NasdaqGM:ARKR

Stock Analysis Report

Executive Summary

Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States.

Rewards

Trading at 62.4% below its fair value

Earnings grew by 42.4% over the past year

Pays a reliable dividend of 12.12%

Risk Analysis

Earnings have declined by -8.72% per year over past 5 years

Has a high level of debt

Large one-off items impacting financial results

Does not have a meaningful market cap ($29M)



Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has Ark Restaurants's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ARKR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-38.9%

ARKR

-15.8%

US Hospitality

-2.8%

US Market


1 Year Return

-59.1%

ARKR

-52.8%

US Hospitality

-15.9%

US Market

Return vs Industry: ARKR underperformed the US Hospitality industry which returned -52% over the past year.

Return vs Market: ARKR underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

ARKRIndustryMarket
7 Day-38.9%-15.8%-2.8%
30 Day-55.6%-40.8%-18.8%
90 Dayn/a-55.9%-24.0%
1 Year-56.9%-59.1%-51.5%-52.8%-14.2%-15.9%
3 Year-62.1%-66.9%-40.9%-44.9%9.9%2.8%
5 Year-57.6%-66.1%-37.8%-44.7%27.2%13.3%

Price Volatility Vs. Market

How volatile is Ark Restaurants's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ark Restaurants undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARKR ($8.25) is trading below our estimate of fair value ($21.95)

Significantly Below Fair Value: ARKR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ARKR is good value based on its PE Ratio (6.8x) compared to the Hospitality industry average (11.5x).

PE vs Market: ARKR is good value based on its PE Ratio (6.8x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARKR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARKR is good value based on its PB Ratio (0.7x) compared to the US Hospitality industry average (1.2x).


Next Steps

Future Growth

How is Ark Restaurants forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.4%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ark Restaurants has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Ark Restaurants performed over the past 5 years?

-8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARKR has a large one-off loss of $3.0M impacting its December 28 2019 financial results.

Growing Profit Margin: ARKR's current net profit margins (2.6%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: ARKR's earnings have declined by -8.7% per year over the past 5 years.

Accelerating Growth: ARKR's earnings growth over the past year (42.4%) exceeds its 5-year average (-8.7% per year).

Earnings vs Industry: ARKR earnings growth over the past year (42.4%) exceeded the Hospitality industry 1.6%.


Return on Equity

High ROE: ARKR's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Ark Restaurants's financial position?


Financial Position Analysis

Short Term Liabilities: ARKR's short term assets ($14.3M) do not cover its short term liabilities ($24.3M).

Long Term Liabilities: ARKR's short term assets ($14.3M) do not cover its long term liabilities ($79.4M).


Debt to Equity History and Analysis

Debt Level: ARKR's debt to equity ratio (59.4%) is considered high.

Reducing Debt: ARKR's debt to equity ratio has increased from 17.7% to 59.4% over the past 5 years.

Debt Coverage: ARKR's debt is well covered by operating cash flow (47.4%).

Interest Coverage: ARKR's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet

Inventory Level: ARKR has a high level of physical assets or inventory.

Debt Coverage by Assets: ARKR's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Ark Restaurants's current dividend yield, its reliability and sustainability?

12.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARKR's dividend (12.12%) is higher than the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: ARKR's dividend (12.12%) is in the top 25% of dividend payers in the US market (5.71%)


Stability and Growth of Payments

Stable Dividend: ARKR's dividends per share have been stable in the past 10 years.

Growing Dividend: ARKR's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82%), ARKR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

19.0yrs

Average management tenure


CEO

Michael Weinstein (76yo)

37.25s

Tenure

US$1,144,156

Compensation

Mr. Michael Weinstein founded Ark Restaurants Corp. in January 1983 and has been its Chief Executive Officer since January 1983. Mr. Weinstein serves as President of Ark Las Vegas Restaurant Corporation. H ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.14M) is above average for companies of similar size in the US market ($USD618.59K).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Weinstein
Founder37.25yrsUS$1.14m26.81% $7.7m
Vincent Pascal
COO, Senior VP & Director34.5yrsUS$529.11k1.06% $306.1k
Paul Gordon
Senior VP & Director23.42yrsUS$543.70kno data
Anthony Sirica
CFO & Director1.58yrsno datano data
Sonal Shah
In-House Counselno datano datano data
Walter Rauscher
Vice President of Corporate Sales & Cateringno datano datano data
Evyette Ortiz
Director of Marketing34.5yrsno datano data
Marilyn Guy
Director of Human Resourcesno datano datano data
Mei Ling Chew
Joint Secretaryno datano datano data
Nancy Alvarez
Controllerno datano datano data

19.0yrs

Average Tenure

72yo

Average Age

Experienced Management: ARKR's management team is seasoned and experienced (19 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Weinstein
Founder37.25yrsUS$1.14m26.81% $7.7m
Vincent Pascal
COO, Senior VP & Director34.5yrsUS$529.11k1.06% $306.1k
Paul Gordon
Senior VP & Director23.42yrsUS$543.70kno data
Anthony Sirica
CFO & Director1.58yrsno datano data
Stephen Novick
Independent Director15.25yrsUS$32.50kno data
Steven Shulman
Independent Director16.33yrsUS$34.00k0.19% $56.1k
Bruce Lewin
Independent Director20.17yrsUS$48.50k8.36% $2.4m
Marcia Allen
Independent Director17.25yrsUS$40.00kno data
Arthur Stainman
Independent Director15.67yrsUS$40.00k1.65% $476.4k

16.3yrs

Average Tenure

76yo

Average Age

Experienced Board: ARKR's board of directors are seasoned and experienced ( 16.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ark Restaurants Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ark Restaurants Corp.
  • Ticker: ARKR
  • Exchange: NasdaqGM
  • Founded: 1983
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$28.882m
  • Shares outstanding: 3.50m
  • Website: https://www.arkrestaurants.com

Number of Employees


Location

  • Ark Restaurants Corp.
  • 85 Fifth Avenue
  • 14th Floor
  • New York
  • New York
  • 10003
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARKRNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDDec 1985

Biography

Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. As of September 28, 2019, it owned and/or operated 20 restaurants and bars, including 5 facilities located in New York City; 2 in Washington, D.C.; 5 in Las Vegas, Nevada; 3 in Atlantic City, New Jersey; 3 on the east coast of Florida; and 2 on the gulf coast of Alabama, as well as had 17 fast food concepts and catering operations. The company was founded in 1983 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 04:43
End of Day Share Price2020/04/03 00:00
Earnings2019/12/28
Annual Earnings2019/09/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.