Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jul. 01, 2017 | Aug. 04, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ARK RESTAURANTS CORP | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 3,425,681 | |
Amendment Flag | false | |
Entity Central Index Key | 779,544 | |
Entity Filer Category | Smaller Reporting Company | |
Document Period End Date | Jul. 1, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 01, 2017 | Oct. 01, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents (includes $397 at July 1, 2017 and $889 at October 1, 2016 related to VIEs) | $ 320 | $ 7,239 |
Accounts receivable (includes $515 at July 1, 2017 and $429 at October 1, 2016 related to VIEs) | 3,558 | 3,750 |
Employee receivables | 388 | 453 |
Inventories (includes $22 at July 1, 2017 and $23 at October 1, 2016 related to VIEs) | 2,111 | 1,892 |
Prepaid expenses and other current assets (includes $258 at July 1, 2017 and $228 at October 1, 2016 related to VIEs) | 2,412 | 2,662 |
Total current assets | 8,789 | 15,996 |
FIXED ASSETS - Net (includes $9 at July 1, 2017 and $22 at October 1, 2016 related to VIEs) | 44,107 | 29,546 |
INTANGIBLE ASSETS - Net | 418 | 526 |
GOODWILL | 9,880 | 7,895 |
TRADEMARKS | 3,331 | 1,611 |
DEFERRED INCOME TAXES | 2,949 | 3,416 |
OTHER ASSETS (includes $71 at July 1, 2017 and October 1, 2016 related to VIEs) | 2,339 | 2,564 |
TOTAL ASSETS | 78,779 | 68,255 |
CURRENT LIABILITIES: | ||
Accounts payable - trade (includes $88 at July 1, 2017 and $114 at October 1, 2016 related to VIEs) | 4,536 | 2,876 |
Accrued expenses and other current liabilities (includes $212 at July 1, 2017 and $238 at October 1, 2016 related to VIEs) | 9,857 | 10,555 |
Accrued income taxes | 1,699 | 606 |
Borrowings under credit facility | 3,887 | |
Current portion of notes payable | 4,040 | 2,617 |
Total current liabilities | 24,019 | 16,654 |
OPERATING LEASE DEFERRED CREDIT (includes $56 at July 1, 2017 and $73 at October 1, 2016 related to VIEs) | 3,607 | 3,576 |
NOTES PAYABLE, LESS CURRENT PORTION, net of deferred financing costs | 9,011 | 5,321 |
TOTAL LIABILITIES | 36,637 | 25,551 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Common stock, par value $.01 per share - authorized, 10,000 shares; issued and outstanding, 3,426 shares at July 1, 2017 and 3,423 shares at October 1, 2016 | 34 | 34 |
Additional paid-in capital | 12,588 | 12,942 |
Retained earnings | 27,316 | 27,158 |
Total Ark Restaurants Corp. shareholders’ equity | 39,938 | 40,134 |
NON-CONTROLLING INTERESTS | 2,204 | 2,570 |
TOTAL EQUITY | 42,142 | 42,704 |
TOTAL LIABILITIES AND EQUITY | 78,779 | 68,255 |
New Meadowlands Racetrack LLC [Member] | ||
CURRENT ASSETS: | ||
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK | $ 6,966 | $ 6,701 |
CONSOLIDATED CONDENSED BALANCE3
CONSOLIDATED CONDENSED BALANCE SHEETS (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Jul. 01, 2017 | Oct. 01, 2016 |
VIEs, Cash and cash equivalents | $ 397 | $ 889 |
VIEs, Accounts receivable | 515 | 429 |
VIEs, Inventories | 22 | 23 |
VIEs, Prepaid expenses and other current assets | 258 | 228 |
VIEs, Fixed assets | 9 | 22 |
VIEs, Other assets | 71 | 71 |
VIEs, Accounts payable trade | 88 | 114 |
VIEs, Accrued expenses and other current liabilities | 212 | 238 |
VIEs, Operating lease deferred credit | $ 56 | $ 73 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in Shares) | 10,000 | 10,000 |
Common stock, shares issued (in Shares) | 3,426 | 3,423 |
Common stock, shares outstanding (in Shares) | 3,426 | 3,423 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
REVENUES: | ||||
Food and beverage sales | $ 40,507 | $ 40,935 | $ 112,374 | $ 111,385 |
Other revenue | 694 | 298 | 1,697 | 1,111 |
Total revenues | 41,201 | 41,233 | 114,071 | 112,496 |
COSTS AND EXPENSES: | ||||
Food and beverage cost of sales | 11,227 | 10,656 | 30,814 | 29,440 |
Payroll expenses | 13,776 | 12,895 | 39,402 | 38,982 |
Occupancy expenses | 4,541 | 3,309 | 13,037 | 11,891 |
Other operating costs and expenses | 5,398 | 4,999 | 15,390 | 14,485 |
General and administrative expenses | 2,955 | 2,956 | 8,699 | 8,996 |
Depreciation and amortization | 1,006 | 1,109 | 3,541 | 3,384 |
Total costs and expenses | 38,903 | 35,924 | 110,883 | 107,178 |
RESTAURANT OPERATING INCOME | 2,298 | 5,309 | 3,188 | 5,318 |
Gain on sale of Rustic Inn, Jupiter | 1,637 | |||
OPERATING INCOME | 2,298 | 5,309 | 4,825 | 5,318 |
OTHER (INCOME) EXPENSE: | ||||
Interest expense | 194 | 116 | 470 | 316 |
Interest income | (16) | (12) | (126) | (36) |
Other (income) expense, net | (149) | (217) | (339) | (439) |
Total other (income) expense, net | 29 | (113) | 5 | (159) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 2,269 | 5,422 | 4,820 | 5,477 |
Provision for income taxes | 585 | 1,362 | 1,338 | 1,398 |
CONSOLIDATED NET INCOME | 1,684 | 4,060 | 3,482 | 4,079 |
Net income attributable to non-controlling interests | (298) | (693) | (755) | (1,036) |
NET INCOME ATTRIBUTABLE TO ARK RESTAURANTS CORP. | $ 1,386 | $ 3,367 | $ 2,727 | $ 3,043 |
NET INCOME PER ARK RESTAURANTS CORP. COMMON SHARE: | ||||
Basic (in Dollars per share) | $ 0.40 | $ 0.99 | $ 0.80 | $ 0.89 |
Diluted (in Dollars per share) | $ 0.39 | $ 0.96 | $ 0.77 | $ 0.87 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
Basic (in Shares) | 3,424 | 3,418 | 3,424 | 3,418 |
Diluted (in Shares) | 3,549 | 3,494 | 3,532 | 3,504 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
BALANCE at Oct. 03, 2015 | $ 48,000 | $ 25,682,000 | $ 26,548,000 | $ (13,220,000) | $ 39,058,000 | $ 2,173,000 | $ 41,231,000 |
BALANCE, Shares (in Shares) at Oct. 03, 2015 | 4,774,000 | ||||||
Net income | 3,043,000 | 3,043,000 | 1,036,000 | 4,079,000 | |||
Exercise of stock options | 1,000 | 1,000 | 1,000 | ||||
Stock-based compensation | 286,000 | 286,000 | 286,000 | ||||
Retirement of treasury shares | $ (14,000) | (13,206,000) | $ 13,220,000 | ||||
Retirement of treasury shares (in Shares) | (1,356,000) | ||||||
Distributions to non-controlling interests | (734,000) | (734,000) | |||||
Dividends paid | (2,565,000) | (2,565,000) | (2,565,000) | ||||
BALANCE at Jul. 02, 2016 | $ 34,000 | 12,763,000 | 27,026,000 | 39,823,000 | 2,475,000 | 42,298,000 | |
BALANCE, Shares (in Shares) at Jul. 02, 2016 | 3,418,000 | ||||||
BALANCE at Oct. 01, 2016 | $ 34,000 | 12,942,000 | 27,158,000 | 40,134,000 | 2,570,000 | 42,704,000 | |
BALANCE, Shares (in Shares) at Oct. 01, 2016 | 3,423,000 | ||||||
Net income | 2,727,000 | 2,727,000 | 755,000 | 3,482,000 | |||
Exercise of stock options | 36,000 | 36,000 | $ 36,000 | ||||
Exercise of stock options (in Shares) | 3,000 | 4,308 | |||||
Tax benefit on exercise of stock options | 7,000 | 7,000 | $ 7,000 | ||||
Change in excess tax benefits from stock-based compensation | (397,000) | (397,000) | (397,000) | ||||
Stock-based compensation | 0 | ||||||
