10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

S	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
S	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the quarterly period ended December 29, 2012

Commission file number 1-09453

ARK RESTAURANTS CORP.

(Exact name of registrant as specified in its charter)

New York	13-3156768
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
85 Fifth Avenue, New York, New York	10003
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 206-8800

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes S No £

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

Yes S No £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer £	Accelerated filer £
Non-accelerated filer £ (Do not check if a smaller reporting company)	Smaller Reporting Company S

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes £ No S

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class	Outstanding shares at February 6, 2013
(Common stock, $.01 par value)	3,244,845

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

On one or more occasions, we may make statements in this Quarterly Report on Form 10-Q regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events. All statements, other than statements of historical facts, included or incorporated by reference herein relating to management’s current expectations of future financial performance, continued growth and changes in economic conditions or capital markets are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Words or phrases such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “targets,” “will likely result,” “hopes,” “will continue” or similar expressions identify forward-looking statements. Forward-looking statements involve risks and uncertainties which could cause actual results or outcomes to differ materially from those expressed. We caution that while we make such statements in good faith and we believe such statements are based on reasonable assumptions, including without limitation, management’s examination of historical operating trends, data contained in records and other data available from third parties, we cannot assure you that our projections will be achieved. Factors that may cause such differences include: economic conditions generally and in each of the markets in which we are located, the amount of sales contributed by new and existing restaurants, labor costs for our personnel, fluctuations in the cost of food products, adverse weather conditions, changes in consumer preferences and the level of competition from existing or new competitors.

We have attempted to identify, in context, certain of the factors that we believe may cause actual future experience and results to differ materially from our current expectation regarding the relevant matter or subject area. In addition to the items specifically discussed above, our business, results of operations and financial position and your investment in our common stock are subject to the risks and uncertainties described in “Item 1A Risk Factors” in Part I of our Annual Report on Form 10-K for the fiscal year ended September 29, 2012 as updated by the information contained under the caption “Item 1A. Risk Factors” in Part II of this Quarterly Report on Form 10-Q.

From time to time, oral or written forward-looking statements are also included in our reports on Forms 10-K, 10-Q and 8-K, our Schedule 14A, our press releases and other materials released to the public. Although we believe that at the time made, the expectations reflected in all of these forward-looking statements are and will be reasonable; any or all of the forward-looking statements may prove to be incorrect. This may occur as a result of inaccurate assumptions or as a consequence of known or unknown risks and uncertainties. Many factors discussed in this Quarterly Report on Form 10-Q, certain of which are beyond our control, will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from forward-looking statements. In light of these and other uncertainties, you should not regard the inclusion of a forward-looking statement in this Quarterly Report on Form 10-Q or other public communications that we might make as a representation by us that our plans and objectives will be achieved, and you should not place undue reliance on such forward-looking statements.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made on related subjects in our subsequent periodic reports filed with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K and Schedule 14A.

Unless the context requires otherwise, references to “we,” “us,” “our,” “ARKR” and the “Company” refer specifically to Ark Restaurants Corp., and its subsidiaries, partnerships, variable interest entities and predecessor entities.

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Part I. Financial Information

Item 1. Consolidated Condensed Financial Statements

ARK RESTAURANTS CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(In Thousands, Except Per Share Amounts)

	December 29, 2012			September 29, 2012
	(Unaudited)			(Note 1)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents (includes $418 at December 29, 2012 and $714 at September 29, 2012 related to VIEs)	$	5,336		$	8,705
Short-term investments in available-for-sale securities		75			75
Accounts receivable (includes $147 at December 29, 2012 and $1,776 at September 29, 2012 related to VIEs)		2,647			3,790
Employee receivables		339			339
Inventories (includes $16 at December 29, 2012 and $28 at September 29, 2012 related to VIEs)		1,538			1,567
Prepaid and refundable income taxes (includes $149 at December 29, 2012 and $235 at September 29, 2012 related to VIEs)		858			985
Prepaid expenses and other current assets (includes $9 at December 29, 2012 and $13 at September 29, 2012 related to VIEs)		902			1,087
Total current assets		11,695			16,548
FIXED ASSETS - Net (includes $186 at December 29, 2012 and $3,189 at September 29, 2012 related to VIEs)		25,264			26,194
INTANGIBLE ASSETS - Net		1,019			1,021
GOODWILL		4,813			4,813
TRADEMARKS		721			721
DEFERRED INCOME TAXES		5,980			4,960
OTHER ASSETS (includes $71 at December 29, 2012 and September 29, 2012 related to VIEs)		907			907
TOTAL ASSETS	$	50,399		$	55,164
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable - trade (includes $60 at December 29, 2012 and $153 at September 29, 2012 related to VIEs)	$	2,306		$	2,729
Accrued expenses and other current liabilities (includes $629 at December 29, 2012 and $1,950 at September 29, 2012 related VIEs)		7,733			8,873
Current portion of note payable		1,063			885
Total current liabilities		11,102			12,487
OPERATING LEASE DEFERRED CREDIT		4,565			4,650
NOTE PAYABLE, LESS CURRENT PORTION		974			1,240
TOTAL LIABILITIES		16,641			18,377
COMMITMENTS AND CONTINGENCIES
EQUITY:
Common stock, par value $.01 per share - authorized, 10,000 shares; issued, 4,601 shares at December 29, 2012 and September 29, 2012, respectively; outstanding, 3,245 shares at December 29, 2012 and September 29, 2012, respectively		46			46
Additional paid-in capital		21,825			23,410
Retained earnings		21,569			22,372
		43,440			45,828
Less treasury stock, at cost, of 1,356 shares at December 29, 2012 and September 29, 2012, respectively		(13,220	)		(13,220	)
Total Ark Restaurants Corp. shareholders’ equity		30,220			32,608
NON-CONTROLLING INTERESTS		3,538			4,179
TOTAL EQUITY		33,758			36,787
TOTAL LIABILITIES AND EQUITY	$	50,399		$	55,164

See notes to consolidated condensed financial statements.

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ARK RESTAURANTS CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)

(In Thousands, Except Per Share Amounts)

	13 Weeks Ended
	December 29, 2012			December 31, 2011
				(Note 1)
REVENUES:
Food and beverage sales	$	31,029		$	32,603
Other revenue		307			258
Total revenues		31,336			32,861
COSTS AND EXPENSES:
Food and beverage cost of sales		7,749			8,358
Payroll expenses		10,845			10,707
Occupancy expenses		4,535			4,458
Other operating costs and expenses		4,339			4,032
General and administrative expenses		2,410			2,781
Depreciation and amortization		1,176			938
Total costs and expenses		31,054			31,274
OPERATING INCOME		282			1,587
OTHER (INCOME) EXPENSE:
Interest expense		—			1
Interest income		—			(1	)
Other income, net		(79	)		(33	)
Total other income, net		(79	)		(33	)
INCOME BEFORE PROVISION FOR INCOME TAXES		361			1,620
Provision for income taxes		114			378
INCOME FROM CONTINUING OPERATIONS		247			1,242
Loss from discontinued operations, net of income tax benefits		—			(127	)
CONSOLIDATED NET INCOME		247			1,115
Net income attributable to non-controlling interests		(239	)		(29	)
NET INCOME ATTRIBUTABLE TO ARK RESTAURANTS CORP.	$	8		$	1,086
AMOUNTS ATTRIBUTABLE TO ARK RESTAURANTS CORP.:
Income from continuing operations	$	8		$	1,148
Loss from discontinued operations, net of tax		—			(62	)
Net income	$	8		$	1,086
NET INCOME (LOSS) PER ARK RESTAURANTS CORP. COMMON SHARE:
From continuing operations:
Basic	$	0.00		$	0.34
Diluted	$	0.00		$	0.33
From discontinued operations:
Basic	$	—		$	(0.02	)
Diluted	$	—		$	(0.02	)
From net income:
Basic	$	0.00		$	0.32
Diluted	$	0.00		$	0.31
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		3,245			3,432
Diluted		3,322			3,449

See notes to consolidated condensed financial statements.

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ARK RESTAURANTS CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

FOR THE 13 WEEKS ENDED DECEMBER 29, 2012 AND DECEMBER 31, 2011

(In Thousands)

	13 Weeks Ended
	December 29, 2012			December 31, 2011
Consolidated net income	$	247		$	1,115
Other comprehensive income, net of taxes:
Unrealized gain on available-for-sale securities		—			1
Total other comprehensive income, net of taxes		—			1
Comprehensive income		247			1,116
Comprehensive loss attributable to non-controlling interests		(239	)		(29	)
Comprehensive income attributable to Ark Restaurants Corp.	$	8		$	1,087

See notes to consolidated condensed financial statements.

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ARK RESTAURANTS CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY (Unaudited)

FOR THE 13 WEEKS ENDED DECEMBER 29, 2012 AND DECEMBER 31, 2011

(In Thousands)

																			Total Ark
								Accumulated											Restaurants
					Additional			Other					Stock						Corp.			Non-
	Common Stock				Paid-In			Comprehensive		Retained			Option			Treasury			Shareholders’			controlling			Total
	Shares			Amount	Capital			Income		Earnings			Receivable			Stock			Equity			Interests			Equity
BALANCE - October 1, 2011		4,601	$	46	$	23,302		$	3	$	20,128		$	(29	)	$	(10,095	)	$	33,355		$	4,831		$	38,186
Net income		—		—		—			—		1,086			—			—			1,086			29			1,115
Unrealized gain on available-for-sale securities		—		—		—			1		—			—			—			1			—			1
Write-off of stock option receivable		—		—		—			—		—			29			—			29			—			29
Purchase of treasury stock		—		—		—			—		—			—			(3,125	)		(3,125	)		—			(3,125	)
Distributions to non-controlling interests		—		—		—			—		—			—			—			—			(555	)		(555	)
Payment of dividends - $0.25 per share		—		—		—			—		(811	)		—			—			(811	)		—			(811	)
BALANCE - December 31, 2011		4,601	$	46	$	23,302		$	4	$	20,403		$	—		$	(13,220	)	$	30,535		$	4,305		$	34,840
BALANCE - September 29, 2012		4,601	$	46	$	23,410		$	—	$	22,372		$	—		$	(13,220	)	$	32,608		$	4,179		$	36,787
Net income		—		—		—			—		8			—			—			8			239			247
Purchase of member interests in subsidiary		—		—		(2,685	)		—		—			—			—			(2,685	)		(280	)		(2,965	)
Tax benefit of purchase of member interests in subsidiary		—		—		1,020			—		—			—			—			1,020			—			1,020
Stock-based compensation		—		—		80			—		—			—			—			80			—			80
Distributions to non-controlling interests		—		—		—			—		—			—			—			—			(600	)		(600	)
Payment of dividends - $0.25 per share		—		—		—			—		(811	)		—			—			(811	)		—			(811	)
BALANCE - December 29, 2012		4,601	$	46	$	21,825		$	—	$	21,569		$	—		$	(13,220	)	$	30,220		$	3,538		$	33,758

See notes to consolidated condensed financial statements.

