ARKR

• Conference Call Announcement: Ark Restaurants Corp. will hold a conference call on December 16, 2025, at 11:00 a.m. ET to discuss its financial results for Q4 and the year ended September 27, 2025, aimed at providing investors and analysts with the latest financial insights.
• Diverse Participation Options: Participants can join the call by dialing the toll-free number 1-877-407-4018 or the international number 1-201-689-8471, and they can also use the Call me™ link for instant access, enhancing convenience for attendees.
• Live Broadcast and Replay: The call will be broadcast over the internet, with access available via a specified link, and a replay will be available within three hours post-call until December 23, 2025, at 11:59 p.m. ET, ensuring that investors who cannot attend live can still receive the information.
• Company Operational Overview: Ark Restaurants operates 16 restaurants and bars across New York City, Florida, Washington, D.C., Las Vegas, and Alabama, showcasing its diverse business model and adaptability in various markets.

Nathan's Famous, Inc. Stock Performance

• Recent Stock Gains: Nathan's Famous, Inc. (NATH) has seen a modest increase of 0.4% in its stock price over the past three months, contrasting with a 2.8% decline in the industry. However, it lagged behind the S&P 500 and sector gains of 6.5% and 9.6%, respectively.
• Quarterly Results: The company reported strong revenue growth in its first-quarter fiscal 2026 results, driven by its Branded Product Program, although bottom-line results were disappointing.

Business Segments and Growth Drivers

• Branded Product Program: This segment showed significant sales growth due to higher average selling prices and volumes, despite rising beef costs. It highlights Nathan's ability to expand its brand beyond company-owned restaurants.
• Franchise Development: The company opened eight new franchised locations, contributing to increased sales and royalties. This expansion diversifies revenue streams and reduces reliance on company-owned stores, which are more susceptible to local market fluctuations.

Financial Stability and Challenges

• Operating Structure: Nathan's Famous maintains a stable operating structure with consistent EBITDA performance, allowing it to manage cost pressures effectively while investing in growth areas.
• Concentration Risks: The company faces risks due to its reliance on Smithfield Foods for supply and licensing revenues, as well as ongoing inflationary pressures and rising labor costs that could impact margins.

Valuation and Investment Outlook

• Valuation Metrics: Nathan's trailing 12-month EV/Sales ratio stands at 2.9X, lower than the industry average of 4.6X but higher than its five-year median of 2.7X. This suggests potential for growth if it aligns more closely with market performance.
• Investor Recommendations: Current investors are advised to hold their shares, while new investors may find the stock appealing due to its growth potential and favorable valuation compared to peers.

Market Context

• Peer Comparison: Nathan's stock has outperformed Ark Restaurants Corp. (down 35.1%) but underperformed Flanigan's Enterprises, which gained 3.3% in the same period. This context highlights Nathan's relative strength in a challenging restaurant industry.

• Earnings Performance: Ark Restaurants Corp. reported a 10.6% increase in shares following its earnings report for Q3 fiscal 2025, despite a significant revenue decline of 13.3% year-over-year to $43.7 million and a net loss of $3.5 million.

• Segment Challenges: Same-store sales fell 7.4%, with notable declines in New York and Washington, D.C., attributed to lost catering revenues and reduced customer traffic due to hybrid work schedules and safety concerns.

• Cost Pressures and Impairments: The company faced rising food and beverage costs, alongside non-cash impairment charges totaling $8.1 million, impacting overall financial performance while maintaining a solid balance sheet with $12.3 million in cash.

• Legal Disputes and Future Outlook: Ongoing litigation related to the Bryant Park Grill has resulted in substantial legal expenses and reputational damage, leading to cautious management comments on future revenue prospects and potential opportunities from a new casino license in northern New Jersey.