10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

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

For the quarterly period ended March 28, 2015

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	(I.R.S. Employer
incorporation or organization)	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 x   No o

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 x   No o

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  o	Accelerated filer  o
Non-accelerated filer  o  (Do not check if a smaller reporting company)	Smaller Reporting Company  x

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

Yes o  No x

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 May 6, 2015
(Common stock, $.01 par value)	3,394,028

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 27, 2014 as may be 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-K/A, 10-Q, 10-Q/A 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-K/A, 10-Q, 10-Q/A 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)

	March 28, 2015			September 27, 2014
	(unaudited)			(see Note 1)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents (includes $419 at March 28, 2015 and $584 at September 27, 2014 related to VIEs)	$	6,203		$	8,662
Accounts receivable (includes $395 at March 28, 2015 and $440 at September 27, 2014 related to VIEs)		2,737			3,016
Employee receivables		394			399
Inventories (includes $17 at March 28, 2015 and $19 at September 27, 2014 related to VIEs)		1,841			1,832
Prepaid expenses and other current assets (includes $166 at March 28, 2015 and $173 at September 27, 2014 related to VIEs)		1,747			1,491
Current portion of note receivable		—			25
Total current assets		12,922			15,425
FIXED ASSETS - Net (includes $54 at March 28, 2015 and $59 at September 27, 2014 related to VIEs)		28,164			29,019
NOTE RECEIVABLE, LESS CURRENT PORTION		—			228
INTANGIBLE ASSETS - Net		108			95
GOODWILL		6,813			6,813
TRADEMARKS		1,221			1,221
DEFERRED INCOME TAXES		5,217			5,214
OTHER ASSETS (includes $71 at March 28, 2015 and September 27, 2014 related to VIEs)		7,440			7,348
TOTAL ASSETS	$	61,885		$	65,363
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable - trade (includes $72 at March 28, 2015 and $58 at September 27, 2014 related to VIEs)	$	2,412		$	2,592
Accrued expenses and other current liabilities (includes $238 at March 28, 2015 and $179 at September 27, 2014 related to VIEs)		10,196			10,336
Accrued income taxes		415			1,162
Dividend payable		847			844
Current portion of notes payable		1,617			1,794
Total current liabilities		15,487			16,728
OPERATING LEASE DEFERRED CREDIT (includes $78 at March 28, 2015 and $75 at September 27, 2014 related to VIEs)		4,008			4,219
NOTES PAYABLE, LESS CURRENT PORTION		4,715			5,524
TOTAL LIABILITIES		24,210			26,471
COMMITMENTS AND CONTINGENCIES
EQUITY:
Common stock, par value $.01 per share - authorized, 10,000 shares; issued, 4,750 shares at March 28, 2015 and 4,733 shares at September 27, 2014; outstanding, 3,394 shares at March 28, 2015 and 3,377 shares at September 27, 2014		48			47
Additional paid-in capital		25,646			25,167
Retained earnings		23,002			24,554
		48,696			49,768
Less treasury stock, at cost, of 1,356 shares at March 28, 2015 and September 27, 2014		(13,220	)		(13,220	)
Total Ark Restaurants Corp. shareholders’ equity		35,476			36,548
NON-CONTROLLING INTERESTS		2,199			2,344
TOTAL EQUITY		37,675			38,892
TOTAL LIABILITIES AND EQUITY	$	61,885		$	65,363

See notes to consolidated condensed financial statements.

