Cover
Cover - shares | 6 Months Ended | |
Mar. 30, 2024 | May 09, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-09453 | |
Entity Registrant Name | ARK RESTAURANTS CORP. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-3156768 | |
Entity Address, Address Line One | 85 Fifth Avenue, | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10003 | |
City Area Code | 212 | |
Local Phone Number | 206-8800 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | ARKR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,604,157 | |
Amendment Flag | false | |
Entity Central Index Key | 0000779544 | |
Current Fiscal Year End Date | --09-27 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 30, 2024 | Sep. 30, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents (includes $154 at March 30, 2024 and $564 at September 30, 2023 related to VIEs) | $ 10,412 | $ 13,415 |
Accounts receivable (includes $242 at March 30, 2024 and $169 at September 30, 2023 related to VIEs) | 4,042 | 3,313 |
Employee receivables | 292 | 328 |
Inventories (includes $42 at March 30, 2024 and $47 at September 30, 2023 related to VIEs) | 2,362 | 3,093 |
Prepaid and refundable income taxes (includes $16 at March 30, 2024 and $204 at September 30, 2023 related to VIEs) | 247 | 212 |
Prepaid expenses and other current assets (includes $39 at March 30, 2024 and $31 at September 30, 2023 related to VIEs) | 2,648 | 1,569 |
Total current assets | 20,003 | 21,930 |
FIXED ASSETS - Net (includes $253 at March 30, 2024 and $216 at September 30, 2023 related to VIEs) | 32,843 | 34,314 |
OPERATING LEASE RIGHT-OF-USE ASSETS - Net (includes $1,650 at March 30, 2024 and $1,796 at September 30, 2023 related to VIEs) | 92,331 | 96,459 |
GOODWILL | 7,440 | 7,440 |
TRADEMARKS | 4,220 | 4,220 |
INTANGIBLE ASSETS - Net | 141 | 187 |
DEFERRED INCOME TAXES | 3,884 | 3,738 |
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK | 6,528 | 6,507 |
OTHER ASSETS (includes $11 at March 30, 2024 and September 30, 2023 related to VIEs) | 2,161 | 2,161 |
Total assets | 169,551 | 176,956 |
CURRENT LIABILITIES: | ||
Accounts payable - trade (includes $138 at March 30, 2024 and $93 at September 30, 2023 related to VIEs) | 4,538 | 4,058 |
Accrued expenses and other current liabilities (includes $237 at March 30, 2024 and $331 at September 30, 2023 related to VIEs) | 12,468 | 13,829 |
Current portion of operating lease liabilities (includes $311 at March 30, 2024 and $298 at September 30, 2023 related to VIEs) | 8,079 | 7,988 |
Current portion of notes payable | 1,946 | 1,987 |
Total current liabilities | 27,031 | 27,862 |
OPERATING LEASE LIABILITIES, LESS CURRENT PORTION (includes $1,465 at March 30, 2024 and $1,623 at September 30, 2023 related to VIEs) | 88,227 | 92,232 |
NOTES PAYABLE, LESS CURRENT PORTION | 4,227 | 5,140 |
TOTAL LIABILITIES | 119,485 | 125,234 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Common stock, par value $0.01 per share - authorized, 10,000 shares; issued and outstanding, 3,604 shares at March 30, 2024 and September 30, 2023 | 36 | 36 |
Additional paid-in capital | 14,998 | 14,161 |
Retained earnings | 34,660 | 36,091 |
Total Ark Restaurants Corp. shareholders’ equity | 49,694 | 50,288 |
NON-CONTROLLING INTERESTS | 372 | 1,434 |
TOTAL EQUITY | 50,066 | 51,722 |
TOTAL LIABILITIES AND EQUITY | $ 169,551 | $ 176,956 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Mar. 30, 2024 | Sep. 30, 2023 |
Cash and cash equivalents | $ 10,412 | $ 13,415 |
Accounts receivable | 4,042 | 3,313 |
Inventories | 2,362 | 3,093 |
Prepaid and refundable income taxes | 247 | 212 |
Prepaid expenses and other current assets | 2,648 | 1,569 |
Fixed assets - net | 32,843 | 34,314 |
Operating lease right-of-use asset | 92,331 | 96,459 |
Other assets | 2,161 | 2,161 |
Accounts payable - trade | 4,538 | 4,058 |
Accrued expenses and other current liabilities | 12,468 | 13,829 |
Current portion of operating lease liabilities | 8,079 | 7,988 |
Operating lease liabilities, less current portion | $ 88,227 | $ 92,232 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 10,000 | 10,000 |
Common stock, issued (in shares) | 3,604 | 3,604 |
Common stock, outstanding (in shares) | 3,604 | 3,604 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents | $ 154 | $ 564 |
Accounts receivable | 242 | 169 |
Inventories | 42 | 47 |
Prepaid and refundable income taxes | 16 | 204 |
Prepaid expenses and other current assets | 39 | 31 |
Fixed assets - net | 253 | 216 |
Operating lease right-of-use asset | 1,650 | 1,796 |
Other assets | 11 | 11 |
Accounts payable - trade | 138 | 93 |
Accrued expenses and other current liabilities | 237 | 331 |
Current portion of operating lease liabilities | 311 | 298 |
Operating lease liabilities, less current portion | $ 1,465 | $ 1,623 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
REVENUES: | ||||
Total revenues | $ 42,257 | $ 41,897 | $ 89,743 | $ 89,342 |
COSTS AND EXPENSES: | ||||
Payroll expenses | 15,512 | 15,311 | 32,488 | 31,833 |
Other operating costs and expenses | 5,836 | 5,352 | 11,928 | 11,283 |
General and administrative expenses | 3,141 | 3,023 | 6,461 | 6,159 |
Depreciation and amortization | 1,057 | 1,138 | 2,149 | 2,171 |
Total costs and expenses | 43,459 | 41,874 | 89,342 | 87,115 |
OPERATING INCOME (LOSS) | (1,202) | 23 | 401 | 2,227 |
OTHER (INCOME) EXPENSE: | ||||
Interest expense | 161 | 465 | 332 | 894 |
Interest income | (11) | (217) | (22) | (306) |
Other income | 0 | 0 | (26) | 0 |
Gain on forgiveness of PPP Loans | 0 | 0 | (285) | (272) |
Total other (income) expense, net | 150 | 248 | (1) | 316 |
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES | (1,352) | (225) | 402 | 1,911 |
Provision (benefit) for income taxes | (147) | 19 | 11 | 133 |
CONSOLIDATED NET INCOME (LOSS) | (1,205) | (244) | 391 | 1,778 |
Net income attributable to non-controlling interests | (244) | (240) | (470) | (537) |
NET INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP. | $ (1,449) | $ (484) | $ (79) | $ 1,241 |
NET INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP. PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ (0.40) | $ (0.13) | $ (0.02) | $ 0.34 |
Diluted (in dollars per share) | $ (0.40) | $ (0.13) | $ (0.02) | $ 0.34 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
Basic (in shares) | 3,604 | 3,600 | 3,604 | 3,600 |
Diluted (in shares) | 3,604 | 3,600 | 3,604 | 3,646 |
Food and beverage sales | ||||
REVENUES: | ||||
Total revenues | $ 41,188 | $ 40,913 | $ 87,818 | $ 87,452 |
COSTS AND EXPENSES: | ||||
Cost of goods and services sold | 12,138 | 11,795 | 24,209 | 24,231 |
Other revenue | ||||
REVENUES: | ||||
Total revenues | 1,069 | 984 | 1,925 | 1,890 |
Occupancy expenses | ||||
COSTS AND EXPENSES: | ||||
Cost of goods and services sold | $ 5,775 | $ 5,255 | $ 12,107 | $ 11,438 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Total Ark Restaurants Corp. Shareholders’ Equity | Common Stock | Additional Paid-In Capital | Retained Earnings | Non- controlling Interests |
Beginning balance (in shares) at Oct. 01, 2022 | 3,600 | |||||
Beginning balance at Oct. 01, 2022 | $ 60,118 | $ 59,800 | $ 36 | $ 15,493 | $ 44,271 | $ 318 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 1,778 | 1,241 | 1,241 | 537 | ||
Elimination of non-controlling interest upon dissolution of subsidiary | 0 | (1,685) | (1,685) | 1,685 | ||
Stock-based compensation | 159 | 159 | 159 | |||
Distributions to non-controlling interests | (587) | (587) | ||||
Dividends paid | (900) | (900) | (900) | |||
Ending balance (in shares) at Apr. 01, 2023 | 3,600 | |||||
Ending balance at Apr. 01, 2023 | 60,568 | 58,615 | $ 36 | 13,967 | 44,612 | 1,953 |
Beginning balance (in shares) at Dec. 31, 2022 | 3,600 | |||||
Beginning balance at Dec. 31, 2022 | 61,649 | 61,154 | $ 36 | 15,572 | 45,546 | 495 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (244) | (484) | (484) | 240 | ||
Elimination of non-controlling interest upon dissolution of subsidiary | 0 | (1,685) | (1,685) | 1,685 | ||
Stock-based compensation | 80 | 80 | 80 | |||
Distributions to non-controlling interests | (467) | (467) | ||||
Dividends paid | (450) | (450) | (450) | |||
Ending balance (in shares) at Apr. 01, 2023 | 3,600 | |||||
Ending balance at Apr. 01, 2023 | $ 60,568 | 58,615 | $ 36 | 13,967 | 44,612 | 1,953 |
Beginning balance (in shares) at Sep. 30, 2023 | 3,604 | 3,604 | ||||
Beginning balance at Sep. 30, 2023 | $ 51,722 | 50,288 | $ 36 | 14,161 | 36,091 | 1,434 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 391 | (79) | (79) | 470 | ||
Elimination of non-controlling interest upon dissolution of subsidiary | 0 | 692 | 692 | (692) | ||
Stock-based compensation | 145 | 145 | 145 | |||
Distributions to non-controlling interests | (840) | (840) | ||||
Dividends paid | $ (1,352) | (1,352) | (1,352) | |||
Ending balance (in shares) at Mar. 30, 2024 | 3,604 | 3,604 | ||||
Ending balance at Mar. 30, 2024 | $ 50,066 | 49,694 | $ 36 | 14,998 | 34,660 | 372 |
Beginning balance (in shares) at Dec. 30, 2023 | 3,604 | |||||
Beginning balance at Dec. 30, 2023 | 52,278 | 51,751 | $ 36 | 14,930 | 36,785 | 527 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (1,205) | (1,449) | (1,449) | 244 | ||
Stock-based compensation | 68 | 68 | 68 | |||
Distributions to non-controlling interests | (399) | (399) | ||||
Dividends paid | $ (676) | (676) | (676) | |||
Ending balance (in shares) at Mar. 30, 2024 | 3,604 | 3,604 | ||||
Ending balance at Mar. 30, 2024 | $ 50,066 | $ 49,694 | $ 36 | $ 14,998 | $ 34,660 | $ 372 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Feb. 06, 2024 | Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends paid (in USD per share) | $ 0.1875 | $ 0.1875 | $ 0.125 | $ 0.375 | $ 0.25 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net income | $ 391 | $ 1,778 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Stock-based compensation | 145 | 159 |
Gain on forgiveness of PPP Loans | 0 | (272) |
Deferred income taxes | (146) | 23 |
Accrued interest on note receivable from NMR | (21) | (21) |
Depreciation and amortization | 2,149 | 2,171 |
Amortization of operating lease assets | 214 | 430 |
Amortization of deferred financing costs | 27 | 15 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (729) | (491) |
Inventories | 731 | 402 |
Prepaid, refundable and accrued income taxes | (35) | 1,459 |
Prepaid expenses and other current assets | (1,079) | (264) |
Other assets | 0 | 370 |
Accounts payable - trade | 480 | (329) |
Accrued expenses and other current liabilities | (1,361) | (3,319) |
Net cash provided by operating activities | 766 | 2,111 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of fixed assets | (632) | (2,085) |
Loans and advances made to employees | (26) | (42) |
Payments received on employee receivables | 62 | 104 |
Proceeds from maturity of certificate of deposit | 0 | 5,021 |
Net cash provided by (used in) investing activities | (596) | 2,998 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on notes payable | (981) | (8,640) |
Principal payments on PPP Loans | 0 | (531) |
Dividends paid | (1,352) | (900) |
Distributions to non-controlling interests | (840) | (587) |
Net cash used in financing activities | (3,173) | (10,658) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (3,003) | (5,549) |
