Ark Restaurants (ARKR) 14 May 242024 Q2 Earnings call transcript

Greetings, and welcome to the Ark Restaurants Second Quarter 2024 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I'll now turn the conference over to your host, Christopher Love, Secretary for Ark Restaurants. Thank you.

You may begin.

operator. you, Thank thank call and XXXX. joining on us Good the you second conference for XX, quarter our morning, for ended March My and Ark name Love, the is of Secretary I Restaurants. am Christopher today With me CEO; Anthony our Sirica, Michael our Chairman and is CFO. on and Weinstein, call the

those well Weinstein. as For -- as Sam

of available not the For was Newswire the issued have a press on website. of review yet that is To our of text with to those financial who our along copy full over please yesterday obtained tables, www.arkrestaurants.com. you our the press it release, and release, at homepage associated go

We statements however, begin, that be not are direct performance discussion of that to we statement. of and condition. these Commission I future read for to it. reliance a the guarantees and that therefore, should undue have filings performance, I'd on risks Securities Before detailed forward-looking refer the part operating not results, with safe on the morning our may Exchange harbor and like to everyone this our statements more everyone financial remind discussion placed our and need bearing include of will a

Michael. turn over now call to the I'll

so it's this year of this it quarter terms is for really to some quarter, not by Florida differences easy the we in excuse. a do the affected easy changes, did year of pretty outline primarily, comparisons, to last that's if bland between and well weather in

be. did we're higher new finding head lease. the counts where again, But Just all rents right. them not like Vegas were we with to

marred we're has the on while Extremely property bad had accounts. keeping good really higher case for and payrolls, run winter in levels premiums and The which are raise choose would really interested we New D.C. been to York insurance, in are was customer was obviously which we're the Alabama high insurance but the in prices What results general. long is pretty to a that's a liability that now. fighting by fact think we it. good. and attainable, Washington,

cost prices were modest that headcounts friendly. number have those that some cost make given a So through insurance to up premiums price the higher extent, extent, the to have And of That's our be and not food rents is we to great and really revenue put for restaurants in coming did of increases, through, labor that which to gone up. it. sufficient and

goal we're is to seeing week. for of starting in billion. -- What the on steadily is really weeks seen is month the costs. up make Vegas results to the are some now $X.XXX or last good. has $X favorable Florida rent year. over million those more the compared better comp little so, a X bit last in improved to probably the but product We've consistently, payroll us efficiency not dramatically there difference The is The

new job We purchasing a a to cost. that department seems doing food of have food be better

prior during to So we of this rent get We'll the close achieve we'll year. course the to flow expect cash that had we increases there. same that

really events. my very of in from terms We a we'll the line service if just in demand remains seems business is seeing see that strong. view, Florida courts quality From in we're business think product. pickup everything la be The benefiting is but à and continues. of event are to of point the strong. and in York New is carte The food okay, strong. Alabama

have you happy if answer to be So I'd questions, any them.

of Katz line question comes from first Peter with Investments. Our [ [indiscernible] ] Instructions] the [Operator

Any updates Bryant on Park?

bids. many people the We a We the don't We October that have the kind were came how the and to finalist made who of us. finalists there needs of signed that forthcoming everybody others promised, view would -- has be in leases So are. need all We been promised in of be suspect process out that finally drawn for the X know weeks terms in lease were somewhat X beside we're X process. to disappointing those and response to or ago.

this that when said it the And respondents it must came, reply Friday. by

So waited were to X deal terms what to X to given going lease with to everybody have had see respond in months or to of days and terms days they X respond.

that. to what know on decisions. I responded is don't making we table their time So

a end They not May, hint. said beginning have of of going decision no anybody make have the they're to that We to June. by

don't definitively could the some I comments. stands process their than made been you to We was, just I where can't. we know process. process mystified So I've would what tell lease. wish by I other we've but replied the

affect that plan your events prospectively? ability Does to

events taking XXXX, XXXX. X stopped lease our That's May when already of We've for after ends.

call going, contracts. if people the conversations we'll any to we're but So signing encourage keep not

we're We that know the have the them to of inform to we going property. don't that be possession in

But months. in weddings XX plan certainly, of I well much don't now. that too to advance there's think of

what So be affected. that's probably will first

on Different you amortization might expectation debt debt have what your be? question. Based balance an year-end schedules, your and do

question. about Anthony $X Right now we're can at that million. answer

And balance the all reminder, have The balloon of 'XX as Yes. year-end loans will be just $X a June payment. million. a X,

quarter, So to next current. moves everything

-- current, term And from current debt -- correct? million to million long-term so moves long $X $X

Correct.

