Stocks/ARKR

ARKR

Ark Restaurants Corp.
Consumer Cyclical·Restaurants
$6.33
$23M market cap
Claude Rating
2/10SHORT
Revenue
$158.4M
Free Cash Flow
$-3.9M
Rev Growth
-7.9%
FCF Margin
-2.4%
P/FCF
--
EV/FCF
--
Fwd EV/EBITDA
--
Fair Value
$4.50
Upside
-28.9%

Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. As of December 20, 2021, it owned and operated 17 restaurants and bars, including four restaurants located in New York City; one in Washington, D.C.; five in Las Vegas, Nevada; one in Atlantic City, New Jersey; four on the east coast of Florida; and two on the gulf coast of Alabama, as well as had 17 fast food concepts and catering operations. The company was incorporated in 1983 and is

2-Year Price History

$6.60-55.6%
$8.0$10$12$14volJun 24Oct 24Jan 25May 25Sep 25Jan 26May 26

Quarterly Financials & Projections

Quarterly Waterfall ($ M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2028-Q231.0-1.7---2.9---1.9-0.53.7----------
Est2028-Q136.00.9---0.4---0.4-0.55.5----------
Est2027-Q432.0-1.6---2.9---1.8-0.85.9----------
Est2027-Q338.00.4---1.3---0.6-0.87.6----------
Est2027-Q233.5-1.5---2.7---1.7-0.78.2----------
Est2027-Q138.51.4--0.2---0.8-0.89.9----------
Est2026-Q435.0-1.4---2.6---1.1-1.110.6----------
Est2026-Q341.50.8---1.0--0.2-1.011.7----------
Act2026-Q236.6-1.1-1.7-1.8-1.0-2.1-1.111.586.73.6-7.6%-21.6x--
Act2026-Q140.81.81.10.9-0.6-1.8-1.39.1157.73.62.6%25.4x--
Act2025-Q437.3-0.8-1.7-1.90.6-1.0-1.611.385.73.6-8.0%-9.5x--
Act2025-Q343.7-2.11.1-3.51.91.0-0.812.387.53.64.7%-20.3x--
Act2025-Q239.7-3.8-1.3-9.30.60.3-0.311.189.63.6-5.9%-36.7x--
Act2025-Q145.06.60.63.2-1.4-2.0-0.613.191.83.61.6%54.0x--
Act2024-Q443.4-4.5-0.6-4.50.7-0.5-1.210.395.83.6-1.6%-32.0x--
Act2024-Q350.42.03.30.63.22.5-0.611.5100.03.612.0%13.3x--
Act2024-Q242.3-0.0-1.2-1.50.2-0.2-0.410.4102.53.6-3.7%-0.1x--
Act2024-Q147.53.11.61.40.60.3-0.312.1104.93.64.9%18.2x--
Act2023-Q444.4-9.6-0.7-10.41.50.8-0.713.4107.43.6-1.5%-56.1x--
Act2023-Q351.14.93.63.24.83.7-1.014.0107.13.610.6%27.9x--
Act2023-Q241.91.50.0-0.53.01.7-1.317.9115.63.60.0%3.2x--
Act2023-Q147.53.92.21.7-0.9-1.7-0.824.5124.93.75.6%9.1x--
Act2022-Q353.28.15.45.310.910.2-0.626.6102.83.614.3%27.7x--
Act2022-Q239.62.80.21.11.10.4-0.718.583.23.60.6%10.7x--
Act2022-Q144.04.32.82.23.93.4-0.520.287.43.69.5%14.9x--
Historical Valuation

Multiples vs the company's own history — cheap or rich relative to itself? Historical fiscal years, then TTM, then forward projections (E). Forward rows hold today's price against projected earnings, so the multiple compresses if the company grows into it.

YearPriceRev GrEBITDA %EBITDAEV/EBITDAEV/FCFP/EP/S
202313.710.4%1
202411.00-0.7%0.3%1
20256.71-9.7%-0.1%-0
TTM6.33-11.3%-1.3%-20.0×0.0×0.0×0.0×
2027E6.33-10.3%-0.0%-0n/m0.0×0.0×0.0×

EBITDA in reporting-currency $M. Historical multiples use year-end market cap (split-adjusted price history); TTM & forward years use today's.

AI Analysis

LLM Evaluations

Claude2/10SHORTFV: $4.50

ARKR is a deteriorating small-cap restaurant operator facing an existential threat from the loss of its highest-profile property (Bryant Park, ~13% of revenue), declining same-store sales across all markets, negative EBITDA, and a balance sheet held together by emergency covenant amendments. The core restaurant business is generating negative free cash flow with no clear path to recovery given macro headwinds on the lower-income consumer. Management's primary value creation thesis—a Meadowlands casino license—is a binary, highly speculative bet on a NJ voter referendum with uncertain timing and political opposition. Insider buying provides a modest positive signal, but the 11%+ dividend yield is clearly unsustainable given negative FCF and will likely be cut. At $6.60/share the stock appears cheap on revenue multiples, but the enterprise value of ~$99M against a business generating negative EBITDA and facing potential loss of its best asset makes this a value trap rather than a value opportunity.

Catalyst Favorable Bryant Park litigation outcome (trial late 2026/early 2027), NJ casino referendum passage in November 2026, or successful 'America' restaurant reopening driving Las Vegas revenue recovery. Any of these could double the stock from depressed levels.
Risk Loss of Bryant Park properties (~$20M+ annual revenue) combined with continued same-store sales declines could push the company into covenant default and force a restructuring, potentially wiping out equity holders.
Trend
DETERIORATING
Mgmt
4/10
Quarter
2/10
Exp. Move
-8.0%

Latest Earnings Call

Transcript Summary

Ark Restaurants reported a challenging second quarter for 2026, with CEO Michael Weinstein highlighting a broad decline in sales across all geographic regions. Las Vegas sales fell 11%, Florida 10%, and Washington, D.C. 5%. Management attributed the decline to the 'bottom end' of their customer base being impacted by inflation in non-discretionary costs like gas and groceries. Despite lower sales, the company improved cash flow in Las Vegas through better payroll management and is nearing the July launch of the renovated 'America' restaurant. The company's balance sheet remains stable with $11.5 million in cash and $7.6 million in debt after a $5 million drawdown for Las Vegas improvements. Significant legal and political factors loom over the company's future: the Bryant Park location is burdened by ongoing litigation costs with a trial not expected until late 2026, and the Meadowlands casino project is dependent on a potential New Jersey referendum this November. While polling for the referendum is generally positive, political resistance remains a hurdle. No analysts participated in the Q&A session, leaving the focus on management's efforts to control costs and the hope that upcoming property renovations will revitalise traffic.

Valuation & Metrics

Market Stats

Price$6.33
Market Cap$23M
Enterprise Value$98M
P/S Ratio0.1x
P/FCF--
EV/FCF--
FCF Margin (TTM)-2.4%
FCF Yield-16.9%
Dividend Yield (TTM)11.8%
Annual Dilution0.0%
CurrencyUSD

TTM Financial Snapshot

Revenue$158.4M
Net Income$-6.3M
Free Cash Flow$-3.9M

Revenue Growth (YoY)-7.9%
EBITDA Margin-1.3%
Net Margin-4.0%
FCF Margin-2.4%
CapEx % of Revenue3.0%
SBC % of Revenue0.0%
ROIC-2.1%
WC Change % Rev0.5%
Interest Coverage-6.8x

DCF Fair Value Estimate

$-0.65
-110.3% upside
Fair Enterprise Value$-24M
− Net Debt$75M
= Fair Equity$-2M
Revenue Growth-7.7% → 1.0%
FCF Margin-2.4% → 3.0%
Discount Rate16.0%
Terminal EV/FCF6.0x

Forward Outlook & Risk

Short Interest

Short % of Float0.8%
Short Shares0.0M
Days to Cover4.0
Change (vs Prior)+72.1%
Short % Float History
0.80%+0.20pp
0.6%0.8%1.0%1.2%04-3007-1509-1511-1401-1504-30

Forward Projections & Estimates

NTM Revenue Growth-6.2%
Forward FCF Margin-2.2%
Forward EBITDA Margin-0.5%
Forward P/FCF--
Forward EV/FCF--
Forward Int. Coverage-1.0x
Model Risk Score8/10
Bankruptcy Odds18%
Est. Borrow Rate11.0%
Terminal EV/FCF6.0x
LT Growth-1.0%
LT FCF Margin3.0%

Employees

Headcount1,246
Revenue / Employee$127,104
Gross Profit / Employee$17,437
2022: 1,901 → 2023: 1,993 → 2024: 1,862 → 2025: 1,566 (-6% CAGR)

Cash Runway

35.7months
WATCH

Institutional Ownership

Headline & net flow

BALANCED

In Q1 2026 so far (quarter still filing), institutions are roughly balanced — bought 1.5% of float, sold 1.3%.

