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Ark Restaurants Corp. Reports Operating Results (10-Q)

February 10, 2009 | About:
10qk

Ark Restaurants Corp. (ARKR) filed Quarterly Report for the period ended 2008-12-27.

Ark Restaurants Corp. is a holding company which through subsidiaries operates 29 restaurants two bakeries and a cafeteria. Of those facilities 23 restaurants and two bakeries are owned by the Company and six restaurants and the cafeteria are owned by others and managed bythe Company. Ark Restaurants Corp. has a market cap of $36.65 million; its shares were traded at around $10.05 with a P/E ratio of 5.4 and P/S ratio of 0.29. Ark Restaurants Corp. had an annual average earning growth of 4.9% over the past 5 years.

Highlight of Business Operations:

On a company wide basis same store sales decreased 14.8% during the first fiscal quarter of 2009 compared to the same period last year. Same store sales in Las Vegas decreased by $1,428,000 or 11.0% in the first fiscal quarter of 2009 compared to the first fiscal quarter of 2008. Same store sales in Las Vegas were negatively affected by the unwillingness of the public to engage in gaming activities and a decrease in tourism and convention business, all related to the current economic conditions. Same store sales in New York decreased $2,057,000 or 23.9% during the first quarter. Same store sales in New York were particularly negatively affected by large amounts of layoffs in the financial sector, a decrease in corporate parties during the holiday season as well as a decrease in tourism and convention business related to the current economic conditions. Same store sales in Washington D.C. decreased by $221,000 or 5.7% during the first quarter primarily due to the current economic conditions. Same store sales in Atlantic City decreased by $121,000, or 15.2%, in the first quarter. Same store sales in Atlantic City were negatively affected by the unwillingness of the public to engage in gaming activities and a decrease in tourism and convention business related to the current economic conditions as well as the introduction of slot machine parlors in nearby Pennsylvania. Same store sales in Connecticut decreased by $117,000, or 26.1%, in the first quarter. Same store sales in Connecticut were negatively affected by the unwillingness of the public to engage in gaming activities related to the current economic conditions.

Food and beverage costs for the first quarter of 2009 as a percentage of total revenues were 25.0% compared to 25.5% in the first quarter of 2008. Payroll expenses as a percentage of total revenues were 33.3% compared to 31.6% in the first quarter of 2008. The increase in payroll expenses as a percentage of revenue was primarily due to a decrease in sales. The Company has subsequently adjusted payroll to reflect the decrease in sales. Occupancy expenses as a percentage of total revenues were 14.2% during the 13-week period ended December 27, 2008 compared to 13.4% for the 13-week period ended December 29, 2007. The increase in occupancy expenses as a percentage of revenue was primarily due to decreased sales coupled with numerous fixed occupancy costs and expenses. Other operating costs and expenses as a percentage of total revenues were 14.9% during the first fiscal quarter of 2009 compared to 13.4% in the first quarter of 2008. The increase in other operating costs and expenses as a percentage of revenue was primarily due to decreased sales. General and administrative expenses as a percentage of total revenues were 7.8% during the first fiscal quarter of 2009 and 7.3% during the first fiscal quarter of 2008.

Read the The complete Report

Rating: 5.0/5 (2 votes)

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