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Ark RestaurantsARKR -8.83%51 Gross Margin % is 35.00% as of Jun. 2026, which is 9% below its 10-year median of 38.26. GuruFocus rates ARKR with a GF Score™ of 51/100 and a GF Value™ of $9.28 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 354 Restaurants companies, Ark Restaurants ranks worse than 66.38% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Ark Restaurants had a gross margin of 35.00% for the quarter that ended in Jun. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ark Restaurants Gross Margin % Related Terms
Ark Restaurants Gross Margin % Historical Data
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The historical data trend for Ark Restaurants's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ARKR vs CCHH, GTIM, NROM: Gross Margin % Comparison
For the Restaurants subindustry, Ark Restaurants's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ark Restaurants Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Ark Restaurants's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ark Restaurants's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Ark Restaurants (ARKR) has a Gross Margin % of 35.00% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ark Restaurants and its competitors. This is near median its historical median of 38.26. Over the past decade, Ark Restaurants' Gross Margin % has ranged from 34.68 to 40.06. According to the industry distribution chart, Ark Restaurants ranks #235 out of 354 companies in the Restaurants industry, placing it in the top 66.4%.
Is Ark Restaurants' Gross Margin % too high?
Ark Restaurants' current Gross Margin % of 35.00% is near median its 10-year median of 38.26. Over the past 10 years, this metric has ranged from a low of 34.68 to a high of 40.06. The Restaurants industry median Gross Margin % is 45.58. Ark Restaurants' value of 35.00% is 23.2% below this industry median. Based on the distribution chart, Ark Restaurants ranks #235 out of 354 companies in the Restaurants industry, which is below the industry midpoint. Overall, Ark Restaurants has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ark Restaurants' Gross Margin % compare to CCHH and GTIM?
According to the Restaurants industry distribution chart, Ark Restaurants ranks #235 out of 354 companies for Gross Margin %. This places Ark Restaurants in the lower half of its industry. The industry median Gross Margin % is 45.58. Ark Restaurants' value of 35.00% is 23.2% below this benchmark. Historically, Ark Restaurants' own Gross Margin % has ranged from 34.68 to 40.06 over the past decade. While the company's 10-year median is 38.26 vs. the industry median of 45.58, Ark Restaurants has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.58, based on 354 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ark Restaurants's current Gross Margin % of 35.00% is 23.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Ark Restaurants and its competitors. For the Restaurants industry, the median Gross Margin % is 45.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ark Restaurants's current Gross Margin % is 35.00%, which is near median its own 10-year median of 38.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ark Restaurants stock overvalued right now?
Based on GuruFocus' analysis, Ark Restaurants (ARKR) is currently considered Possible Value Trap. The stock's GF Value™ is $9.28, compared to a current price of $5.01 — trading 46% below its estimated fair value. The current Gross Margin % is 35.00%, which is near median its 10-year median of 38.26 and 23.2% below the Restaurants industry median of 45.58. Ark Restaurants' overall GF Score™ is 51/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Ark Restaurants (ARKR), the current Gross Margin % is 35.00% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ark Restaurants (ARKR) Overvalued in 2026?
Based on GuruFocus' analysis, Ark Restaurants stock appears to be undervalued.
The current stock price of $5.01 is trading 46% below its estimated GF Value™ of $9.28.
GuruFocus considers Ark Restaurants to be Possible Value Trap.
Key valuation signals for ARKR:
Gross Margin %: 35.00% (near median its 10-year median of 38.26)
GF Value™: $9.28 vs. price of $5.01 (46% below fair value)
Industry Position: 23.2% below the Restaurants median (#235 of 354)
No single metric tells the full story. See the ARKR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ark Restaurants Corp owns and operates around 17 restaurants and bars, 16 fast food concepts, and catering operations in the USA. The Las Vegas operations include New York Hotel & Casino Resort, hotel room service operations, banquet facilities, employee dining room, food court concepts, and a restaurant within the Planet Hollywood Resort and Casino. It operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino and a restaurant in the Tropicana Hotel and Casino. The Florida operations include The Rustic Inn in Dania Beach, Shuckers in Jensen Beach, JB's on the Beach in Deerfield Beach, The Blue Moon Fish Company in Fort Lauderdale, and fast food facilities in Tampa and Hollywood. In Alabama, it operates Original Oyster Houses in Gulf Shores and Spanish Fort.
51GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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