Net flow · Q1 2026still filing
+0.2% of float (net)
Bought 1.5% · Sold 1.3%
20 filers reported (last quarter: 19)

Ownership composition

Active
12.4%(-2.5% YoY)
14 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
6.5%(-5.0% YoY)
5 filers
Vanguard, iShares, SPDR
Market makers
0.0%(-0.0% YoY)
1 filers
Citadel, Susquehanna
Insiders
5.3%
Form 4 — latest per insider
0%25%50%75%100%2022-062023-032023-122024-092025-062026-03
ActiveRetail fundsPassiveMarket makersRetail direct

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
CM Management, LLC$1.5M$13.80+$0+$164K-4.4%$120M
DIMENSIONAL FUND ADVISORS LPPassive$769K$16.16−$33K−$128K-0.4%$480.92B
Nokomis Capital, L.L.C.$754K$6.77+$50K+$754K+2.9%$331M
VANGUARD CAPITAL MANAGEMENT LLCPassive$550K$6.56+$550K+$550K$4.04T
BRIDGEWAY CAPITAL MANAGEMENT, LLC$263K$12.56+$6K−$40K-2.3%$4.93B
FIRST MANHATTAN CO$204K$15.17+$0−$5K-0.2%$36.06B
RENAISSANCE TECHNOLOGIES LLC$165K$16.23−$8K−$16K+1.2%$63.91B
Empowered Funds, LLC$153K$15.28+$6K+$6K+0.2%$15.64B
GEODE CAPITAL MANAGEMENT, LLCPassive$126K$12.52−$0−$18K+2.3%$1.61T
VANGUARD FIDUCIARY TRUST COPassive$88K$6.56+$88K+$88K$395.83B
BlackRock, Inc.Passive$56K$11.67+$2K+$0-0.2%$5.69T
UBS Group AG$5K$9.76−$0+$0-0.3%$562.11B
Tower Research Capital LLC (TRC)MM$5K$13.51+$0−$0-0.6%$3.84B
NORTHWESTERN MUTUAL WEALTH MANAGEMENT CO$4K$16.93+$0+$0-0.0%$162.09B
Farther Finance Advisors, LLC$2K$6.56+$2K+$2K-0.9%$10.58B
ACADIAN ASSET MANAGEMENT LLC$1K$17.28+$0−$1K-0.5%$70.48B
Advisory Services Network, LLC$0$15.49+$0+$0-0.9%$7.52B
Larson Financial Group LLC$0$6.56+$0+$0-0.0%$3.08B
Russell Investments Group, Ltd.$0$7.12+$0+$0+1.5%$93.03B
MORGAN STANLEY$0$8.96−$4K+$0-0.3%$1.65T
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)BULLISH
Holders
-1.58%
avg per quarter
Holders (ex-self)
-1.56%
excl. this stock
Buyers (this Q)
+2.46%
9 buyers · $0.00B in
Sellers (this Q)
+0.83%
5 sellers · $0.00B out
alpha coverage: 86% of $ has a lifetime-alpha record
Holder behavior on this stocksource: stock
On big dips (−10%+)
+11.7%
how holders react when this stock falls
On quiet Qs
-7.4%
−10% to +10% baseline
On rallies (+10%+)
-6.2%
how they react when this stock rises
Holders' portfolio flow this Q
-1.5%
outflows — trims may be forced
Sellers' portfolio flow this Q
+0.5%
Sellers' overall flow ~ flat.
▸ Compare to holder-profile behavior (across all their stocks)
Holder dip (any stock)
+5.6%
Holder mid (any stock)
-3.1%
Holder rally (any stock)
-6.2%

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

0115K230K345K460K$6.56$9.32$12$15$182021-062022-062023-062024-062025-062026-03
hover the chart for per-quarter detailprice (right axis)
CM Management, LLC225KFMR LLCBRIDGEWAY CAPITAL MANAGEMENT, LLC40KNokomis Capital, L.L.C.115KVerdad Advisers, LPFIRST MANHATTAN CO31KRENAISSANCE TECHNOLOGIES LLC25KAristides Capital LLCEmpowered Funds, LLC23KEA Series TrustUBS Group AG729

Analyst Coverage

Analyst Coverage
Consensus Estimates
QuarterRevenueEBITDANet IncEPSEPS Range# Analysts
2022 Q213M2M1M$1.15$1.15 – $1.158
2022 Q318M2M1M$1.27$1.27 – $1.277
2022 Q428M3M1M$1.95$1.95 – $1.957
2023 Q11M-1M-2M$1.43$1.43 – $1.436
2023 Q212M2M1M$1.19$1.19 – $1.1911
2023 Q317M1M1M$1.39$1.39 – $1.396
2023 Q426M2M1M$2.09$2.09 – $2.091
2024 Q11M-1M-2M$1.58$1.58 – $1.581
2025 Q244M2M0M$0.00$0.00 – $0.007
2025 Q337M2M0M$0.00$0.00 – $0.000

