Restaurant operators continue to face a mixed operating backdrop marked by cautious consumer spending, cost pressures and the need to protect margins without sacrificing traffic. In this environment, Rave Restaurant Group, Inc. (RAVE) and Ark Restaurants Corp. (ARKR) represent two smaller players with established brands but fundamentally different operating models. RAVE operates a predominantly asset-light, franchise-driven platform centered on Pizza Inn and Pie Five, allowing it to generate revenue primari ...

NEW YORK--(BUSINESS WIRE)--Ark Restaurants Corp. (NASDAQ:ARKR) will hold a conference call for investors and analysts to discuss financial results for the first quarter ended December 27, 2025 on Tuesday, February 10, 2026 at 11:00 a.m. Eastern Time. The dial-in numbers to participate in the conference call are: Toll-Free – 1-877-407-4018 Toll/International – 1-201-689-8471 Participants can also access the conference call by visiting Call meâ"¢ at: https://callme.viavid.com/viavid/?callme=true&am. ...

Restaurant operators are facing a challenging operating backdrop marked by uneven consumer spending, elevated labor and food costs and the continued need to refresh concepts to maintain traffic. In this environment, Ark Restaurants Corp. (ARKR) and Flanigan’s Enterprises, Inc. (BDL) represent two niche players within the restaurants-and-bars industry, each pursuing a distinct operating strategy. ARKR operates a collection of destination-oriented restaurants, bars and food concepts concentrated in high-traff ...

Core Insights - Nathan's Famous, Inc. (NATH) and Ark Restaurants Corp. (ARKR) represent two distinct operating models in the consumer-facing food sector, with NATH focusing on brand marketing and multi-channel distribution, while ARKR emphasizes direct restaurant ownership and operations [1][2] Company Overview - Nathan's Famous operates through a scalable brand platform that includes branded product sales, licensing, and a franchise network, which allows for broader distribution and reduced reliance on any single growth channel [6][8] - Ark Restaurants operates a portfolio of destination-oriented restaurants and bars, leveraging seasonal demand and tourism, which can lead to significant benefits during peak periods [9] Stock Performance & Valuation - Over the past three months, NATH's stock has decreased by 13.6%, while ARKR's has declined by 10.2%. However, in the past year, NATH's stock has increased by 18.1%, contrasting with ARKR's loss of 54.6% [3] - NATH is trading at a trailing 12-month enterprise value-to-sales (EV/S) ratio of 2.5X, slightly below its five-year median of 2.6X, while ARKR's EV/S ratio is at 0.1X, below its median of 0.3X [4] Factors Driving Nathan's Famous Stock - The multi-channel structure of Nathan's Famous supports broad distribution across various platforms, enhancing brand visibility and reducing dependence on restaurant traffic [6][8] - The high-margin licensing platform of Nathan's Famous, supported by long-term agreements, generates recurring royalty income and extends brand presence beyond restaurants [7] - Continued expansion in the Branded Product Program contributes to sales growth through foodservice distributors and large customer accounts, while the company manages inflation-related pressures effectively [8] Factors Driving Ark Restaurants Stock - Ark Restaurants benefits from high-visibility locations that attract seasonal demand and tourism, which can lead to improved performance during peak times [9] - The Bryant Park situation presents a potential catalyst for Ark Restaurants, as resolution of lease or legal issues could enhance business visibility and investor confidence [10] - Ark Restaurants has long-term growth potential through its interest in New Meadowlands Racetrack, which could provide opportunities for a future casino license [11] Investment Outlook - Nathan's Famous is currently viewed as better positioned than Ark Restaurants due to its diversified, brand-led model that allows for scalable and predictable earnings [12][14] - Despite NATH's recent underperformance, its stronger one-year rally and reasonable valuation relative to historical norms suggest a more attractive investment opportunity compared to ARKR, which faces ongoing uncertainty [15]

Restaurant operators are navigating a mixed consumer spending backdrop, higher labor and input costs and the ongoing need to refresh concepts to sustain traffic. In this environment, Ark Restaurants Corp. (ARKR) and Flanigan’s Enterprises, Inc. (BDL) stand out as two niche players with distinct operating models. ARKR runs a portfolio of destination, high-traffic restaurants and food concepts across major tourist and urban markets, while BDL operates and franchises a long-established Florida-focused casual d ...