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ARK RESTAURANTS CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Amounts)

	13 Weeks Ended						26 Weeks Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
REVENUES:
Food and beverage sales	$	31,213		$	30,680		$	64,262		$	62,437
Other revenue		335			357			644			739
Total revenues		31,548			31,037			64,906			63,176
COSTS AND EXPENSES:
Food and beverage cost of sales		9,171			8,373			17,918			16,227
Payroll expenses		11,285			10,559			22,139			21,038
Occupancy expenses		3,823			4,154			8,016			8,555
Other operating costs and expenses		4,374			4,322			8,614			8,529
General and administrative expenses		2,431			2,374			5,431			5,223
Depreciation and amortization		1,098			1,106			2,203			2,253
Total costs and expenses		32,182			30,888			64,321			61,825
OPERATING INCOME (LOSS)		(634	)		149			585			1,351
OTHER (INCOME) EXPENSE:
Interest expense		57			39			125			59
Interest income		(12	)		(6	)		(23	)		(13	)
Other income, net		(64	)		(115	)		(121	)		(181	)
Total other income, net		(19	)		(82	)		(19	)		(135	)
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES		(615	)		231			604			1,486
Provision (benefit) for income taxes		(173	)		81			168			480
CONSOLIDATED NET INCOME (LOSS)		(442	)		150			436			1,006
Net income attributable to non-controlling interests		(141	)		(324	)		(296	)		(617	)
NET INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP.	$	(583	)	$	(174	)	$	140		$	389
NET INCOME (LOSS) PER ARK RESTAURANTS CORP. COMMON SHARE:
Basic	$	(0.17	)	$	(0.05	)	$	0.04		$	0.12
Diluted	$	(0.17	)	$	(0.05	)	$	0.04		$	0.11
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		3,382			3,262			3,380			3,259
Diluted		3,382			3,262			3,490			3,405

See notes to consolidated condensed financial statements.

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ARK RESTAURANTS CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY

FOR THE 13 WEEKS ENDED MARCH 28, 2015 AND MARCH 29, 2014

(In Thousands)

													Total Ark
													Restaurants
					Additional								Corp.			Non-
	Common Stock				Paid-In		Retained			Treasury			Shareholders’			controlling			Total
	Shares		Amount		Capital		Earnings			Stock			Equity			Interests			Equity
BALANCE - September 28, 2013		4,610	$	46	$	22,978	$	22,950		$	(13,220	)	$	32,754		$	2,594		$	35,348
Net income		—		—		—		389			—			389			617			1,006
Exercise of stock options		15		—		192		—			—			192			—			192
Tax benefit on exercise of stock options		—		—		34		—			—			34			—			34
Stock-based compensation		—		—		157		—			—			157			—			157
Distributions to non-controlling interests		—		—		—		—			—			—			(760	)		(760	)
Accrued and paid dividends - $0.50 per share		—		—		—		(1,632	)		—			(1,632	)		—			(1,632	)
BALANCE - March 29, 2014		4,625	$	46	$	23,361	$	21,707		$	(13,220	)	$	31,894		$	2,451		$	34,345
BALANCE - September 27, 2014		4,733	$	47	$	25,167	$	24,554		$	(13,220	)	$	36,548		$	2,344		$	38,892
Net income		—		—				140			—			140			296			436
Exercise of stock options		17		1		217		—			—			218			—			218
Tax benefit on exercise of stock options		—		—		54		—			—			54			—			54
Stock-based compensation		—		—		208		—			—			208			—			208
Distributions to non-controlling interests		—		—		—		—			—			—			(441	)		(441	)
Accrued and paid dividends - $0.50 per share		—		—		—		(1,692	)		—			(1,692	)		—			(1,692	)
BALANCE - March 28, 2015		4,750	$	48	$	25,646	$	23,002		$	(13,220	)	$	35,476		$	2,199		$	37,675

See notes to consolidated condensed financial statements.

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ARK RESTAURANTS CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In Thousands)

