Ark Restaurants Beats on Solid Comps - Analyst Blog
February 15 2012 - 5:00AM
Zacks
Ark Restaurants
Corp. (ARKR) reported first quarter 2012 earnings of 31
cents per share, outpacing the Zacks Consensus Estimate of 2
cents as well as the year-ago loss of 6 cents a share. The
better-than-expected results were driven by improving same-store
sales (comps).
Ark Restaurants reported total
revenue of $33.2 million, up 2.1% year over year, attributable to
an 8.9% rise in company-wide comps.
The operating income of the company
stood at $1.3 million in the reported quarter as opposed to $0.1
million in the year-ago quarter, reflecting a contraction of 2.4%
in payroll, a decline of 0.9% in food and beverage cost, a decrease
of 11.7% in other operating expenses and a 16.8% drop in
depreciation and amortization, partially offset by a rise of 4.8%
in occupancy expense and a spike of 13.6% in general and
administrative expense.
New York-based Ark Restaurants
stated that adjusted EBITDA in the quarter was $2.4 million, up
128% from the year-ago quarter of $1.0 million.
Net income from operations came in
at $1.1 million, compared with a loss of $0.2 million in the
prior-year quarter.
Financial
Aspects
As of December 31, 2010, the
company had cash, cash equivalents and short-term investments of
$6.1 million. Ark Restaurants has long-term debt of $2.0 million
due to the purchase of 250,000 treasury shares in December
2011.
Our Take
The company reported solid results
and hence we expect estimates to go up in the coming days. The
Zacks Consensus Estimates for fiscal 2012 and fiscal 2013 are $1.34
and $1.62 per share, respectively, reflecting year-over-year growth
of 42.6% and 20.9%.
Ark Restaurants’ close competitors
Red Robin Gourmet Burgers, Inc (RRGB) is slated to
release its fourth quarter 2011 results on February 16,
2012.
Ark Restaurants through its
subsidiaries owns and operates 20 restaurants and bars and 28 fast
food concepts and catering operations.
RED ROBIN GOURM (RRGB): Free Stock Analysis Report
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