Ark Restaurants Corp. (ARKR) AI Stock Analysis

NASDAQ: ARKRAI research summary: business, growth, valuation, analysts, bull and bear case.

ARKR AI stock analysis summary

AI Research

Ark Restaurants Corp. operates upscale dining venues, fast food concepts, and catering services across prominent metropolitan areas. The company generated $155.5M in trailing twelve-month revenue, but net income declined to -$11.5M in FY2025 alongside an operating margin of -0.8%. With net debt of $74.5M against a market capitalization of $15.8M, the stock has dropped 38.9% over the past year.

Market cap
$15.8M
Revenue (TTM)
$155.5M
P/E
—
fwd 8.5x
1Y return
-38.9%
S&P 500 16.8%
Avg. target
$17.00
289.0% vs last close

Bull case

  • The company trades at a forward P/E of 8.5x and a price-to-sales ratio of 0.1x, both below the US-listed Consumer Cyclical peer medians of 14.1x and 0.7x.
  • The analyst mean price target of $17.00 represents a 289.0% upside compared to the last closing price of $4.37.
  • Insiders hold 52.0% of the company's shares, indicating significant alignment with long-term equity ownership.

Bear case

  • In FY2025, revenue contracted by 9.7% to $165.8M while net income worsened to -$11.5M.
  • Balance sheet leverage remains elevated with total debt of $84.0M, net debt of $74.5M, and a debt-to-equity ratio of 2.66 as of June 30, 2026.
  • Free cash flow declined into negative territory at -$1.5M in FY2025, alongside a weak current ratio of 0.78.

What Ark Restaurants does

Founded in 1983 and headquartered in New York, New York, Ark Restaurants Corp. is a hospitality operator managing a portfolio of restaurants and bars across the United States. The company operates in metropolitan areas such as New York City, Washington, D.C., Las Vegas, Atlantic City, and locations in Florida and Alabama. Its operations span upscale dining venues, fast food concepts, and comprehensive catering services to serve diverse dining occasions. The company focuses on distinctive ambiance, quality cuisine, and customer satisfaction across its restaurant operations while actively participating in community outreach initiatives.

Growth and profitability

From FY2021 to FY2025, Ark Restaurants experienced revenue shifts, growing from $131.9M in FY2021 to a peak of $184.8M in FY2023, before declining 0.7% to $183.5M in FY2024 and falling 9.7% to $165.8M in FY2025. Gross margin contracted from 38.2% in FY2021 to 35.6% in FY2025, while operating margin fell from 4.7% to -0.8%. Annual net income dropped from $12.9M in FY2021 to -$11.5M in FY2025, resulting in diluted EPS of -$3.18. In the trailing twelve months ended June 30, 2026, revenue stood at $155.5M with an operating margin of -0.4%. For the latest quarter ended June 30, 2026, quarterly revenue fell 6.5% year-over-year, and quarterly earnings decreased 71.7%.

ARKR income statement →

Balance sheet and cash flow

As of June 30, 2026, Ark Restaurants held $9.5M in cash and short-term investments against total debt of $84.0M, resulting in net debt of $74.5M. Total assets stood at $128.9M and shareholders' equity was $31.5M, yielding a debt-to-equity ratio of 2.66 and a current ratio of 0.78. For FY2025, operating cash flow dropped to $1.8M, capital expenditures were $3.2M, and free cash flow turned negative to -$1.5M. Over five years, the company's share count increased 0.3%.

ARKR balance sheet →

Valuation and performance

At a share price of $4.37, Ark Restaurants carries a market capitalization of $15.8M and an enterprise value of $91.6M. Its forward P/E ratio is 8.5x, below the median of its US-listed Consumer Cyclical peers of 14.1x. Its price-to-sales ratio is 0.1x compared to the peer median of 0.7x, while its EV-to-EBITDA stands at 194.6x compared to 11.1x for its peers. Over the past year, the stock fell 38.9%, trailing the S&P 500 (SPY) gain of 16.8%. Over five years, ARKR fell 70.1% while SPY gained 83.0%.

ARKR key metrics →

What analysts expect

Wall Street analysts maintain a mean price target of $17.00 for Ark Restaurants, which is 289.0% above its last close of $4.37. The stock trades near its 52-week low of $4.32, well below its 52-week high of $9.50, and sits 28.4% below its 200-day average. The company reported trailing twelve-month EPS of -$0.88, reflecting continued operational challenges in recent periods.

Key risks and what to watch

  • Short-term liquidity pressure is elevated, with a current ratio of 0.78 as of June 30, 2026.
  • Operating margins turned negative to -0.8% in FY2025 and remained at -0.4% over the trailing twelve months.
  • Quarterly performance continues to deteriorate, with quarterly earnings falling 71.7% year-over-year in the period ended June 30, 2026.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this ARKR AI stock analysis

This page is an AI-written research summary of Ark Restaurants Corp. (ARKR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ARKR income statement, ARKR balance sheet, ARKR key metrics, ARKR chart. See the ARKR stock overview for the latest quote and news.

ARKR AI stock analysis FAQ

What is Ark Restaurants Corp.'s current valuation?

As of October 16, 2026, Ark Restaurants has a market capitalization of $15.8M and an enterprise value of $91.6M at a price of $4.37. It trades at a forward P/E of 8.5x, a price-to-sales ratio of 0.1x, and an EV-to-EBITDA ratio of 194.6x.

How much debt does Ark Restaurants have?

As of June 30, 2026, Ark Restaurants reported total debt of $84.0M and cash and short-term investments of $9.5M, leaving net debt at $74.5M. The debt-to-equity ratio stood at 2.66.

What is the analyst price target for ARKR stock?

The analyst mean price target for ARKR is $17.00, representing a 289.0% premium over the last closing price of $4.37.

How did Ark Restaurants perform in FY2025?

In FY2025, revenue declined 9.7% to $165.8M, operating margin was -0.8%, and net income fell to -$11.5M, resulting in EPS of -$3.18 and free cash flow of -$1.5M.

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