CASH AND CASH EQUIVALENTS, Beginning of period | 13,415 | 23,439 |
CASH AND CASH EQUIVALENTS, End of period | 10,412 | 17,890 |
Cash paid during the period for: | ||
Interest | 303 | 879 |
Income taxes | 191 | 9 |
Non-Cash Financing Activities [Abstract] | ||
Elimination of non-controlling interest upon dissolution of subsidiary | $ 692 | $ 1,685 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The consolidated condensed balance sheet as of September 30, 2023, which has been derived from the audited consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended September 30, 2023 (“Form 10-K”), and the unaudited interim consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. All adjustments that, in the opinion of management are necessary for a fair presentation for the periods presented, have been reflected as required by Article 10 of Regulation S-X. Such adjustments are of a normal, recurring nature. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Form 10-K. INFLATION — Our operating results have been and continue to be impacted by geopolitical and macroeconomic events, causing increased commodity prices, wage inflation and other increased costs. The ongoing impact of these events could lead to further shifts in consumer behavior, wage inflation, staffing challenges, product and services cost inflation, disruptions in the supply chain and delays in opening or acquiring new restaurants. If these factors significantly impact our cash flow in the future, we may again implement mitigation actions such as suspending dividends, increasing borrowings or modifying our operating strategies. Some of these measures may have an adverse impact on our business, including possible impairments of assets. PRINCIPLES OF CONSOLIDATION — The consolidated condensed financial statements include the accounts of Ark Restaurants Corp. and all of its wholly-owned subsidiaries, partnerships and other entities in which it has a controlling interest, collectively herein referred to as the “Company”. Also included in the consolidated condensed financial statements are certain variable interest entities (“VIEs”). All significant intercompany balances and transactions have been eliminated in consolidation. USE OF ESTIMATES — The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The accounting estimates that require management’s most difficult and subjective judgments include: projected cash flows, allowances for potential bad debts on receivables, assumptions regarding discount rates related to lease accounting, the useful lives and recoverability of its long-lived assets, such as property, right-of-use assets and intangibles, fair values of financial instruments and share-based compensation, estimates made in connection with acquisitions and impairment analyses, the realizable value of its tax assets and determining when investment impairments are other-than-temporary. Because of the uncertainty in such estimates, actual results may differ from these estimates. The results of operations for the 13 and 26 weeks ended March 30, 2024 are not necessarily indicative of the results to be expected for any other interim period or for the year ending September 28, 2024. NON-CONTROLLING INTERESTS — Non-controlling interests represent capital contributions from, distributions to and income and loss attributable to the shareholders of less than wholly-owned and consolidated entities. SEASONALITY — The Company has substantial fixed costs that do not decline proportionally with sales. Although our business is highly seasonal, our broader geographical reach as a result of recent acquisitions mitigates some of the risk. For instance, the second quarter of our fiscal year, consisting of the non-holiday portion of the cold weather season in New York and Washington, D.C. (January, February and March), is the poorest performing quarter; however, in recent years this has been partially offset by our locations in Florida as they experience increased results in the winter months. We generally achieve our best results during the warm weather, attributable to our extensive outdoor dining availability, particularly at Bryant Park in New York and Sequoia in Washington, D.C. (our largest restaurants) and our outdoor cafes. However, even during summer months these facilities can be adversely affected by unusually cool or rainy weather conditions. Our facilities in Las Vegas are indoor and generally operate on a more consistent basis throughout the year. FAIR VALUE OF FINANCIAL INSTRUMENTS — The carrying amount of cash and cash equivalents, receivables and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair values of notes receivable and payable are determined using current applicable rates for similar instruments as of the balance sheet date and approximate the carrying value of such debt instruments. CASH AND CASH EQUIVALENTS — Cash and cash equivalents include cash on hand, deposits with banks and highly-liquid investments generally with original maturities of three months or less. Outstanding checks in excess of account balances, typically vendor payments, payroll and other contractual obligations disbursed after the last day of a reporting period are reported as a current liability in the accompanying consolidated condensed balance sheets. CONCENTRATIONS OF CREDIT RISK — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company reduces credit risk by placing its cash and cash equivalents with major financial institutions with high credit ratings. At times, such amounts may exceed federally insured limits. Accounts receivable is primarily comprised of normal business receivables such as credit card receivables that are paid in a short period of time and other receivables from hotel operators where the Company has a location and are recorded upon satisfaction of the performance obligation. Management believes based on historical information that credit card receivables and receivables which are paid in a short period of time and from hotel operators where the Company has a location do not typically result in credit losses, and therefore does not record an allowance for credit losses. As of March 30, 2024, the Company had accounts receivable balances due from one hotel operator totaling 42% of total accounts receivable. As of September 30, 2023, the Company had accounts receivable balances due from one hotel operator totaling 52% of total accounts receivable. For the 13-week period ended March 30, 2024, the Company made purchases from one vendor that accounted for 13% of total purchases. For the 13-week period ended April 1, 2023, the Company made purchases from two vendors that accounted for 24% of total purchases. For the 26-week period ended March 30, 2024, the Company made purchases from one vendor that accounted for 12% of total purchases. For the 26-week period ended April 1, 2023, the Company made purchases from two vendors that accounted for 22% of total purchases. As of March 30, 2024 and September 30, 2023, all debt outstanding, other than the note payable to the sellers of the Blue Moon Fish Company , is with one lender (see Note 8 – Notes Payable). GOODWILL AND TRADEMARKS — Goodwill and trademarks are not amortized, but are subject to impairment analysis. We assess the potential impairment of goodwill and trademarks annually (at the end of our fourth quarter) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If we determine through the impairment review process that goodwill or trademarks are impaired, we record an impairment charge in our consolidated condensed statements of income. The Company did not record any impairment to its goodwill or trademarks during the 13- and 26- weeks ended March 30, 2024 and April 1, 2023, respectively. It is possible that impairments could be identified in future periods, and such amounts could be material. LONG-LIVED AND RIGHT-OF-USE ASSETS — Long-lived assets, such as property, plant and equipment, purchased intangibles subject to amortization, and right-of-use assets ("ROU assets") are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In the evaluation of the fair value and future benefits of long-lived assets, the Company performs an analysis of the anticipated undiscounted future net cash flows of the related long-lived assets. If the carrying value of the related asset exceeds the undiscounted cash flows, the carrying value is reduced to its fair value. Various factors including estimated future sales growth and estimated profit margins are included in this analysis. The Company considers a triggering event related to long-lived assets or ROU assets in a net asset position to have occurred related to a specific restaurant if the restaurant’s cash flows for the last 12 months are less than a minimum threshold or if consistent levels of undiscounted cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. Additionally, the Company considers a triggering event related to ROU assets to have occurred related to a specific lease if the location has been subleased and future estimated sublease income is less than current lease payments. If the Company concludes that the carrying value of certain long-lived and ROU assets will not be recovered based on expected undiscounted future cash flows, an impairment loss is recorded to reduce the long-lived or ROU assets to their estimated fair value. The fair value is measured on a nonrecurring basis using unobservable (Level 3) inputs. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods, and such charges could be material. Based on the results of this analysis, no impairment charges were recognized related to long-lived assets or ROU assets during the 13 and 26 weeks ended March 30, 2024 and April 1, 2023. Given the inherent uncertainty in projecting results of restaurants, the Company is monitoring the recoverability of the carrying value of the assets of several restaurants on an ongoing basis. For these restaurants, if expected performance is not realized, an impairment charge may be recognized in future periods, and such charge could be material. REVENUE RECOGNITION — We recognize revenue upon the satisfaction of our performance obligation by transferring control over a product or service to a restaurant guest or other customer. Revenues from restaurant operations are presented net of discounts, coupons, employee meals and complimentary meals and recognized when food, beverage and retail products are sold. Sales tax collected from customers is excluded from sales and the obligation is included in sales tax payable until the taxes are remitted to the appropriate taxing authorities. Catering service revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for the service. Revenues from catered events are recognized in income upon satisfaction of the performance obligation (the date the event is held) and all customer payments, including nonrefundable upfront deposits, are deferred as a contract liability until such time. We recognized $2,203,000 and $1,541,000 in catering services revenue for the 13-week periods ended March 30, 2024 and April 1, 2023, respectively, and $8,617,000 and $7,124,000 for the 26-week periods ended March 30, 2024 and April 1, 2023, respectively. Unearned revenue, which is included in accrued expenses and other current liabilities on the consolidated condensed balance sheets, as of March 30, 2024 and September 30, 2023 was $5,463,000 and $5,962,000, respectively. Revenues from gift cards are deferred and recognized upon redemption. Deferrals are not reduced for potential non-use as we generally have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions in which they are sold. As of March 30, 2024 and September 30, 2023, the total liability for gift cards in the amounts of approximately $461,000 and $340,000, respectively, are included in accrued expenses and other current liabilities in the consolidated condensed balance sheets. Other revenues include purchase service fees which represent commissions earned by a subsidiary of the Company for providing services to other restaurant groups, as well as license fees, property management fees and other rentals. LEASES — We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in Operating lease right-of-use assets and Operating lease liabilities in our consolidated condensed balance sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. Our lease terms may include options to extend or terminate the lease. Options are included when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Amendments or modifications to lease terms are accounted for as variable lease payments. Leases with a lease term of 12 months or less are accounted for using the practical expedient which allows for straight-line rent expense over the remaining term of the lease. SEGMENT REPORTING — As of March 30, 2024, the Company owned and operated 17 restaurants and bars, 16 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and services, class of customers and distribution methods. The Company believes it meets the criteria for aggregating its operating components into a single operating segment in accordance with applicable accounting guidance. RECENTLY ADOPTED ACCOUNTING PRINCIPLES — On October 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments , issued by the Financial Accounting Standards Board (“FASB”) and its related amendments using the prospective method. The new standard changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments, including credit card receivables and receivables from hotel operators where the Company has a location, from an incurred loss model to an expected loss model and adds certain new required disclosures. Under the expected loss model, entities recognize credit losses to be incurred over the entire contractual term of the instrument rather than delaying recognition of credit losses until it is probable the loss has been incurred. In accordance with this guidance, the Company evaluates certain criteria, including aging and historical write-offs, current economic conditions of specific customers and future economic conditions to determine the appropriate allowance for credit losses. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS — In December 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) which enhances transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid and to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, which is for fiscal year 2026 and interim periods beginning in the first quarter of fiscal 2027, with early adoption permitted. The amendments may be applied prospectively or retrospectively with early adoption permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendment in Response to the SEC’s Disclosure Update and Simplification Initiative . The ASU incorporates several disclosure and presentation requirements currently residing in the SEC Regulations S-X and S-K. The amendments will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. As we are currently subject to these SEC requirements, this ASU is not expected to have a material impact on our consolidated financial statements or related disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for public entities for fiscal years beginning after December 15, 2023, which is for fiscal year 2025 and interim periods beginning in the first quarter of fiscal 2025, with early adoption permitted. The adoption of this guidance is not expected to have a material impact to our consolidated financial statements and disclosures. No other new accounting pronouncements issued or effective as of March 30, 2024 have had or are expected to have a material impact on our consolidated financial statements. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The Company consolidates any variable interest entities in which it holds a variable interest and is the primary beneficiary. Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The primary beneficiary of a VIE is generally the entity that has (a) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company has determined that it is the primary beneficiary of three VIEs and, accordingly, consolidates the financial results of these entities. Following are the assets and liabilities of the Company’s consolidated VIEs: March 30, September 30, (in thousands) Cash and cash equivalents $ 154 $ 564 Accounts receivable 242 169 Inventories 42 47 Prepaid and refundable income taxes 16 204 Prepaid expenses and other current assets 39 31 Due from Ark Restaurants Corp. and affiliates (1) 21 58 Fixed assets - net 253 216 Operating lease right-of-use assets - net 1,650 1,796 Other assets 11 11 Total assets $ 2,428 $ 3,096 Accounts payable - trade $ 138 $ 93 Accrued expenses and other current liabilities 237 331 Current portion of operating lease liabilities 311 298 Operating lease liabilities, less current portion 1,465 1,623 Total liabilities 2,151 2,345 Equity of variable interest entities 277 751 Total liabilities and equity $ 2,428 $ 3,096 (1) Amounts Due from and to Ark Restaurants Corp. and affiliates are eliminated upon consolidation. The liabilities of $2,151,000 and $2,345,000 at March 30, 2024 and September 30, 2023, respectively, recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets and creditors of the VIEs do not have recourse to the general credit of the Company; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, the assets of $2,428,000 and $3,096,000 at March 30, 2024 and September 30, 2023, respectively, recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets, these assets can be used only to settle obligations of the three VIEs. |
RECENT RESTAURANT EXPANSION AND
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS | 6 Months Ended |
Mar. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS | RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS On June 24, 2022, the Company extended its lease for America at the New York-New York Hotel and Casino in Las Vegas, NV through December 31, 2033. In connection with the extension, the Company has agreed to spend a minimum of $4,000,000 to materially refresh the premises by December 31, 2024, subject to various extensions as set out in the agreement. No amounts have been expended to date related to this refresh. On July 21, 2022, the Company extended its lease for the Village Eateries at the New York-New York Hotel and Casino in Las Vegas, NV through December 31, 2034. As part of this extension, the Broadway Burger Bar and Grill and Gonzalez y Gonzalez , were carved out of the Village Eateries footprint and the extended date for those two locations is December 31, 2033. In connection with the extension, the Company has agreed to spend a minimum of $3,500,000 to materially refresh all three of these premises by June 30, 2024, as extended. To date approximately $150,000 has been spent on this refresh. Each of the above refresh obligations are to be consistent with designs approved by the landlord which shall not be unreasonably withheld. We will continue to pay all rent as required by the leases without abatement during construction. Note that our substantial completion of work set forth in plans approved by the landlord shall constitute our compliance with the requirements of the completion deadlines, regardless of whether or not the amount actually expended in connection therewith is less than the minimum. |
RECENT RESTAURANT DISPOSITIONS
RECENT RESTAURANT DISPOSITIONS AND OTHER DEVELOPMENTS | 6 Months Ended |
Mar. 30, 2024 | |
Recent Restaurant Dispositions [Abstract] | |
RECENT RESTAURANT DISPOSITIONS AND OTHER DEVELOPMENTS | RECENT RESTAURANT DISPOSITIONS AND OTHER DEVELOPMENTS During the 13 weeks ended December 30, 2023, the Company dissolved the entity which owned Lucky 7 at the Foxwoods Resort and Casino, which was closed in July of 2022. In connection with the dissolution, the Company reclassified the remaining non-controlling interest balance to additional paid-in capital. |
INVESTMENT IN AND RECEIVABLE FR
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK | 6 Months Ended |
Mar. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK | INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK On March 12, 2013, the Company made a $4,200,000 investment in the New Meadowlands Racetrack LLC (“NMR”) through its purchase of a membership interest in Meadowlands Newmark, LLC, an existing member of NMR with a then 63.7% ownership interest. On November 19, 2013, the Company invested an additional $464,000 in NMR through the purchase of an additional membership interest in Meadowlands Newmark, LLC resulting in a total ownership of 11.6% of Meadowlands Newmark, LLC, and an effective ownership interest in NMR as of April 1, 2023 and October 1, 2022 of 7.4%, subject to dilution. In 2015, the Company invested an additional $222,000 in NMR and in February 2017, the Company invested an additional $222,000 in NMR, both as a result of capital calls with no change in ownership, bringing its total investment to $5,108,000. The Company accounts for this investment at cost, less impairment, adjusted for subsequent observable price changes in accordance with Accounting Standards Updated ("ASU") No. 2016-01. There are no observable prices for this investment. During the 13 and 26 weeks ended March 30, 2024, the Company received distributions of $0 and $26,000, respectively, from NMR which have been recorded as other income in the consolidated condensed statements of income. During the 13 and 26 weeks ended April 1, 2023, the Company did not receive any distributions from NMR. The Company evaluated its investment in NMR for impairment and concluded that its fair value exceeds the carrying value. Accordingly, the Company did not record any impairment during the 13 and 26 weeks ended March 30, 2024 and April 1, 2023. Any future changes in the carrying value of our investment in NMR will be reflected in earnings. In addition to the Company’s ownership interest in NMR through Meadowlands Newmark, LLC, if casino gaming is approved at the Meadowlands and NMR is granted the right to conduct said gaming, neither of which can be assured, the Company shall be granted the exclusive right to operate the food and beverage concessions in the gaming facility with the exception of one restaurant. In conjunction with this investment, the Company, through a 97% owned subsidiary, Ark Meadowlands LLC (“AM VIE”), also entered into a long-term agreement with NMR for the exclusive right to operate food and beverage concessions serving the new raceway facilities (the “Racing F&B Concessions”) located in the new raceway grandstand constructed at the Meadowlands Racetrack in northern New Jersey. Under the agreement, NMR is responsible to pay for the costs and expenses incurred in the operation of the Racing F&B Concessions, and all revenues and profits thereof inure to the benefit of NMR. AM VIE receives an annual fee equal to 5% of the net profits received by NMR from the Racing F&B Concessions during each calendar year. AM VIE is a variable interest entity; however, based on qualitative consideration of the contracts with AM VIE, the operating structure of AM VIE, the Company’s role with AM VIE, and that the Company is not obligated to absorb expected losses of AM VIE, the Company has concluded that it is not the primary beneficiary and not required to consolidate the operations of AM VIE. The Company’s maximum exposure to loss as a result of its involvement with AM VIE is limited to any receivable from AM VIE’s primary beneficiary. As of March 30, 2024 and September 30, 2023, $122,000 and $11,000 were due to AM VIE by NMR, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Mar. 30, 2024 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: March 30, September 30, (In thousands) Sales tax payable $ 954 $ 765 Accrued wages and payroll related costs 3,253 4,487 Customer advance deposits 5,463 5,962 Accrued occupancy and other operating expenses 2,798 2,615 $ 12,468 $ 13,829 |
LEASES
LEASES | 6 Months Ended |
Mar. 30, 2024 | |
Leases [Abstract] | |
LEASES | LEASES Other than locations where we own the underlying property, we lease our restaurant locations as well as our corporate office under various non-cancelable real estate lease agreements that expire on various dates through 2046. We evaluate whether we control the use of the asset, which is determined by assessing whether we obtain substantially all economic benefits from the use of the asset, and whether we have the right to direct the use of the asset. If these criteria are met and we have identified a lease, we account for the contract under the requirements of Accounting Standards Codification ("ASC") Topic 842. Upon taking possession of a leased asset, we determine its classification as an operating or finance lease. All of our real estate leases are classified as operating leases. We do not have any finance leases as of March 30, 2024. Generally, our real estate leases have initial terms ranging from 10 to 25 years and typically include renewal options. Renewal options are recognized as part of the ROU assets and lease liabilities if it is reasonably certain at the date of adoption that we would exercise the options to extend the lease. Our real estate leases typically provide for fixed minimum rent payments and/or contingent rent payments based upon sales in excess of specified thresholds. When the achievement of such sales thresholds are deemed to be probable, variable lease expense is accrued in proportion to the sales recognized during the period. For operating leases that include rent holidays and rent escalation clauses, we recognize lease expense on a straight-line basis over the lease term from the date we take possession of the leased property. We record the straight-line lease expense and any contingent rent, if applicable, in occupancy expenses in the consolidated condensed statements of income. Many of our real estate leases also require us to pay real estate taxes, common area maintenance costs and other occupancy costs (“non-lease components”) which are included in occupancy related expenses in the consolidated condensed statements of income. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As there were no explicit rates provided in our leases, we used our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The components of lease expense in the consolidated condensed statements of income are as follows: 13 Weeks Ended 26 Weeks Ended March 30, April 1, March 30, April 1, (In thousands) (In thousands) Operating lease expense - occupancy expenses (1) $ 3,469 $ 3,401 $ 6,923 $ 6,929 Occupancy lease expense - general and 122 116 244 230 Variable lease expense - occupancy expenses 747 412 2,124 1,769 Total lease expense $ 4,338 $ 3,929 $ 9,291 $ 8,928 _________________________________ (1) Includes short-term leases, which are immaterial. Supplemental cash flow information related to leases: 26 Weeks Ended March 30, April 1, (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 9,161 $ — $ 9,754 The weighted average remaining lease terms and discount rates as of March 30, 2024 are as follows: Weighted Average Weighted Average Operating leases 11.7 years 6.2 % The annual maturities of our lease liabilities as of March 30, 2024 are as follows: Operating Fiscal Year Ending (In thousands) September 28, 2024 $ 6,979 September 27, 2025 12,881 October 3, 2026 12,143 October 2, 2027 11,960 September 30, 2028 12,057 Thereafter 79,284 Total future lease commitments 135,304 Less imputed interest (38,998) Present value of lease liabilities $ 96,306 |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Mar. 30, 2024 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE Notes payable consist of the following: March 30, September 30, (In thousands) Promissory Note - Rustic Inn purchase $ 2,759 $ 2,902 Promissory Note - JB's on the Beach purchase 2,250 2,750 Promissory Note - Sequoia renovation 1,029 1,257 Promissory Note - Blue Moon Fish Company 203 313 6,241 7,222 Less: Current maturities (1,946) (1,987) Less: Unamortized deferred financing costs (68) (95) Long-term portion $ 4,227 $ 5,140 Credit Facility On March 30, 2023, the Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”), with its lender, Bank Hapoalim B.M. (“BHBM”). This facility, which matures on June 1, 2025, replaced our revolving credit facility which was entered into in June 1, 2018 (the "Prior Credit Agreement"). Under the terms of the Credit Agreement: (i) a promissory note under the Prior Credit Agreement in the amount of $6,666,000 was repaid, (ii) BHBM established a new revolving credit facility in the amount of $10,000,000 with a commitment termination date of May 31, 2025, (iii) the Company may use the revolving commitments of BHBM to obtain letters of credit up to a sublimit thereunder of $1,000,000, and (iv) the LIBOR rate option for all borrowings was replaced with the secured overnight financing rate for U.S. Government Securities (“SOFR”). Advances under the Credit Agreement bear interest, at the Company's election at the time of the advance, at either BHBM's prime rate of interest plus a 0.45% spread or SOFR plus a 3.65% spread. In addition, there is a 0.30% per annum fee for any unused portion of the $10,000,000 revolving facility. As of March 30, 2024, no advances were outstanding under the Credit Agreement. As of March 30, 2024, the weighted average interest on the outstanding BHBM indebtedness was approximately 9.0%. The Credit Agreement also requires, among other things, that the Company meet minimum quarterly tangible net worth amounts, maintain a minimum fixed charge coverage ratio and meet minimum annual net income amounts. The Credit Agreement contains customary representations, warranties and affirmative covenants as well as customary negative covenants, subject to negotiated exceptions on liens, relating to other indebtedness, capital expenditures, liens, affiliate transactions, disposal of assets and certain changes in ownership. Borrowings and all other obligations under the Credit Agreement (including amounts outstanding under the existing term notes (discussed below)) are secured by all tangible and intangible personal property (including accounts receivable, inventory, equipment, general intangibles, documents, chattel paper, instruments, letter-of-credit rights, investment property, intellectual property and deposit accounts) and fixtures of the Company. On March 30, 2023, in connection with entering into the Credit Agreement, the Company amended each of the following promissory notes to replace the interest rate benchmark based on LIBOR and related LIBOR-based mechanics with an interest rate benchmark based on SOFR, with such amendments becoming effective upon the expiration of the then applicable interest period (the “Notes Amendment Effective Date”) and with the following terms: • Promissory Note – Rustic Inn purchase – The principal amount of $4,400,000, which is secured by a mortgage on the Rustic Inn real estate, is payable in 27 equal quarterly installments of $71,333, commencing on September 1, 2018, with a balloon payment of $2,474,000 on June 1, 2025, and commencing on the Notes Amendment Effective Date, bears interest at SOFR plus 3.65% per annum. • Promissory Note – JB's on the Beach purchase – On May 15, 2019, the Company issued a promissory note under the Revolving Facility to BHBM for $7,000,000, which is payable in 23 equal quarterly installments of $250,000, commencing on September 1, 2019, with a balloon payment of $1,250,000 on June 1, 2025, and commencing on the Notes Amendment Effective Date, bears interest at SOFR plus 3.65% per annum. • Promissory Note – Sequoia renovation – Also on May 15, 2019, the Company converted $3,200,000 of Revolving Facility borrowings incurred in connection with the Sequoia renovation to a promissory note which is payable in 23 equal quarterly installments of $114,286, commencing on September 1, 2019, with a balloon payment of $571,429 on June 1, 2025, and commencing on the Notes Amendment Effective Date, bears interest at SOFR plus 3.65% per annum. • Promissory Note – Revolving Facility – On July 26, 2021, all outstanding borrowings under the previous revolving facility, in the amount of $9,666,000, were converted to a promissory note with quarterly principal payments of $500,000 commencing on September 1, 2021, with a balloon payment of $2,166,000 on June 1, 2025. Such note, which was repaid on March 30, 2023, bore interest at SOFR plus 3.65% per annum. Promissory Note - Blue Moon Fish Company On December 1, 2020, the Company acquired a restaurant and bar named Blue Moon Fish Company located in Lauderdale-by-the-Sea, FL. In connection with the purchase the Company entered into a four Paycheck Protection Program Loans During the year ended October 3, 2020, subsidiaries and consolidated VIEs (the “Borrowers”) of the Company received loan proceeds from several banks (the “Lenders”) in the aggregate amount of $14,995,000 (the “PPP Loans”) under the Paycheck Protection Program (the “PPP”) of the CARES Act, which was enacted March 27, 2020. In addition, during the 13 weeks ended April 3, 2021, one of our consolidated VIEs received a second draw PPP Loan in the amount of $111,000. The PPP Loans were evidenced by individual promissory notes of each of the Borrowers (together, the “Notes”) in favor of the Lender, which Notes bore interest at the rate of 1.00% per annum. Funds from the PPP Loans were to be used only for payroll and related costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations that were incurred by a Borrower prior to February 15, 2020 (the “Qualifying Expenses”). Under the terms of the PPP Loans, some or all of the amounts thereunder, including accrued interest, were