📊 ARKR Key Takeaways
Is Ark Restaurants Corp. (ARKR) a Good Investment?
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.
ARK Restaurants' fundamentals appear weak: revenue is declining, margins are thin, and earnings quality is pressured by negative operating cash flow and negative free cash flow despite reported net income. Balance sheet risk is elevated by sub-1.0 liquidity ratios, meaningful leverage, and only modest interest coverage, which limits flexibility if operating conditions remain soft.
Why Buy Ark Restaurants Corp. Stock? ARKR Key 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
- The company remains profitable at the operating and net income level
- Asset base and positive stockholders' equity provide some balance sheet support
- Interest coverage is still above 1x, suggesting debt service remains manageable for now
ARKR Stock Risks: Ark Restaurants Corp. Investment 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
- Revenue declined 9.7% year over year, pointing to weakening demand or store-level performance pressure
- Liquidity is tight, with a 0.76x current ratio and 0.67x quick ratio
- Cash generation is weak, with negative operating cash flow and negative free cash flow
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
- Operating cash flow and free cash flow trend
- Revenue growth and operating margin stability
Ark Restaurants Corp. (ARKR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ARKR Profit Margin, ROE & Profitability Analysis
ARKR vs Consumer Sector: How Ark Restaurants Corp. Compares
How Ark Restaurants Corp. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ark Restaurants Corp. Stock Overvalued? ARKR Valuation Analysis 2026
Based on fundamental analysis, Ark Restaurants Corp. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ark Restaurants Corp. Balance Sheet: ARKR Debt, Cash & Liquidity
ARKR Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
ARKR Quarterly Earnings & 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.
Ark Restaurants Corp. Dividends, Buybacks & Capital Allocation
ARKR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ark Restaurants Corp. (CIK: 0000779544)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ARKR
What is the AI rating for ARKR?
Ark Restaurants Corp. (ARKR) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARKR's key strengths?
Claude: Positive operating income of $1.1M despite revenue headwinds. Adequate interest coverage ratio of 3.3x indicating debt servicing capacity. ChatGPT: The company remains profitable at the operating and net income level. Asset base and positive stockholders' equity provide some balance sheet support.
What are the risks of investing in ARKR?
Claude: 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. ChatGPT: Revenue declined 9.7% year over year, pointing to weakening demand or store-level performance pressure. Liquidity is tight, with a 0.76x current ratio and 0.67x quick ratio.
What is ARKR's revenue and growth?
Ark Restaurants Corp. reported revenue of $40.7M.
Does ARKR pay dividends?
Ark Restaurants Corp. does not currently pay dividends.
Where can I find ARKR SEC filings?
Official SEC filings for Ark Restaurants Corp. (CIK: 0000779544) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARKR's EPS?
Ark Restaurants Corp. has a diluted EPS of $0.25.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ARKR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Ark Restaurants Corp. has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ARKR stock overvalued or undervalued?
Valuation metrics for ARKR: ROE of 2.7% (sector avg: 18%), net margin of 2.2% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy ARKR stock in 2026?
Our dual AI analysis gives Ark Restaurants Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARKR's free cash flow?
Ark Restaurants Corp.'s operating cash flow is $-550.0K, with capital expenditures of $1.2M. FCF margin is -4.4%.
How does ARKR compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 2.2% (avg: 8%), ROE 2.7% (avg: 18%), current ratio 0.76 (avg: 1.5).