Free 7-day Trial
All Articles and Columns »

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

May 12, 2009 | About:

Ark Restaurants Corp. (ARKR) filed Quarterly Report for the period ended 2009-03-28.

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 $40.5 million; its shares were traded at around $11.6 with a P/E ratio of 6.4 and P/S ratio of 0.3. 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 10.0% during the second fiscal quarter of 2009 compared to the same period last year. Same store sales in Las Vegas decreased by $1,554,000 or 10.6% in the second fiscal quarter of 2009 compared to the second 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 $641,000 or 14.3% during the second 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 as well as a decrease in tourism and convention business related to the current economic conditions. Same store sales in Washington D.C. increased by $209,000 or 7.3% during the second quarter as the current economic conditions do not seem to have effected the region as much as other regions. Same store sales in Atlantic City decreased by $270,000, or 31.4%, in the second 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 $58,000, or 13.4%, in the second 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. Same store sales in Boston decreased $104,000 or 14.0% during the second quarter. Same store sales in Boston were negatively affected by the current economic conditions.

Food and beverage costs for the second quarter of 2009 as a percentage of total revenues were 25.6% compared to 26.4% in the second quarter of 2008. These costs for the 26-weeks ended March 28, 2009 as a percentage of total revenues were 25.3% compared to 25.9% in the 26-week period ended March 29, 2008.

Payroll expenses as a percentage of total revenues were 34.2% for the second quarter of 2009 as compared to 34.3% in the second quarter of 2008. Payroll expenses as a percentage of total revenues were 33.7% for the 26-week period ended March 28, 2009 as compared to 32.7% for the 26-week period ended March 29, 2008. The increase in payroll expenses as a percentage of revenue, for the 26-week period ended March 28, 2009, was primarily due to a decrease in sales. Occupancy expenses as a percentage of total revenues were 15.7% during the second fiscal quarter of 2009 compared to 14.5% in the second quarter of 2008. During the second fiscal quarter of 2009 the Company incurred a $220,000 expense for a real estate tax adjustment related to a restaurant in Washington D.C. which negatively affected occupancy expenses. Occupancy expenses as a percentage of total revenues were 14.9% during the 26-week period ended March 28, 2009 compared 13.8% for the 26-week period ended March 29, 2008. Other operating costs and expenses as a percentage of total revenues were 16.2% during the second fiscal quarter of 2009 compared to 12.6% in the second quarter of 2008. The increase in other operating costs and expenses as a percentage of revenue was due to decreased sales and $309,000 of legal costs associated with litigation incurred related to a New York City restaurant during the second fiscal quarter of 2009. Other operating costs and expenses as a percentage of total revenues were 15.5% for the 26-week period ended March 28, 2009 compared to 13.1% for the 26-week period ended March 29, 2008. General and administrative expenses as a percentage of total revenues were 10.7% during the second fiscal quarter of 2009 compared to 9.0% in the second quarter of 2008. General and administrative expenses as a percentage of total revenue were 9.2% for the 26-week period ended March 28, 2009 compared to 7.9% for the 26-week period ended March 29, 2008. The increase in general and administrative expenses as a percentage of revenue was primarily due to decreased sales.

The income tax provisions on continuing operations for the 26-week periods ended March 28, 2009 and March 29, 2008 reflect effective tax rates of 53.6% and 35.6%, respectively. The Company expects its annual tax rate for its current fiscal year to be approximately 34.0% to 36.0% . The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual tax rate could differ from our current estimates.

Read the The complete ReportARKR is in the portfolios of Joel Greenblatt of Gotham Capital.

Rating: 3.6/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide