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ZYBERNO

Stock Report

Updated Sep 1, 2026

ARK RESTAURANTS CORP. (ARKR)

NASDAQ

$5.49

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

0.0/100

POOR BUSINESS

ARK RESTAURANTS CORP. (ARKR) scores 0/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full ARKR quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

-100.0%

Overvalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

-55.2%

Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)

1.4%

Yield + growth — what the business alone earns you, even if the market never re-rates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full ARKR valuation analysis · → View full ARKR Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-10.0%)

Debt-to-Equity (Solvency Risk):CRITICAL (4.98x)

Operating Margin (Operational Efficiency):CRITICAL (-1.6%)

Return on Capital (Capital Efficiency):CRITICAL (-1.9%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

ARK RESTAURANTS CORP. (ARKR) stock report — Zyberno Score 0/100 (POOR BUSINESS), Margin of Safety -100.0%, -55% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, ARK RESTAURANTS CORP. (ARKR) trades at $5.49 against an estimated intrinsic value per share of $0.31 — a -100.0% Margin of Safety based on Owner Earnings of $248.00K TTM, projected at -34.1% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of -55.2% annually.

Over the trailing twelve months, ARKR generated $248.00K in Owner Earnings. Capital was deployed as follows: $3.86M invested in capital expenditures. Reinvestment rate: -10.7%. Owner Earnings have declined at 34.1% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:5.49

Market Cap:$19.80M

Valuation Multiples (3)

P/B Ratio:0.64x

P/S Ratio:0.13x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$87.24M

Ev Ebitda Ratio:1,384.78x

Price Action & Momentum (3)

12-1 Momentum:

-19.2% (14th pctile)

📈 Click to view full ARKR Momentum analysis →

Momentum Percentile:14 / 100

% of 52-Week High:57.8%

B. Profitability Assessment

Return Metrics (5)

ROE:

-10.0%

📊 Click to view full ARKR ROE analysis →

ROA:-2.4%

Roic:

-1.9%

📊 Click to view full ARKR ROIC analysis →

Reinvestment Rate:-10.7%

Fundamental Growth Rate (g):0.2%

Margin Analysis (3)

Operating Margin Ttm:-1.6%

Net Margin Ttm:-2.0%

Ebitda Margin:0.0%

TTM Performance (2)

Operating Margin Ttm:-1.6%

Net Margin Ttm:-2.0%

Yield Metrics (3)

Earnings Yield:-$15.71

Owner Earnings Yield:$1.23

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.93

📊 Click to view full ARKR Earnings Surprise analysis →

EPS Surprise vs Expected:92.3%

Latest Earnings Filed:2026-08-11

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-5.5%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-4.1%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-34.0%

Operating Cash Flow Growth Rate (Linear):-40.1%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):38.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.78x

Quick Ratio:0.68x

Cash Ratio:0.46x

Leverage Analysis (3)

Debt To Equity Ttm:4.98x

Debt-to-Equity Ratio:4.98x

Debt To Ebitda:1,221.21x

Coverage Ratios (2)

Interest Coverage Ratio:-11.23x

Times Interest Earned:-11.23

Capital Structure (4)

Working Capital:-4,411,000.00

Cash And Cash Equivalents:9,492,000.00

Long Term Debt:$70.43M

Net Debt:$67.44M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $155.54M

Linear Growth: -5.5%

📊 Click to view full ARKR Revenue analysis & methodology →

Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00

Operating income TTM: -$2.43M

Linear Growth: 38.0%

📊 Click to view full ARKR Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: -$3.18M

Linear Growth: -4.1%

📊 Click to view full ARKR Net Income analysis & methodology →

Income Before Tax:-$2.38M

Ebitda Ttm:63,000.00

Operating Expenses (5)

Operating Expenses:157,963,000.00

R And D Expense:0.00

Sga Expense:11,035,000.00

Income Tax Expense:$368.00K

Interest Expense:362,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:27.0%

Ebitda Margin:0.0%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$128.91M

Current Assets:$16.08M

Ppe Net:31,605,000.00

Goodwill:0.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:98,016,000.00

Current Liabilities:20,489,000.00

Long Term Debt:$70.43M

Short Term Debt:$6.50M

Equity & Capital (3)

Equity:$30.89M

Retained Earnings:$17.44M

Common Stock:10,000,000.00

Working Capital Items (3)

Accounts Receivable:2,355,000.00

Inventory:2,234,000.00

Accounts Payable:0.00

Special Items (2)

Contract Liabilities:2,829,000.00

Stock Based Compensation:35,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $2.55M

Linear Growth: -40.1%

Free cash flow TTM: -$1.32M

Linear Growth: -34.0%

📊 Click to view full ARKR Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$858.00K

Capital Expenditures Ttm:3,863,000.00

Financing Activities (3)

Financing Cash Flow:-$777.00K

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:2,489,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.88

Eps diluted TTM: -$0.88

Linear Growth: -4.2%

📊 Click to view full ARKR EPS analysis & methodology →

Earnings Per Share Ttm:-$0.88

Revenue & Cash Per Share (2)

Sales Per Share Ttm:43.13

Operating Cash Flow Per Share:$0.49

Book Value & Capital (2)

Book Value Per Share:$8.57

Cash Per Share:2.63

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.19x

Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:66.05x

Days Sales Outstanding Ttm:5.53

Inventory Management (2)

Inventory Turnover Ttm:69.62x

Days Inventory Outstanding Ttm:5.24

Payables & Cash Cycle (2)

Days Payable Outstanding:-999.00

Cash Conversion Cycle:1,009.77

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:0.00

Quality Score:25.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $248.00K

Linear Growth: -34.1%

📊 Click to view full ARKR Owner Earnings analysis & methodology →

Owner Earnings Per Share:$0.07

Owner Earnings Yield:$1.23

Growth Assessment (1)

Owner Earnings Growth Rate:-$34.13

Damodaran Growth Analysis (2)

Reinvestment Rate:-10.7%

Fundamental Growth Rate (g):0.2%

Intrinsic Value Models (1)

Intrinsic Value:

$1.11M

📊 Click to view full ARKR DCF valuation →

Margin of Safety (1)

Margin Of Safety:

-100.0%

📊 Click to view full ARKR valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:

-55.2%

📊 Click to view full ARKR expected return analysis →

Forward Expected Return (Yield + Growth):

1.4%

📊 Click to view full ARKR expected return analysis →

Investment Assessment (1)

Buffett Assessment:Overvalued

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-5.5%

Net Income Growth Rate (Linear):-4.1%

Operating Income Growth Rate (Linear):38.0%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-34.0%

Operating Cash Flow Growth Rate (Linear):-40.1%

Other Growth Rates (2)

Book Value Growth Rate (Linear):-18.6%

Owner Earnings Growth Rate:-$34.13

C. Company Profile & Context

Corporate Information (6)

Symbol:ARKR

Company Name:ARK RESTAURANTS CORP.

Sector:Unknown

Industry:Retail-Eating Places

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:3.61M

Shares Outstanding Basic:3.61M

Shares Outstanding Diluted:3.61M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-01 11:18:47 UTC

Data Timestamp:2026-08-21T03:18:33.678542