	26 Weeks Ended
	March 28, 2015			March 29, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income	$	436		$	1,006
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Deferred income taxes		(3	)		(3	)
Stock-based compensation		208			157
Depreciation and amortization		2,203			2,253
Operating lease deferred credit		(211	)		(191	)
Changes in operating assets and liabilities:
Accounts receivable		279			24
Inventories		(9	)		(46	)
Prepaid, refundable and accrued income taxes		(747	)		(97	)
Prepaid expenses and other current assets		(256	)		(335	)
Other assets		(92	)		(209	)
Accounts payable - trade		(180	)		266
Accrued expenses and other current liabilities		(140	)		620
Net cash provided by operating activities		1,488			3,445
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed assets		(1,361	)		(1,476	)
Loans and advances made to employees		(87	)		(168	)
Payments received on employee receivables		92			79
Payments received on note receivable		253			277
Purchase of member interest in Meadowlands Newmark LLC		—			(464	)
Purchase of The Rustic Inn		—			(1,710	)
Net cash used in investing activities		(1,103	)		(3,462	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable		(986	)		(1,000	)
Dividends paid		(1,689	)		(1,630	)
Proceeds from issuance of stock upon exercise of stock options		218			192
Excess tax benefits related to stock-based compensation		54			34
Distributions to non-controlling interests		(441	)		(760	)
Net cash used in financing activities		(2,844	)		(3,164	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(2,459	)		(3,181	)
CASH AND CASH EQUIVALENTS, Beginning of period		8,662			8,748
CASH AND CASH EQUIVALENTS, End of period	$	6,203		$	5,567
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	125		$	59
Income taxes	$	866		$	547
Non-cash financing activity:
Accrued dividend	$	847		$	816
Note payable in connection with the purchase of The Rustic Inn	$	—		$	6,000

See notes to consolidated condensed financial statements.

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ARK RESTAURANTS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

March 28, 2015

(Unaudited)

1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

The consolidated condensed balance sheet as of September 27, 2014, which has been derived from audited financial statements included in the Form 10-K, and the unaudited interim consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. All adjustments that, in the opinion of management are necessary for a fair presentation for the periods presented, have been reflected as required by Regulation S-X, Rule 10-01. Such adjustments are of a normal, recurring nature. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended September 27, 2014. The results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year or any other interim period.

The Company identified an immaterial error in previously issued financial statements related to an overstatement of its gift card liability in the amount of $224,000 ($161,000 net of tax or $0.05 per basic and diluted share for the 13 and 26-weeks ended March 28, 2015). The Company reviewed this accounting error utilizing SEC Staff Accounting Bulletin No. 99, “Materiality” (“SAB 99”) and SEC Staff Accounting Bulletin No. 108, “Effects of Prior Year Misstatements on Current Year Financial Statements” (“SAB 108”) and determined the impact of the error to be immaterial to any prior period’s presentation. The accompanying consolidated financial statements as of March 28, 2015 reflects the correction of the aforementioned immaterial error.

PRINCIPLES OF CONSOLIDATION — The consolidated condensed interim financial statements include the accounts of Ark Restaurants Corp. and all of its wholly-owned subsidiaries, partnerships and other entities in which it has a controlling interest, collectively herein referred to as the “Company”. Also included in the consolidated condensed interim financial statements are certain variable interest entities (“VIEs”). All significant intercompany balances and transactions have been eliminated in consolidation.

SEASONALITY — The Company has substantial fixed costs that do not decline proportionally with sales. The first and second fiscal quarters, which include the winter months, usually reflect lower customer traffic than in the third and fourth fiscal quarters. In addition, sales in the third and fourth fiscal quarters can be adversely affected by inclement weather due to the significant amount of outdoor seating at the Company’s restaurants.

FAIR VALUE OF FINANCIAL INSTRUMENTS — The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair values of notes receivable and payable are determined using current applicable rates for similar instruments as of the balance sheet date and approximate 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.

CONCENTRATIONS OF CREDIT RISK — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company reduces credit risk by placing its cash and cash equivalents with major financial institutions with high credit ratings. At times, such amounts may exceed Federally insured limits. The concentration of credit risk with respect to accounts receivable is generally limited due to the short payment terms extended by the Company and the number of customers comprising the Company’s customer base.

For the 26-week period ended March 28, 2015, the Company did not make purchases from any one vendor that accounted for 10% or greater of total purchases. For the 26-week period ended March 29, 2014, the Company made purchases from two vendors that accounted for approximately 21% of total purchases. For the 13-week period ended March 28, 2015, the Company made purchases from one vendor that accounted for approximately 10% of total purchases. For the 13-week period ended March 29, 2014, the Company made purchases from two vendors that accounted for approximately 22% of total purchases.

