Advertisement
Singapore markets closed

  • Straits Times Index

    3,336.59
    +13.21 (+0.40%)
     

  • Nikkei

    38,487.90
    +433.77 (+1.14%)
     

  • Hang Seng

    18,079.61
    -150.58 (-0.83%)
     

  • FTSE 100

    8,275.38
    +44.33 (+0.54%)
     

  • Bitcoin USD

    67,753.87
    +211.27 (+0.31%)
     

  • CMC Crypto 200

    1,427.69
    -0.88 (-0.06%)
     

  • S&P 500

    5,277.51
    +42.03 (+0.80%)
     

  • Dow

    38,686.32
    +574.84 (+1.51%)
     

  • Nasdaq

    16,735.02
    -2.06 (-0.01%)
     

  • Gold

    2,347.70
    -18.80 (-0.79%)
     

  • Crude Oil

    77.18
    -0.73 (-0.94%)
     

  • 10-Yr Bond

    4.5140
    -0.0400 (-0.88%)
     

  • FTSE Bursa Malaysia

    1,596.68
    -7.58 (-0.47%)
     

  • Jakarta Composite Index

    6,970.74
    -63.41 (-0.90%)
     

  • PSE Index

    6,433.10
    +61.35 (+0.96%)
     

Ark Restaurants Corp (ARKR) (Q2 2024) Earnings Call Transcript Highlights: Navigating ...

GuruFocus Research
·3-min read

  • Revenue: Vegas over $1 million a week, aiming for $1.1 to $1.15 million to offset rent increases.

  • Net Income: Not explicitly mentioned, but financial performance impacted by high costs and refusal to significantly raise prices.

  • Same-Store Sales: Florida showing improvement in recent months compared to last year.

  • Costs: Increased payroll, liability insurance, property insurance, food costs, and rent.

  • Operational Efficiency: Improved payroll efficiency and better food cost management by new purchasing department.

  • Market Performance: Strong event business in New York, steady performance in Alabama, challenges in Washington DC due to a harsh winter.

Release Date: May 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Ark Restaurants Corp (NASDAQ:ARKR) reported steady revenue of over $1 million a week in Vegas, indicating a strong performance in that region.

  • The company has seen improvements in payroll efficiency and food cost management, thanks to a new food purchasing department.

  • Ark Restaurants Corp (NASDAQ:ARKR) is experiencing strong demand in Alabama and benefits from events in New York, contributing positively to its financial performance.

  • The company has a robust cash position with $14 million in the bank, providing financial stability and flexibility for future investments.

  • Ark Restaurants Corp (NASDAQ:ARKR) is developing a new Asian fast-food concept in Las Vegas, showing innovation and potential for brand expansion.

Negative Points

  • Ark Restaurants Corp (NASDAQ:ARKR) faced underperformance in Florida due to weather changes and lower customer headcounts.

  • The company is dealing with increased costs, including higher payrolls and significantly higher premiums on liability and property insurance.

  • Ark Restaurants Corp (NASDAQ:ARKR) is experiencing challenges with lease negotiations and uncertainties, particularly highlighted by the drawn-out process at Bryant Park.

  • Upcoming balloon payments in June 2025 pose a financial challenge, requiring careful debt management and refinancing strategies.

  • The company reported a reluctance to raise menu prices to necessary levels, which has impacted its ability to cover rising costs effectively.

Q & A Highlights

Q: Any updates on Bryant Park? A: Michael Weinstein, President and CEO of Ark Restaurants, explained that the Bryant Park lease process has been drawn out and disappointing. After a long wait, the lease terms were finally received, and the company has responded, but the timeline for a decision remains unclear.

ADVERTISEMENT

Q: Does the uncertainty around Bryant Park affect your ability to plan events prospectively? A: Michael Weinstein noted that they have stopped taking event bookings for 2025 post-May due to the lease ending and the uncertainty surrounding their continued possession of the property.

Q: Based on your debt and amortization schedules, what do you expect your year-end debt balance to be? A: Anthony Sirica, CFO, stated the year-end debt balance is projected to be $5.3 million, with all loans moving to current status by June 1, 2025.

Q: Can you provide details on the new Asian fast-food concept being developed in Las Vegas? A: Samuel Wein, Co-COO, described the new concept focused on rice bowls, bao buns, and boba tea, set to pilot in the New York, New York Hotel in Las Vegas. The concept is designed for potential expansion if successful.

Q: What are the financial implications of the Gallagher's renovation in New York, New York? A: Michael Weinstein discussed the financial strain caused by the renovation, including the closure period and increased lease costs. Despite these challenges, customer feedback has been positive post-renovation.

Q: Is there any new information regarding the casino discussions in downstate New York? A: Michael Weinstein indicated that there is no new information, and the process for casino licensing in New York is progressing slowly, with no clear outcomes yet.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.