Distributions to non-controlling interests | (1,121,000) | (1,121,000) | |||||
Dividends paid | (2,569,000) | (2,569,000) | (2,569,000) | ||||
BALANCE at Jul. 01, 2017 | $ 34,000 | $ 12,588,000 | $ 27,316,000 | $ 39,938,000 | $ 2,204,000 | $ 42,142,000 | |
BALANCE, Shares (in Shares) at Jul. 01, 2017 | 3,426,000 |
CONSOLIDATED CONDENSED STATEME6
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY (Parentheticals) - $ / shares | 9 Months Ended | |
Jul. 01, 2017 | Jul. 02, 2016 | |
Dividends, per share | $ 0.75 | $ 0.75 |
Retained Earnings [Member] | ||
Dividends, per share | 0.75 | 0.75 |
Parent [Member] | ||
Dividends, per share | $ 0.75 | $ 0.75 |
CONSOLIDATED CONDENSED STATEME7
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Jul. 01, 2017 | Jul. 02, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net income | $ 3,482,000 | $ 4,079,000 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Loss on closure of restaurant | 16,000 | |
Gain on sale of Rustic Inn, Jupiter | (1,637,000) | |
Loss on disposal of assets | 283,000 | |
Deferred income taxes | 77,000 | 540,000 |
Stock-based compensation | 0 | 286,000 |
Depreciation and amortization | 3,258,000 | 3,384,000 |
Amortization of deferred financing costs | 35,000 | 32,000 |
Operating lease deferred credit | 31,000 | (190,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 192,000 | (111,000) |
Inventories | 74,000 | 98,000 |
Prepaid, refundable and accrued income taxes | 1,069,000 | (594,000) |
Prepaid expenses and other current assets | 324,000 | (350,000) |
Other assets | 189,000 | (373,000) |
Accounts payable - trade | 1,660,000 | (103,000) |
Accrued expenses and other current liabilities | (698,000) | (426,000) |
Net cash provided by operating activities | 8,339,000 | 6,288,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of fixed assets | (11,843,000) | (1,482,000) |
Loans and advances made to employees | (69,000) | (161,000) |
Payments received on employee receivables | 134,000 | 164,000 |
Proceeds from the sale of the Rustic Inn, Jupiter | 2,474,000 | |
Additional investment in Meadowlands Newmark LLC | (222,000) | |
Net cash used in investing activities | (12,569,000) | (2,196,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on notes payable | (2,932,000) | (1,879,000) |
Borrowings under credit facility | 3,897,000 | |
Payment of debt financing costs | (131,000) | |
Dividends paid | (2,569,000) | (2,565,000) |
Proceeds from issuance of stock upon exercise of stock options | 36,000 | 1,000 |
Distributions to non-controlling interests | (1,121,000) | (734,000) |
Net cash used in financing activities | (2,689,000) | (5,308,000) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (6,919,000) | (1,216,000) |
CASH AND CASH EQUIVALENTS, Beginning of period | 7,239,000 | 9,735,000 |
CASH AND CASH EQUIVALENTS, End of period | 320,000 | 8,519,000 |
Cash paid during the period for: | ||
Interest | 458,000 | 316,000 |
Income taxes | 192,000 | 1,486,000 |
Non-cash financing activities: | ||
Change in excess tax benefits from stock-based compensation | (397,000) | |
Retirement of 1,356 treasury shares | 13,220,000 | |
Oyster House [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of restaurants and bars | (3,043,000) | |
Non-cash financing activities: | ||
Note payable in connection with the purchase of restaurants and bars | $ 8,000,000 | |
Shuckers Inc [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of restaurants and bars | (717,000) | |
Non-cash financing activities: | ||
Note payable in connection with the purchase of restaurants and bars | $ 5,000,000 |
CONSOLIDATED CONDENSED STATEME8
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Parentheticals) - shares shares in Thousands | 9 Months Ended | |
Jul. 01, 2017 | Jul. 02, 2016 | |
Retirement of treasury shares | 1,356 | 1,356 |
CONSOLIDATED CONDENSED FINANCIA
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS | 9 Months Ended |
Jul. 01, 2017 | |
Consolidated Condensed Financial Statements [Abstract] | |
Consolidated Condensed Financial Statements [Text Block] | 1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS The consolidated condensed balance sheet as of October 1, 2016, which has been derived from audited financial statements included in the Company’s annual report on Form 10-K for the year ended October 1, 2016 (“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. The results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year or any other interim period. The Company had a working capital deficiency of $15,230,000 at July 1, 2017 as a result of our purchase of the Oyster House Sequoia PRINCIPLES OF CONSOLIDATION — The consolidated condensed interim 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 interim financial statements are certain variable interest entities (“VIEs”). All significant intercompany balances and transactions have been eliminated in consolidation. RECLASSIFICATIONS — Certain reclassifications of prior period balances for the 39-weeks ended July 2, 2016 related to the statement of income presentation of $883,000 of certain administrative fees related to catering revenue received have been reclassified from payroll expense to revenue to conform to the current period presentation. SEASONALITY — The Company has substantial fixed costs that do not decline proportionally with sales. The first and second fiscal quarters, which include the winter months, usually reflect lower customer traffic than in the third and fourth fiscal quarters. In addition, sales in the third and fourth fiscal quarters can be adversely affected by inclement weather due to the significant amount of outdoor seating at the Company’s restaurants. FAIR VALUE OF FINANCIAL INSTRUMENTS — The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued expenses 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 consolidated condensed 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 For the 39-week periods ended July 1, 2017 and July 2, 2016, the Company did not make purchases from any one vendor that accounted for 10% or greater of total purchases for the respective period. For the 13-week period ended July 1, 2017, the Company made purchases from one vendor that accounted for approximately 11% of total purchases. For the 13-week period ended July 2, 2016, the Company did not make purchases from any one vendor that accounted for 10% or greater of total purchases for the respective period. SEGMENT REPORTING — As of July 1, 2017, the Company owned and operated 20 restaurants and bars, 19 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and service, class of customers and distribution methods. The Company believes it meets the criteria for aggregating its operating segments into a single reporting segment in accordance with applicable accounting guidance. NEW ACCOUNTING STANDARDS NOT YET ADOPTED — In January 2017, the Financial Accounting Standards Board (“the FASB”) issued guidance clarifying the definition of a business. The update provides that when substantially all the fair value of the assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The new rules will be effective for the Company in the first quarter of 2019. The Company is currently evaluating the potential impact adoption of this guidance on its Consolidated Condensed Financial Statements. In January 2017, the FASB guidance simplifying the test for goodwill impairment. The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The new rules will be effective for the Company in the first quarter of 2021. The Company is currently evaluating the potential impact adoption of this guidance on its Consolidated Condensed Financial Statements. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Jul. 01, 2017 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities [Text Block] | 2. 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 required disclosures associated with the Company’s consolidated VIEs: July 1, October 1, (in thousands) Cash and cash equivalents $ 397 $ 889 Accounts receivable 515 429 Inventories 22 23 Prepaid expenses and other current assets 258 228 Due from Ark Restaurants Corp. and affiliates (1) 306 - Fixed assets - net 9 22 Other assets 71 71 Total assets $ 1,578 $ 1,662 Accounts payable - trade $ 88 $ 114 Accrued expenses and other current liabilities 212 238 Due to Ark Restaurants Corp. and affiliates (1) - 173 Operating lease deferred credit 56 73 Total liabilities 356 598 Equity of variable interest entities 1,222 1,064 Total liabilities and equity $ 1,578 $ 1,662 (1) Amounts Due from and to Ark Restaurants Corp. and affiliates are eliminated upon consolidation. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, assets 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. |
RECENT RESTAURANT EXPANSION
RECENT RESTAURANT EXPANSION | 9 Months Ended |
Jul. 01, 2017 | |
Recent Restaurant Expansion [Abstract] | |
Recent Restaurant Expansion [Text Block] | 3. RECENT RESTAURANT EXPANSION On October 22, 2015, the Company, through its wholly-owned subsidiaries, Ark Shuckers, LLC and Ark Shuckers Real Estate, LLC, acquired the assets of Shuckers Inc. Shuckers On November 30, 2016, the Company, through newly formed, wholly-owned subsidiaries, acquired the assets of the Original Oyster House, Inc., a restaurant and bar located in the City of Gulf Shores, Baldwin County, Alabama and the related real estate and an adjacent retail shopping plaza and the Original Oyster House II, Inc., a restaurant and bar located in the City of Spanish Fort, Baldwin County, Alabama and the related real estate. The total purchase price was for $10,750,000 plus inventory of approximately $293,000. The acquisition is accounted for as a business combination and was financed with a bank loan from the Company’s existing lender in the amount of $8,000,000 and cash from operations. The fair values of the assets acquired were allocated as follows (amounts in thousands): Inventory $ 293 Land and buildings 6,650 Furniture, fixtures and equipment 395 Trademarks 1,720 Goodwill and Intangibles 1,985 $ 11,043 The Consolidated Condensed Statements of Income for the 13 and 39-weeks ended July 1, 2017 include revenues and income of approximately $5,569,000 and $12,015,000 and $864,000 and $1,387,000, respectively, related to the Shuckers Oyster House Sequoia DC Shuckers Oyster House Shuckers Oyster House 13 Weeks Ended 39 Weeks Ended July 1, July 2, July 1, July 2, Total revenues $ 41,201 $ 45,132 $ 115,884 $ 121,594 Net income $ 1,386 $ 4,345 $ 2,934 $ 4,430 Net income per share - basic $ 0.40 $ 1.27 $ 0.86 $ 1.30 Net income per share - diluted $ 0.39 $ 1.24 $ 0.83 $ 1.26 Basic 3,424 3,418 3,424 3,418 Diluted 3,549 3,494 3,532 3,504 |
RECENT RESTAURANT DISPOSITIONS
RECENT RESTAURANT DISPOSITIONS | 9 Months Ended |
Jul. 01, 2017 | |
Recent Restaurant Dispositions [Abstract] | |
Recent Restaurant Dispositions [Text Block] | 4. RECENT RESTAURANT DISPOSITIONS Lease Expirations V-Bar The Company was advised by the landlord that it would have to vacate the Center Café The Company was advised by the landlord that it would have to vacate The Grill at Two Trees , Other Rustic Inn The Company transferred its lease and the related assets of Canyon Road |
INVESTMENT IN NEW MEADOWLANDS R
INVESTMENT IN NEW MEADOWLANDS RACETRACK | 9 Months Ended |
Jul. 01, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Cost and Equity Method Investments Disclosure [Text Block] | 5. INVESTMENT IN 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 63.7% ownership interest. On November 19, 2013, the Company invested an additional $464,000 in NMR through a 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 of 7.4%, subject to dilution. In 2015, the Company invested an additional $222,000 in NMR and on February 7, 2017, the Company invested an additional $222,000 in NMR, both as a result of capital calls, bringing its total investment to $5,108,000 with no change in ownership. This investment has been accounted for based on the cost method. 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. At July 1, 2017, it was determined that 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 a receivable from AM VIE’s primary beneficiary (NMR, a related party) which aggregated approximately $231,000 and $164,000 at July 1, 2017 and October 1, 2016, respectively, and are included in Prepaid Expenses and Other Current Assets in the Consolidated Condensed Balance Sheets. On April 25, 2014, the Company loaned $1,500,000 to Meadowlands Newmark, LLC. The note bears interest at 3%, compounded monthly and added to the principal, and is due in its entirety on January 31, 2024. The note may be prepaid, in whole or in part, at any time without penalty or premium. On July 13, 2016, the Company made an additional loan to Meadowlands Newmark, LLC in the amount of $200,000. Such amount is subject to the same terms and conditions as the original loan as discussed above. The principal and accrued interest related to this note in the amounts of $1,858,000 and $1,815,000, are included in Investment In and Receivable From New Meadowlands Racetrack in the Consolidated Balance Sheets at July 1, 2017 and October 1, 2016, respectively. In accordance with the cost method, our initial investment is recorded at cost and we record dividend income when applicable, if dividends are declared. We review our Investment in NMR each reporting period to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on its fair value, such as the defeat of the referendum for casino gaming in Northern New Jersey in November 2016. State law prohibits the issue from being put on the ballot before voters for the following two years. As a result, we