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SEGMENT REPORTING — As of March 28, 2015, the Company owned and operated 21 restaurants and bars, 19 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and service, class of customers and distribution methods. The Company believes it meets the criteria for aggregating its operating segments into a single reporting segment in accordance with applicable accounting guidance.

RECENTLY ADOPTED ACCOUNTING STANDARDS — In April 2014, the FASB issued new accounting guidance that changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This guidance became effective for annual reporting periods beginning on or after December 15, 2014 and is to be applied prospectively. The adoption of this guidance did not have a material impact on the Company’s consolidated condensed financial statements.

NEW ACCOUNTING STANDARDS NOT YET ADOPTED — In January 2015, the FASB issued guidance simplifying the income statement presentation by eliminating the concept of extraordinary items. Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. The amendments are effective for annual reporting periods, including interim periods within those reporting periods, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the annual reporting period. The Company does not believe this guidance will have a material impact on its Consolidated Financial Statements.

In February 2015, the FASB amended the consolidation standards for reporting entities that are required to evaluate whether they should consolidate certain legal entities. Under the new guidance, all legal entities are subject to reevaluation under the revised consolidation model. Specifically, the guidance (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (ii) eliminates the presumption that a general partner should consolidate a limited partnership; (iii) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (iv) provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act for registered money market funds. The amendments are effective for annual reporting periods, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements.

2. VARIABLE INTEREST ENTITIES

The Company consolidates any variable interest entities in which it holds a variable interest and is the primary beneficiary. Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The primary beneficiary of a VIE is generally the entity that has (a) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

The Company has determined that it is the primary beneficiary of three VIEs and, accordingly, consolidates the financial results of these entities. Following are the required disclosures associated with the Company’s consolidated VIEs:

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	March 28, 2015		September 27, 2014
	(in thousands)
Cash and cash equivalents	$	419	$	584
Accounts receivable		395		440
Inventories		17		19
Prepaid expenses and other current assets		166		173
Due from Ark Restaurants Corp. and affiliates (1)		92		105
Fixed assets - net		54		59
Other assets		71		71
Total assets	$	1,214	$	1,451
Accounts payable - trade	$	72	$	58
Accrued expenses and other current liabilities		238		179
Operating lease deferred credit		78		75
Total liabilities		388		312
Equity of variable interest entities		826		1,139
Total liabilities and equity	$	1,214	$	1,451

(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 February 24, 2014, the Company, through a wholly-owned subsidiary, Ark Rustic Inn LLC, completed its acquisition of the assets of The Rustic Inn Crab House (“The Rustic Inn”), a restaurant and bar located in Dania Beach, Florida, for a total purchase price of approximately $7,710,000. The acquisition is accounted for as a business combination and was financed with a bank loan in the amount of $6,000,000 and cash from operations. The fair values of the assets acquired were allocated as follows:

Inventory	$	210,000
Land		2,000,000
Building		2,800,000
Furniture, fixtures and equipment		200,000
Trademarks		500,000
Goodwill		2,000,000
	$	7,710,000

The Consolidated Condensed Statements of Operations for the 13-weeks ended March 28, 2015 include revenues and earnings of approximately $4,608,000 and $1,133,000, respectively, related to The Rustic Inn. The Consolidated Condensed Statements of Operations for the 26-weeks ended March 28, 2015 include revenues and earnings of approximately $7,800,000 and $1,569,000, respectively, related to The Rustic Inn. The unaudited pro forma financial information set forth below is based upon the Company’s historical Consolidated Condensed Statements of Operations for the 13 and 26-weeks ended March 29, 2014. The unaudited pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the acquisition of The Rustic Inn occurred on the dates indicated, nor does it purport to represent the results of operations for future periods.