Shares of Ark Restaurants Corp. (ARKR) have lost 3.6% since the company reported earnings for the quarter ended Sept. 27, 2025. This compares unfavorably with the S&P 500 Index’s 2.3% gain over the same time frame. Over the past month, the stock has lost 10.3% versus the S&P 500’s 8.1% rise.ARKR’s Earnings SnapshotFor the fourth quarter of fiscal 2025, Ark Restaurants reported total revenues of $37.3 million, down 14% year over year from $43.4 million. Excluding revenues from El Rio Grande and the Tampa Foo ...

Business Operations - As of September 27, 2025, the company owned and operated 16 restaurants and bars, 12 fast food concepts, and catering operations exclusively in the United States[94]. - The company continues to operate its properties while pursuing lease extensions and protecting its rights amid ongoing disputes with the landlord[100]. - The Company extended its lease for America at the New York-New York Hotel and Casino in Las Vegas through December 31, 2033, agreeing to spend a minimum of $4,000,000 on a refresh by March 31, 2026[144]. Financial Performance - For the year ended September 27, 2025, total revenues decreased by 9.7% to $165.8 million compared to $183.5 million for the year ended September 28, 2024[107]. - Same-store food and beverage sales decreased by 4.2% for the year ended September 27, 2025, with notable declines in New York (-10.8%) and Washington, D.C. (-14.9%)[109]. - The operating loss for the year ended September 27, 2025, was $4.1 million, a 5.4% improvement from an operating loss of $4.3 million for the year ended September 28, 2024[106]. - Total costs and expenses for the year ended September 27, 2025 were $169,815,000, a decrease of $18,024,000 or 9.6% compared to $187,839,000 in 2024[112]. - Net cash provided by operating activities decreased to $1,752,000 in 2025 from $4,654,000 in 2024, primarily due to lower operating income[132]. Revenue Sources - The Bryant Park Grill and The Porch at Bryant Park collectively accounted for $25.5 million and $31.1 million of total revenues for the years ended September 27, 2025, and September 28, 2024, respectively, representing approximately 15.4% and 17.4% of total revenue[101]. - Bryant Park Grill & Café and The Porch at Bryant Park collectively accounted for $25.5 million and $31.1 million of total revenues for the years ended September 27, 2025, and September 28, 2024, representing approximately 15.4% and 17.4% of total revenue for those periods, respectively[138]. Investment and Impairment - The company has made a total investment of $5.3 million in the New Meadowlands Racetrack LLC since March 12, 2013[103]. - The company anticipates potential impairment of its investment in New Meadowlands Racetrack if a proposed referendum for casino licenses does not pass[105]. - The carrying value of the investment in New Meadowlands Racetrack is assessed each reporting period for potential impairment based on various factors including the probability of gambling being approved in northern New Jersey[164]. - The company recognized a non-cash impairment charge of $3,440,000 for goodwill in the year ended September 27, 2025, due to a decline in stock price and lease uncertainties[171]. - Goodwill impairment charge for the year ended September 27, 2025 was $3,440,000, compared to $4,000,000 in the previous year, indicating a decline in the company's equity value[122]. Cost Management - Food and beverage cost of sales decreased by $3,092,000 to $46,427,000, representing 28.0% of total revenues, up from 27.0% in the previous year[112]. - Payroll expenses decreased by $5,498,000 to $60,346,000, accounting for 36.4% of total revenues, slightly up from 35.9%[113]. - Occupancy expenses decreased by $2,095,000 to $22,527,000, making up 13.6% of total revenues, compared to 13.4% in the prior year[114]. - General and administrative expenses decreased by $262,000 to $12,001,000, which is 7.2% of total revenues, up from 6.7%[116]. Lease and Termination - The company recognized a gain of $5.2 million on the termination of the Tampa Food Court lease, contributing to the overall operating results[106]. - A subsidiary received a termination payment of $5,500,000 for vacating the food court at The Hard Rock Hotel and Casino, resulting in a recognized gain of $5,235,000 during the year ended September 27, 2025[151]. - The Company recognized a loss of $876,000 from the termination of the El Rio Grande lease and a gain of $173,000 from refinements of estimates during the year ended September 27, 2025[150]. Debt and Financing - The Credit Agreement was amended to extend the maturity date to June 1, 2028, reduce maximum obligations from $30,000,000 to $20,000,000, and increase the minimum tangible net worth covenant from $22,000,000 to $28,000,000[153]. Accounting and Valuation - The company assesses goodwill and trademarks for impairment annually and whenever events indicate that carrying values may not be recoverable[169]. - The company provides a deferred income tax valuation allowance due to uncertainty about the realization of deferred tax amounts[168]. - Recent accounting standards adopted in fiscal 2025 are discussed in Note 1 of the consolidated financial statements[174].