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ARK RESTAURANTS CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

(In Thousands)

	13 Weeks Ended
	December 29, 2012			December 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income	$	247		$	1,115
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Write-off of notes receivable from former president		—			66
Loss on closure of restaurants		256			365
Stock-based compensation		80			—
Depreciation and amortization		1,176			957
Operating lease deferred charge (credit)		(85	)		25
Changes in operating assets and liabilities:
Accounts receivable		1,143			(368	)
Inventories		(62	)		(17	)
Prepaid, refundable and accrued income taxes		127			(531	)
Prepaid expenses and other current assets		185			(106	)
Other assets		—			14
Accounts payable - trade		(423	)		212
Accrued expenses and other liabilities		(1,140	)		(1,034	)
Net cash provided by operating activities		1,504			698
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed assets		(409	)		(2,389	)
Purchase of management rights		—			(200	)
Loans and advances made to employees		(35	)		(45	)
Payments received on employee receivables		35			25
Purchase of member interests in subsidiary		(2,965	)		—
Purchases of investment securities		—			(301	)
Proceeds from sales of investment securities		—			320
Net cash used in investing activities		(3,374	)		(2,590	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable		(88	)		(58	)
Dividends paid		(811	)		(811	)
Purchase of treasury shares		—			(1,000	)
Distributions to non-controlling interests		(600	)		(555	)
Net cash used in financing activities		(1,499	)		(2,424	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(3,369	)		(4,316	)
CASH AND CASH EQUIVALENTS, Beginning of period		8,705			7,780
CASH AND CASH EQUIVALENTS, End of period	$	5,336		$	3,464
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	—		$	1
Income taxes	$	51		$	874
Non-cash investing activity:
Note payable in connection with purchase of treasury shares	$	—		$	2,125
Tax benefit of purchase of member interests in subsidiary	$	1,020		$	—

See notes to consolidated condensed financial statements.

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ARK RESTAURANTS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

December 29, 2012

(Unaudited)

1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

The consolidated condensed balance sheet as of September 29, 2012, which has been derived from audited financial statements included in the Form 10-K, and the unaudited interim consolidated and 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”). All adjustments that, in the opinion of management, are necessary for a fair presentation for the periods presented have been reflected as required by Regulation S-X, Rule 10-01. Such adjustments are of a normal, recurring nature. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended September 29, 2012. 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.

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. 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 have been made to conform to the current period presentation. In connection with the planned or actual sale or closure of various restaurants, the operations of these businesses have been presented as discontinued operations in the consolidated condensed financial statements. Accordingly, the Company has reclassified its consolidated condensed statement of income for the prior period presented. These dispositions are discussed below in “Recent Restaurant Dispositions.”

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, investments, receivables, accounts payable and accrued expenses approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair value of notes payable is determined using current applicable rates for similar instruments as of the balance sheet date and approximates the carrying value of such debt.

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.

Available-for-Sale Securities — Available-for-sale securities consist primarily of United States Treasury Bills and Notes, all of which have a high degree of liquidity and are reported at fair value, with unrealized gains and losses recorded in Accumulated Other Comprehensive Income. The cost of investments in available-for-sale securities is determined on a specific identification basis. Realized gains or losses and declines in value judged to be other than temporary, if any, are reported in Other (Income) Expense, Net. The Company evaluates its investments periodically for possible impairment and reviews factors such as the length of time and extent to which fair value has been below cost basis and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery in market value.

CONCENTRATIONS OF CREDIT RISK — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. 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.

For the 13-weeks ended December 29, 2012, the Company made purchases from two vendors that accounted for approximately 22% of total purchases. For the 13-weeks ended December 31, 2011, the Company made purchases from one vendor that accounted for approximately 13% of total purchases.

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SEGMENT REPORTING — As of December 29, 2012, the Company owned and operated 19 restaurants and bars, 22 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.

RECENTLY ADOPTED ACCOUNTING STANDARDS — In June 2011, the Financial Accounting Standards Board (the “FASB”) issued new accounting guidance on the presentation of other comprehensive income. The new guidance eliminates the current option to present the components of other comprehensive income as part of the statement of changes in equity. Instead, an entity has the option to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The new accounting guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. Full retrospective application is required. The adoption of this guidance in the current quarter did not have a material impact on the Company’s financial statements, and the statements of comprehensive income were presented as a separate consecutive statement following the Consolidated Condensed Statements of Income.

NEW ACCOUNTING STANDARDS NOT YET ADOPTED — In December 2011, the FASB issued amended standards to increase the prominence of offsetting assets and liabilities reported in financial statements. These amendments require an entity to disclose information about offsetting and the related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. These amendments will enhance disclosures by requiring improved information about financial instruments and derivative instruments that are either offset or subject to an enforceable master netting arrangement or similar agreement. This information will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. These revised standards are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. These amended standards may require additional footnote disclosures for these enhancements; however, they will not affect our financial position, results of operations or cash flows.

2. VARIABLE INTEREST ENTITIES

Upon adoption of the new accounting guidance for VIEs on October 3, 2010, the Company determined that it was the primary beneficiary of two VIEs which had not been previously consolidated, Ark Hollywood/Tampa Investment, LLC and Ark Connecticut Investment, LLC, as the new guidance requires that a single party (including its related parties and de facto agents) be able to exercise their rights to remove the decision maker in order for the “kick-out” rights to be considered substantive. Previously, a simple majority of owners that could exercise kick-out rights was considered a substantive right. This change resulted in the need for consolidation.

During the 13-weeks ended December 29, 2012, the Company purchased an additional 14.39% of the membership interests of Ark Hollywood/Tampa Investment, LLC, directly from the individuals that held such interests, for an aggregate consideration of $2,964,512. In connection with this transaction, the Company recorded a reduction to additional paid-in capital of $2,684,896 representing the excess of the amount paid over the carrying value ($279,616) of the non-controlling interests acquired as the acquisition of an additional interest in a less than wholly-owned subsidiary where control is maintained is treated as an equity transaction. In addition, the Company also recorded an increase to additional paid-in capital in the amount of $1,020,261 representing the related deferred tax benefit of the transaction.

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As a result of the above, Ark Hollywood/Tampa Investment, LLC is no longer considered a VIE as the Company now owns 64.39% of the voting membership interests. Accordingly, the following disclosures associated with the Company’s VIEs do not include Ark Hollywood/Tampa Investment, LLC as of December 29, 2012:

	December 29, 2012		September 29, 2012
	(in thousands)
Cash and cash equivalents	$	418	$	714
Accounts receivable		147		1,776
Inventories		16		28
Prepaid income taxes		149		235
Prepaid expenses and other current assets		9		13
Due from Ark Restaurants Corp. and affiliates (1)		427		288
Fixed assets, net		186		3,189
Other long-term assets		71		71
Total assets	$	1,423	$	6,314
Accounts payable	$	60	$	153
Accrued expenses and other liabilities		629		1,950
Total liabilities		689		2,103
Equity of variable interest entities		734		4,211
Total liabilities and equity	$	1,423	$	6,314

(1) Amounts Due from 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 our 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 our general assets.

3. RECENT RESTAURANT EXPANSION

On March 18, 2011, a subsidiary of the Company entered into a lease agreement to operate a restaurant and bar in New York City named Clyde Frazier’s Wine and Dine. In connection with the agreement, the landlord has agreed to contribute up to $1,800,000 towards the construction of the facility (of which $1,500,000 was received as of December 29, 2012 and is being deferred over the lease term), which totaled approximately $7,000,000. The initial term of the lease for this facility expires on March 31, 2027 and has one five-year renewal. This restaurant opened during the second quarter of fiscal 2012.

4. RECENT RESTAURANT DISPOSITIONS

Lease Expirations – On July 8, 2011, the Company entered into an agreement with the landlord of The Grill Room property located in New York City, whereby in exchange for a payment of $350,000 the Company vacated the property on October 31, 2011. Such payment and the related loss on closure of the property, in the amount of $179,000, are included in Other Operating Costs and Expenses in the Consolidated Condensed Statement of Income for the 13-weeks ended December 31, 2011. This lease was scheduled to expire on December 31, 2011.

The Company was advised by the landlord that it would have to vacate the America property located in Washington, DC, which was on a month-to-month lease. The closure of this property occurred on November 7, 2011. The related loss on closure of this property, in the amount of $186,000, is included in Other Operating Costs and Expenses in the Consolidated Condensed Statement of Income for the 13-weeks ended December 31, 2011.

Discontinued Operations – Effective March 15, 2012, the Company vacated its food court operations at the MGM Grand Casino at the Foxwoods Resort Casino in Ledyard, CT. The Company determined that it would not be able to operate this facility profitably at this location at the current rent.

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The results of discontinued operations were as follows:

	13 Weeks Ended
	December 29, 2012		December 31, 2011
	(In thousands)
Revenues	$	—	$	507
Costs and expenses		—		673
Loss before income taxes		—		(166	)
Income tax benefit		—		(39	)
Net loss	$	—	$	(127	)

Other – On October 29, 2012, the Company suffered a flood at its Red and Sequoia properties located in New York, NY as a result of a hurricane. The Company did not reopen these properties as the underlying leases were due to expire in the second quarter of fiscal 2013. Losses related to the closure of these properties, in the amount of $256,000, are included in Other Operating Costs and Expenses in the Consolidated Condensed Statement of Income for the 13-weeks ended December 29, 2012.

5. INVESTMENT SECURITIES

The fair values of the Company’s investment securities are determined in accordance with GAAP, with fair value being defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the Company utilizes the three-tier value hierarchy, as prescribed by GAAP, which prioritizes the inputs used in measuring fair value as follows:

· Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market.

· Level 2 - inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability.

· Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability.

The following available-for-sale securities (which all mature within one year) are re-measured to fair value on a recurring basis and are valued using Level 1 inputs:

	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
	(In thousands)
At December 29, 2012
Available-for-sale short-term:
Government debt securities	$	75	$	—	$	—	$	75

	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
	(In thousands)
At September 29, 2012
Available-for-sale short-term:
Government debt securities	$	75	$	—	$	—	$	75

At December 29, 2012, all of the Company’s government debt securities mature within fiscal year 2013.

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Proceeds from the sale and redemption of investment securities amounted to $0 and $320,000 for the 13-week periods ended December 29, 2012 and December 31, 2011, respectively. No realized gains or losses were included in Other Income (Expense), net for the 13-week periods ended December 29, 2012 and December 31, 2011.

6. NOTE PAYABLE FOR TREASURY STOCK REPURCHASE

On December 12, 2011, the Company, in a private transaction, purchased 250,000 shares of its common stock at a price of $12.50 per share, or a total of $3,125,000 ($2,037,000 outstanding at December 29, 2012). Upon the closing of the purchase, the Company paid the seller $1,000,000 in cash and issued an unsecured promissory note to the seller for $2,125,000. The note bears interest at 0.19% per annum, and is payable in 24 equal monthly installments of $88,541, commencing on December 1, 2012.

7. RELATED PARTY TRANSACTIONS

The Company’s former President and Chief Operating Officer resigned effective January 1, 2012. In connection therewith, the Company forgave loans due totaling $66,000 ($29,000 for stock option exercises receivable and $37,000 for other loans) and has recorded additional compensation in the amount of $475,400 in accordance with his separation agreement and release. Such amounts are included in General and Administrative Expenses in the Consolidated Condensed Statement of Income for the 13-weeks ended December 31, 2011.

Employee loans totaled approximately $339,000 at both December 29, 2012 and September 29, 2012. Such amounts are payable on demand and bear interest at the minimum statutory rate (0.19% at December 29, 2012 and September 29, 2012).

8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following:

	December 29,		September 29,
	2012		2012
	(In thousands)
Sales tax payable	$	687	$	852
Accrued wages and payroll related costs		1,188		1,475
Customer advance deposits		1,538		2,811
Accrued occupancy and other operating expenses		4,320		3,735
	$	7,733	$	8,873

9. COMMITMENTS AND CONTINGENCIES

Leases — The Company leases its restaurants, bar facilities, and administrative headquarters through its subsidiaries under terms expiring at various dates through 2032. 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 restaurants sales in excess of stipulated amounts at such facility and in one instance based on profits.

In February 2010, the Company entered into an amendment to its lease for the food court space at the New York-New York Hotel and Casino in Las Vegas, Nevada. Pursuant to this amendment, the Company agreed to, among other things; commit no less than $3,000,000 to remodel the food court during 2012. In exchange for this commitment, the landlord agreed to extend the food court lease for an additional four years. As of December 29, 2012, the Company has spent approximately $2,300,000 related to this commitment.

On November 28, 2012, the Company entered into an agreement to design and lease a restaurant at the Tropicana Hotel and Casino in Atlantic City, NJ. The initial term of the lease for this facility will expire 10 years after the date the property first opens for business to the public following its current refurbishment and will have two five-year renewals. The Company anticipates the cost to construct this restaurant will be approximately $1,000,000 and it will open during the third quarter of the 2013 fiscal year.

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 in the institution, from time to time, of litigation alleging violation by the Company of employment discrimination

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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.

Other — On June 7, 2011, the Company entered into a 10-year exclusive agreement to manage a yet to be constructed restaurant and catering service at Basketball City in New York City in exchange for a fee of $1,000,000 (all of which has been paid and is included in Intangible Assets in the accompanying Consolidated Condensed Balance Sheets). Under the terms of the agreement, the owner of the property will construct the facility at its expense and the Company will pay the owner an annual fee based on sales, as defined in the agreement. The Company expects to begin operating this property within the next 12 months.

10. 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.

The 2010 Stock Option Plan is the Company’s only equity compensation plan currently in effect. Under the 2010 Stock Option Plan, 500,000 options were authorized for future 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.

During fiscal 2012, options to purchase 251,500 shares of common stock at an exercise price of $14.40 per share were granted and are exercisable as to 50% of the shares commencing on the first anniversary of the date of grant and as to an additional 50% commencing on the second anniversary of the date of grant. The grant date fair value of these stock options was $2.57 per share. The fair value of each of the Company’s 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 our stock, the expected life of the options and the risk free interest rate. The assumptions used for the 2012 grant include a risk free interest rate of 1.67%, volatility of 36.2%, a dividend yield of 6.1% and an expected life of 6.25 years. No options were issued during the 13-week period ended December 29, 2012.

A summary of stock option activity is presented below:

	2013
	Shares			Weighted Average Exercise Price		Weighted Average Contractual Term		Aggregate Intrinsic Value
Outstanding, September 29, 2012		648,100		$	19.56		6.50 Years
Options:
Granted		—
Exercised		—
Canceled or expired		(8,500	)	$	13.71
Outstanding and expected to vest, December 29, 2012		639,600		$	19.59		6.25 Years	$	1,436,666
Exercisable, December 29, 2012		396,600		$	22.83		4.25 Years	$	810,641

Compensation cost charged to operations for the 13-week periods ended December 29, 2012 and December 31, 2011 was $80,000 and $0, respectively. The compensation cost recognized is classified as a general and administrative expense in the Consolidated Condensed Statements of Income.

As of December 29, 2012, there was approximately $458,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of approximately 1.5 years.

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11. INCOME TAXES

The Company’s provision for income taxes consists of U.S. 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. The income tax provision on income from continuing operations for the 13-week periods ended December 29, 2012 and December 31, 2011 reflect effective tax rates of approximately 32% and 23%, respectively. The Company expects its effective tax rate for its current fiscal year to be significantly lower than the statutory rate as a result of the inclusion of 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.

12. INCOME PER SHARE OF COMMON STOCK

Net income (loss) 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-week period ended December 29, 2012, options to purchase 165,100 shares of common stock at a price of $12.04 and options to purchase 245,500 shares of common stock at a price of $14.40 were included in diluted earnings per share. Options to purchase 139,000 shares of common stock at a price of $29.60 and options to purchase 90,000 shares of common stock at a price of $32.15 per share were not included in diluted earnings per share as their impact was antidilutive.

For the 13-week period ended December 31, 2011, options to purchase 166,100 shares of common stock at a price of $12.04 were included in diluted earnings per share. Options to purchase 140,500 shares of common stock at a price of $29.60 and options to purchase 90,000 shares of common stock at a price of $32.15 per share were not included in diluted earnings per share as their impact was antidilutive.

13. DIVIDENDS

On December 28, 2012, the Company paid a quarterly cash dividend in the amount of $0.25 per share on the Company’s common stock. The Company intends to continue to pay such quarterly cash dividend 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.

14. SUBSEQUENT EVENT

On February 6, 2013, the Company received an unsolicited offer to purchase all of its outstanding capital stock for $22 a share in cash from Landry’s, Inc. The Company’s Board of Directors is reviewing such offer.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

As of December 29, 2012, the Company owned and operated 19 restaurants and bars, 22 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and service, class of customer 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.

Accounting Period

Our fiscal year ends on the Saturday nearest September 30. We report fiscal years under a 52/53-week format. This reporting method is used by many companies in the hospitality industry and is meant to improve year-to-year comparisons of operating results. Under this method, certain years will contain 53 weeks. The periods ended December 29, 2012 and December 31, 2011 included 13 weeks.

Reclassifications

Certain reclassifications of prior period balances have been made to conform to the current period presentation. In connection with the planned or actual sale or closure of various restaurants, the operations of these businesses have been presented as discontinued operations in the consolidated condensed financial statements. Accordingly, the Company has reclassified its consolidated condensed statement of income for the prior period presented. These dispositions are discussed below in “Recent Restaurant Dispositions.”

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.

Results of Operations

The Company’s operating income of $282,000 for the 13-weeks ended December 29, 2012 decreased 82.2% compared to operating income of $1,587,000 for the 13-weeks ended December 31, 2011. This decrease resulted primarily from: (i) the negative effects of Hurricane Sandy on our businesses located in New York, Atlantic City, NJ and Washington, DC and the losses associated with the closure of our properties Red and Sequoia located in New York, NY as a result, totaling approximately $900,000 which includes approximately $256,000 of assets written off that were destroyed as a result of the hurricane, (ii) operating losses in the amount of approximately $600,000 related to our new restaurant in New York City, Clyde Frazier’s Wine and Dine, which opened in March 2012, and (iii) the negative impact of additional room capacity in Las Vegas, NV, all partially offset by the absence of a non-recurring expenses in the amount of $500,000 recorded in the quarter ended December 31, 2011 related to the resignation of the Company’s former President.

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The following table summarizes the significant components of the Company’s operating results for the 13-week periods ended December 29, 2012 and December 31, 2011, respectively:

	Year Ended				Variance
	December 29, 2012		December 31, 2011		$			%
	(in thousands)
REVENUES:
Food and beverage sales	$	31,029	$	32,603	$	(1,574	)		-4.8	%
Other revenue		307		258		49			19.0	%
Total revenues		31,336		32,861		(1,525	)		-4.6	%
COSTS AND EXPENSES:
Food and beverage cost of sales		7,749		8,358		(609	)		-7.3	%
Payroll expenses		10,845		10,707		138			1.3	%
Occupancy expenses		4,535		4,458		77			1.7	%
Other operating costs and expenses		4,339		4,032		307			7.6	%
General and administrative expenses		2,410		2,781		(371	)		-13.3	%
Depreciation and amortization		1,176		938		238			25.4	%
Total costs and expenses		31,054		31,274		(220	)		-0.7	%
OPERATING INCOME	$	282	$	1,587	$	(1,305	)		-82.2	%

Revenues

During the Company’s 13-week period ended December 29, 2012, revenues decreased 4.6% as compared to revenues in the 13-week period ended December 31, 2011. This decrease resulted primarily from: (i) the negative effects of Hurricane Sandy on our businesses located in New York, Atlantic City, NJ and Washington, DC and the related closure of our properties Red and Sequoia located in New York, NY in October 2012 as a result, and (ii) the negative impact of additional room capacity in Las Vegas, NV, partially offset by revenues related to our new restaurant in New York City, Clyde Frazier’s Wine and Dine, which opened in March 2012.

Food and Beverage Same-Store Sales

On a Company-wide basis, same store sales decreased 4.6% during the first fiscal quarter of 2013 compared to the same period last year as follows:

	13 Weeks Ended				Variance
	December 29, 2012		December 31, 2011		$			%
	(in thousands)
Las Vegas	$	13,497	$	14,359	$	(862	)		-6.0	%
New York		7,191		7,044		147			2.1	%
Washington, DC		3,137		3,340		(203	)		-6.1	%
Atlantic City, NJ		538		787		(249	)		-31.6	%
Boston		960		971		(11	)		-1.1	%
Connecticut		876		916		(40	)		-4.4	%
Florida		3,357		3,569		(212	)		-5.9	%
Same Store Sales		29,556		30,986	$	(1,430	)		-4.6	%
Other		1,473		1,617
Food and beverage sales	$	31,029	$	32,603

Same-store sales in Las Vegas decreased 6.0% in the first fiscal quarter of 2013 compared to 2012 primarily as a result of the negative impact of additional room capacity without a corresponding increase in overall traffic. Same-store sales in New York (which excludes the Red and Sequoia properties as they were closed in October 2012) increased 2.1% during the first quarter of

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fiscal 2013 compared to 2012 primarily as a result of strong catering revenues. Same-store sales in Washington, DC decreased 6.1% in the first fiscal quarter of 2013 compared to 2012 primarily as a result of increased competition. Same-store sales in Atlantic City decreased 31.6% in the first quarter of fiscal 2013 compared to 2012 due to the negative effects of Hurricane Sandy. Same-store sales in Connecticut decreased 4.4% in the first quarter of fiscal 2013 compared to 2012 due to declining traffic at the Foxwoods Resort and Casino where our properties are located. Same-store sales in Florida decreased 5.9% in the first quarter of fiscal 2013 compared to 2012 due to a decrease in the usage of complimentaries by the ownership of the casinos where our properties are located. Other food and beverage sales consist of sales related to new restaurants opened during the applicable period and sales related to properties that were closed during the period due to lease expiration and other closures and therefore not included in discontinued operations.

