ARKR sure has had a run up in price this last week.
I notice that WYNN has reported EXCELLENT earnings. This was due in large part to excellent revenue in Macua. HOWEVER, Las Vegas has also started to pick up significantly for WYNN. Could this be an early indication that people are starting to return to Vegas? Will the increase in traffic at WYNN properties portend an increase at ARKR's locations?
ARKR has its single largest presence in Las Vegas. ARKR has two new locations in Vegas, The burger bar & Sporting House. If Vegas is picking up, ARKR is going to make a LOT more money. Management stated in the latest conference call that the single most important factor in the increase of earnings will be how soon & how quick Vegas picks back up.
Could it be that some sharp people are seeing signs of life in Vegas and are starting to pick up on ARKR?
The other area of potential is New York City.
I see that one of the new locations in NYC is going to be HUGE at 10,500 sq. ft. in the new TF cornerstone building at 505 W. 37th Street. The projected opening date is December 1st.
If ARKR can get the new restaurants in NYC up & operating according to plan, sales are going to increase tremendously.
If sales increase tremendously, I would predict earnings will increase in line with the sales increase. If earnings are up, the dividend will be increased. Management has stated in the prior two conference calls that they are being OVERLY conservative with the dividend at only $1/share.
Management has also stated that they expect to end the year with the balance sheet in BETTER condition than it was at the beginning of the year. If that is true, then the 4 or 5 new openings, dividends AND capital expenditures are going to be LESS than internally generated cash flow? That would be a TREMENDOUS accomplishment. I suspect that management has negotiated with the landlords of the various projects to give a buildout allowance. I am sure that ARKR has to put up some capital, but perhaps 1/2 or MORE is being paid for by the landlord.
Earnings are also coming out soon, perhaps someone is in the know!
Went to Vegas this week and stopped in New York New York. The burger bar was humming. The Sports Bar was doing okay but it didn't seem any busier than when it was ESPN Zone (which ended up failing). The large America restaurant was practically empty. It seems more of a breakfast place though and this was 9pm - but it was a bit concerning just how empty it was.