to be forgiven if they were used for Qualifying Expenses as described in and in compliance with the CARES Act. During the 13 weeks ended December 30, 2023, the Company prevailed in its appeal of a previously denied forgiveness decision related to a PPP Loan, and accordingly, was refunded $285,000 (including $6,000 of interest). As of March 30, 2024 no PPP Loans were outstanding. Deferred Financing Costs |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases — The Company leases several restaurants, bar facilities, and administrative headquarters through its subsidiaries under terms expiring at various dates through 2046. Most of the leases provide for the payment of base rents plus real estate taxes, insurance and other expenses and, in certain instances, for the payment of a percentage of the restaurant’s sales in excess of stipulated amounts at such facility and in one instance based on profits. In connection with two of our leases, the Company obtained and delivered irrevocable letters of credit totaling approximately $542,000 as security deposits under such leases. Legal Proceedings — In the ordinary course of its business, the Company is a party to various lawsuits arising from accidents at its restaurants and workers’ compensation claims, which are generally handled by the Company’s insurance carriers. The employment by the Company of management personnel, waiters, waitresses and kitchen staff at a number of different restaurants has resulted in the institution, from time to time, of litigation alleging violation by the Company of employment discrimination laws. Management believes, based in part on the advice of counsel, that the ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
STOCK OPTIONS
STOCK OPTIONS | 6 Months Ended |
Mar. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK OPTIONS | STOCK OPTIONS The Company has options outstanding under two stock option plans, the 2016 Stock Option Plan and the 2022 Stock Option Plan. Options granted under both plans are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted and expire 10 years after the date of grant. On January 18, 2024, options to purchase 107,500 shares of common stock at an exercise price of $14.80 per share were granted to officers and directors of the Company under the 2022 Stock Option Plan. Such options are exercisable as to 25% of the shares commencing on the first anniversary of the date of grant and as to 25% each year thereafter. The grant date fair value of these stock options was $4.39 per share and totaled approximately $472,000. The fair value of stock options is estimated on the date of grant using a Black-Scholes option-pricing model that uses assumptions that relate to the expected volatility of the Company’s common stock, the expected dividend yield of the Company’s stock, the expected life of the options and the risk-free interest rate. The assumptions used for the above include a risk-free interest rate of 4.5%, volatility of 34.3%, a dividend yield of 3.8% and an expected life of 10 years. During the 26-week period ended April 1, 2023, no options to purchase shares of common stock were issued by the Company. The Company also maintains a Section 162(m) Cash Bonus Plan. Under the Company's Section 162(m) Cash Bonus Plan, compensation paid in excess of $1,000,000 to any employee who is the chief executive officer or one of the three highest paid executive officers on the last day of that tax year (other than the chief executive officer or the chief financial officer) is not tax deductible. A summary of stock option activity is presented below: 2024 Shares Weighted Weighted Aggregate Outstanding, beginning of period 471,250 $19.57 5.2 years Options: Granted 107,500 $14.80 Exercised — Canceled or expired — Outstanding and expected to vest, 578,750 $18.68 5.7 years $ 279,000 Exercisable, end of period 409,375 $20.62 4.3 years $ 140,000 Shares available for future grant 370,000 Compensation cost charged to operations for the 13 weeks ended March 30, 2024 and April 1, 2023 for share-based compensation programs was approximately $68,000 and $80,000, respectively, and for the 26 weeks ended March 30, 2024 and April 1, 2023 was approximately $145,000 and $159,000, respectively. The compensation cost recognized is classified as a general and administrative expense in the consolidated condensed statements of income. As of March 30, 2024, there was approximately $550,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of 3.8 years. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We calculate our interim income tax provision in accordance with ASC Topic 270, Interim Reporting and ASC Topic 740, Accounting for Income Taxes . At the end of each interim period, we estimate the annual effective tax rate and apply that rate to our ordinary year to date earnings. In addition, the tax effects of unusual or infrequently occurring items including changes in judgment about valuation allowances and effects of changes in enacted tax laws are recognized discretely in the interim period in which the change occurs. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including the expected operating (loss) income for the year, permanent and temporary differences as a result of differences between amounts measured and recognized in accordance with tax laws and financial accounting standards, and the likelihood of recovering deferred tax assets generated in the current fiscal year. The accounting estimates used to compute income tax expense may change as new events occur, additional information is obtained, or the tax environment changes. On December 27, 2020, the Consolidated Appropriations Act of 2021 (“CAA”) was enacted and provided clarification on the tax deductibility of expenses funded with PPP loans as fully deductible for tax purposes. During the 26-week periods ended March 30, 2024 and April 1, 2023, the Company recorded income of $285,000 and $272,000, respectively, for financial reporting purposes related to the forgiveness of some of its PPP Loans. The forgiveness of these amounts is not taxable and the related income recorded for financial reporting purposes was considered an unusual or infrequent event and the tax effect was recorded discretely in the quarter. The provision for income taxes for the 26-week period ended March 30, 2024 was $11,000 and the effective tax rate was 2.7%. The effective tax rate differed from the federal statutory rate of 21% primarily as a result of the recognition of certain tax benefits related to the expected generation of FICA tax credits in the current year, operating income attributable to non-controlling interests that is not taxable to the Company, and the discrete tax benefit attributable to income related to the PPP Loan forgiveness which is not taxable for income tax reporting purposes. The provision for income taxes for the 26-week period ended April 1, 2023 was $133,000 and the effective tax rate was 7.0%. The effective tax rate differed from the federal statutory rate of 21% primarily as a result of the tax benefits related to the generation of FICA tax credits, operating income attributable to non-controlling interests that is not taxable to the Company and the discrete tax benefit attributable to income related to the PPP loan forgiveness which is not taxable for income tax reporting purposes. The Company’s overall effective tax rate in the future will be affected by factors such as changes in tax law, the utilization of state and local net operating loss carryforwards, the generation and expected utilization of FICA tax credits, and the mix of earnings by state taxing jurisdictions as Nevada does not impose a state income tax, as compared to the other major state and local jurisdictions in which the Company has operations. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual tax rate could differ from current estimates. |
INCOME PER SHARE OF COMMON STOC
INCOME PER SHARE OF COMMON STOCK | 6 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
INCOME PER SHARE OF COMMON STOCK | INCOME PER SHARE OF COMMON STOCK Basic earnings per share is computed by dividing net income attributable to Ark Restaurants Corp. by the weighted average number of common shares outstanding for the period. Our diluted earnings per share is computed similarly to basic earnings per share, except that it reflects the effect of common shares issuable upon exercise of stock options, using the treasury stock method in periods in which they have a dilutive effect. A reconciliation of shares used in calculating earnings per basic and diluted share follows (amounts in thousands): 13 Weeks Ended 26 Weeks Ended March 30, April 1, March 30, April 1, Basic 3,604 3,600 3,604 3,600 Effect of dilutive securities: Stock options — — — 46 Diluted 3,604 3,600 3,604 3,646 For the 13- and 26- week periods ended March 30, 2024, the dilutive effect of 471,250 options was not included in diluted earnings per share as their impact would be anti-dilutive. For the 13- and 26- week periods ended April 1, 2023, the dilutive effect of 544,125 and 418,125 options, respectively, was not included in diluted earnings per share as their impact would have been anti-dilutive. |
DIVIDENDS
DIVIDENDS | 6 Months Ended |
Mar. 30, 2024 | |
Dividends [Abstract] | |
DIVIDENDS | DIVIDENDS On February 6, 2024, the Board of Directors of the Company (the Board of Directors") declared a quarterly cash dividend of $0.1875 per share to be paid on March 13, 2024 to shareholders of record of the Company's common stock at the close of business of February 29, 2024. Future decisions to pay or to increase or decrease dividends are at the discretion of the Board of Directors and will depend upon operating performance and other factors. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Mar. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On May 7, 2024, the Board of Directors declared a quarterly cash dividend of $0.1875 per share to be paid on June 12, 2024 to shareholders of record of the Company's common stock at the close of business on May 31, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ (1,449) | $ (484) | $ (79) | $ 1,241 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | The consolidated condensed balance sheet as of September 30, 2023, which has been derived from the audited consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended September 30, 2023 (“Form 10-K”), and the unaudited interim consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. All adjustments that, in the opinion of management are necessary for a fair presentation for the periods presented, have been reflected as required by Article 10 of Regulation S-X. Such adjustments are of a normal, recurring nature. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Form 10-K. |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION — The consolidated condensed financial statements include the accounts of Ark Restaurants Corp. and all of its wholly-owned subsidiaries, partnerships and other entities in which it has a controlling interest, collectively herein referred to as the “Company”. Also included in the consolidated condensed financial statements are certain variable interest entities (“VIEs”). All significant intercompany balances and transactions have been eliminated in consolidation. |