	13 Weeks Ended March 29, 2014		26 Weeks Ended March 29, 2014
	(in thousands, except per share amounts)
Total revenues	$	33,124	$	68,249
Net income	$	131	$	728
Net income per share - basic	$	0.04	$	0.22
Net income per share - diluted	$	0.04	$	0.21

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On July 18, 2014, the Company, through a wholly-owned subsidiary, Ark Jupiter RI, LLC, entered into an agreement with Crab House, Inc., and acquired certain assets and the related lease for a restaurant and bar located in Jupiter, Florida for approximately $250,000. In connection with this transaction, the Company entered into an amended lease for an initial period expiring through December 31, 2015. The Company has the option to extend the lease through 2033. Renovations to the property totaled approximately $750,000. The restaurant opened in the last week of January 2015 and, as a result, the Consolidated Condensed Statements of Operations for the 13 and 26-weeks ended March 28, 2015 include approximately $498,000 and $667,000 of pre-opening and early operating losses, respectively.

4. RECENT RESTAURANT DISPOSITIONS

Lease Expirations – The Company was advised by the landlord that it would have to vacate The Sporting House property located in New York-New York Hotel and Casino in Las Vegas, NV which was on a month-to-month lease. The closure of this property occurred in June 2014 and did not result in a material charge.

On May 31, 2014, the Company’s lease at the Rialto Deli located at the Venetian Casino Resort in Las Vegas, NV expired. The closure of this property did not result in a material charge.

On October 31, 2014, the Company’s lease at the Towers Deli located at the Venetian Casino Resort in Las Vegas, NV expired. The closure of this property did not result in a material charge.

On November 30, 2014, the Company’s lease at the Shake & Burger located at the Venetian Casino Resort in Las Vegas, NV expired. The closure of this property did not result in a material charge.

5. NOTE RECEIVABLE

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. Under the terms of the agreement, the owner of the property was to construct the facility at their expense and the Company was to pay the owner an annual fee based on sales, as defined in the agreement. Since the owner had not delivered the facility to the Company within the specified timeframe, the parties executed a promissory note for repayment of the $1,000,000 exclusivity fee. The note bears interest at 4.0% per annum and the remaining principal balance is payable in 38 equal monthly installments of approximately $9,000. As of March 28, 2015 the note had been repaid in full.

6. INVESTMENT IN NEW MEADOWLANDS RACETRACK

On March 12, 2013, the Company made a $4,200,000 investment in the New Meadowlands Racetrack LLC (“NMR”) through its purchase of a membership interest in Meadowlands Newmark, LLC, an existing member of NMR. On November 19, 2013, the Company invested an additional $464,000 in NMR through a purchase of an additional membership interest in Meadowlands Newmark, LLC resulting in a total ownership of 11.6% of Meadowlands Newmark, LLC. In addition to the Company’s ownership interest in NMR through Meadowlands Newmark, LLC, if casino gaming is approved at the Meadowlands and NMR is granted the right to conduct said gaming, neither of which can be assured, the Company shall be granted the exclusive right to operate the food and beverage concessions in the gaming facility with the exception of one restaurant. This investment has been accounted for based on the cost method and is included in Other Assets in the accompanying Consolidated Condensed Balance Sheets at March 28, 2015 and September 27, 2014. The Company periodically reviews its investments for impairment. If the Company determines that an other-than-temporary impairment has occurred, it will write-down the investment to its fair value. No indication of impairment was noted as of March 28, 2015.

In conjunction with this investment, the Company, through a 97% owned subsidiary, Ark Meadowlands LLC (“AM VIE”), also entered into a long-term agreement with NMR for the exclusive right to operate food and beverage concessions serving the new raceway facilities (the “Racing F&B Concessions”) located in the new raceway grandstand constructed at the Meadowlands Racetrack in northern New Jersey. Under the agreement, NMR is responsible to pay for the costs and expenses incurred in the operation of the Racing F&B Concessions, and all revenues and profits thereof inure to the benefit of NMR. AM VIE receives an annual fee equal to 5% of the net profits received by NMR from the Racing F&B Concessions during each calendar year. At March 28, 2015, it was determined that AM VIE is a variable interest entity. However, based on qualitative consideration of the contracts with AM VIE, the operating structure of AM VIE, the Company’s role with AM VIE, and that the Company is not obligated to absorb any expected losses of AM VIE, the Company has concluded that it is not the primary beneficiary and not required to consolidate the operations of AM VIE.