Costs and Expenses

Costs and expenses from continuing operations for the 13-weeks ended December 29, 2012 and December 31, 2011 were as follows (in thousands):

	13-Weeks Ended December 29,		% to Total			13-Weeks Ended December 31,		% to Total			Increase (Decrease)
	2012		Revenues			2011		Revenues			$			%
Food and beverage cost of sales	$	7,749		24.7	%	$	8,358		25.4	%	$	(609	)		-7.3	%
Payroll expenses		10,845		34.6	%		10,707		32.6	%		138			1.3	%
Occupancy expenses		4,535		14.5	%		4,458		13.6	%		77			1.7	%
Other operating costs and expenses		4,339		13.8	%		4,032		12.3	%		307			7.6	%
General and administrative expenses		2,410		7.7	%		2,781		8.5	%		(371	)		-13.3	%
Depreciation and amortization		1,176		3.8	%		938		2.9	%		238			25.4	%
	$	31,054				$	31,274				$	(220	)

Food and beverage costs as a percentage of total revenues for the 13-weeks ended December 29, 2012 decreased as compared to the same period of fiscal 2012 as a result of improved menu costing partially offset by higher commodity prices.

Payroll expenses for the 13-weeks ended December 29, 2012 increased slightly as compared to the same period of fiscal 2012 as a result of payroll incurred at our new restaurant in New York City, Clyde Frazier’s Wine and Dine, which opened in March 2012, partially offset by a reduction in payroll expenses related to properties that were closed (as discussed above) due to flooding from Hurricane Sandy.

Occupancy expenses for the 13-weeks ended December 29, 2012 increased as compared to the same period of fiscal 2012 as a result of occupancy expenses incurred at our new restaurant in New York City, Clyde Frazier’s Wine and Dine, which opened in March 2012, partially offset by a reduction in occupancy expenses related to properties that were closed (as discussed above) due to flooding from Hurricane Sandy.

Other operating costs and expenses for the 13-weeks ended December 29, 2012 increased as compared to the same period of fiscal 2012 due to the opening of Clyde Frazier’s Wine & Dine in March 2012, losses related to the closure of two properties in New York as a result of Hurricane sandy, in the amount of $256,000, partially offset a reduction in other operating costs and expenses related to properties that were closed (as discussed above) due to flooding from Hurricane Sandy.

General and administrative expenses (which relate solely to the corporate office in New York City) for the 13-weeks ended December 29, 2012 decreased compared to the same period of fiscal 2012 primarily as a result of the inclusion of the former President’s severance in the prior period in connection with his resignation in December 2011.

Income Taxes

The Company’s provision for income taxes consists of U.S. 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. The income tax provision on income from continuing operations for the 13-week periods ended December 29, 2012 and December 31, 2011 reflect effective tax rates of approximately 32% and 23%, respectively.  The Company expects its effective tax rate for its current fiscal year to be significantly lower than the statutory rate as a result of the inclusion of 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.

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The Company’s overall effective tax rate in the future will be affected by factors such as the level of losses incurred at the Company’s New York facilities, which cannot be consolidated for state and local tax purposes, pre-tax income earned outside of New York City, the utilization of state and local net operating loss carryforwards and the utilization of FICA tax credits. Nevada has no state income tax and other states in which the Company operates have income tax rates substantially lower in comparison to New York.

Liquidity and Capital Resources

Our primary source of capital has been cash provided by operations. We utilize cash generated from operations to fund the cost of developing and opening new restaurants, acquiring existing restaurants owned by others and remodeling existing restaurants we own.

Net cash used in investing activities for the 13-week period ended December 29, 2012 was $3,374,000 and resulted primarily from purchases of fixed assets at existing restaurants and the purchase of the Florida membership interests.

Net cash used in investing activities for the 13-week period ended December 31, 2011 was $2,590,000 and resulted primarily from purchases of fixed assets at existing restaurants and the construction of Clyde Frazier’s Wine and Dine located at the New York City.

Net cash used in financing activities for the 13-week period ended December 29, 2012 of $1,499,000 was principally used for the payment of dividends and distributions to non-controlling interests.

Net cash used in financing activities for the 13-week period ended December 31, 2011 of $2,424,000 was principally used for the payment of dividends, purchase of treasury stock and distributions to non-controlling interests.

The Company’s working capital surplus of $593,000 at December 29, 2012, decreased by $3,468,000 as compared to a working capital surplus of $4,061,000 at September 29, 2012 resulting primarily from the purchase of Florida membership interests. We believe that our existing cash balances, investments and cash provided by operations will be sufficient to meet our liquidity and capital spending requirements at least through the next 12 months.

On December 28, 2012, the Company paid a quarterly cash dividend in the amount of $0.25 per share on the Company’s common stock. The Company intends to continue to pay such quarterly cash dividend 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.

In February 2010, the Company entered into an amendment to its lease for the food court space at the New York-New York Hotel and Casino in Las Vegas, Nevada. Pursuant to this amendment, the Company agreed to, among other things; commit no less than $3,000,000 to remodel the food court during 2012. In exchange for this commitment, the landlord agreed to extend the food court lease for an additional four years. As of December 29, 2012, the Company has spent approximately $2,300,000 related to this commitment.

On November 28, 2012, the Company entered into an agreement to design and lease a restaurant at the Tropicana Hotel and Casino in Atlantic City, NJ. The initial term of the lease for this facility will expire 10 years after the date the property first opens for business to the public following its current refurbishment and will have two five-year renewals. The Company anticipates the cost to construct this restaurant will be approximately $1,000,000 and it will open during the third quarter of the 2013 fiscal year

On June 7, 2011, the Company entered into a 10-year exclusive agreement to manage a yet to be constructed restaurant and catering service at Basketball City in New York City in exchange for a fee of $1,000,000 (all of which has been paid and is included in Intangible Assets in the accompanying Consolidated Condensed Balance Sheets). Under the terms of the agreement, the owner of the property will construct the facility at its expense and the Company will pay the owner an annual fee based on sales, as defined in the agreement. The Company expects to begin operating this property within the next 12 months.

Recent Restaurant Expansion

On March 18, 2011, a subsidiary of the Company entered into a lease agreement to operate a restaurant and bar in New York City named Clyde Frazier’s Wine and Dine. In connection with the agreement, the landlord has agreed to contribute up to $1,800,000 towards the construction of the facility (of which $1,500,000 was received as of December 29, 2012 and is being deferred over the lease term), which totaled approximately $7,000,000. The initial term of the lease for this facility expires on March 31, 2027 and has one five-year renewal. This restaurant opened during the second quarter of fiscal 2012.

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Recent Restaurant Dispositions

Lease Expirations – On July 8, 2011, the Company entered into an agreement with the landlord of The Grill Room property located in New York City, whereby in exchange for a payment of $350,000 the Company vacated the property on October 31, 2011. Such payment and the related loss on closure of the property, in the amount of $179,000, are included in Other Operating Costs and Expenses in the Consolidated Condensed Statement of Income for the 13-weeks ended December 31, 2011. This lease was scheduled to expire on December 31, 2011.

The Company was advised by the landlord that it would have to vacate the America property located in Washington, DC, which was on a month-to-month lease. The closure of this property occurred on November 7, 2011. The related loss on closure of this property, in the amount of $186,000, is included in Other Operating Costs and Expenses in the Consolidated Condensed Statement of Income for the 13-weeks ended December 31, 2011.

Discontinued Operations – Effective March 15, 2012, the Company vacated its food court operations at the MGM Grand Casino at the Foxwoods Resort Casino in Ledyard, CT. The Company determined that it would not be able to operate this facility profitably at this location at the current rent.

The results of discontinued operations were as follows:

	13 Weeks Ended
	December 29, 2012		December 31, 2011
	(In thousands)
Revenues	$	—	$	507
Costs and expenses		—		673
Loss before income taxes		—		(166	)
Income tax benefit		—		(39	)
Net loss	$	—	$	(127	)

Other – On October 29, 2012, the Company suffered a flood at its Red and Sequoia properties located in New York, NY as a result of a hurricane. The Company did not reopen these properties as the underlying leases were due to expire in the second quarter of fiscal 2013. Losses related to the closure of these properties, in the amount of $256,000, are included in Other Operating Costs and Expenses in the Consolidated Condensed Statement of Income for the 13-weeks ended December 29, 2012.

Critical Accounting Policies

The preparation of financial statements requires the application of certain accounting policies, which may require the Company to make estimates and assumptions of future events. In the process of preparing its consolidated condensed financial statements, the Company estimates the appropriate carrying value of certain assets and liabilities, which are not readily apparent from other sources. The primary estimates underlying the Company’s consolidated condensed financial statements include allowances for potential bad debts on accounts and notes receivable, leases, the useful lives and recoverability of its assets, such as property and intangibles, fair values of financial instruments, the realizable value of its tax assets and other matters. Management bases its estimates on certain assumptions, which they believe are reasonable in the circumstances, and actual results could differ from those estimates. Although management does not believe that any change in those assumptions in the near term would have a material effect on the Company’s consolidated financial position or the results of operations, differences in actual results could be material to the consolidated condensed financial statements.

The Company’s critical accounting policies are described in the Company’s Form 10-K for the year ended September 29, 2012. There have been no significant changes to such policies during fiscal 2013 other than those disclosed in Note 1 to the Consolidated Condensed Financial Statements.

Recently Adopted and Issued Accounting Standards

See Note 1 to the Consolidated Condensed Financial Statements for a description of recent accounting pronouncements, including those adopted in fiscal 2013 and the expected dates of adoption and the anticipated impact on the Consolidated Condensed Financial Statements.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company purchases commodities such as chicken, beef, lobster and shrimp for the Company’s restaurants.  The prices of these commodities may be volatile depending upon market conditions.  The Company does not purchase forward commodity contracts because the changes in prices for these items have historically been short-term in nature and, in the Company’s view, the cost of the contracts is in excess of the benefits.

The Company’s business is also highly seasonal and dependent on the weather. Outdoor seating capacity, such as terraces and sidewalk cafes, are available for dining only in the warm seasons and then only in clement weather.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of management, including our principal executive officer and principal financial officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this quarterly report as such term is defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on this evaluation, our management, including our principal executive officer and principal financial officer, concluded that our disclosure controls and procedures were effective as of December 29, 2012 to ensure that all material information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to them as appropriate to allow timely decisions regarding required disclosure and that all such information is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the first quarter of fiscal 2013 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Limitations of the Effectiveness of Internal Control

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the internal control system are met. Because of the inherent limitations of any internal control system, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected.

- 20 -

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not subject to other pending legal proceedings, other than ordinary claims incidental to its business, which the Company does not believe will materially impact results of operations.

Item 1A. Risk Factors

The most significant risk factors applicable to the Company are described in Part I, Item 1A (Risk Factors) of the Company’s Annual Report on Form 10-K for the fiscal year ended September 29, 2012 (the “2012 Form 10-K”). There have been no material changes to the risk factors previously disclosed in the 2012 Form 10-K. The risks described in the 2012 Form 10-K are not the only risks facing the Company.  Additional risks and uncertainties not currently known to management may materially adversely affect the Company’s business, financial condition, and/or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

Item 6. Exhibits

31.1 Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32 Certificate of Chief Executive and Chief Financial Officers Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

*Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

- 21 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:	February 12, 2013
	ARK RESTAURANTS CORP.
By:	/s/ Michael Weinstein
	Michael Weinstein
	Chairman & Chief Executive Officer
	(Principal Executive Officer)
By:	/s/ Robert J. Stewart
	Robert J. Stewart
	Chief Financial Officer
	(Authorized Signatory and Principal
	Financial and Accounting Officer)

- 22 -

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael Weinstein, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Ark Restaurants Corp.
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: February 12, 2013

/s/ MICHAEL WEINSTEIN

Michael Weinstein

Chairman and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert J. Stewart, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Ark Restaurants Corp.
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: February 12, 2013

/s/ Robert J. Stewart

Robert J. Stewart

Chief Financial Officer

(Authorized Signatory and Principal
Financial and Accounting Officer)

EX-32

Exhibit 32

Certificate of Chief Executive and Chief Financial Officers Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended December 29, 2012 of Ark Restaurants Corp. (the “Registrant”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Michael Weinstein and Robert J. Stewart, Chief Executive Officer and Chief Financial Officer, respectively, of the Registrant, certify, pursuant to 18 U.S.C. § 1350, that to our knowledge:

(i) this Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78m or 78o(d)); and

(ii) the information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated as of this 12th day of February 2013.

/s/ Michael Weinstein	/s/ Robert J. Stewart
Michael Weinstein	Robert J. Stewart
Chairman and Chief Executive Officer	Chief Financial Officer
	(Authorized Signatory and Principal
	Financial and Accounting Officer)

XML

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Detail) - Accrued expenses and other current liabilities (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Sep. 29, 2012
Sales tax payable	$ 687	$ 852
Accrued wages and payroll related costs	1,188	1,475
Customer advance deposits	1,538	2,811
Accrued occupancy and other operating expenses	4,320	3,735
	$ 7,733	$ 8,873

XML

SUBSEQUENT EVENT (Detail) (USD $)	Feb. 06, 2013
Offered price for purchase of all outstanding stock, per share	$ 22

XML

RECENT RESTAURANT DISPOSITIONS (Detail) (USD $)	3 Months Ended
	Dec. 31, 2011	Dec. 31, 2011 Grill Room Property [Member]	Dec. 31, 2011 America Property [Member]	Dec. 29, 2012 Red and Sequoia Properties [Member]
Proceeds from Sale of Property, Plant, and Equipment	$ 350,000
Gain (Loss) on Disposition of Property		$ 179,000	$ 186,000	$ 256,000
Lease Expiration Date	Dec. 31, 2011

XML

RECENT RESTAURANT DISPOSITIONS (Tables)

3 Months Ended

Dec. 29, 2012

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

The results of discontinued operations were as follows:

	13 Weeks Ended
	December 29, 2012		December 31, 2011
	(In thousands)
Revenues	$	—	$	507
Costs and expenses		—		673
Loss before income taxes		—		(166	)
Income tax benefit		—		(39	)
Net loss	$	—	$	(127	)

XML

STOCK OPTIONS (Detail) - Summary of stock option activity (USD $)	3 Months Ended
	Dec. 29, 2012
Outstanding, September 29, 2012	648,100
Outstanding, September 29, 2012 (in Dollars per share)	$ 19.56
Outstanding, September 29, 2012	6 years 6 months
Options:
Granted
Exercised
Canceled or expired	(8,500)
Canceled or expired (in Dollars per share)	$ 13.71
Outstanding and expected to vest, December 29, 2012	639,600
Outstanding and expected to vest, December 29, 2012 (in Dollars per share)	$ 19.59
Outstanding and expected to vest, December 29, 2012	6 years 3 months
Outstanding and expected to vest, December 29, 2012 (in Dollars)	$ 1,436,666
Exercisable, December 29, 2012	396,600
Exercisable, December 29, 2012 (in Dollars per share)	$ 22.83
Exercisable, December 29, 2012	4 years 3 months
Exercisable, December 29, 2012 (in Dollars)	$ 810,641

XML

NOTE PAYABLE FOR TREASURY STOCK REPURCHASE (Detail) (USD $)	3 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
Treasury Stock, Shares, Acquired (in Shares)	250,000
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share)	$ 12.50
Treasury Stock, Value, Acquired, Cost Method	$ 3,125,000	$ 3,125,000
Note Payable In Connection With Purchase Of Treasury Shares	2,125,000	2,125,000
Payments for Repurchase of Common Stock	2,037,000,000	1,000,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	0.19%
Debt Instrument, Periodic Payment	$ 88,541
Debt Instrument, Date of First Required Payment	Dec. 01, 2012

XML

CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

3 Months Ended

Dec. 29, 2012

Consolidated Condensed Financial Statements [Text Block]

1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

The consolidated condensed balance sheet as of September 29, 2012, which has been derived from audited financial statements included in the Form 10-K, and the unaudited interim consolidated and 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”). All adjustments that, in the opinion of management, are necessary for a fair presentation for the periods presented have been reflected as required by Regulation S-X, Rule 10-01. Such adjustments are of a normal, recurring nature. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended September 29, 2012. 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.

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. 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 have been made to conform to the current period presentation. In connection with the planned or actual sale or closure of various restaurants, the operations of these businesses have been presented as discontinued operations in the consolidated condensed financial statements. Accordingly, the Company has reclassified its consolidated condensed statement of income for the prior period presented. These dispositions are discussed below in “Recent Restaurant Dispositions.”

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, investments, receivables, accounts payable and accrued expenses approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair value of notes payable is determined using current applicable rates for similar instruments as of the balance sheet date and approximates the carrying value of such debt.

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.

Available-for-Sale Securities — Available-for-sale securities consist primarily of United States Treasury Bills and Notes, all of which have a high degree of liquidity and are reported at fair value, with unrealized gains and losses recorded in Accumulated Other Comprehensive Income. The cost of investments in available-for-sale securities is determined on a specific identification basis. Realized gains or losses and declines in value judged to be other than temporary, if any, are reported in Other (Income) Expense, Net. The Company evaluates its investments periodically for possible impairment and reviews factors such as the length of time and extent to which fair value has been below cost basis and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery in market value.

CONCENTRATIONS OF CREDIT RISK — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. 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.

For the 13-weeks ended December 29, 2012, the Company made purchases from two vendors that accounted for approximately 22% of total purchases. For the 13-weeks ended December 31, 2011, the Company made purchases from one vendor that accounted for approximately 13% of total purchases.

SEGMENT REPORTING — As of December 29, 2012, the Company owned and operated 19 restaurants and bars, 22 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.

RECENTLY ADOPTED ACCOUNTING STANDARDS — In June 2011, the Financial Accounting Standards Board (the “FASB”) issued new accounting guidance on the presentation of other comprehensive income. The new guidance eliminates the current option to present the components of other comprehensive income as part of the statement of changes in equity. Instead, an entity has the option to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The new accounting guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. Full retrospective application is required. The adoption of this guidance in the current quarter did not have a material impact on the Company’s financial statements, and the statements of comprehensive income were presented as a separate consecutive statement following the Consolidated Condensed Statements of Income.

NEW ACCOUNTING STANDARDS NOT YET ADOPTED — In December 2011, the FASB issued amended standards to increase the prominence of offsetting assets and liabilities reported in financial statements. These amendments require an entity to disclose information about offsetting and the related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. These amendments will enhance disclosures by requiring improved information about financial instruments and derivative instruments that are either offset or subject to an enforceable master netting arrangement or similar agreement. This information will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. These revised standards are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. These amended standards may require additional footnote disclosures for these enhancements; however, they will not affect our financial position, results of operations or cash flows.

XML

INCOME TAXES (Detail)	3 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate	32.00%	23.00%

XML

CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Detail) (Supplier Concentration Risk [Member])	3 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
Supplier Concentration Risk [Member]
Supplier Concentration Risk Description	the Company made purchases from two vendors that accounted for approximately 22% of total purchases.	the Company made purchases from one vendor that accounted for approximately 13% of total purchases.
Concentration Risk, Percentage	22.00%	13.00%

XML

STOCK OPTIONS (Tables)

3 Months Ended

Dec. 29, 2012

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of stock option activity is presented below:

	2013
	Shares			Weighted Average Exercise Price		Weighted Average Contractual Term		Aggregate Intrinsic Value
Outstanding, September 29, 2012		648,100		$	19.56		6.50 Years
Options:
Granted		—
Exercised		—
Canceled or expired		(8,500	)	$	13.71
Outstanding and expected to vest, December 29, 2012		639,600		$	19.59		6.25 Years	$	1,436,666
Exercisable, December 29, 2012		396,600		$	22.83		4.25 Years	$	810,641

XML

INCOME PER SHARE OF COMMON STOCK (Detail) (USD $)			3 Months Ended
	Dec. 29, 2012	Sep. 29, 2012	Dec. 29, 2012 Exercise Price One [Member]	Dec. 31, 2011 Exercise Price One [Member]	Dec. 29, 2012 Exercise Price Two [Member]	Dec. 31, 2011 Exercise Price Two [Member]	Dec. 29, 2012 Exercise Price Three [Member]	Dec. 31, 2011 Exercise Price Three [Member]	Dec. 29, 2012 Exercise Price Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	639,600	648,100	165,100	166,100	245,500	140,500	139,000	90,000	90,000
Exercise Price Of Common Stock Options Included In Computation Of Earnings Per Share (in Dollars per share)			$ 12.04	$ 12.04	$ 14.40
Exercise Price Of Common Stock Options Excluded From Computation Of Earnings Per Share (in Dollars per share)						$ 29.60	$ 29.60	$ 32.15	$ 32.15

XML

VARIABLE INTEREST ENTITIES (Detail) (Ark Hollywood/Tampa Investment [Member], USD $)	3 Months Ended
	Dec. 29, 2012
Ark Hollywood/Tampa Investment [Member]
Business Acquisition, Percentage of Voting Interests Acquired	14.39%
Business Acquisition, Cost of Acquired Entity, Purchase Price	$ 2,964,512
Adjustments to Additional Paid in Capital, Other	2,684,896
Value of Business Acquired (VOBA)	279,616
Deferred Income Tax Expense (Benefit)	$ 1,020,261
Equity Method Investment, Ownership Percentage	64.39%

XML

VARIABLE INTEREST ENTITIES (Detail) - Schedule of variable interest entities (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012		Sep. 29, 2012
Cash and cash equivalents	$ 418		$ 714
Accounts receivable	147		1,776
Inventories	16		28
Prepaid income taxes	149		235
Prepaid expenses and other current assets	9		13
Due from Ark Restaurants Corp. and affiliates (1)	427	[1]	288	[1]
Fixed assets, net	186		3,189
Other long-term assets	71		71
Total assets	1,423		6,314
Accounts payable	60		153
Accrued expenses and other liabilities	629		1,950
Total liabilities	689		2,103
Equity of variable interest entities	734		4,211
Total liabilities and equity	$ 1,423		$ 6,314

[1] Amounts Due from Ark Restaurants Corp. and affiliates are eliminated upon consolidation.

XML

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income	$ 247	$ 1,115
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Write-off of notes receivable from former president		66
Loss on closure of restaurants	256	365
Stock-based compensation	80	0
Depreciation and amortization	1,176	957
Operating lease deferred charge (credit)	(85)	25
Changes in operating assets and liabilities:
Accounts receivable	1,143	(368)
Inventories	(62)	(17)
Prepaid, refundable and accrued income taxes	127	(531)
Prepaid expenses and other current assets	185	(106)
Other assets		14
Accounts payable - trade	(423)	212
Accrued expenses and other liabilities	(1,140)	(1,034)
Net cash provided by operating activities	1,504	698
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed assets	(409)	(2,389)
Purchase of management rights		(200)
Loans and advances made to employees	(35)	(45)
Payments received on employee receivables	35	25
Purchase of member interests in subsidiary	(2,965)
Purchases of investment securities		(301)
Proceeds from sales of investment securities	0	320
Net cash used in investing activities	(3,374)	(2,590)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable	(88)	(58)
Dividends paid	(811)	(811)
Purchase of treasury shares	(2,037,000)	(1,000)
Distributions to non-controlling interests	(600)	(555)
Net cash used in financing activities	(1,499)	(2,424)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(3,369)	(4,316)
CASH AND CASH EQUIVALENTS, Beginning of period	8,705	7,780
CASH AND CASH EQUIVALENTS, End of period	5,336	3,464
Cash paid during the period for:
Interest		1
Income taxes	51	874
Non-cash investing activity:
Note payable in connection with purchase of treasury shares	2,125	2,125
Tax benefit of purchase of member interests in subsidiary	$ 1,020

XML

RECENT RESTAURANT EXPANSION (Detail) (USD $)	21 Months Ended
	Dec. 29, 2012
Contribution From Landlord	$ 1,800,000
Cash Received From Landlord	1,500,000
Construction Value Total	$ 7,000,000

XML

COMMITMENTS AND CONTINGENCIES (Detail) (USD $)	3 Months Ended
	Dec. 29, 2012
Minimum Amount Of Commitment To Remodel Food Court	$ 3,000,000
Commitment Amount	2,300,000
Construction in Progress, Gross	1,000,000
Fees Amount Of Constructed Restaurant And Catering Service	$ 1,000,000

XML

CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Sep. 29, 2012
CURRENT ASSETS:
Cash and cash equivalents (includes $418 at December 29, 2012 and $714 at September 29, 2012 related to VIEs)	$ 5,336	$ 8,705
Short-term investments in available-for-sale securities	75	75
Accounts receivable (includes $147 at December 29, 2012 and $1,776 at September 29, 2012 related to VIEs)	2,647	3,790
Employee receivables	339	339
Inventories (includes $16 at December 29, 2012 and $28 at September 29, 2012 related to VIEs)	1,538	1,567
Prepaid and refundable income taxes (includes $149 at December 29, 2012 and $235 at September 29, 2012 related to VIEs)	858	985
Prepaid expenses and other current assets (includes $9 at December 29, 2012 and $13 at September 29, 2012 related to VIEs)	902	1,087
Total current assets	11,695	16,548
FIXED ASSETS - Net (includes $186 at December 29, 2012 and $3,189 at September 29, 2012 related to VIEs)	25,264	26,194
INTANGIBLE ASSETS - Net	1,019	1,021
GOODWILL	4,813	4,813
TRADEMARKS	721	721
DEFERRED INCOME TAXES	5,980	4,960
OTHER ASSETS (includes $71 at December 29, 2012 and September 29, 2012 related to VIEs)	907	907
TOTAL ASSETS	50,399	55,164
CURRENT LIABILITIES:
Accounts payable - trade (includes $60 at December 29, 2012 and $153 at September 29, 2012 related to VIEs)	2,306	2,729
Accrued expenses and other current liabilities (includes $629 at December 29, 2012 and $1,950 at September 29, 2012 related VIEs)	7,733	8,873
Current portion of note payable	1,063	885
Total current liabilities	11,102	12,487
OPERATING LEASE DEFERRED CREDIT	4,565	4,650
NOTE PAYABLE, LESS CURRENT PORTION	974	1,240
TOTAL LIABILITIES	16,641	18,377
COMMITMENTS AND CONTINGENCIES
EQUITY:
Common stock, par value $.01 per share - authorized, 10,000 shares; issued, 4,601 shares at December 29, 2012 and September 29, 2012, respectively; outstanding, 3,245 shares at December 29, 2012 and September 29, 2012, respectively	46	46
Additional paid-in capital	21,825	23,410
Retained earnings	21,569	22,372
	43,440	45,828
Less treasury stock, at cost, of 1,356 shares at December 29, 2012 and September 29, 2012, respectively	(13,220)	(13,220)
Total Ark Restaurants Corp. shareholders’ equity	30,220	32,608
NON-CONTROLLING INTERESTS	3,538	4,179
TOTAL EQUITY	33,758	36,787
TOTAL LIABILITIES AND EQUITY	$ 50,399	$ 55,164

XML

DIVIDENDS (Detail) (USD $)	3 Months Ended
	Dec. 29, 2012
Common Stock, Dividends, Per Share, Cash Paid	$ 0.25

XML

CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY (USD $) In Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Stock Option Receivable [Member]	Treasury Stock [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
BALANCE at Oct. 01, 2011	$ 46	$ 23,302	$ 3	$ 20,128	$ (29)	$ (10,095)	$ 33,355	$ 4,831	$ 38,186
BALANCE (in Shares) at Oct. 01, 2011	4,601
Net income attributable to Ark Restaurants Corp.				1,086			1,086	29	1,115
Unrealized gain on available-for-sale securities			1				1		1
Write-off of stock option receivable					29		29		29
Purchase of treasury stock						(3,125)	(3,125)		(3,125)
Distributions to non-controlling interests								(555)	(555)
Payment of dividends - $0.25 per share				(811)			(811)		(811)
BALANCE at Dec. 31, 2011	46	23,302	4	20,403		(13,220)	30,535	4,305	34,840
BALANCE (in Shares) at Dec. 31, 2011	4,601
BALANCE at Sep. 29, 2012	46	23,410		22,372		(13,220)	32,608	4,179	36,787
BALANCE (in Shares) at Sep. 29, 2012	4,601
Net income attributable to Ark Restaurants Corp.				8			8	239	247
Purchase of member interests in subsidiary		(2,685)					(2,685)	(280)	(2,965)
Tax benefit of purchase of member interests in subsidiary		1,020					1,020		1,020
Stock-based compensation		80					80		80
Purchase of treasury stock									(3,125)
Distributions to non-controlling interests								(600)	(600)
Payment of dividends - $0.25 per share				(811)			(811)		(811)
BALANCE at Dec. 29, 2012	$ 46	$ 21,825		$ 21,569		$ (13,220)	$ 30,220	$ 3,538	$ 33,758
BALANCE (in Shares) at Dec. 29, 2012	4,601

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INVESTMENT SECURITIES (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
Proceeds from Sale of Available-for-sale Securities, Debt	$ 0	$ 320
Realized Investment Gains (Losses)	$ 0	$ 0

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SUBSEQUENT EVENT

3 Months Ended

Dec. 29, 2012

Subsequent Events [Text Block]

14. SUBSEQUENT EVENT

On February 6, 2013, the Company received an unsolicited offer to purchase all of its outstanding capital stock for $22 a share in cash from Landry’s, Inc. The Company’s Board of Directors is reviewing such offer.

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INVESTMENT SECURITIES (Detail) - Available for sale securities are re-measured to fair value on recurring basis (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Sep. 29, 2012
Available-for-sale short-term:
Amortized Cost	$ 75	$ 75
Fair Value	$ 75	$ 75

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VARIABLE INTEREST ENTITIES (Tables)

3 Months Ended

Dec. 29, 2012

Schedule of Variable Interest Entities [Table Text Block]

The assets and liabilities associated with the Company’s consolidation of VIEs are as follows:

	December 29, 2012		September 29, 2012
	(in thousands)
Cash and cash equivalents	$	418	$	714
Accounts receivable		147		1,776
Inventories		16		28
Prepaid income taxes		149		235
Prepaid expenses and other current assets		9		13
Due from Ark Restaurants Corp. and affiliates (1)		427		288
Fixed assets, net		186		3,189
Other long-term assets		71		71
Total assets	$	1,423	$	6,314
Accounts payable	$	60	$	153
Accrued expenses and other liabilities		629		1,950
Total liabilities		689		2,103
Equity of variable interest entities		734		4,211
Total liabilities and equity	$	1,423	$	6,314

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CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY (Parentheticals) (USD $)	3 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
Payment of dividends, per share (in Dollars per share)	$ 0.25
Common Stock [Member]
Payment of dividends, per share (in Dollars per share)	$ 0.25	$ 0.25

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CONSOLIDATED CONDENSED BALANCE SHEETS (Parentheticals) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 29, 2012	Sep. 29, 2012
Cash and cash equivalents relating to VIEs (in Dollars)	$ 418	$ 714
Accounts receivable relating to VIEs (in Dollars)	147	1,776
Inventories relating to VIEs (in Dollars)	16	28
Prepaid income taxes relating to VIEs (in Dollars)	149	235
Prepaid expenses and other current assets relating to VIEs (in Dollars)	9	13
Fixed Assets relating to VIEs (in Dollars)	186	3,189
Other Assets relating to VIEs (in Dollars)	71	71
Accounts payable, trade relating to VIEs (in Dollars)	60	153
Accrued expenses and other current liabilities relating to VIEs (in Dollars)	$ 629	$ 1,950
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)	4,601	4,601
Common stock, shares outstanding (in Shares)	3,245	3,245
Treasury stock, shares (in Shares)	1,356	1,356

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Dec. 29, 2012

Commitments and Contingencies Disclosure [Text Block]

9. COMMITMENTS AND CONTINGENCIES

Leases — The Company leases its restaurants, bar facilities, and administrative headquarters through its subsidiaries under terms expiring at various dates through 2032. 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 restaurants sales in excess of stipulated amounts at such facility and in one instance based on profits.