USE OF ESTIMATES | USE OF ESTIMATES — The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The accounting estimates that require management’s most difficult and subjective judgments include: projected cash flows, allowances for potential bad debts on receivables, assumptions regarding discount rates related to lease accounting, the useful lives and recoverability of its long-lived assets, such as property, right-of-use assets and intangibles, fair values of financial instruments and share-based compensation, estimates made in connection with acquisitions and impairment analyses, the realizable value of its tax assets and determining when investment impairments are other-than-temporary. Because of the uncertainty in such estimates, actual results may differ from these estimates. |
NON-CONTROLLING INTERESTS | NON-CONTROLLING INTERESTS — Non-controlling interests represent capital contributions from, distributions to and income and loss attributable to the shareholders of less than wholly-owned and consolidated entities. |
SEASONALITY | SEASONALITY — The Company has substantial fixed costs that do not decline proportionally with sales. Although our business is highly seasonal, our broader geographical reach as a result of recent acquisitions mitigates some of the risk. For instance, the second quarter of our fiscal year, consisting of the non-holiday portion of the cold weather season in New York and Washington, D.C. (January, February and March), is the poorest performing quarter; however, in recent years this has been partially offset by our locations in Florida as they experience increased results in the winter months. We generally achieve our best results during the warm weather, attributable to our extensive outdoor dining availability, particularly at Bryant Park in New York and Sequoia in Washington, D.C. (our largest restaurants) and our outdoor cafes. However, even during summer months these facilities can be adversely affected by unusually cool or rainy weather conditions. Our facilities in Las Vegas are indoor and generally operate on a more consistent basis throughout the year. |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS — The carrying amount of cash and cash equivalents, receivables and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair values of notes receivable and payable are determined using current applicable rates for similar instruments as of the balance sheet date and approximate the carrying value of such debt instruments. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS — Cash and cash equivalents include cash on hand, deposits with banks and highly-liquid investments generally with original maturities of three months or less. Outstanding checks in excess of account balances, typically vendor payments, payroll and other contractual obligations disbursed after the last day of a reporting period are reported as a current liability in the accompanying consolidated condensed balance sheets. |
CONCENTRATIONS OF CREDIT RISK | CONCENTRATIONS OF CREDIT RISK — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company reduces credit risk by placing its cash and cash equivalents with major financial institutions with high credit ratings. At times, such amounts may exceed federally insured limits. Accounts receivable is primarily comprised of normal business receivables such as credit card receivables that are paid in a short period of time and other receivables from hotel operators where the Company has a location and are recorded upon satisfaction of the performance obligation. Management believes based on historical information that credit card receivables and receivables which are paid in a short period of time and from hotel operators where the Company has a location do not typically result in credit losses, and therefore does not record an allowance for credit losses. |
GOODWILL AND TRADEMARKS | GOODWILL AND TRADEMARKS — Goodwill and trademarks are not amortized, but are subject to impairment analysis. We assess the potential impairment of goodwill and trademarks annually (at the end of our fourth quarter) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If we determine through the impairment review process that goodwill or trademarks are impaired, we record an impairment charge in our consolidated condensed statements of income. The Company did not record any impairment to its goodwill or trademarks during the 13- and 26- weeks ended March 30, 2024 and April 1, 2023, respectively. It is possible that impairments could be identified in future periods, and such amounts could be material. |
LONG-LIVED AND RIGHT-OF-USE ASSETS | LONG-LIVED AND RIGHT-OF-USE ASSETS — Long-lived assets, such as property, plant and equipment, purchased intangibles subject to amortization, and right-of-use assets ("ROU assets") are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In the evaluation of the fair value and future benefits of long-lived assets, the Company performs an analysis of the anticipated undiscounted future net cash flows of the related long-lived assets. If the carrying value of the related asset exceeds the undiscounted cash flows, the carrying value is reduced to its fair value. Various factors including estimated future sales growth and estimated profit margins are included in this analysis. The Company considers a triggering event related to long-lived assets or ROU assets in a net asset position to have occurred related to a specific restaurant if the restaurant’s cash flows for the last 12 months are less than a minimum threshold or if consistent levels of undiscounted cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. Additionally, the Company considers a triggering event related to ROU assets to have occurred related to a specific lease if the location has been subleased and future estimated sublease income is less than current lease payments. If the Company concludes that the carrying value of certain long-lived and ROU assets will not be recovered based on expected undiscounted future cash flows, an impairment loss is recorded to reduce the long-lived or ROU assets to their estimated fair value. The fair value is measured on a nonrecurring basis using unobservable (Level 3) inputs. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods, and such charges could be material. |
REVEVNUE RECOGNITION | REVENUE RECOGNITION — We recognize revenue upon the satisfaction of our performance obligation by transferring control over a product or service to a restaurant guest or other customer. Revenues from restaurant operations are presented net of discounts, coupons, employee meals and complimentary meals and recognized when food, beverage and retail products are sold. Sales tax collected from customers is excluded from sales and the obligation is included in sales tax payable until the taxes are remitted to the appropriate taxing authorities. Catering service revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for the service. Revenues from catered events are recognized in income upon satisfaction of the performance obligation (the date the event is held) and all customer payments, including nonrefundable upfront deposits, are deferred as a contract liability until such time. We recognized $2,203,000 and $1,541,000 in catering services revenue for the 13-week periods ended March 30, 2024 and April 1, 2023, respectively, and $8,617,000 and $7,124,000 for the 26-week periods ended March 30, 2024 and April 1, 2023, respectively. Unearned revenue, which is included in accrued expenses and other current liabilities on the consolidated condensed balance sheets, as of March 30, 2024 and September 30, 2023 was $5,463,000 and $5,962,000, respectively. Revenues from gift cards are deferred and recognized upon redemption. Deferrals are not reduced for potential non-use as we generally have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions in which they are sold. As of March 30, 2024 and September 30, 2023, the total liability for gift cards in the amounts of approximately $461,000 and $340,000, respectively, are included in accrued expenses and other current liabilities in the consolidated condensed balance sheets. Other revenues include purchase service fees which represent commissions earned by a subsidiary of the Company for providing services to other restaurant groups, as well as license fees, property management fees and other rentals. |
LEASES | LEASES — We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in Operating lease right-of-use assets and Operating lease liabilities in our consolidated condensed balance sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. Our lease terms may include options to extend or terminate the lease. Options are included when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Amendments or modifications to lease terms are accounted for as variable lease payments. Leases with a lease term of 12 months or less are accounted for using the practical expedient which allows for straight-line rent expense over the remaining term of the lease. |
SEGMENT REPORTING | SEGMENT REPORTING — As of March 30, 2024, the Company owned and operated 17 restaurants and bars, 16 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and services, class of customers and distribution methods. The Company believes it meets the criteria for aggregating its operating components into a single operating segment in accordance with applicable accounting guidance. |
RECENTLY ADOPTED ACCOUNTING PRINCIPLES and RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ADOPTED ACCOUNTING PRINCIPLES — On October 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments , issued by the Financial Accounting Standards Board (“FASB”) and its related amendments using the prospective method. The new standard changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments, including credit card receivables and receivables from hotel operators where the Company has a location, from an incurred loss model to an expected loss model and adds certain new required disclosures. Under the expected loss model, entities recognize credit losses to be incurred over the entire contractual term of the instrument rather than delaying recognition of credit losses until it is probable the loss has been incurred. In accordance with this guidance, the Company evaluates certain criteria, including aging and historical write-offs, current economic conditions of specific customers and future economic conditions to determine the appropriate allowance for credit losses. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS — In December 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) which enhances transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid and to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, which is for fiscal year 2026 and interim periods beginning in the first quarter of fiscal 2027, with early adoption permitted. The amendments may be applied prospectively or retrospectively with early adoption permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendment in Response to the SEC’s Disclosure Update and Simplification Initiative . The ASU incorporates several disclosure and presentation requirements currently residing in the SEC Regulations S-X and S-K. The amendments will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. As we are currently subject to these SEC requirements, this ASU is not expected to have a material impact on our consolidated financial statements or related disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for public entities for fiscal years beginning after December 15, 2023, which is for fiscal year 2025 and interim periods beginning in the first quarter of fiscal 2025, with early adoption permitted. The adoption of this guidance is not expected to have a material impact to our consolidated financial statements and disclosures. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | Following are the assets and liabilities of the Company’s consolidated VIEs: March 30, September 30, (in thousands) Cash and cash equivalents $ 154 $ 564 Accounts receivable 242 169 Inventories 42 47 Prepaid and refundable income taxes 16 204 Prepaid expenses and other current assets 39 31 Due from Ark Restaurants Corp. and affiliates (1) 21 58 Fixed assets - net 253 216 Operating lease right-of-use assets - net 1,650 1,796 Other assets 11 11 Total assets $ 2,428 $ 3,096 Accounts payable - trade $ 138 $ 93 Accrued expenses and other current liabilities 237 331 Current portion of operating lease liabilities 311 298 Operating lease liabilities, less current portion 1,465 1,623 Total liabilities 2,151 2,345 Equity of variable interest entities 277 751 Total liabilities and equity $ 2,428 $ 3,096 (1) Amounts Due from and to Ark Restaurants Corp. and affiliates are eliminated upon consolidation. |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: March 30, September 30, (In thousands) Sales tax payable $ 954 $ 765 Accrued wages and payroll related costs 3,253 4,487 Customer advance deposits 5,463 5,962 Accrued occupancy and other operating expenses 2,798 2,615 $ 12,468 $ 13,829 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Leases [Abstract] | |
Lease Cost | The components of lease expense in the consolidated condensed statements of income are as follows: 13 Weeks Ended 26 Weeks Ended March 30, April 1, March 30, April 1, (In thousands) (In thousands) Operating lease expense - occupancy expenses (1) $ 3,469 $ 3,401 $ 6,923 $ 6,929 Occupancy lease expense - general and 122 116 244 230 Variable lease expense - occupancy expenses 747 412 2,124 1,769 Total lease expense $ 4,338 $ 3,929 $ 9,291 $ 8,928 _________________________________ (1) Includes short-term leases, which are immaterial. Supplemental cash flow information related to leases: 26 Weeks Ended March 30, April 1, (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 9,161 $ — $ 9,754 The weighted average remaining lease terms and discount rates as of March 30, 2024 are as follows: Weighted Average Weighted Average Operating leases 11.7 years 6.2 % |
Annual Maturities of Lease Liabilities | The annual maturities of our lease liabilities as of March 30, 2024 are as follows: Operating Fiscal Year Ending (In thousands) September 28, 2024 $ 6,979 September 27, 2025 12,881 October 3, 2026 12,143 October 2, 2027 11,960 September 30, 2028 12,057 Thereafter 79,284 Total future lease commitments 135,304 Less imputed interest (38,998) Present value of lease liabilities $ 96,306 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Notes Payable [Abstract] | |
Schedule of Debt | Notes payable consist of the following: March 30, September 30, (In thousands) Promissory Note - Rustic Inn purchase $ 2,759 $ 2,902 Promissory Note - JB's on the Beach purchase 2,250 2,750 Promissory Note - Sequoia renovation 1,029 1,257 Promissory Note - Blue Moon Fish Company 203 313 6,241 7,222 Less: Current maturities (1,946) (1,987) Less: Unamortized deferred financing costs (68) (95) Long-term portion $ 4,227 $ 5,140 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Option Activity | A summary of stock option activity is presented below: 2024 Shares Weighted Weighted Aggregate Outstanding, beginning of period 471,250 $19.57 5.2 years Options: Granted 107,500 $14.80 Exercised — Canceled or expired — Outstanding and expected to vest, 578,750 $18.68 5.7 years $ 279,000 Exercisable, end of period 409,375 $20.62 4.3 years $ 140,000 Shares available for future grant 370,000 |
INCOME PER SHARE OF COMMON ST_2
INCOME PER SHARE OF COMMON STOCK (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of shares used in calculating earnings per basic and diluted share follows (amounts in thousands): 13 Weeks Ended 26 Weeks Ended March 30, April 1, March 30, April 1, Basic 3,604 3,600 3,604 3,600 Effect of dilutive securities: Stock options — — — 46 Diluted 3,604 3,600 3,604 3,646 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 30, 2024 USD ($) restaurant | Apr. 01, 2023 USD ($) | Mar. 30, 2024 USD ($) restaurant | Apr. 01, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Impairment charge | $ 0 | $ 0 | $ 0 | $ 0 | |
Revenues | 42,257,000 | 41,897,000 | 89,743,000 | 89,342,000 | |
Unearned revenue | 5,463,000 | 5,463,000 | $ 5,962,000 | ||
Gift cards liability | $ 461,000 | $ 461,000 | $ 340,000 | ||
Restaurants and Bars | |||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of restaurants | restaurant | 17 | 17 | |||
Fast Food Concepts and Catering Operations | |||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of restaurants | restaurant | 16 | 16 | |||
Catering Services | |||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Revenues | $ 2,203,000 | $ 1,541,000 | $ 8,617,000 | $ 7,124,000 | |
Purchases | Supplier Concentration Risk | One Vendor | |||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk | 13% | 12% | |||
Purchases | Supplier Concentration Risk | Two Vendors | |||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk | 24% | 22% | |||
One Hotel Operator | Accounts Receivable | Customer Concentration Risk | |||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk | 42% | ||||
Two Hotel Operator | Accounts Receivable | Customer Concentration Risk | |||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk | 52% |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) $ in Thousands | Mar. 30, 2024 USD ($) entity | Sep. 30, 2023 USD ($) |
Variable Interest Entity [Line Items] | ||
Number of VIEs with primary benefits | entity | 3 | |
TOTAL LIABILITIES | $ 119,485 | $ 125,234 |
Assets | 169,551 | 176,956 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
TOTAL LIABILITIES | 2,151 | 2,345 |
Assets | $ 2,428 | $ 3,096 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of variable interest entities (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 | Sep. 30, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 |
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | $ 10,412 | $ 13,415 | ||||
Accounts receivable | 4,042 | 3,313 | ||||
Inventories | 2,362 | 3,093 | ||||
Prepaid and refundable income taxes | 247 | 212 | ||||
Prepaid expenses and other current assets | 2,648 | 1,569 | ||||
Fixed assets - net | 32,843 | 34,314 | ||||
Operating lease right-of-use assets - net | 92,331 | 96,459 | ||||
Other assets | 2,161 | 2,161 | ||||
Total assets | 169,551 | 176,956 | ||||
Accounts payable - trade | 4,538 | 4,058 | ||||
Accrued expenses and other current liabilities | 12,468 | 13,829 | ||||
Current portion of operating lease liabilities | 8,079 | 7,988 | ||||
Operating lease liabilities, less current portion | 88,227 | 92,232 | ||||
Liabilities | 119,485 | 125,234 | ||||
Equity of variable interest entities | 50,066 | $ 52,278 | 51,722 | $ 60,568 | $ 61,649 | $ 60,118 |
TOTAL LIABILITIES AND EQUITY | 169,551 | 176,956 | ||||
Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 154 | 564 | ||||
Accounts receivable | 242 | 169 | ||||
Inventories | 42 | 47 | ||||
Prepaid and refundable income taxes | 16 | 204 | ||||
Prepaid expenses and other current assets | 39 | 31 | ||||
Fixed assets - net | 253 | 216 | ||||
Operating lease right-of-use assets - net | 1,650 | 1,796 | ||||
Other assets | 11 | 11 | ||||
Total assets | 2,428 | 3,096 | ||||
Accounts payable - trade | 138 | 93 | ||||
Accrued expenses and other current liabilities | 237 | 331 | ||||
Current portion of operating lease liabilities | 311 | 298 | ||||
Operating lease liabilities, less current portion | 1,465 | 1,623 | ||||
Liabilities | 2,151 | 2,345 | ||||
Equity of variable interest entities | 277 | 751 | ||||
TOTAL LIABILITIES AND EQUITY | 2,428 | 3,096 | ||||
Variable Interest Entity, Primary Beneficiary | Related Party | ||||||
Variable Interest Entity [Line Items] | ||||||
Due from Ark Restaurants Corp. and affiliates | $ 21 | $ 58 |
RECENT RESTAURANT EXPANSION A_2
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS - Narrative (Details) - USD ($) | 6 Months Ended | |||
Mar. 30, 2024 | Apr. 01, 2023 | Jul. 21, 2022 | Jun. 24, 2022 | |
Business Acquisition [Line Items] | ||||
Payments for lease improvements | $ 135,304,000 | |||
Operating cash flows related to operating leases | $ 9,161,000 | $ 9,754,000 | ||
Notice to vacate | 12 months | |||
America | New York New York Hotel And Casino Lease | ||||
Business Acquisition [Line Items] | ||||
Operating cash flows related to operating leases | $ 0 | |||
America | Minimum | ||||
Business Acquisition [Line Items] | ||||
Payments for lease improvements | $ 4,000,000 | |||
Village Eateries | New York New York Hotel And Casino Lease | ||||
Business Acquisition [Line Items] | ||||
Operating cash flows related to operating leases | $ 150,000 | |||
Village Eateries | Minimum | ||||
Business Acquisition [Line Items] | ||||
Payments for lease improvements | $ 3,500,000 |
INVESTMENT IN AND RECEIVABLE _2
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Apr. 25, 2014 | Nov. 19, 2013 | Mar. 12, 2013 | Feb. 28, 2017 | Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | Oct. 03, 2015 | Sep. 30, 2023 | Jul. 01, 2023 | Oct. 01, 2022 | |
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) [Line Items] | ||||||||||||
Distributions | $ 0 | $ 0 | $ 26,000 | $ 0 | ||||||||
Related Party | Ark Meadowlands LLC | ||||||||||||
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) [Line Items] | ||||||||||||
Due from Ark Restaurants Corp. and affiliates | 122,000 | 122,000 | $ 11,000 | |||||||||
New Meadowlands Racetrack LLC | ||||||||||||
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) [Line Items] | ||||||||||||
Payments to acquire businesses | $ 4,200,000 | |||||||||||
Ownership percentage (in percent) | 7.40% | 7.40% | ||||||||||
Payments to acquire additional interest in subsidiaries | $ 464,000 | $ 222,000 | $ 222,000 | |||||||||
Long-term investments | $ 5,108,000 | |||||||||||
Distributions | 0 | 26,000 | ||||||||||
Meadowlands Newmark LLC | ||||||||||||
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) [Line Items] | ||||||||||||
Ownership percentage (in percent) | 11.60% | 63.70% | ||||||||||
Loans to related party | $ 1,500,000 | |||||||||||
Interest rate (in percent) | 3% | |||||||||||
Principal and accrued interest | $ 1,421,000 | $ 1,421,000 | $ 1,399,000 | |||||||||
Ark Meadowlands LLC | ||||||||||||
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) [Line Items] | ||||||||||||
Ownership percentage by parent (in percent) | 97% | 97% | ||||||||||