The Company’s maximum exposure to loss as a result of its involvement with AM VIE is limited to a receivable from AM VIE’s primary beneficiary (NMR, a related party) which aggregated approximately $267,000 and $266,000 at March 28, 2015 and September 27, 2014, respectively, and are included in Prepaid Expenses and Other Current Assets in the Consolidated Condensed Balance Sheets.

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On April 25, 2014, the Company loaned $1,500,000 to Meadowlands Newmark, LLC. The note bears interest at 3%, compounded monthly and added to the principal, and is due in its entirety on January 31, 2024. The note may be prepaid, in whole or in part, at any time without penalty or premium. The principal and accrued interest related to this note in the amount of $1,522,954 is included in Other Assets in the Consolidated Condensed Balance Sheets at March 28, 2015 and September 27, 2014.

7. NOTES PAYABLE

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, for 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. The note, which was repaid in full in November 2014, bore interest at 0.19% per annum, and was payable in 24 equal monthly installments of $88,541, commencing on December 1, 2012.

Bank – On February 25, 2013, the Company issued a promissory note, secured by all assets of the Company, to a bank for $3,000,000. The note bore interest at LIBOR plus 3.5% per annum, and was payable in 36 equal monthly installments of $83,333, commencing on March 25, 2013. On February 24, 2014, in connection with the acquisition of The Rustic Inn, the Company borrowed an additional $6,000,000 from this bank under the same terms and conditions as the original loan which was consolidated with the remaining principal balance from the original borrowing at that date. The new loan is payable in 60 equal monthly installments of $134,722, which commenced on March 25, 2014. As of March 28, 2015, the outstanding balance of this note payable was approximately $6,332,000.

The loan agreement provides, among other things, that the Company meet minimum quarterly tangible net worth amounts, as defined, and minimum annual net income amounts, and contains customary representations, warranties and affirmative covenants. The agreement also contains customary negative covenants, subject to negotiated exceptions, on liens, relating to other indebtedness, capital expenditures, liens, affiliate transactions, disposal of assets and certain changes in ownership. The Company was in compliance with all debt covenants as of March 28, 2015.

8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following:

	March 28,		September 27,
	2015		2014
	(In thousands)
Sales tax payable	$	1,091	$	833
Accrued wages and payroll related costs		1,486		1,532
Customer advance deposits		3,638		3,895
Accrued occupancy and other operating expenses		3,981		4,076
	$	10,196	$	10,336

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.

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.

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

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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 the 13-week period ended December 27, 2014, options to purchase 136,500 shares of common stock at an exercise price of $29.60 per share expired unexercised.

A summary of stock option activity is presented below:

	2015
	Shares			Weighted Average Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding, beginning of period		704,161		$	21.66	5.5 Years
Options:
Granted		—
Exercised		(16,861	)	$	12.88
Canceled or expired		(136,500	)	$	29.60
Outstanding and expected to vest, end of period (a)		550,800		$	19.96	6.5 Years	$	2,098,659
Exercisable, end of period (a)		345,300		$	18.44	5.0 Years	$	2,098,659

Compensation cost charged to operations for the 26-week periods ended March 28, 2015 and March 29, 2014 was $208,000 and $157,000, respectively, and for the 13-week periods ended March 28, 2015 and March 29, 2014 was $103,000 and $78,000, respectively.. The compensation cost recognized is classified as a general and administrative expense in the Consolidated Condensed Statements of Operations.

As of March 28, 2015, there was approximately $504,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of approximately 1.25 years.