performed an assessment of the recoverability of our indirect Investment in NMR as of October 1, 2016 which included estimates requiring significant management judgment, include inherent uncertainties and are often interdependent; therefore, they do not change in isolation. Factors that management estimated include, among others, the probability of gambling being approved in Northern NJ which is the most heavily weighted assumption and NMR obtaining a license to operate a casino, revenue levels, cost of capital, marketing spending, tax rates and capital spending. In performing this assessment, we estimated the fair value of our Investment in NMR using our best estimate of these assumptions which we believe would be consistent with what a hypothetical marketplace participant would use. The variability of these factors depends on a number of conditions, including uncertainty about future events and our inability as a minority shareholder to control certain outcomes and thus our accounting estimates may change from period to period. If other assumptions and estimates had been used when these tests were performed, impairment charges could have resulted. As a result of the above, no impairment was deemed necessary as of July 1, 2017. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Jul. 01, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | 6. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: July 1, October 1, (In thousands) Sales tax payable $ 1,162 $ 942 Accrued wages and payroll related costs 2,256 2,495 Customer advance deposits 3,520 4,077 Accrued occupancy and other operating expenses 2,919 3,041 $ 9,857 $ 10,555 |
NOTES PAYABLE - BANK
NOTES PAYABLE - BANK | 9 Months Ended |
Jul. 01, 2017 | |
Notes Payable [Abstract] | |
Notes Payable [Text Block] | 7. NOTES PAYABLE – BANK Long-term debt consists of the following: July 1, October 1, (In thousands) Promissory Note - Rustic Inn purchase $ 2,694 $ 3,907 Promissory Note - Shuckers purchase 3,333 4,084 Promissory Note - Oyster House purchase 7,067 - 13,094 7,991 Less: Current maturities (4,040 ) (2,617 ) Less: Unamortized deferred financing costs (43 ) (53 ) Long-term debt $ 9,011 $ 5,321 On February 25, 2013, the Company issued a promissory note to Bank Hapoalim B.M. (the “BHBM”) for $3,000,000. The note bore interest at LIBOR plus 3.5% per annum, and was payable in 36 equal monthly installments of $83,333, commencing on March 25, 2013. On February 24, 2014, in connection with the acquisition of The Rustic Inn On October 22, 2015, in connection with the acquisition of Shuckers Also on October 22, 2015, the Company also entered into a credit agreement (the “Revolving Facility”) with BHBM which expires on October 21, 2017 and provides for total availability of the lesser of (i) $10,000,000 and (ii) $20,000,000 less the then aggregate amount of all indebtedness and obligations to BHBM. Borrowings under the Revolving Facility are evidenced by a promissory note (the “Revolving Note”) in favor of BHBM and will be payable over five years with interest at an annual rate equal to LIBOR plus 3.5% per year. On November 30, 2016, in connection with the acquisition of the Oyster House During the 13-weeks ended July 1, 2017, the Company borrowed $3,897,000 under the Revolving Facility to finance a portion of the renovation of its Sequoia DC Deferred financing costs incurred in connection with the Revolving Facility in the amount of $130,585 are being amortized over the life of the agreements on a straight-line basis and included in interest expense. Amortization expense of approximately $12,000 and $11,000 is included in interest expense for the 13-weeks ended July 1, 2017 and July 2, 2016, respectively. Amortization expense of $35,000 and $32,000 is included in interest expense for the 39-weeks ended July 1, 2017 and July 2, 2016, respectively. Borrowings under the Revolving Facility, which include all of the above promissory notes, 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. The loan agreements provide, among other things, that the Company meet minimum quarterly tangible net worth amounts, as defined, maintain a fixed charge coverage ratio of not less than 1.1:1 and minimum annual net income amounts, and contain customary representations, warranties and affirmative covenants. The agreements also contain 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. The Company was in compliance with all of its financial covenants under the Revolving Facility as of July 1, 2017 except for the fixed charge coverage ratio covenant. On August 11, 2017, we were issued a waiver for this covenant as of July 1, 2017. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 8. COMMITMENTS AND CONTINGENCIES Leases On January 12, 2016, the Company entered into an Amended and Restated Lease for its Sequoia Legal Proceedings In the ordinary course of its business, the Company is a party to various lawsuits arising from accidents at its restaurants and worker’s 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, from time to time, in 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. Share Repurchase Plan |
STOCK OPTIONS
STOCK OPTIONS | 9 Months Ended |
Jul. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 9. STOCK OPTIONS The Company has options outstanding under two stock option plans, the 2004 Stock Option Plan (the “2004 Plan”) and the 2010 Stock Option Plan (the “2010 Plan”), which was approved by shareholders in the second quarter of 2010. Effective with this approval, the Company terminated the 2004 Plan. This action terminated the 400 authorized but unissued options under the 2004 Plan, but it did not affect any of the options previously issued under the 2004 Plan. Options granted under the 2004 Plan are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted. The options expire ten years after the date of grant. Options granted under the 2010 Plan are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted. The options expire ten years after the date of grant. On April 5, 2016, the shareholders of the Company approved the 2016 Stock Option Plan and the Section 162(m) Cash Bonus Plan. Under the 2016 Stock Option Plan, 500,000 options were authorized for future grant and are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted. The options expire ten years after the date of grant. Under the 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) will meet certain “performance-based” requirements of Section 162(m) and the related IRS regulations in order for it to be tax deductible. During the quarter ended December 31, 2016, options to purchase 90,000 shares of common stock at an exercise price of $32.15 per share expired unexercised. No options or performance-based awards were granted during the 39-week period ended July 1, 2017. A summary of stock option activity is presented below: 2017 Shares Weighted Weighted Aggregate Outstanding, beginning of period 518,608 $ 20.33 5.1 Years Options: Granted - Exercised (4,308 ) $ 18.74 Canceled or expired (90,000 ) $ 32.15 Outstanding and expected to vest, end of period 424,300 $ 17.84 5.4 Years $ 2,719,000 Exercisable, end of period 424,300 $ 17.84 5.4 Years $ 2,719,000 Compensation cost charged to operations for each of the 13-week periods ended July 1, 2017 and July 2, 2016 was $0 and $79,000, respectively, and for the 39-week periods ended July 1, 2017 and July 2, 2016 was $0 and $286,000, respectively. The compensation cost recognized is classified as a general and administrative expense in the Consolidated Condensed Statements of Income. As of July 1, 2017, there was no unrecognized compensation cost related to unvested stock options. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 10. INCOME TAXES The Company’s provision for income taxes consists of Federal, state and local taxes in amounts necessary to align the Company’s year-to-date provision for income taxes with the effective tax rate that the Company expects to achieve for the full year. Each quarter, the Company updates its estimate of the annual effective tax rate and records cumulative adjustments as deemed necessary. The income tax provisions for the 39-week periods ended July 1, 2017 and July 2, 2016 reflect effective tax rates of approximately 28% and 25%, respectively. The Company expects its effective tax rate for its current fiscal year to be lower than the statutory rate as a result of the generation of FICA tax credits and operating income attributable to the non-controlling interests of the VIEs that is not taxable to the Company. 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. The Company’s overall effective tax rate in the future will be affected by factors such as the utilization of state and local net operating loss carryforwards, the generation of FICA tax credits and the mix of earnings by state taxing jurisdiction 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. During the 13-weeks ended December 31, 2016, certain equity compensation awards expired unexercised. As such, the Company reversed the related deferred tax asset in the amount of approximately $397,000 as a charge to Additional Paid-in Capital as there was a sufficient pool of windfall tax benefit available. |
INCOME PER SHARE OF COMMON STOC
INCOME PER SHARE OF COMMON STOCK | 9 Months Ended |
Jul. 01, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 11. INCOME PER SHARE OF COMMON STOCK Net income per share is calculated on the basis of the weighted average number of common shares outstanding during each period plus, for diluted net income per share, the additional dilutive effect of potential common stock. Potential common stock using the treasury stock method consists of dilutive stock options. For the 13- and 39-week periods ended July 1, 2017, the treasury stock impact of options to purchase 66,000, 158,800 and 199,500 shares of common stock at exercise prices of $12.04, $14.40 and $22.50 per share, respectively, were included in diluted earnings per share. For the 13- and 39-week periods ended July 2, 2016, the treasury stock impact of options to purchase 66,000 and 164,700 shares of common stock at exercise prices of $12.04 and $14.40 per share, respectively, were included in diluted earnings per share. Options to purchase 203,000 shares of common stock at an exercise price of $22.50 per share and options to purchase 90,000 shares of common stock at an exercise price of $32.15 were not included in diluted earnings per share as their impact would be anti-dilutive. |
DIVIDENDS
DIVIDENDS | 9 Months Ended |
Jul. 01, 2017 | |
Dividends [Abstract] | |
Dividends [TextBlock] | 12. DIVIDENDS On June 5, 2017, the Board of Directors declared a quarterly dividend of $0.25 per share on the Company’s common stock to be paid on July 5, 2017 to shareholders of record at the close of business on June 19, 2017. The Company intends to continue to pay such quarterly cash dividends for the foreseeable future, however, the payment of future dividends is at the discretion of the Company’s Board of Directors and is based on future earnings, cash flow, financial condition, capital requirements, changes in U.S. taxation and other relevant factors. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Jul. 01, 2017 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | PRINCIPLES OF CONSOLIDATION — The consolidated condensed interim 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 interim financial statements are certain variable interest entities (“VIEs”). All significant intercompany balances and transactions have been eliminated in consolidation. |
Reclassification, Policy [Policy Text Block] | RECLASSIFICATIONS — Certain reclassifications of prior period balances for the 39-weeks ended July 2, 2016 related to the statement of income presentation of $883,000 of certain administrative fees related to catering revenue received have been reclassified from payroll expense to revenue to conform to the current period presentation. |
Seasonality [Policy Text Block] | SEASONALITY — The Company has substantial fixed costs that do not decline proportionally with sales. The first and second fiscal quarters, which include the winter months, usually reflect lower customer traffic than in the third and fourth fiscal quarters. In addition, sales in the third and fourth fiscal quarters can be adversely affected by inclement weather due to the significant amount of outdoor seating at the Company’s restaurants. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS — The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued expenses 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 consolidated condensed balance sheet date and approximate the carrying value of such debt instruments. |
Cash and Cash Equivalents, Policy [Policy Text Block] | 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. |
Supplier Concentration [Policy Text Block] | CONCENTRATIONS OF CREDIT RISK For the 39-week periods ended July 1, 2017 and July 2, 2016, the Company did not make purchases from any one vendor that accounted for 10% or greater of total purchases for the respective period. For the 13-week period ended July 1, 2017, the Company made purchases from one vendor that accounted for approximately 11% of total purchases. For the 13-week period ended July 2, 2016, the Company did not make purchases from any one vendor that accounted for 10% or greater of total purchases for the respective period. |
Segment Reporting, Policy [Policy Text Block] | SEGMENT REPORTING — As of July 1, 2017, the Company owned and operated 20 restaurants and bars, 19 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and service, class of customers and distribution methods. The Company believes it meets the criteria for aggregating its operating segments into a single reporting segment in accordance with applicable accounting guidance. |