June. of As

'XX. everything due by X, X, June of As is June

that? Is would likely is? look most your that -- you plan what you refinance And would to

and start probably process into we'll a agreement of deal. after year mean calendar new sometime I entering into a Yes. roll credit the it the new

a if for But second. can Anthony Yes. interrupt I

million the now. right We banks have about $XX in

Some of on parties. represents that deposits future

quarter quarter flow our our periods. We for should season, during is of cash June and going seasons. it Some just substantially we're float. best But stepping are our into the

build We usually cash.

food require some to refurbishing There Vegas or expenditures make in on purchases build we court. we no As projects the any are current cash have capital. that

into made commitments strong going our well view upon as we're have. future cash where what based seasons. a point So best our shape will But cash in the decisions of be as we stands very from

are -- harvest cash cash where again, such be whatever you said, paying And in and as bonuses and are you adjustments expect quarter first to second the out to opposed as your third Great. done. quarter you to fourth that and you cycle is other quarter the

Correct.

Is or... anything there development terms of in report to new else Okay. business

at look Sam, you about to things. talk [indiscernible]. want We

We're Sure. It's concept months brands in process Las new of food the a that out We X Asian in has to balls think potential a bonds. a bow Vegas. building roll about rice few and fast an been now. concepts. the of putting out concept, together it for lot We've

York, of New So we're New sort York in piloting Vegas. in Las Hotel

to it's real than on a have new rolled we that's but about set we're more as rather be out only up So deck, excited one-off. brand concept it the and

successful, So definitely month place that goes. looking to And we'll new locations or should see for in opening we be it if the that's how And that. next we're so.

finally, do go I'm And -- ahead, sorry.

No.

the think have the with We these -- we with -- very there's But did. to buy cash one-off of got land trying X intent first the things, I or to the or lucky a purchase we that some all who of letter the these restaurant. out buy we're flow, on of of X trying we're in

much cash tried Wisconsin Florida. strong, Xx or flow, increased, bit the have at, to X sales in X pretty numbers. we in in in is stayed, Their and we've these -- cash One and were Florida, last the all remain that deals do, of same they looked they profitability we've have was trying lately, and disappearing to last they're that let's they something, had. a cases, to most problem year's compared say, flow sell us little Management

again becomes renegotiate problem to when to a the we they'll later and hoping or us they're because that a will go build back flow at So date the back seller come for whatever. cash

we flying the some seems cash the changing performance seller's looking just We we're with or cases, -- stuff. a be company. are [indiscernible] there landlords at clauses them in need as So in public lease always the a asking flow about don't that to

not So restaurants interested of at. but to flows the we're effort or try the interested. a to more to we're lack tell cash excuse control -- the of shouldn't expand, would you that I find in more that I we're things landlords me, -- not looking say it's

we flow We cash are expand as a the interesting us to to in to can brand to interested as now flow. build that a is company's cash control, vehicle that buying as have trying

was Gallagher's about sort renovation, the luck good as you curious, upscale that a been has lot in of on endeavor landlord I mentioned any traffic? well. just that more with there having And the process. that money brought spent of a Has conversations

was spent against answer little year's has for have last that XX a would Gallagher's to not when to early under is open. to amount cost results that million. that get tell in but a But the kind didn't business lease, the money tell the I of choice. of It's XX, having [indiscernible] spend completely to warrant money. In having whether had increased too now enough the we're The closed the we comping we restaurant spending commit we flow. restaurant, cash real was $X weeks order you

with Vegas. too lease to rely What -- we and their that us to the be wanted lease. be us points in thought on far we a and much price always the the were under requires life extent, they who more The other a convinced to MGM is steakhouses prices increase steeper of marketing certain were relationship to of steakhouses people to

mean seeing the but kitchen I we is and that's those of been most reopened, Yelp we reviews early X-star excellent, could the that now. had the chef -- some we're We was and corrected wrong tell reviews. you is that refigured had have reviews the excellent. because on I product the we probably product problems and when in are

and surprise is Or another number is why a is and but in that, real we're is us competition, stage to also York, in York show, a hard than in way, T-Mobile would there's for put New customer park. matter circus sales we which than if who way, a very by us. whether been, York, to The -- of would which the attached Gallagher's. be is seeing New It's the ever same will are aren't property, competition now, figure park and York active they us, fact the more that come Arena, the in it's than New but more or expensive the problem MGM was XX% or to bigger suspect some to the that steakhouse it's which out by up -- new put that New