Profit participation percentage (in percent) | 5% |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses And Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Sep. 30, 2023 |
Payables and Accruals [Abstract] | ||
Sales tax payable | $ 954 | $ 765 |
Accrued wages and payroll related costs | 3,253 | 4,487 |
Customer advance deposits | 5,463 | 5,962 |
Accrued occupancy and other operating expenses | 2,798 | 2,615 |
Accrued expenses and other current liabilities | $ 12,468 | $ 13,829 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Mar. 30, 2024 |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Lease term | 10 years |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Lease term | 25 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Leases [Abstract] | ||||
Operating lease expense - occupancy expenses | $ 3,469 | $ 3,401 | $ 6,923 | $ 6,929 |
Occupancy lease expense - general and administrative expenses | 122 | 116 | 244 | 230 |
Variable lease expense - occupancy expenses | 747 | 412 | 2,124 | 1,769 |
Total lease expense | $ 4,338 | $ 3,929 | $ 9,291 | $ 8,928 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Leases [Abstract] | ||
Operating cash flows related to operating leases | $ 9,161 | $ 9,754 |
LEASES - Weighted Average Lease
LEASES - Weighted Average Lease Terms (Details) | Mar. 30, 2024 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term (in years) | 11 years 8 months 12 days |
Operating lease, weighted average discount rate (in percent) | 6.20% |
LEASES - Annual Maturities of L
LEASES - Annual Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 30, 2024 USD ($) |
Leases [Abstract] | |
September 28, 2024 | $ 6,979 |
September 27, 2025 | 12,881 |
October 3, 2026 | 12,143 |
October 2, 2027 | 11,960 |
September 30, 2028 | 12,057 |
Thereafter | 79,284 |
Total future lease commitments | 135,304 |
Less imputed interest | (38,998) |
Present value of lease liabilities | $ 96,306 |
NOTES PAYABLE - Schedule of Lon
NOTES PAYABLE - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Sep. 30, 2023 |
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | ||
Notes payable | $ 6,241 | $ 7,222 |
Less: Current maturities | (1,946) | (1,987) |
Less: Unamortized deferred financing costs | (68) | (95) |
Long-term portion | 4,227 | 5,140 |
The Rustic Inn | ||
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | ||
Notes payable | 2,759 | 2,902 |
JB's on the Beach | ||
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | ||
Notes payable | 2,250 | 2,750 |
Sequoia Renovation | ||
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | ||
Notes payable | 1,029 | 1,257 |
Blue Moon | ||
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | ||
Notes payable | $ 203 | $ 313 |
NOTES PAYABLE - Narrative (Deta
NOTES PAYABLE - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||||||||||
Mar. 30, 2023 USD ($) | Jul. 26, 2021 USD ($) | Dec. 01, 2020 USD ($) | May 15, 2019 USD ($) installment | Sep. 01, 2018 USD ($) installment | Mar. 30, 2024 USD ($) | Dec. 30, 2023 USD ($) | Apr. 01, 2023 USD ($) | Apr. 03, 2021 USD ($) | Mar. 30, 2024 USD ($) | Apr. 01, 2023 USD ($) | Sep. 30, 2023 USD ($) | Oct. 03, 2020 USD ($) | |
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Repayment of notes | $ 0 | $ 531,000 | |||||||||||
Notes payable | $ 6,241,000 | 6,241,000 | $ 7,222,000 | ||||||||||
Forgiven loans under paycheck protection program | 0 | $ 285,000 | $ 0 | 285,000 | 272,000 | ||||||||
PPP loans, interest forgiven | $ 6,000 | ||||||||||||
Deferred financing costs incurred | 304,000 | 304,000 | |||||||||||
Amortization | 14,000 | $ 3,000 | 27,000 | $ 15,000 | |||||||||
The Rustic Inn | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Notes payable | 2,759,000 | 2,759,000 | 2,902,000 | ||||||||||
JB's on the Beach | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Notes payable | 2,250,000 | 2,250,000 | 2,750,000 | ||||||||||
Sequoia Renovation | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Notes payable | 1,029,000 | 1,029,000 | $ 1,257,000 | ||||||||||
Paycheck Protection Program Loan | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Basis spread on variable rate | 1% | ||||||||||||
Paycheck protection program loan | $ 0 | $ 0 | $ 14,995,000 | ||||||||||
Paycheck Protection Program Loan | Variable Interest Entity, Primary Beneficiary | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Paycheck protection program loan | $ 111,000 | ||||||||||||
Prior Credit Agreement | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Repayment of notes | $ 6,666,000 | ||||||||||||
Promissory Note - Blue Moon Fish Company | Blue Moon Fish Company | Notes Payable, Other Payables | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Weighted average interest rate | 5% | ||||||||||||
Debt instrument, term | 4 years | ||||||||||||
Face amount | $ 1,000,000 | ||||||||||||
Periodic payment | $ 23,029 | ||||||||||||
Bank Hapoalim B.M. | Credit Agreement | Line of Credit | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 10,000,000 | ||||||||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Annum fee for unused portion | 0.30% | ||||||||||||
Weighted average interest rate | 9% | 9% | |||||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Basis spread on variable rate | 3.65% | ||||||||||||
Periodic payment | $ 500,000 | ||||||||||||
Balloon payment to be paid | 2,166,000 | ||||||||||||
Credit facility | $ 9,666,000 | ||||||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | JB's on the Beach | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Basis spread on variable rate | 3.65% | ||||||||||||
Number of installments | installment | 23 | ||||||||||||
Periodic payment | $ 250,000 | ||||||||||||
Balloon payment to be paid | 1,250,000 | ||||||||||||
Notes payable | $ 7,000,000 | ||||||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | Sequoia Renovation | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Basis spread on variable rate | 3.65% | ||||||||||||
Number of installments | installment | 23 | ||||||||||||
Periodic payment | $ 114,286 | ||||||||||||
Balloon payment to be paid | 571,429 | ||||||||||||
Notes payable | $ 3,200,000 | ||||||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | Credit Agreement | Line of Credit | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 1,000,000 | ||||||||||||
Basis spread on variable rate | 3.65% | ||||||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | Credit Agreement | Line of Credit | Prime Rate | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Basis spread on variable rate | 0.45% | ||||||||||||
Revolving Credit Facility | Amendment | Bank Hapoalim B.M. | The Rustic Inn | |||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | |||||||||||||
Basis spread on variable rate | 3.65% | ||||||||||||
Face amount | $ 4,400,000 | ||||||||||||
Number of installments | installment | 27 | ||||||||||||
Periodic payment | $ 71,333 | ||||||||||||
Balloon payment to be paid | $ 2,474,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Mar. 30, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Letters of credit outstanding, amount | $ 542 |
STOCK OPTIONS - Narrative (Deta
STOCK OPTIONS - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 18, 2024 USD ($) $ / shares shares | Mar. 30, 2024 USD ($) shares | Apr. 01, 2023 USD ($) | Mar. 30, 2024 USD ($) plan $ / shares shares | Apr. 01, 2023 USD ($) | |
Stock Options (Details) [Line Items] | |||||
Number of stock option plans | plan | 2 | ||||
Granted (in shares) | shares | 107,500 | 107,500 | |||
Granted price (in dollars per share) | $ / shares | $ 14.80 | $ 14.80 | |||
Grant date fair value (in dollars per share) | $ / shares | $ 4.39 | ||||
Granted in period, fair value | $ 472 | ||||
Options authorized (in shares) | shares | 370,000 | 370,000 | |||
Compensation paid | $ 1,000 | ||||
Share-based compensation expense | $ 68 | $ 80 | 145 | $ 159 | |
Unrecognized compensation | $ 550 | $ 550 | |||
Unrecognized compensation, period for recognition (in years) | 3 years 9 months 18 days | ||||
Employee Stock Option | |||||
Stock Options (Details) [Line Items] | |||||
Granted (in shares) | shares | 0 | ||||
Vesting percentage (in percent) | 25% | ||||
Risk free interest rate | 4.50% | ||||
Volatility rate | 34.30% | ||||
Dividend yield (in percent) | 3.80% | ||||
Expected term (in years) | 10 years | ||||
Stock Option 2016 Plan | |||||
Stock Options (Details) [Line Items] | |||||
Expiration period (in years) | 10 years |
STOCK OPTIONS (Details) - Sched
STOCK OPTIONS (Details) - Schedule of stock options, activity - USD ($) | 6 Months Ended | 12 Months Ended | |
Jan. 18, 2024 | Mar. 30, 2024 | Sep. 30, 2023 | |
Shares | |||
Outstanding, beginning of period (in shares) | 471,250 | ||
Granted (in shares) | 107,500 | 107,500 | |
Exercised (in shares) | 0 | ||
Canceled or expired (in shares) | 0 | ||
Outstanding and expected to vest, end of period (in shares) | 578,750 | 471,250 | |
Exercisable, end of period (in shares) | 409,375 | ||
Shares available for future grant (in shares) | 370,000 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning of period (in dollars per share) | $ 19.57 | ||
Granted price (in dollars per share) | $ 14.80 | 14.80 | |
Exercised (in dollars per share) | |||
Canceled or expired (in dollars per share) | |||
Outstanding and expected to vest, end of period (in dollars per share) | 18.68 | $ 19.57 | |
Exercisable, end of period (in dollars per share) | $ 20.62 | ||
Weighted Average Contractual Term | |||
Weighted average contractual term, outstanding | 5 years 8 months 12 days | 5 years 2 months 12 days | |
Weighted average contractual term, exercisable | 4 years 3 months 18 days | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value, outstanding and expected to vest | $ 279,000 | ||
Aggregate intrinsic value, exercisable | $ 140,000 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 30, 2024 | Dec. 30, 2023 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Forgiven loans under paycheck protection program | $ 0 | $ 285 | $ 0 | $ 285 | $ 272 |
Provision (benefit) for income taxes | $ (147) | $ 19 | $ 11 | $ 133 | |
Effective income tax rate (in percent) | 2.70% | 7% |
INCOME PER SHARE OF COMMON ST_3
INCOME PER SHARE OF COMMON STOCK - Schedule of Earnings Per Share, Basic and Diluted (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Earnings Per Share [Abstract] | ||||
Basic (in shares) | 3,604 | 3,600 | 3,604 | 3,600 |
Effect of dilutive securities: | ||||
Stock options (in shares) | 0 | 0 | 0 | 46 |
Diluted (in shares) | 3,604 | 3,600 | 3,604 | 3,646 |
INCOME PER SHARE OF COMMON ST_4
INCOME PER SHARE OF COMMON STOCK - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from computation of earning per share (in shares) | 471,250 | 544,125 | 471,250 | 418,125 |
DIVIDENDS (Details)
DIVIDENDS (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Feb. 06, 2024 | Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Dividends [Abstract] | |||||
Dividends paid (in USD per share) | $ 0.1875 | $ 0.1875 | $ 0.125 | $ 0.375 | $ 0.25 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | May 07, 2024 $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends accrued (in dollars per share) | $ 0.1875 |