New Accounting Pronouncements, Policy [Policy Text Block] | NEW ACCOUNTING STANDARDS NOT YET ADOPTED — In January 2017, the Financial Accounting Standards Board (“the FASB”) issued guidance clarifying the definition of a business. The update provides that when substantially all the fair value of the assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The new rules will be effective for the Company in the first quarter of 2019. The Company is currently evaluating the potential impact adoption of this guidance on its Consolidated Condensed Financial Statements. In January 2017, the FASB guidance simplifying the test for goodwill impairment. The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The new rules will be effective for the Company in the first quarter of 2021. The Company is currently evaluating the potential impact adoption of this guidance on its Consolidated Condensed Financial Statements. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Jul. 01, 2017 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | Following are the required disclosures associated with the Company’s consolidated VIEs: July 1, October 1, (in thousands) Cash and cash equivalents $ 397 $ 889 Accounts receivable 515 429 Inventories 22 23 Prepaid expenses and other current assets 258 228 Due from Ark Restaurants Corp. and affiliates (1) 306 - Fixed assets - net 9 22 Other assets 71 71 Total assets $ 1,578 $ 1,662 Accounts payable - trade $ 88 $ 114 Accrued expenses and other current liabilities 212 238 Due to Ark Restaurants Corp. and affiliates (1) - 173 Operating lease deferred credit 56 73 Total liabilities 356 598 Equity of variable interest entities 1,222 1,064 Total liabilities and equity $ 1,578 $ 1,662 (1) Amounts Due from and to Ark Restaurants Corp. and affiliates are eliminated upon consolidation. |
RECENT RESTAURANT EXPANSION (Ta
RECENT RESTAURANT EXPANSION (Tables) | 9 Months Ended |
Jul. 01, 2017 | |
Recent Restaurant Expansion [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The fair values of the assets acquired were allocated as follows (amounts in thousands): Inventory $ 293 Land and buildings 6,650 Furniture, fixtures and equipment 395 Trademarks 1,720 Goodwill and Intangibles 1,985 $ 11,043 |
Schedule of Annual Financial Information [Table Text Block] | The unaudited pro forma financial information set forth below is based upon the Company’s historical Consolidated Condensed Statements of Income for the 13 and 39-weeks ended July 1, 2017 and July 2, 2016 13 Weeks Ended 39 Weeks Ended July 1, July 2, July 1, July 2, Total revenues $ 41,201 $ 45,132 $ 115,884 $ 121,594 Net income $ 1,386 $ 4,345 $ 2,934 $ 4,430 Net income per share - basic $ 0.40 $ 1.27 $ 0.86 $ 1.30 Net income per share - diluted $ 0.39 $ 1.24 $ 0.83 $ 1.26 Basic 3,424 3,418 3,424 3,418 Diluted 3,549 3,494 3,532 3,504 |
ACCRUED EXPENSES AND OTHER CU24
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Jul. 01, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accrued Expenses And Other Current Liabilities [Table Text Block] | Accrued expenses and other current liabilities consist of the following: July 1, October 1, (In thousands) Sales tax payable $ 1,162 $ 942 Accrued wages and payroll related costs 2,256 2,495 Customer advance deposits 3,520 4,077 Accrued occupancy and other operating expenses 2,919 3,041 $ 9,857 $ 10,555 |
NOTES PAYABLE - BANK (Tables)
NOTES PAYABLE - BANK (Tables) | 9 Months Ended |
Jul. 01, 2017 | |
Notes Payable [Abstract] | |
Schedule of Debt [Table Text Block] | Long-term debt consists of the following: July 1, October 1, (In thousands) Promissory Note - Rustic Inn purchase $ 2,694 $ 3,907 Promissory Note - Shuckers purchase 3,333 4,084 Promissory Note - Oyster House purchase 7,067 - 13,094 7,991 Less: Current maturities (4,040 ) (2,617 ) Less: Unamortized deferred financing costs (43 ) (53 ) Long-term debt $ 9,011 $ 5,321 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 9 Months Ended |
Jul. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of stock option activity is presented below: 2017 Shares Weighted Weighted Aggregate Outstanding, beginning of period 518,608 $ 20.33 5.1 Years Options: Granted - Exercised (4,308 ) $ 18.74 Canceled or expired (90,000 ) $ 32.15 Outstanding and expected to vest, end of period 424,300 $ 17.84 5.4 Years $ 2,719,000 Exercisable, end of period 424,300 $ 17.84 5.4 Years $ 2,719,000 |
CONSOLIDATED CONDENSED FINANC27
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Details) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2017USD ($) | Jul. 02, 2016 | Jul. 01, 2017USD ($) | Jul. 02, 2016USD ($) | |
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Details) [Line Items] | ||||
Prior Period Reclassification Adjustment (in Dollars) | $ 883,000 | |||
Number of Significant Vendors | 1 | 1 | 1 | 1 |
Concentration Risk, Percentage | 11.00% | 10.00% | 10.00% | 10.00% |
Oyster House [Member] | ||||
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Details) [Line Items] | ||||
Working Capital Deficiency (in Dollars) | $ 15,230,000 | $ 15,230,000 | ||
Restaurants and Bars [Member] | ||||
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Details) [Line Items] | ||||
Number of Operating Segments | 20 | |||
Fast Food Concepts and Catering Operations [Member] | ||||
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Details) [Line Items] | ||||
Number of Operating Segments | 19 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) | Jul. 01, 2017 |
Variable Interest Entities [Abstract] | |
Number of VIEs with Primary Benefits | 3 |
VARIABLE INTEREST ENTITIES (D29
VARIABLE INTEREST ENTITIES (Details) - Schedule of variable interest entities - USD ($) $ in Thousands | Jul. 01, 2017 | Oct. 01, 2016 | |
Schedule of variable interest entities [Abstract] | |||
Cash and cash equivalents | $ 397 | $ 889 | |
Accounts receivable | 515 | 429 | |
Inventories | 22 | 23 | |
Prepaid expenses and other current assets | 258 | 228 | |
Due from Ark Restaurants Corp. and affiliates | [1] | 306 | |
Fixed assets - net | 9 | 22 | |
Other assets | 71 | 71 | |
Total assets | 1,578 | 1,662 | |
Accounts payable - trade | 88 | 114 | |
Accrued expenses and other current liabilities | 212 | 238 | |
Due to Ark Restaurants Corp. and affiliates | [1] | 173 | |
Operating lease deferred credit | 56 | 73 | |
Total liabilities | 356 | 598 | |
Equity of variable interest entities | 1,222 | 1,064 | |
Total liabilities and equity | $ 1,578 | $ 1,662 | |
[1] | Amounts Due from and to Ark Restaurants Corp. and affiliates are eliminated upon consolidation. |
RECENT RESTAURANT EXPANSION (De
