The following is a summary of the Ark Restaurants Corp. (ARKR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Ark Restaurants reported no change in revenue for Q1 2024.
There was a decrease in EBITDA, reaching $2,572,000 compared to $3,018,000 from the previous year.
Cash reserves amounted to $12,122,000 while total debt as of the end of December was $6,742,000.
There was a significant discrepancy in revenue across various locations, with strong performance in Las Vegas overshadowing problematic revenue trends in Florida where volumes have decreased by approximately 10%.
Business Progress:
The company is grappling with potential labor inflation due to potential minimum wage increases especially in certain locations like Las Vegas, Florida, and New York.
Rather than raising menu prices to balance increased labor costs, the company is focusing on growth initiatives to boost demand.
Ark Restaurants continues to pursue potential acquisition deals that would expand their operating income and take advantage of strategic closed locations.
They currently hold a minority interest in Meadowlands Racetrack, looking forward to a potential casino license.
The lease for Ark's popular Bryant Park location is due for renewal in May 2025, with a proposal already submitted and a decision expected in the coming months.
More details: Ark Restaurants IR
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