In February 2010, the Company entered into an amendment to its lease for the food court space at the New York-New York Hotel and Casino in Las Vegas, Nevada. Pursuant to this amendment, the Company agreed to, among other things; commit no less than $3,000,000 to remodel the food court during 2012. In exchange for this commitment, the landlord agreed to extend the food court lease for an additional four years. As of December 29, 2012, the Company has spent approximately $2,300,000 related to this commitment.

On November 28, 2012, the Company entered into an agreement to design and lease a restaurant at the Tropicana Hotel and Casino in Atlantic City, NJ. The initial term of the lease for this facility will expire 10 years after the date the property first opens for business to the public following its current refurbishment and will have two five-year renewals. The Company anticipates the cost to construct this restaurant will be approximately $1,000,000 and it will open during the third quarter of the 2013 fiscal year.

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 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.

Other — On June 7, 2011, the Company entered into a 10-year exclusive agreement to manage a yet to be constructed restaurant and catering service at Basketball City in New York City in exchange for a fee of $1,000,000 (all of which has been paid and is included in Intangible Assets in the accompanying Consolidated Condensed Balance Sheets). Under the terms of the agreement, the owner of the property will construct the facility at its expense and the Company will pay the owner an annual fee based on sales, as defined in the agreement. The Company expects to begin operating this property within the next 12 months.

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Document And Entity Information	3 Months Ended
	Dec. 29, 2012	Feb. 06, 2013
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		3,244,845
Amendment Flag	false
Entity Central Index Key	0000779544
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 29, 2012
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1

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STOCK OPTIONS

3 Months Ended

Dec. 29, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

10. 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.

The 2010 Stock Option Plan is the Company’s only equity compensation plan currently in effect. Under the 2010 Stock Option Plan, 500,000 options were authorized for future 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.

During fiscal 2012, options to purchase 251,500 shares of common stock at an exercise price of $14.40 per share were granted and are exercisable as to 50% of the shares commencing on the first anniversary of the date of grant and as to an additional 50% commencing on the second anniversary of the date of grant. The grant date fair value of these stock options was $2.57 per share. The fair value of each of the Company’s 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 our stock, the expected life of the options and the risk free interest rate. The assumptions used for the 2012 grant include a risk free interest rate of 1.67%, volatility of 36.2%, a dividend yield of 6.1% and an expected life of 6.25 years. No options were issued during the 13-week period ended December 29, 2012.

A summary of stock option activity is presented below:

	2013
	Shares			Weighted Average Exercise Price		Weighted Average Contractual Term		Aggregate Intrinsic Value
Outstanding, September 29, 2012		648,100		$	19.56		6.50 Years
Options:
Granted		—
Exercised		—
Canceled or expired		(8,500	)	$	13.71
Outstanding and expected to vest, December 29, 2012		639,600		$	19.59		6.25 Years	$	1,436,666
Exercisable, December 29, 2012		396,600		$	22.83		4.25 Years	$	810,641

Compensation cost charged to operations for the 13-week periods ended December 29, 2012 and December 31, 2011 was $80,000 and $0, respectively. The compensation cost recognized is classified as a general and administrative expense in the Consolidated Condensed Statements of Income.

As of December 29, 2012, there was approximately $458,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of approximately 1.5 years.

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CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
REVENUES:
Food and beverage sales	$ 31,029	$ 32,603
Other revenue	307	258
Total revenues	31,336	32,861
COSTS AND EXPENSES:
Food and beverage cost of sales	7,749	8,358
Payroll expenses	10,845	10,707
Occupancy expenses	4,535	4,458
Other operating costs and expenses	4,339	4,032
General and administrative expenses	2,410	2,781
Depreciation and amortization	1,176	938
Total costs and expenses	31,054	31,274
OPERATING INCOME	282	1,587
OTHER (INCOME) EXPENSE:
Interest expense		1
Interest income		(1)
Other income, net	(79)	(33)
Total other income, net	(79)	(33)
INCOME BEFORE PROVISION FOR INCOME TAXES	361	1,620
Provision for income taxes	114	378
INCOME FROM CONTINUING OPERATIONS	247	1,242
Loss from discontinued operations, net of income tax benefits		(127)
CONSOLIDATED NET INCOME	247	1,115
Net income attributable to non-controlling interests	(239)	(29)
NET INCOME ATTRIBUTABLE TO ARK RESTAURANTS CORP.	8	1,086
AMOUNTS ATTRIBUTABLE TO ARK RESTAURANTS CORP.:
Income from continuing operations	8	1,148
Loss from discontinued operations, net of tax		(62)
Net income	$ 8	$ 1,086
From continuing operations:
Basic (in Dollars per share)	$ 0.00	$ 0.34
Diluted (in Dollars per share)	$ 0.00	$ 0.33
From discontinued operations:
Basic (in Dollars per share)		$ (0.02)
Diluted (in Dollars per share)		$ (0.02)
From net income:
Basic (in Dollars per share)	$ 0.00	$ 0.32
Diluted (in Dollars per share)	$ 0.00	$ 0.31
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic (in Shares)	3,245	3,432
Diluted (in Shares)	3,322	3,449

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RECENT RESTAURANT DISPOSITIONS

3 Months Ended

Dec. 29, 2012

Recent Restautant Dispositions [Text Block]

4. RECENT RESTAURANT DISPOSITIONS

Lease Expirations – On July 8, 2011, the Company entered into an agreement with the landlord of The Grill Room property located in New York City, whereby in exchange for a payment of $350,000 the Company vacated the property on October 31, 2011. Such payment and the related loss on closure of the property, in the amount of $179,000, are included in Other Operating Costs and Expenses in the Consolidated Condensed Statement of Income for the 13-weeks ended December 31, 2011. This lease was scheduled to expire on December 31, 2011.

The Company was advised by the landlord that it would have to vacate the America property located in Washington, DC, which was on a month-to-month lease. The closure of this property occurred on November 7, 2011. The related loss on closure of this property, in the amount of $186,000, is included in Other Operating Costs and Expenses in the Consolidated Condensed Statement of Income for the 13-weeks ended December 31, 2011.

Discontinued Operations – Effective March 15, 2012, the Company vacated its food court operations at the MGM Grand Casino at the Foxwoods Resort Casino in Ledyard, CT. The Company determined that it would not be able to operate this facility profitably at this location at the current rent.

The results of discontinued operations were as follows:

	13 Weeks Ended
	December 29, 2012		December 31, 2011
	(In thousands)
Revenues	$	—	$	507
Costs and expenses		—		673
Loss before income taxes		—		(166	)
Income tax benefit		—		(39	)
Net loss	$	—	$	(127	)

Other – On October 29, 2012, the Company suffered a flood at its Red and Sequoia properties located in New York, NY as a result of a hurricane. The Company did not reopen these properties as the underlying leases were due to expire in the second quarter of fiscal 2013. Losses related to the closure of these properties, in the amount of $256,000, are included in Other Operating Costs and Expenses in the Consolidated Condensed Statement of Income for the 13-weeks ended December 29, 2012.

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RECENT RESTAURANT EXPANSION

3 Months Ended

Dec. 29, 2012

Recent Restaurant Expansion [Text Block]

3. RECENT RESTAURANT EXPANSION

On March 18, 2011, a subsidiary of the Company entered into a lease agreement to operate a restaurant and bar in New York City named Clyde Frazier’s Wine and Dine. In connection with the agreement, the landlord has agreed to contribute up to $1,800,000 towards the construction of the facility (of which $1,500,000 was received as of December 29, 2012 and is being deferred over the lease term), which totaled approximately $7,000,000. The initial term of the lease for this facility expires on March 31, 2027 and has one five-year renewal. This restaurant opened during the second quarter of fiscal 2012.

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Accounting Policies, by Policy (Policies)

3 Months Ended

Dec. 29, 2012

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. 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 have been made to conform to the current period presentation. In connection with the planned or actual sale or closure of various restaurants, the operations of these businesses have been presented as discontinued operations in the consolidated condensed financial statements. Accordingly, the Company has reclassified its consolidated condensed statement of income for the prior period presented. These dispositions are discussed below in “Recent Restaurant Dispositions.”

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, investments, receivables, accounts payable and accrued expenses approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair value of notes payable is determined using current applicable rates for similar instruments as of the balance sheet date and approximates the carrying value of such debt.

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.

Available For Sale Securities [Policy Text Block]

Available-for-Sale Securities — Available-for-sale securities consist primarily of United States Treasury Bills and Notes, all of which have a high degree of liquidity and are reported at fair value, with unrealized gains and losses recorded in Accumulated Other Comprehensive Income. The cost of investments in available-for-sale securities is determined on a specific identification basis. Realized gains or losses and declines in value judged to be other than temporary, if any, are reported in Other (Income) Expense, Net. The Company evaluates its investments periodically for possible impairment and reviews factors such as the length of time and extent to which fair value has been below cost basis and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery in market value.

Supplier Concentration [Policy Text Block]

CONCENTRATIONS OF CREDIT RISK — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. 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.

For the 13-weeks ended December 29, 2012, the Company made purchases from two vendors that accounted for approximately 22% of total purchases. For the 13-weeks ended December 31, 2011, the Company made purchases from one vendor that accounted for approximately 13% of total purchases.

Segment Reporting, Policy [Policy Text Block]

SEGMENT REPORTING — As of December 29, 2012, the Company owned and operated 19 restaurants and bars, 22 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.

