental risk given falling sales/EBITDA and higher debt despite adequate cash and some identifiable cost-saving and project catalysts.
Ark Restaurants (ARKR) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $16.26M
- Dividend Yield
- ―
- Average Volume (3M)
- 7,269
- Price to Earnings (P/E)
- -5.1
- Beta (1Y)
- 0.23
- Revenue Growth
- -9.48%
- EPS Growth
- 77.31%
- Country
- US
- Employees
- 1,566
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Restaurants
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 ful...
How the Company Makes Money
Ark Restaurants primarily makes money by selling food and beverages to guests at company-owned (and, where applicable, managed) restaurant and bar locations. Its core revenue stream is on-premise hospitality sales—menu items (appetizers, entrees, des...
Ark Restaurants Earnings Call Summary
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.
Q3-2026 Updates
Positive Updates
Negative 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
Fundamentals are pressured: TTM revenue is slightly down (-1.8%) with negative profitability (net margin ~-2.0%, EBIT margin ~-1.3%). Leverage is elevated (TTM debt-to-equity ~2.7x) and returns are negative (ROE ~-9.8%). Cash generation is a key weakness with TTM operating cash flow slightly negative (~-$0.2M) and free cash flow deeply negative (~-$6.3M), a sharp reversal from prior years.
Income Statement
34NegativeBalance Sheet
41NeutralCash Flow
27Negative| 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 | 383.00K | -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
Price Trends
Market Momentum
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 4.51 is below the 20-day moving average (MA) of 4.55, below the 50-day MA of 4.62, and below the 200-day MA of 5.94, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.63 is Neutral, neither overbought nor oversold. The STOCH value of 9.96 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.
Latest Risks Added
0 New RisksArk Restaurants Peers Comparison
Overall Rating
RAVE74Outperform
BDL71Outperform
BJRI67Neutral
RRGB53Neutral
NDLS43Neutral- ARKR41Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| RAVE | 74Outperform | $29.93M | 10.38 | 17.21% | ― | 6.70% | 3.98% |
| BDL | 71Outperform | $107.97M | 16.37 | 9.84% | 1.03% | 6.14% | 53.60% |
| BJRI | 67Neutral | $1.22B | 26.21 | 11.84% | ― | 5.26% | 56.29% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| RRGB | 53Neutral | $160.11M | -5.33 | 29.24% | ― | -3.71% | 50.04% |
| NDLS | 43Neutral | $82.94M | -3.54 | 50.91% | ― | 0.19% | 46.85% |
| ARKR | 41Neutral | $16.30M | -5.13 | -9.79% | ― | -9.48% | 77.31% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ARKR | Ark Restaurants Corp. | 4.51 | -2.70 | -37.45% | |
| BJRI | BJ's Restaurants | 57.15 | 19.95 | 53.63% | |
| BDL | Flanigan's Enterprises | 58.43 | 27.45 | 88.58% | |
| RAVE | Rave Restaurant Group | 2.15 | -0.87 | -28.81% | |
| RRGB | Red Robin Gourmet Burgers | 9.01 | 4.73 | 110.51% | |
| NDLS | Noodles & Company | 14.20 | 8.33 | 141.99% |
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.
Date of analysis: Sep 09, 2026