Ark Restaurants Corp.has released its financial results for the fourth quarter and fiscal year ended September 28, 2024.
The fiscal years ended September 28, 2024, and September 30, 2023, each included 52 weeks, while the fourth quarters included 13 weeks.
Financial Results
- Q4 Revenues: $43.4 million compared to $44.4 million for the same period in 2023.
- Fiscal Year Revenues: $183.5 million versus $184.8 million in fiscal 2023.
- Gallagher’s Steakhouse (Las Vegas) was substantially closed for renovations in early 2023, with revenues increasing to $3.1 million in fiscal 2024 compared to $1.1 million during the closure period.
- Same-Store Sales:
- Decreased 3.6% in Q4 compared to the prior year.
- Declined 1.1% for the full fiscal year.
Profitability
- Q4 Net Loss: $(4.5) million, or $(1.24) per share, compared to a loss of $(10.4) million, or $(2.88) per share, in Q4 2023.
- Full-Year Net Loss: $(3.9) million, or $(1.08) per share, versus $(5.9) million, or $(1.65) per share, in 2023.
- Adjusted EBITDA:
- $503,000 for Q4 2024, compared to $585,000 in Q4 2023.
- $6.1 million for fiscal 2024, down from $9.3 million in 2023.
Adjusted EBITDA excludes significant non-cash items and one-time costs such as goodwill impairments and property closures.
As of September 28, 2024, Ark Restaurants had $10.3 million in cash and cash equivalents and $5.2 million in outstanding debt.
Key Developments
Closure of El Rio Grande:
Ark Restaurants terminated the lease for El Rio Grande, effective January 1, 2025, recording a $876,000 loss in fiscal 2024. This included rent obligations, severance costs, and asset impairments.
Impairment Charges – Sequoia (Washington, D.C.):
Due to weaker-than-expected results, the company recorded impairment charges totaling $2.5 million for Sequoia’s right-of-use (ROU) and long-lived assets.
Goodwill Impairment:
Management assessed goodwill impairment following concerns over contract renewals for Bryant Park Grill & Café and The Porch in New York City. In fiscal 2024, a goodwill impairment charge of $4.0 million was recorded, following a $10.0 million charge in 2023.
Food Court Lease Termination – Hard Rock Hotel (Tampa, FL):
Ark Restaurants agreed to terminate its food court lease, pending approval from the Bureau of Indian Affairs. In exchange, the company will receive a $5.5 million termination payment in late December 2024. Ark plans to distribute approximately 35% of the net proceeds to minority equity holders.