Recently Adopted Accounting Standards [Policy Text Block]

RECENTLY ADOPTED ACCOUNTING STANDARDS — In June 2011, the Financial Accounting Standards Board (the “FASB”) issued new accounting guidance on the presentation of other comprehensive income. The new guidance eliminates the current option to present the components of other comprehensive income as part of the statement of changes in equity. Instead, an entity has the option to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The new accounting guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. Full retrospective application is required. The adoption of this guidance in the current quarter did not have a material impact on the Company’s financial statements, and the statements of comprehensive income were presented as a separate consecutive statement following the Consolidated Condensed Statements of Income.

New Accounting Pronouncements, Policy [Policy Text Block]

NEW ACCOUNTING STANDARDS NOT YET ADOPTED — In December 2011, the FASB issued amended standards to increase the prominence of offsetting assets and liabilities reported in financial statements. These amendments require an entity to disclose information about offsetting and the related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. These amendments will enhance disclosures by requiring improved information about financial instruments and derivative instruments that are either offset or subject to an enforceable master netting arrangement or similar agreement. This information will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. These revised standards are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. These amended standards may require additional footnote disclosures for these enhancements; however, they will not affect our financial position, results of operations or cash flows.

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INCOME TAXES

3 Months Ended

Dec. 29, 2012

Income Tax Disclosure [Text Block]

11. INCOME TAXES

The Company’s provision for income taxes consists of U.S. 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. The income tax provision on income from continuing operations for the 13-week periods ended December 29, 2012 and December 31, 2011 reflect effective tax rates of approximately 32% and 23%, respectively. The Company expects its effective tax rate for its current fiscal year to be significantly lower than the statutory rate as a result of the inclusion of 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.

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RELATED PARTY TRANSACTIONS

3 Months Ended

Dec. 29, 2012

Related Party Transactions Exculding Stock Option Receivable [Text Block]

7. RELATED PARTY TRANSACTIONS

The Company’s former President and Chief Operating Officer resigned effective January 1, 2012. In connection therewith, the Company forgave loans due totaling $66,000 ($29,000 for stock option exercises receivable and $37,000 for other loans) and has recorded additional compensation in the amount of $475,400 in accordance with his separation agreement and release. Such amounts are included in General and Administrative Expenses in the Consolidated Condensed Statement of Income for the 13-weeks ended December 31, 2011.

Employee loans totaled approximately $339,000 at both December 29, 2012 and September 29, 2012. Such amounts are payable on demand and bear interest at the minimum statutory rate (0.19% at December 29, 2012 and September 29, 2012).

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INVESTMENT SECURITIES

3 Months Ended

Dec. 29, 2012

Investment Securities [Text Block]

5. INVESTMENT SECURITIES

The fair values of the Company’s investment securities are determined in accordance with GAAP, with fair value being defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the Company utilizes the three-tier value hierarchy, as prescribed by GAAP, which prioritizes the inputs used in measuring fair value as follows:

· Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market.

· Level 2 - inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability.

· Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability.

The following available-for-sale securities (which all mature within one year) are re-measured to fair value on a recurring basis and are valued using Level 1 inputs:

	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
	(In thousands)
At December 29, 2012
Available-for-sale short-term:
Government debt securities	$	75	$	—	$	—	$	75

	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
	(In thousands)
At September 29, 2012
Available-for-sale short-term:
Government debt securities	$	75	$	—	$	—	$	75

At December 29, 2012, all of the Company’s government debt securities mature within fiscal year 2013.

Proceeds from the sale and redemption of investment securities amounted to $0 and $320,000 for the 13-week periods ended December 29, 2012 and December 31, 2011, respectively. No realized gains or losses were included in Other Income (Expense), net for the 13-week periods ended December 29, 2012 and December 31, 2011.

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NOTE PAYABLE FOR TREASURY STOCK REPURCHASE

3 Months Ended

Dec. 29, 2012

Notes Payable For Treasury Stock Repurchase [Text Block]

6. NOTE PAYABLE FOR TREASURY STOCK REPURCHASE

On December 12, 2011, the Company, in a private transaction, purchased 250,000 shares of its common stock at a price of $12.50 per share, or a total of $3,125,000. Upon the closing of the purchase, the Company paid the seller $1,000,000 in cash and issued an unsecured promissory note to the seller for $2,125,000 ($2,037,000 outstanding at December 29, 2012). The note bears interest at 0.19% per annum, and is payable in 24 equal monthly installments of $88,541, commencing on December 1, 2012.

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

3 Months Ended

Dec. 29, 2012

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following:

	December 29,		September 29,
	2012		2012
	(In thousands)
Sales tax payable	$	687	$	852
Accrued wages and payroll related costs		1,188		1,475
Customer advance deposits		1,538		2,811
Accrued occupancy and other operating expenses		4,320		3,735
	$	7,733	$	8,873

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RECENT RESTAURANT DISPOSITIONS (Detail) - Results of discontinued operations (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
Revenues		$ 507
Costs and expenses		673
Loss before income taxes		(166)
Income tax benefit		(39)
Net loss		$ (127)

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DIVIDENDS

3 Months Ended

Dec. 29, 2012

Dividends [Text Block]

13. DIVIDENDS

On December 28, 2012, the Company paid a quarterly cash dividend in the amount of $0.25 per share on the Company’s common stock. The Company intends to continue to pay such quarterly cash dividend 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.

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INVESTMENT SECURITIES (Tables)

3 Months Ended

Dec. 29, 2012

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

The following available-for-sale securities (which all mature within one year) are re-measured to fair value on a recurring basis and are valued using Level 1 inputs:

	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
	(In thousands)
At December 29, 2012
Available-for-sale short-term:
Government debt securities	$	75	$	—	$	—	$	75

	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
	(In thousands)
At September 29, 2012
Available-for-sale short-term:
Government debt securities	$	75	$	—	$	—	$	75

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STOCK OPTIONS (Detail) (USD $)	3 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures (in Shares)	251,500
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)	$ 14.40
Percentage Of Shares Commencing First Anniversary	50.00%
Percentage Of Shares Commencing Second Anniversary	50.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)	$ 2.57
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.67%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	36.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	6.10%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	6 years 3 months
Share-based Compensation (in Dollars)	$ 80,000	$ 0
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options (in Dollars)	$ 458,000
Stock Option 2004 Plan [Member]
Terminated Unissued Options (in Shares)	400
Stock Option 2010 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)	500,000

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CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
Consolidated net income	$ 247	$ 1,115
Other comprehensive income, net of taxes:
Unrealized gain on available-for-sale securities		1
Total other comprehensive income, net of taxes		1
Comprehensive income	247	1,116
Comprehensive loss attributable to non-controlling interests	(239)	(29)
Comprehensive income attributable to Ark Restaurants Corp.	$ 8	$ 1,087

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VARIABLE INTEREST ENTITIES

3 Months Ended

Dec. 29, 2012

Variable Interest Entity, Similar Entity Aggregation, Description

2. VARIABLE INTEREST ENTITIES

Upon adoption of the new accounting guidance for VIEs on October 3, 2010, the Company determined that it was the primary beneficiary of two VIEs which had not been previously consolidated, Ark Hollywood/Tampa Investment, LLC and Ark Connecticut Investment, LLC, as the new guidance requires that a single party (including its related parties and de facto agents) be able to exercise their rights to remove the decision maker in order for the “kick-out” rights to be considered substantive. Previously, a simple majority of owners that could exercise kick-out rights was considered a substantive right. This change resulted in the need for consolidation.

During the 13-weeks ended December 29, 2012, the Company purchased an additional 14.39% of the membership interests of Ark Hollywood/Tampa Investment, LLC, directly from the individuals that held such interests, for an aggregate consideration of $2,964,512. In connection with this transaction, the Company recorded a reduction to additional paid-in capital of $2,684,896 representing the excess of the amount paid over the carrying value ($279,616) of the non-controlling interests acquired as the acquisition of an additional interest in a less than wholly-owned subsidiary where control is maintained is treated as an equity transaction. In addition, the Company also recorded an increase to additional paid-in capital in the amount of $1,020,261 representing the related deferred tax benefit of the transaction.

As a result of the above, Ark Hollywood/Tampa Investment, LLC is no longer considered a VIE as the Company now owns 64.39% of the voting membership interests. Accordingly, the following disclosures associated with the Company’s VIEs do not include Ark Hollywood/Tampa Investment, LLC as of December 29, 2012:

	December 29, 2012		September 29, 2012
	(in thousands)
Cash and cash equivalents	$	418	$	714
Accounts receivable		147		1,776
Inventories		16		28
Prepaid income taxes		149		235
Prepaid expenses and other current assets		9		13
Due from Ark Restaurants Corp. and affiliates (1)		427		288
Fixed assets, net		186		3,189
Other long-term assets		71		71
Total assets	$	1,423	$	6,314
Accounts payable	$	60	$	153
Accrued expenses and other liabilities		629		1,950
Total liabilities		689		2,103
Equity of variable interest entities		734		4,211
Total liabilities and equity	$	1,423	$	6,314

(1) Amounts Due from 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 our 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 our general assets.

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

3 Months Ended

Dec. 29, 2012

Schedule Of Accrued Expenses And Other Current Liabilities [Table Text Block]

Accrued expenses and other current liabilities consist of the following:

	December 29,		September 29,
	2012		2012
	(In thousands)
Sales tax payable	$	687	$	852
Accrued wages and payroll related costs		1,188		1,475
Customer advance deposits		1,538		2,811
Accrued occupancy and other operating expenses		4,320		3,735
	$	7,733	$	8,873

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RELATED PARTY TRANSACTIONS (Detail) (USD $)	3 Months Ended
	Dec. 29, 2012	Sep. 29, 2012	Dec. 31, 2011
Forgiveness Of Loans Due			$ 66,000
Due From Former President In Respect Of Stock Option Exercises			29,000
Due From Former President Excluding Stock Option Receivables			37,000
Accrued Additional Compensation Of Forgave Loans			475,400
Due from Other Related Parties	$ 339,000	$ 339,000
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	0.19%	0.19%

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INCOME PER SHARE OF COMMON STOCK

3 Months Ended

Dec. 29, 2012

Earnings Per Share [Text Block]

12. INCOME PER SHARE OF COMMON STOCK

Net income (loss) 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-week period ended December 29, 2012, options to purchase 165,100 shares of common stock at a price of $12.04 and options to purchase 245,500 shares of common stock at a price of $14.40 were included in diluted earnings per share. Options to purchase 139,000 shares of common stock at a price of $29.60 and options to purchase 90,000 shares of common stock at a price of $32.15 per share were not included in diluted earnings per share as their impact was antidilutive.

For the 13-week period ended December 31, 2011, options to purchase 166,100 shares of common stock at a price of $12.04 were included in diluted earnings per share. Options to purchase 140,500 shares of common stock at a price of $29.60 and options to purchase 90,000 shares of common stock at a price of $32.15 per share were not included in diluted earnings per share as their impact was antidilutive.