Corporate

Executive Compensation (2023-2025)

Direct Pay$10.7M
Incentive & Other$0.5M
Total Compensation$11.2M
% of Revenue2.1%

Insider Trading (last 12mo)

Open-market only (Form 4 P-Purchase + S-Sale). Excludes grants, option exercises, tax withholding, gifts.
Major holders (≥10% beneficial owners)
Buys ($, 12mo)
$428K
4 txns · 2 insiders · 61,586 sh
Sells ($, 12mo)
$0
0 txns · 0 insiders · 0 sh
Recent transactions
DateSideInsiderTitleSharesPriceDollarsOwned $
2025-08-18BUYWEINSTEIN MICHAEL LAWRENCEdirector, 10 percent owner, officer: Chairman & CEO3,000$7.50$23K$7.08M
2025-08-14BUYWEINSTEIN MICHAEL LAWRENCEdirector, 10 percent owner, officer: Chairman & CEO545$7.30$4K$6.88M
2025-08-06BUYSATTERFIELD THOMAS A JR10 percent owner12,125$7.48$91K$1.37M
2025-08-05BUYSATTERFIELD THOMAS A JR10 percent owner45,916$6.76$310K$1.52M

Order Flow (FINRA, ~3w lag)

18.7%retail-25.0pp
4.1%dark-1.0pp
week of 2026-04-13
0%20%40%60%80%24-1125-0225-0525-0825-1126-0226-04retail (non-ATS)dark (ATS)
Off-exchange volume from FINRA. Retail = non-ATS (wholesaler PFOF + broker internalization). Dark = ATS (dark-pool crossing networks, institutional). Lit-exchange = remainder.

Revenue Breakdown

Revenue Segments

By Product (2026-Q2)
Food and Beverage$36.1M-8%
Other Revenue$0.4M-28%

Filing Risk Analysis

Filing Risk Scores

Ark Restaurants Corp: Bryant Park Litigation and Covenant Amendments Mask Underlying Fragility

Overall Risk
7/10
Fraud
3/10
Dilution
2/10
Insolvency
6/10
Earnings Overstated
4/10
Hidden Liabilities
8/10
Legal
9/10
Audit Warnings
5/10
Hidden Upside
4/10
Contextually Acceptable
3/10

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

In May 2026, Ark Restaurants reported a Q2 net loss of $1.8 million, with total revenues falling 7.9% year-over-year to $36.6 million. Same-store sales plummeted 7.6% across the portfolio. Management confirmed that the critical legal battle over the Bryant Park properties—which represent roughly 13.3% of total revenue—is expected to go to trial in late 2026 or early 2027, with potential appeals extending the uncertainty for another 1.5 years (Source: TradingView, NRN).

🐻 Bear Case

The bear case centers on the potential loss of the 'crown jewel' Bryant Park assets after the landlord selected a new operator (Jean-Georges Vongerichten). Without this cash flow, the company has admitted it likely cannot sustain dividends or share buybacks. Furthermore, ARKR is making a high-stakes 'all-or-nothing' gamble on a New Jersey casino license that depends on a 2026 voter referendum, creating a binary risk profile for a company already struggling with declining traffic (Source: Seeking Alpha, YouTube/BriefGlance).

🚩 Red Flags

ARKR faces a massive balance sheet deficit, with total liabilities exceeding cash and short-term receivables by $87.9 million. Litigation expenses are currently 'offsetting a good portion' of the profitability from its most successful venues. Additionally, the company has seen consistent same-store sales declines in every major market: Las Vegas (-11%), Florida (-10%), and Washington, D.C. (-5%) (Source: Simply Wall St, Motley Fool).

⚔️ Competitive Threats

The company faces immediate displacement at Bryant Park by the Jean-Georges Restaurants group. In Florida, management specifically cited 'intensified competition' as a primary driver for a 10% sales drop. The proposed Meadowlands casino venture also faces stiff regional competition from established New York and Atlantic City gaming operators (Source: Zacks, NRN).

💬 Customer Sentiment

Sentiment is weakening as CEO Michael Weinstein noted the company is 'losing the bottom end' of its customer base—price-sensitive diners squeezed by grocery and gas inflation. Furthermore, the protracted legal dispute has created 'confusion in the marketplace,' with many customers and event planners wrongly believing the flagship Bryant Park Grill has already closed, leading to a significant loss in high-margin catering bookings (Source: Seeking Alpha, Stock Titan).

