|
Related Topics
|
Category: Stock Market and Ark Restuarants
Date: 9 September 2019 Stock Price: $20.12 We take a look at the 3rd quarter earnings release of their 2019 fiscal year of Ark Restaurants, the restaurant group that owns 20 restaurants and 19 fast food concepts and catering operations
|
About Ark Restaurants
Ark Restaurants owns and operates 20 restaurants and bars, 19 fast food concepts and catering operations primarily in New York City, Florida, Washington, D.C, Las Vegas, NV and the gulf coast of Alabama. Five restaurants are located in New York City, two are located in Washington, D.C., five are located in Las Vegas, Nevada, three are located in Atlantic City, New Jersey, three are located on the east coast of Florida and two are located on the Gulf Coast of Alabama. The Las Vegas operations include four restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel's room service, banquet facilities, employee dining room and six food court concepts; and one restaurant within the Planet Hollywood Resort and Casino. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino and a restaurant in the Tropicana Hotel and Casino.
The operations at the Foxwoods Resort Casino in Ledyard, CT consist of one fast food concept. The Florida operations include the Rustic Inn in Dania Beach, Shuckers, located in Jensen Beach, the newly acquired JB's on the Beach in Deerfield Beach and the operation of five fast food facilities in Tampa, Florida and seven fast food facilities in Hollywood, Florida, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations. In Alabama, the Company operates two Original Oyster Houses, one in Gulf Shores, Alabama and one in Spanish Fort, Alabama.
The operations at the Foxwoods Resort Casino in Ledyard, CT consist of one fast food concept. The Florida operations include the Rustic Inn in Dania Beach, Shuckers, located in Jensen Beach, the newly acquired JB's on the Beach in Deerfield Beach and the operation of five fast food facilities in Tampa, Florida and seven fast food facilities in Hollywood, Florida, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations. In Alabama, the Company operates two Original Oyster Houses, one in Gulf Shores, Alabama and one in Spanish Fort, Alabama.
Financial overview of Ark Restaurants' latest earnings report
The numbers we are interested in (for the quarter):
- Revenue: $44.807 million (up from $44.800 million for the same quarter of the previous year)
- Total cost and expenses: $40.076 million (up from $41.014 million for the same quarter of the previous year)
- Net income: $3.96 million (up from $2.657 million for the same quarter of the previous year)
- Diluted income per share: $1.12 (down from $0.75 for the same quarter of the previous year)
- Diluted number of shares outstanding: 3.53 million (down from 3.558 million for the same quarter of the previous year)
- Cash and cash equivalents: $5.576 million
- Cash and cash equivalents per share: $1.579
- Cash and cash equivalents makes up 6.21% of Ark's total assets
- Cash and cash equivalents makes up 7.89% of Ark Restaurants' current market capital
- Accounts receivables: $3.7 million
- Trade receivables makes up 4.15% of Ark Restaurants' total assets
- Inventories: $2.25 million
- Inventories makes up 2.52% of Ark Restaurants' total assets
- Stockholders equity: $44.592 million
- Stockholders equity per share: $12.63
- Cash generated from operations (for the last 9 months) : $3.403 million
- Cash generated from operations per share (for the last 9 months): $0.96
Ark Restaurants' management commentary on the results and earnings guidance
NEW YORK, New York -- August 12, 2019 -- Ark Restaurants Corp. today reported financial results for the third quarter ended June 29, 2019.
Total revenues for the 13 weeks ended June 29, 2019 were $44,807,000 versus $44,800,000 for the 13 weeks ended June 30, 2018. The 13 weeks ended June 29, 2019 includes revenues of $1,239,000, which represents six and half weeks of sales related to JB's on the Beach in Deerfield Beach, FL which was acquired on May 15, 2019. The 13 weeks ended June 30, 2018 includes revenues of $725,000 related to Durgin-Park which was closed January 12, 2019.
Total revenues for the 39 weeks ended June 29, 2019 were $120,667,000 versus $119,428,000 for the 39 weeks ended June 30, 2018. The 39 weeks ended June 29, 2019 and June 30, 2018 include revenues of $1,040,000 and $1,933,000, respectively, related to Durgin-Park which was closed January 12, 2019. In addition, the 39 weeks ended June 29, 2019 includes revenues of $1,239,000, which represents six and half weeks of sales related to JB's on the Beach in Deerfield Beach, FL which was acquired on May 15, 2019. Company-wide same store sales decreased 1.5% for the 13 weeks ended June 29, 2019 compared to the same period in the prior year.
Total revenues for the 13 weeks ended June 29, 2019 were $44,807,000 versus $44,800,000 for the 13 weeks ended June 30, 2018. The 13 weeks ended June 29, 2019 includes revenues of $1,239,000, which represents six and half weeks of sales related to JB's on the Beach in Deerfield Beach, FL which was acquired on May 15, 2019. The 13 weeks ended June 30, 2018 includes revenues of $725,000 related to Durgin-Park which was closed January 12, 2019.
Total revenues for the 39 weeks ended June 29, 2019 were $120,667,000 versus $119,428,000 for the 39 weeks ended June 30, 2018. The 39 weeks ended June 29, 2019 and June 30, 2018 include revenues of $1,040,000 and $1,933,000, respectively, related to Durgin-Park which was closed January 12, 2019. In addition, the 39 weeks ended June 29, 2019 includes revenues of $1,239,000, which represents six and half weeks of sales related to JB's on the Beach in Deerfield Beach, FL which was acquired on May 15, 2019. Company-wide same store sales decreased 1.5% for the 13 weeks ended June 29, 2019 compared to the same period in the prior year.
Ark Restaurants (NASDAQ: ARKR) stock price history
The image below, obtained from Google, shows the stock price history of Ark Restaurants over the last 5 years. And its been a pretty depressing and volatile time for Ark stockholders. With the stock having traded at above $22 a stock 5 years ago, and its currently trading at just over $20 a share. So a 10% loss over 5 years, which doesn't sound to bad, but considering some stocks we have valued increased by well over 100% over the same time period the opportunity cost of having held Ark is significant. It is also trading at closer to its 52 week low of $17.75 than it is trading to its 52 week low of $20.12
Ark Restaurants (NASDAQ: ARKR) latest stock valuation
So based on Ark Restaurants latest earnings report what are Ark Restaurants stock worth? Based on Ark Restaurants latest earnings report our valuation models places a target (full value) price of $21.41 a stock. So it is close to our target price and there is not a lot of value in Ark Restaurant stock at its current price. We would therefore advise against buying into the stock at its current price and rather look to enter Ark Restaurant stock at at least 10% below our target price. So we would look to enter Ark Restaurant stock at closer to $19.