RECENT RESTAURANT EXPANSION (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2016USD ($) | Oct. 22, 2015USD ($) | Jul. 01, 2017USD ($) | Jul. 02, 2016USD ($) | Jul. 01, 2017USD ($) | Jul. 02, 2016USD ($) | |
RECENT RESTAURANT EXPANSION (Details) [Line Items] | ||||||
Net Income (Loss) Attributable to Parent | $ 1,386,000 | $ 3,367,000 | $ 2,727,000 | $ 3,043,000 | ||
Oyster House [Member] | ||||||
RECENT RESTAURANT EXPANSION (Details) [Line Items] | ||||||
Business Combination, Consideration Transferred | $ 10,750,000 | |||||
Business Combination Inventory Transferred | 293,000 | |||||
Business Combination Bank Loan | $ 8,000,000 | |||||
Shuckers And Oyster House [Member] | ||||||
RECENT RESTAURANT EXPANSION (Details) [Line Items] | ||||||
Sales Revenue, Services, Net | 5,569,000 | 12,015,000 | ||||
Net Income (Loss) Attributable to Parent | $ 864,000 | $ 1,387,000 | ||||
Shuckers Inc [Member] | ||||||
RECENT RESTAURANT EXPANSION (Details) [Line Items] | ||||||
Number of Condominium Unit | 6 | |||||
Number of Condominium Unit of Restaurant and Bar Operations | 4 | |||||
Business Combination, Consideration Transferred | $ 5,717,000 | |||||
Bank Loan Related to Acquisition | $ 5,000,000 | |||||
Sequoia DC [Member] | ||||||
RECENT RESTAURANT EXPANSION (Details) [Line Items] | ||||||
Sales Revenue, Services, Net | 3,667,000 | 6,959,000 | ||||
Net Income (Loss) Attributable to Parent | $ 878,000 | $ 676,000 |
RECENT RESTAURANT EXPANSION (31
RECENT RESTAURANT EXPANSION (Details) - Schedule of fair value assets acquired - Shuckers Inc [Member] $ in Thousands | Jul. 01, 2017USD ($) |
RECENT RESTAURANT EXPANSION (Details) - Schedule of fair value assets acquired [Line Items] | |
Inventory | $ 293 |
Land and buildings | 6,650 |
Furniture, fixtures and equipment | 395 |
Trademarks | 1,720 |
Goodwill and Intangibles | 1,985 |
$ 11,043 |
RECENT RESTAURANT EXPANSION (32
RECENT RESTAURANT EXPANSION (Details) - Schedule of unaudited pro forma financial information - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Schedule of unaudited pro forma financial information [Abstract] | ||||
Total revenues | $ 41,201 | $ 45,132 | $ 115,884 | $ 121,594 |
Net income | $ 1,386 | $ 4,345 | $ 2,934 | $ 4,430 |
Net income per share - basic | $ 0.40 | $ 1.27 | $ 0.86 | $ 1.30 |
Net income per share - diluted | $ 0.39 | $ 1.24 | $ 0.83 | $ 1.26 |
Basic | 3,424 | 3,418 | 3,424 | 3,418 |
Diluted | 3,549 | 3,494 | 3,532 | 3,504 |
RECENT RESTAURANT DISPOSITIONS
RECENT RESTAURANT DISPOSITIONS (Details) - USD ($) | Oct. 04, 2016 | Dec. 31, 2016 | Jul. 01, 2017 |
RECENT RESTAURANT DISPOSITIONS (Details) [Line Items] | |||
Percentage of Deposit on Purchase Price of Property | 10.00% | ||
Investment Building and Building Improvements | $ 5,200,000 | ||
Gain (Loss) on Disposition of Property Plant Equipment | $ 1,637,000 | ||
Amount Of Impairment Loss Recognized Related to Pending Transfer | $ 75,000 | ||
A1A LLC [Member] | |||
RECENT RESTAURANT DISPOSITIONS (Details) [Line Items] | |||
Selling Price of Property under Agreement | $ 8,250,000 | ||
Gain (Loss) on Disposition of Property Plant Equipment | $ 1,637,000 | ||
A1A LLC [Member] | Temporary and Sub Lease Arrangement [Member] | |||
RECENT RESTAURANT DISPOSITIONS (Details) [Line Items] | |||
Lease Expiration Date | Jul. 18, 2017 |
INVESTMENT IN NEW MEADOWLANDS34
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) - USD ($) | Feb. 07, 2017 | Nov. 19, 2013 | Mar. 12, 2013 | Apr. 25, 2014 | Jul. 01, 2017 | Dec. 31, 2015 | Oct. 01, 2016 | Jul. 13, 2016 |
New Meadowlands Racetrack LLC [Member] | ||||||||
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) [Line Items] | ||||||||
Payments to Acquire Businesses and Interest in Affiliates | $ 4,200,000 | |||||||
Cost Method Investments Ownership Percentage | 7.40% | |||||||
Payments to Acquire Additional Interest in Subsidiaries | $ 222,000 | $ 464,000 | $ 222,000 | |||||
Long-term Investments | $ 5,108,000 | |||||||
Meadowlands Newmark LLC [Member] | ||||||||
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) [Line Items] | ||||||||
Cost Method Investments Ownership Percentage | 11.60% | 63.70% | ||||||
Loans and Advances to Related party | $ 1,500,000 | |||||||
Interest Rate on Loan | 3.00% | |||||||
Loan Maturity Date | Jan. 31, 2024 | |||||||
Additional Loans And Advances To Related Party | $ 200,000 | |||||||
Principal and Accrued Interest Included in Other Assets | $ 1,858,000 | $ 1,815,000 | ||||||
Ark Meadowlands LLC [Member] | ||||||||
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) [Line Items] | ||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 97.00% | |||||||
Profit Participation Percentage | 5.00% | |||||||
Maximum Loss Relating to V I E Included In Other Current Assets | $ 231,000 | $ 164,000 |
ACCRUED EXPENSES AND OTHER CU35
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - Schedule of accrued expenses and other current liabilities - USD ($) $ in Thousands | Jul. 01, 2017 | Oct. 01, 2016 |
Schedule of accrued expenses and other current liabilities [Abstract] | ||
Sales tax payable | $ 1,162 | $ 942 |
Accrued wages and payroll related costs | 2,256 | 2,495 |
Customer advance deposits | 3,520 | 4,077 |
Accrued occupancy and other operating expenses | 2,919 | 3,041 |
$ 9,857 | $ 10,555 |
NOTES PAYABLE - BANK (Details)
NOTES PAYABLE - BANK (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Minimum [Member] | ||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||
Fixed Charge Coverage Ratio | 1.10% | |||
Sequoia DC [Member] | Revolving Credit Facility [Member] | ||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||
Line Of Credit Facility Amount Borrowed | $ 3,897,000 | $ 3,897,000 | ||
Debt, Weighted Average Interest Rate | 4.70% | 4.70% | ||
The Rustic Inn [Member] | ||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||
Number of Installments | 60 | |||
Debt Instrument, Periodic Payment | $ 134,722 | |||
Debt Instrument, Date of First Required Payment | Mar. 25, 2014 | |||
Bank Loan Related to Acquisition | $ 6,000,000 | |||
Shuckers Inc [Member] | ||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 5,000,000 | $ 5,000,000 | ||
Debt Instrument, Interest Rate Terms | LIBORplus 3.5% per annum | |||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||
Number of Installments | 60 | |||
Debt Instrument, Periodic Payment | $ 83,333 | |||
Debt Instrument, Date of First Required Payment | Nov. 22, 2015 | |||
Shuckers Inc [Member] | Revolving Credit Facility [Member] | ||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||
Debt Instrument, Interest Rate Terms | LIBOR plus 3.5% per year | |||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||
Line of Credit Facility, Expiration Date | Oct. 21, 2017 | |||
Line of Credit Facility, Current Borrowing Capacity | 10,000,000 | $ 10,000,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 20,000,000 | $ 20,000,000 | ||