Full Earnings Call Transcript

Full Earnings Call Transcript — Q2 • 2026-05-12

Operator: Greetings, and welcome to the Ark Restaurants Second Quarter 2026 Results Conference Call. [Operator Instructions]  As a reminder, this conference is being recorded. It is now my pleasure to introduce Anthony Sirica, Chief Financial Officer. Please go ahead.
Anthony Sirica: Good morning, everyone. Chris has to read the safe harbor. Sorry.
Christopher Love: Hello, everyone. My name is Christopher Love. I'm the Secretary. With me on the call today is Michael Weinstein, our Chairman and CEO; and Anthony Sirica, our President and CFO. For those of you who have not yet obtained a copy of our press release, it was issued over the Newswires yesterday and is available on our website. To review the full text of that press release along with the associated financial tables, please go to our home page at www.arkrestaurants.com. Before we begin, however, I'd like to read the safe harbor statement. I need to remind everyone that part of our discussion this morning will include forward-looking statements and that these statements are not guarantees of future performance, and therefore, undue reliance should not be placed on them. We refer everyone to our filings with the Securities and Exchange Commission for a more detailed discussion of the risks that may have a direct bearing on our operating results, performance and financial condition. I'll now turn the call over to Anthony.
Anthony Sirica: Good morning, everybody. As always, Michael will discuss the business in Bryant Park and the Meadowlands situation. As far as the balance sheet goes, we did draw down $5 million before the end of the quarter to finance our leasehold improvements in Las Vegas. Our cash at the end of the quarter was $11.5 million, and our debt was $7.6 million. Other than that, the balance sheet remains very stable and in good shape. That's really -- it's pretty uneventful as far as the balance sheet goes.
Michael Weinstein: This is Michael. Just a brief review of what's going on. It's sort of a repeat of the last quarter and the quarter before that. We haven't increased prices by any measurable amount. There are certain increases on certain items. But menu pricing remains pretty much stable. We're challenged with sales everywhere. Essentially, the check averages remain pretty much the same, but we're losing what we consider the bottom end of our business with people who are being challenged by their own home expenses and prices of grocery stores and gas prices, et cetera. It's pretty much across the board. The Vegas sales are down about 11%, which is sort of in line with what [indiscernible] saying in terms of [indiscernible]. However, our cash flow there has actually improved as we have gotten better at managing payroll expenses and certain other expenses. We're really very well managed there. In Florida, everything is down 10%. We check with other operators and vendors and pretty much in line with all restaurants. Washington, D.C., same situation down 5% in sales. But again, we have new management there. We're operating more efficiently with less payroll. So we're actually running a little bit ahead of last year in terms of not having the losses we had last year. New York, Robert is doing very well. We're challenged with events at Bryant Park because of the litigation that we're going through. We're still very profitable, but our litigation expenses offset a good portion of that profitability. So all in all, not much different from the last quarter. It's just a sales problem. I would say that overall, we're very pleased with the product we're putting out, services, food. We are hopeful that we'll be opening our new America in Las Vegas in early July. We think that's going to help us dramatically. We think we're turning what is basically a restaurant that services customers of the hotel into what should be a sought-after destination. In terms of Bryant Park litigation, it's ongoing. We suggest to everybody who's interested that they go to the website, the court website to see all the filings. So far, there's nothing to indicate that this litigation is going to end soon. The trial will probably take place somewhere in very late this year, calendar year or early next year. I'm sure whoever wins that trial will be faced with an appeal from the opposite side, which will take another 1 year, 1.5 years. Meadowlands, we are at the point where we are hopeful that a referendum will be suggested by the legislature to be put up for vote in November. There is strong opposition always from the Atlantic City legislators and there is strong push forward to get this done by the Northern legislatures. We'll know more in the next month or so whether or not that referendum will be put on the ballot. The polling from the public is fairly positive. I mean there are 3 polls that have been done, all of them in favor, one was very close 51%, 49% in favor but the 2 others show anywhere from 62% to 66% in favor. So I think the polling should be persuasive. But again, this is Jersey politics and we're just hopeful we get on the ballot this year. With that, any questions?
Operator: [Operator Instructions] There are no questions at this time. I'd like to hand the floor back over to Michael Weinstein for any closing remarks.
Michael Weinstein: See you next quarter. Thank you very much.
Anthony Sirica: Thank you.
Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you again for your participation.