Investment Thesis
ARK Restaurants faces significant operational challenges with declining revenue (-9.7% YoY), deteriorating profitability (net income down 25.1%), and negative free cash flow (-$1.8M) that raise concerns about financial sustainability. The company's elevated debt-to-equity ratio (1.06x) combined with weak liquidity (0.76x current ratio) and minimal operating cash generation leaves limited financial flexibility for a capital-intensive restaurant business.
ARKR Strengths
- Positive operating income of $1.1M despite revenue headwinds
- Adequate interest coverage ratio of 3.3x indicating debt servicing capacity
- Reasonable cash position of $9.1M providing near-term buffer
ARKR Risks
- Negative free cash flow of -$1.8M indicates cash burn and inability to self-fund operations
- Below 1.0x current ratio signals potential liquidity stress and working capital constraints
- Revenue contraction of 9.7% YoY combined with 25.1% net income decline suggests operational deterioration
- Debt-to-equity ratio of 1.06x is elevated for a restaurant operator with inconsistent cash generation
- Negative operating cash flow of -$550K indicates poor cash conversion despite positive net income
Key Metrics to Watch
- Operating cash flow trend and return to positive territory
- Revenue stabilization and same-store sales performance
- Debt reduction progress and debt-to-equity ratio
- Current ratio improvement toward 1.0x or higher
ARKR Financial Metrics
ARKR Profitability Ratios
ARKR Balance Sheet & Liquidity
ARKR 5-Year Financial Trend
5-Year Trend Summary: ARK RESTAURANTS CORP's revenue has grown significantly by 39% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.08 indicates the company is currently unprofitable.
ARKR Growth Metrics (YoY)
ARKR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $40.7M | $896.0K | $0.25 |
| Q3 2025 | $43.7M | $561.0K | $0.15 |
| Q2 2025 | $39.7M | -$79.0K | $-0.02 |
| Q1 2025 | $45.0M | $1.4M | $0.38 |
| Q3 2024 | $50.4M | $561.0K | $0.15 |
| Q2 2024 | $41.9M | -$79.0K | $-0.02 |
| Q1 2024 | $47.4M | $1.4M | $0.38 |
| Q3 2023 | $51.1M | $3.2M | $0.88 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ARKR Capital Allocation
ARKR SEC Filings
Access official SEC EDGAR filings for ARK RESTAURANTS CORP (CIK: 0000779544)