Ark Restaurants Corp (ARKR) Deep Dive

Restaurant operator with significant optionality and downside protection through owned real estate assets

View: Neutral/Waitlist: $ARKR is a microcap restaurant operator sitting on strategic real estate and a valuable Meadowlands Racetrack stake. Market cap is ~$25M vs. EV of ~$100M, pricing in little of the optionality from a potential North Jersey casinoor improved restaurant margins. Real estate holdings and a right of first refusal on F&B operations provide downside protection, while operational improvements and a possible sale of its Meadowlands stake could unlock multiple turns of value. Insiders hold meaningful equity, aligning their incentives with shareholders.

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Ark Restaurants $ARKR (~$25M market cap; ~$100M EV) is a restaurant operator with a valuable stake in Meadowlands Racetrack in Northern NJ. The company combines underperforming restaurants, strategic real estate, and potential upside from North Jersey casino legalization, creating multiple paths for value creation

$ARKR holds approximately 7% of Meadowlands Racetrack LLC, which could be sold to partners for $50 to $100 million. The company has a market capitalization of around $25 million and an enterprise value of $100 million, making it an interesting risk-reward opportunity. If management improves efficiency and EBITDA margins reach 10 to 15 percent, the business could generate significant incremental value. Ark also owns roughly $20 million in additional real estate, which provides some downside protection. They maintain a right of first refusal on any new food and beverage ventures at the Meadowlands. One shareholder estimates this could generate $12 to $15 million in EBITDA. Applying a standard five times multiple implies an additional $60 million in potential enterprise value