Core Insights - Ark Restaurants Corp. (ARKR) has experienced a significant decline in stock value, losing 31.8% over the past six months, compared to a 5.1% decline in the industry and gains of 6% and 16.3% in the sector and S&P 500, respectively [1][2][7] Financial Performance - The company reported weaker top-line performance and continued losses for the fourth quarter of fiscal 2025, attributed to softer traffic at flagship locations and disruptions from ongoing litigation at Bryant Park [2][3] - Despite some properties showing improved cash flow, particularly in Las Vegas and select New York and Florida restaurants, these positives were overshadowed by lower catering and a la carte sales, as well as revenue losses from closed locations [2][3] Operational Challenges - Management cited elevated legal costs and uncertainty surrounding the Bryant Park Grill and The Porch as significant factors affecting earnings, leading to reduced event bookings and overall revenue visibility [3][10] - Mixed performance across the restaurant portfolio was noted, with weaker trends in Washington, D.C., and parts of Florida, which offset stronger results in Las Vegas and New York [11] Cost Pressures - Persistent cost inflation remains a challenge, with higher labor, insurance, and operating expenses constraining margins despite targeted pricing actions [12] - Management acknowledged that while pricing and efficiency initiatives have helped, inflationary pressures continue to impact profitability and investor sentiment [12] Long-term Opportunities - Two fundamental factors driving the stock include potential long-term optionality tied to the Meadowlands Racetrack investment, which could provide exclusive food-and-beverage rights if casino gaming is approved, and improving operational efficiency at select core properties [13] - The trailing 12-month EV/Sales ratio for ARKR stands at 0.08X, significantly lower than the industry's average of 4.17X and its five-year median of 0.28X, indicating potential undervaluation [14] Market Position - ARKR's stock continues to face pressure from ongoing uncertainty related to its Bryant Park operations, which management described as a significant drag on performance [10][17] - The company has not issued formal guidance but has shared a cautious qualitative outlook, noting improved operating trends entering the December quarter [8]

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Financial Data and Key Metrics Changes - The company's cash position is $11.3 million, slightly up from $10.2 million last year [4] - Total debt stands at $3.6 million [4] - Adjusted EBITDA for the full year decreased to $1.4 million from $6.1 million last year, primarily due to increased legal fees and impacts on the catering business related to Bryant Park [4] - For the current quarter, EBITDA was -$1 million compared to $500,000 in the same quarter last year, again attributed to Bryant Park [5] Business Line Data and Key Metrics Changes - The company has seen improved cash flows in Las Vegas and Alabama, while Florida properties are experiencing revenue declines of 5% to 7% [6][7] - The catering business in Washington, D.C. has been negatively impacted, affecting overall performance [8] Market Data and Key Metrics Changes - The company is facing challenges in Florida, with revenue deterioration noted across full-service restaurants [6][7] - The Meadowlands Racetrack may benefit from new casino licenses issued in downstate New York, which could enhance the company's position if a casino is established [9][10] Company Strategy and Development Direction - The company is optimistic about the Meadowlands despite increased competition from new casinos in New York [20][22] - Management is actively seeking new properties and has two letters of intent out for potential acquisitions [25][26] - The focus remains on improving operational efficiency and managing rising costs in labor and materials [23][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the difficulties in the current operating environment but remains hopeful about the future, particularly regarding the Meadowlands and ongoing litigation at Bryant Park [30][31] - There is a belief that the company has a strong position in the Bryant Park litigation, which could positively influence future operations [30][31] Other Important Information - The company is experiencing a challenging environment for acquisitions, with many potential deals deteriorating during the due diligence process [26] - Management emphasizes the importance of not relying on press narratives regarding the Bryant Park situation [30][32] Q&A Session Summary Question: What is the strategy going forward to turn the core business around? - Management expressed optimism about the Meadowlands and stated that they are actively looking for new partners and properties [20][22] Question: Why not leverage successful management from Vegas to improve other properties? - Management acknowledged the success in Vegas and indicated they are looking for ways to replicate that success across other locations [24][28] Question: Concerns about the litigation at Bryant Park and its impact on the business? - Management believes they have a strong position in the litigation and that it has not negatively impacted their ability to operate [30][31] Question: Why is there no insider buying at current stock prices? - Management stated that insider decisions on buying stock are personal and not necessarily indicative of the company's value [39][41]