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Ark Restaurants Corp. ARKR reported earnings per share of 18 cents in the third quarter of fiscal 2024, which decreased 79.5% from the year-ago quarter’s figure of 88 cents.
Revenues in Detail
Ark Restaurants registered revenues of $50.4 million in the fiscal third quarter, down 1.3% year over year.
This primarily resulted from a decrease in same-store sales, partially offset by an increase in sales at Gallagher's Steakhouse at the New York-New York Hotel and Casino in Las Vegas, NV, which was substantially closed for renovation in the prior period from Feb 5, 2023, through Apr 27, 2023.
Segment Details
Ark Restaurants derives revenues from two segments — Food and beverage sales and Other.
For the quarter under review, revenues from Food and beverage sales were $49.2 million, down 1.3% from the year-ago quarter.
Same-store sales in Las Vegas increased 2.5%, primarily on the back of the negative impact on the prior period of the temporary closure of Gallagher's Steakhouse for renovation. Same-store sales in New York decreased 5.2%, primarily due to decreased revenues from Ark Restaurants’ event business. Same-store sales in Washington, D.C. decreased 15.8% as a result of lower headcounts, especially during lunch and after-work hours, attributed to continued hybrid work schedules.
Same-store sales in Atlantic City decreased 8% as a result of lower customer traffic at the property where Ark Restaurants is located. Same-store sales in Alabama increased 9.8%, primarily as a result of better-than-expected customer traffic combined with targeted menu price increases. Same-store sales in Florida increased 0.7% primarily as a result of increased traffic at its food court located in the Hard Rock Hotel and Casino in Hollywood, FL.
Other revenues in the fiscal third quarter were $1.2 million, down 1.9% on a year-over-year basis.
Ark Restaurants Corp. Price, Consensus and EPS Surprise
Ark Restaurants Corp. price-consensus-eps-surprise-chart | Ark Restaurants Corp. Quote
Ark Restaurants Gross Margin
In the quarter under review, Ark Restaurants’ gross profit declined 1.9% to $37.1 million. The gross margin contracted 46 basis points to 73.6%.
Operating Expenses Analysis
Payroll expenses increased 1.7% year over year to $17.5 million, while occupancy expenses went up 1.8% year over year to $6.3 million. General and administrative expenses declined 23% year over year to $2.7 million.
Profitability
Operating profit, which includes the impairment charges, totaled $0.8 million, down 77.3% from the prior-year quarter.
In the fiscal third quarter, net income attributable to Ark Restaurants was $0.6 million, down 79.9% from the year-ago quarter.