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Ark Restaurants Corp. (ARKR+1.44%) has submitted its 10-Q filing for the quarterly period ended December 28, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenues to $44,988,000 from $47,487,000 in the same quarter the previous year. The decrease is attributed to lower same-store sales and the closure of certain locations.
Food and beverage cost of sales was $12,107,000, representing 26.9% of total revenues, compared to 25.4% in the same quarter of the previous year. This increase is due to higher commodity prices.
Payroll expenses decreased to $16,408,000 from $16,977,000, representing 36.5% of total revenues, compared to 35.8% in the previous year. The decrease is due to lower headcounts.
The company reported an operating income of $5,689,000 for the quarter, compared to $1,603,000 in the previous year. This increase includes a gain on the termination of the Tampa Food Court lease.
Net income attributable to Ark Restaurants Corp. was $3,164,000, up from $1,370,000 in the previous year. Basic and diluted earnings per share were $0.88, compared to $0.38 in the previous year.
Cash used in operating activities was $1,346,000, while cash provided by investing activities was $4,895,000, primarily due to the termination payment received for the Tampa Food Court lease.
The company had a working capital deficit of $4,264,000 as of December 28, 2024. The decrease in the deficit is primarily due to the payment received in connection with the termination of the Tampa Food Court lease.
Ark Restaurants Corp. continues to monitor the impact of inflation and other macroeconomic factors on its operations and may implement mitigation actions if necessary.
The company is addressing the expiration of its leases for the Bryant Park Grill & Cafe and The Porch at Bryant Park, with efforts to secure extensions or pursue other options.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Ark Restaurants Corp. quarterly 10-Q report dated February 11, 2025. To report an error, please email earnings@qz.com.