of the which New down middle-income real Hollywood I customer. less they're believe, and court New fast They're you last XX%, Hollywood York, New little now New I seeing from the figures our look we week, courts all burger York a well. than Sales York, from a when is which problem is up. the New company, throughout general was that is the year. Tampa at York up you're New are in and what food New modestly the and in XX% York, priced, But Tampa at terms And New property run looked are in is last that if bar year. next York, food XX%, York. York, at last is But restaurant doing

properties tickets shift restaurants aggregate big a in York, customers there's the to think in York. I that to these from New lower-cost high-priced New

this quality, quality or if tell ago I but us when that going the go Hollywood, they moved think new food out fast When we was everywhere, to to fast moved is do be true section. [indiscernible] Hollywood. a you Hollywood location hotel And we especially we're said, about And years to of but both look, X locations, restaurant did you food want built quality. X Hollywood the and Tampa, the must and not we they to I

And restaurants sudden, full-service points great you price all what have are terms customer of the kind in in a are really expectations and the Casino Hollywood in -- food of steep.

we're And from where restaurants well think we but doesn't product speaks and of quality the food points restaurants. as properties in and in. speak the full the fast I of migration full-service a food, price it the to our the well service to fast are It so courts, the

to prior the is always that ability is question limiting the my mind renovation how comp Gallagher's now. really much better in to to my from And much

do to Arena T-Mobile or we hand, on So dates more but business something is have going we having when on. have competition X more

to next We also have have show, a right which we didn't Gallagher's.

yield I a don't positives. the think is are We well the those than customer. point negatives But So see the customer. price

well may confusing the to So that how into is What be it's see really we're doing customers but know answer, terms are an we I of in to we're doing. because place us confusing [indiscernible]. enjoying walking the

the Our Lipton next of with question comes from Lipton line Roger Financial.

New the bit new us? in didn't New further description of Could York. a Michael, Sam. quite little York, prototype describe you Could Sam get you're -- it for building that I describe

It's rice to quick X an bowls, Sure. a bowl Asian ingredients. It's And bonds. different it's setup. starting service it's put small. just we're concept, a It's place of sort

pork a [indiscernible] and bounds success option We it's areas have Las bowl in that become other or and bowls, we've Vegas other And We've and lot chicken been of in popular. rice spots a very a beef vegetarian essentially at. been option. looking and seeing

build we're both this also own of them little big that together then and our trying to So puts -- making fresh concept led multi-domes. we're

that's much of the So gist pretty it.

Is be it court. in going to a food

New to hotel going it's the court. Yes, be York food New York, in

do when started? that you'll think And you getting Okay. be

start End of to June, about like. construction now. We're it's looking

it. Got

in little the you're casino that? the a casino Any all of at is -- Michael, I downstate more are. we watching I reports And but closely movement press, at see mean, Good. Okay. there anything in periodic new discussions? terms than probably in all terms of

opinion my in the who than can't downstate in that the substantially you partners Jersey forward until in casinos. the substantially deal have move a more of have it's referendum New we Again, you equity do. deal are with

New been Aqueduct in There they property that is of has bought slow. since I -- the York related proposals read in and [indiscernible] process leases in there is activity now about the proposal [indiscernible] has others licenses lot you a that in. Yonkers and and bar there Certainly, Trump a the And guess, in there requires and in is

time. to said of proposals, So more basically need guess, we be there are states a the analyzed lot I

public days. be issued, think be in if draft could So are will pretty that they a in about until And The business then a recipients. Aqueduct Yonkers licenses vote. That Yonkers sure is good much that get and X XX needs referendum. a they Jersey agrees or of license, I'm everybody the Aqueduct resolution pushes X pretty and to to those I thing start

all -- and But New waiting. But is Meadowlands by yes, question for. the waiting the look LLC asked We've Jersey we X the the $XXX been the guarantee investors if you which What what has basically LLC, at million other they of holding waiting the is for? mean that side, I Meadowlands Meadowlands the are state. the now. a runs reality year they're Racetrack company to committed time is

going New come thing. New that York, waiting don't In as it's terms waiting of to new waiting we're have really been this to -- any really so you feedback in [indiscernible] York is

read you the same thing. the We read same and articles We newspapers that read.

than be you But might do best you can. So I paying a little closer attention whatever, can. the you'll

You can't Obviously, just question a observing. it's of what you're control it.

Our next ] Alan private line question [ investor. comes from Goldberg of the

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you're the think moving right direction. I in

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Al. you, Thank

the other Instructions] no [Operator at you comments. I'll Mr. to time. I'm Weinstein, for showing floor turn final any back this questions

all joining next thank to and at right. quarter. speak us, we'll the you the All you for . end Well, of

Thank you. This today's conference call. concludes

You Thank time. you participation. your may disconnect this lines for at your