Number of Years for Loans Payable | 5 years | |||
Amortization of Other Deferred Charges | $ 130,585 | |||
Amortization | 12,000 | $ 11,000 | 35,000 | $ 32,000 |
Oyster House [Member] | ||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||
Debt Instrument, Face Amount | 8,000,000 | $ 8,000,000 | ||
Debt Instrument, Interest Rate Terms | LIBOR plus 3.5% per annum | |||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||
Number of Installments | 60 | |||
Debt Instrument, Periodic Payment | $ 133,273 | |||
Debt Instrument, Date of First Required Payment | Jan. 1, 2017 | |||
Bank Hapoalim B.M. [Member] | ||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 3,000,000 | $ 3,000,000 | ||
Debt Instrument, Interest Rate Terms | LIBOR plus 3.5% perannum | |||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||
Number of Installments | 36 | |||
Debt Instrument, Periodic Payment | $ 83,333 | |||
Debt Instrument, Date of First Required Payment | Mar. 25, 2013 |
NOTES PAYABLE - BANK (Details)
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt - USD ($) $ in Thousands | Jul. 01, 2017 | Oct. 01, 2016 |
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | ||
Promissory Note | $ 13,094 | $ 7,991 |
Less: Current maturities | (4,040) | (2,617) |
Less: Unamortized deferred financing costs | (43) | (53) |
Long-term debt | 9,011 | 5,321 |
The Rustic Inn [Member] | ||
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | ||
Promissory Note | 2,694 | 3,907 |
Shuckers Inc [Member] | ||
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | ||
Promissory Note | 3,333 | $ 4,084 |
Oyster House [Member] | ||
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | ||
Promissory Note | $ 7,067 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | Jul. 05, 2016 | |
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||||
Lease Expiration Year | 2,032 | |||
Stock Repurchased During Period, Shares (in Shares) | 0 | 0 | ||
Maximum [Member] | ||||
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in Shares) | 500,000 | |||
Sequoia DC [Member] | ||||
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||||
Lessee, Operating Lease, Renewal Term | 15 years | |||
Lease Expiration Date | Nov. 30, 2032 | |||
Operating Leases, Future Minimum Payments Due | $ 1,200,000 | |||
Impairment Losses Related to Real Estate Partnerships | $ 283,000 | |||
Sequoia DC [Member] | Additional Lease Extension Option [Member] | ||||
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||||
Lessee, Operating Lease, Renewal Term | 5 years | |||
Sequoia DC [Member] | Leasehold Improvements [Member] | ||||
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||||
Construction and Development Costs | $ 10,000,000 | |||
Construction in Progress Expenditures Incurred but Not yet Paid | $ 8,500,000 |
STOCK OPTIONS (Details)
STOCK OPTIONS (Details) | 3 Months Ended | 9 Months Ended | |||
Jul. 01, 2017USD ($)shares | Dec. 31, 2016$ / sharesshares | Jul. 02, 2016USD ($) | Jul. 01, 2017USD ($)shares | Jul. 02, 2016USD ($) | |
STOCK OPTIONS (Details) [Line Items] | |||||
Number of Stock Option Plans | 2 | ||||
Maximum Amount of Compensation Paid Under Cash Bonus Plan | $ | $ 1,000,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period (in Shares) | 90,000 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 32.15 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 0 | ||||
Share-based Compensation | $ | $ 0 | $ 79,000 | $ 0 | $ 286,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ | $ 0 | $ 0 | |||
Stock Option 2004 Plan [Member] | |||||
STOCK OPTIONS (Details) [Line Items] | |||||
Terminated Unissued Options (in Shares) | 400 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Stock Option 2010 Plan [Member] | |||||
STOCK OPTIONS (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Stock Option 2016 Plan [Member] | |||||
STOCK OPTIONS (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 500,000 | 500,000 |
STOCK OPTIONS (Details) - Sched
STOCK OPTIONS (Details) - Schedule of stock options, activity | 9 Months Ended |
Jul. 01, 2017USD ($)$ / sharesshares | |
Schedule of stock options, activity [Abstract] | |
Outstanding, beginning of period | shares | 518,608 |
Outstanding, beginning of period | $ / shares | $ 20.33 |
Outstanding, beginning of period | 5 years 36 days |
Options: | |
Exercised | shares | (4,308) |
Exercised | $ / shares | $ 18.74 |
Canceled or expired | shares | (90,000) |
Canceled or expired | $ / shares | $ 32.15 |
Outstanding and expected to vest, end of period | shares | 424,300 |
Outstanding and expected to vest, end of period | $ / shares | $ 17.84 |
Outstanding and expected to vest, end of period | 5 years 146 days |
Outstanding and expected to vest, end of period | $ | $ 2,719,000 |
Exercisable, end of period | shares | 424,300 |
Exercisable, end of period | $ / shares | $ 17.84 |
Exercisable, end of period | 5 years 146 days |
Exercisable, end of period | $ | $ 2,719,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.00% | 25.00% | |
Deferred Tax Asset Reversed As a Charge to Additional Paid in Capital (in Dollars) | $ 397,000 |
INCOME PER SHARE OF COMMON ST42
INCOME PER SHARE OF COMMON STOCK (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Exercise Price One [Member] | ||||
INCOME PER SHARE OF COMMON STOCK (Details) [Line Items] | ||||
Dilutive Securities Included In Computation Of Earnings Per Share Amount | 66,000 | 66,000 | 66,000 | 66,000 |
Exercise Price Of Common Stock Options Included In Computation Of Earnings Per Share | $ 12.04 | $ 12.04 | $ 12.04 | $ 12.04 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 203,000 | 203,000 | ||
Exercise Price Of Common Stock Options Excluded From Computation Of Earnings Per Share | $ 22.50 | $ 22.50 | ||
Exercise Price Two [Member] | ||||
INCOME PER SHARE OF COMMON STOCK (Details) [Line Items] | ||||
Dilutive Securities Included In Computation Of Earnings Per Share Amount | 158,800 | 164,700 | 158,800 | 164,700 |
Exercise Price Of Common Stock Options Included In Computation Of Earnings Per Share | $ 14.40 | $ 14.40 | $ 14.40 | $ 14.40 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 90,000 | 90,000 | ||
Exercise Price Of Common Stock Options Excluded From Computation Of Earnings Per Share | $ 32.15 | $ 32.15 | ||
Exercise Price Three [Member] | ||||
INCOME PER SHARE OF COMMON STOCK (Details) [Line Items] | ||||
Dilutive Securities Included In Computation Of Earnings Per Share Amount | 199,500 | 199,500 | ||
Exercise Price Of Common Stock Options Included In Computation Of Earnings Per Share | $ 22.50 | $ 22.50 |
DIVIDENDS (Details)
DIVIDENDS (Details) | Jun. 05, 2017$ / shares |
Dividends [Abstract] | |
Dividends Payable, Amount Per Share | $ 0.25 |
Dividends Payable, Date to be Paid | Jul. 5, 2017 |
Dividends Payable, Date of Record | Jun. 19, 2017 |