Ark Restaurants (ARKR) Q3 Earnings and Revenues Decline Y/Y

Core Insights - Ark Restaurants Corp. reported a significant decline in earnings per share, which fell 79.5% to 18 cents in Q3 fiscal 2024 from 88 cents in the same quarter last year [1] - The company's revenues decreased by 1.3% year over year to $50.4 million, primarily due to a drop in same-store sales [2] Revenue Details - Revenues from Food and beverage sales were $49.2 million, also down 1.3% from the previous year [3] - Same-store sales in Las Vegas increased by 2.5%, while New York saw a decrease of 5.2%, Washington, D.C. dropped by 15.8%, and Atlantic City fell by 8% [3][4] - Other revenues amounted to $1.2 million, down 1.9% year over year [4] Profitability Metrics - Gross profit declined by 1.9% to $37.1 million, with a gross margin contraction of 46 basis points to 73.6% [5] - Operating profit fell 77.3% to $0.8 million, and net income decreased by 79.9% to $0.6 million [7] - Adjusted EBITDA was reported at $3.4 million, down 27.6% from the previous year [7] Expense Analysis - Payroll expenses increased by 1.7% to $17.5 million, while occupancy expenses rose by 1.8% to $6.3 million [6] - General and administrative expenses saw a significant decline of 23% to $2.7 million [6] Liquidity and Cash Flow - The company ended Q3 fiscal 2024 with cash and cash equivalents of $11.5 million, up from $10.4 million at the end of Q2 [8] - Cumulative net cash provided by operating activities was $3.9 million, down from $6.9 million a year ago [9] Overall Assessment - The company experienced disappointing results in both top-line and bottom-line metrics, with lower revenues and same-store sales in key locations [10] - Positive aspects included increased sales at Gallagher's Steakhouse and same-store sales growth in Las Vegas, Alabama, and Florida [10]