Ark Restaurants Reveals Strong Financial Outcomes for 2024

Ark Restaurants' Financial Highlights

Ark Restaurants Corp. (NASDAQ: ARKR) has recently disclosed its financial outcomes for the fourth quarter and the entire fiscal year ending 2024. The report indicates a significant overview of the company's revenue performance and challenges faced over the year.

Fiscal Overview and Performance Metrics

The reported total revenue for the 13-week period that concluded on September 28, 2024, was $43,406,000, showing a slight decline from $44,400,000 during the analogous quarter in the prior year. Over the year, total revenue amounted to $183,545,000, down from $184,793,000 the previous year. This decrease can be partially attributed to temporary closures for renovations at Gallagher's Steakhouse within a heavily trafficked hotel property, as operations were notably affected.

Same-Store Sales Trends

Throughout the 13 weeks concluding September 28, 2024, same-store sales decreased by 3.6% year-on-year, while for the entire year, the declines were recorded at 1.1%. The company continues to adjust its strategies to stimulate growth amidst challenging market conditions.

Net Loss Analysis

The net loss for Ark Restaurants attributable to the quarter was $(4,457,000), translating to $(1.24) per basic and diluted share, significantly improved compared to a net loss of $(10,364,000) or $(2.88) per share in the previous year's quarter. This highlights the company's successful reduction in losses.

Annual Losses and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

For the full fiscal year, the company recorded a net loss of $(3,896,000) or $(1.08) per share, compared to $(5,928,000), or $(1.65) per share, from the year prior. Ark Restaurants’ adjusted EBITDA for the quarter was reported at $503,000 against $585,000 from the last year. Operating income remains under scrutiny as the company continues to implement cost-control measures.

Closing Key Locations and Future Plans

In a strategic move, the company has announced plans to permanently close El Rio Grande by the start of 2025, indicating a loss of $876,000 associated with this operation, including rental obligations and impairment of long-lived assets. Additionally, the company is actively evaluating its other locations to ensure ongoing viability and is poised to adapt to market demands.

Impairment and Operational Changes

In fiscal 2024, the company recognized significant impairment losses linked to right-of-use and long-lived assets. Management has communicated the need to reassess the viability and profitability of its operations, particularly focusing on locations experiencing lower-than-anticipated performance.

Future Roadmap and Strategic Developments

In light of these results, Ark Restaurants plans to leverage its recent adjustments and strategic shifts to improve overall performance. The company will continue to refine its operational strategies, focusing on customer experience, cost management, and exploring new growth avenues.

Conference Call Invitation

The management team at Ark Restaurants will host a conference call to provide further insights into these results and future strategies. Interested investors and stakeholders can access the call by dialing in on the set date.

About Ark Restaurants Corp.

Ark Restaurants operates a diverse range of establishments, including restaurants, fast-food concepts, and catering services primarily situated in high-traffic locations such as New York City and Las Vegas. The company proudly owns and manages several dining locations, continuously focusing on providing customers with delightful dining experiences while maintaining a robust operational framework.

Frequently Asked Questions

What financial results did Ark Restaurants Corp. report for 2024?

Ark Restaurants Corp. reported total revenues of $183,545,000 for the year and a net loss of $(3,896,000).

How did same-store sales perform throughout the fiscal year?

Same-store sales for the year decreased by 1.1%, showing a decline from the previous fiscal year.

What significant operational changes were announced?

The company plans to permanently close the El Rio Grande location and reassess the performance of various assets.

How did the net loss alter compared to last year?

The net loss improved significantly from $(5,928,000) last year to $(3,896,000) in 2024.

What is the company’s focus moving forward?

Ark Restaurants will concentrate on cost management strategies and improving customer experiences to drive future profitability.

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