11. INCOME TAXES

The Company’s provision for income taxes consists of Federal, state and local taxes in amounts necessary to align the Company’s year-to-date provision for income taxes with the effective tax rate that the Company expects to achieve for the full year. The income tax provision on income from continuing operations for the 26-week periods ended March 28, 2015 and March 29, 2014 reflect effective tax rates of approximately 28% and 32%, 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 of tax credits, income from lower tax jurisdictions 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 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 March 28, 2015, options to purchase 85,500, 169,800, 205,500 and 90,000 shares of common stock at exercise prices of $12.04, $14.40, $22.50 and $32.15 per share, respectively, were not included in diluted earnings per share as their impact was anti-dilutive.

For the 26-week period ended March 28, 2015, options to purchase 85,500 shares of common stock at an exercise price of $12.04 per share and options to purchase 169,800 shares of common stock at an exercise price $14.40 per share were included in diluted

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earnings per share. Options to purchase 205,500 shares of common stock at an exercise price of $22.50 per share and options to purchase 90,000 shares of common stock at an exercise price of $32.15 per share were not included in diluted earnings per share as their impact was anti-dilutive.

For the 13-week period ended March 29, 2014, options to purchase 147,800, 233,726, 136,500 and 90,000 shares of common stock at exercise prices of $12.04, $14.40, $29.60 and $32.15 per share, respectively, were not included in diluted earnings per share as their impact was anti-dilutive.

For the 26-week period ended March 29, 2014, options to purchase 147,800 shares of common stock at an exercise price of $12.04 per share and options to purchase 233,726 shares of common stock at an exercise price $14.40 per share were included in diluted earnings per share. Options to purchase 136,500 shares of common stock at an exercise price of $29.60 per share and options to purchase 90,000 shares of common stock at an exercise price of $32.15 per share were not included in diluted earnings per share as their impact was anti-dilutive.

13. DIVIDENDS

On March 3, 2015, the Board of Directors declared a quarterly dividend of $0.25 per share on the Company’s common stock to be paid on April 2, 2015 to shareholders of record at the close of business on March 16, 2015. The Company intends to continue to pay such quarterly cash dividends for the foreseeable future, however, the payment of future dividends is at the discretion of the Company’s Board of Directors and is based on future earnings, cash flow, financial condition, capital requirements, changes in U.S. taxation and other relevant factors.

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

Overview

As of March 28, 2015, the Company owned and operated 21 restaurants and bars, 19 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and service, class of 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. The Consolidated Condensed Statements of Operations for the 13-weeks ended March 28, 2015 include revenues and earnings of approximately $4,608,000 and $1,133,000, respectively, related to The Rustic Inn. The Consolidated Condensed Statements of Operations for the 26-weeks ended March 28, 2015 include revenues and earnings of approximately $7,800,000 and $1,569,000, respectively, related to The Rustic Inn.

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 March 28, 2015 and March 29, 2014 included 13 weeks, respectively.

Seasonality

The Company has substantial fixed costs that do not decline proportionately 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 loss for the 13 weeks ended March 28, 2015 was ($634,000) as compared to operating income of $149,000 for the 13 weeks ended March 29, 2014. This decrease resulted primarily from: (i) pre-opening and early operating losses in the amount of approximately $500,000 at our new restaurant, The Rustic Inn in Jupiter, FL, (ii) a decrease in the usage of complimentaries by the ownership of the casinos and increased competition at our Florida properties, and (iii) the closure of four properties in Las Vegas as a result of lease expirations (The Sporting House, Rialto Deli, Shake & Burger and Towers Deli) all subsequent to the 26-weeks ended March 29, 2014, partially offset by operating income of The Rustic Inn in Dania Beach, FL of $436,000 combined with a significant improvement in the performance of Clyde Frazier’s Wine and Dine.

The following table summarizes the significant components of the Company’s operating results for the 13-week periods ended March 28, 2015 and March 29, 2014, respectively:

	13 Weeks Ended					Variance						26 Weeks Ended				Variance
	March 28, 2015			March 29, 2014		$			%			March 28, 2015		March 29, 2014		$			%
	(in thousands)											(in thousands)
REVENUES:
Food and beverage sales	$	31,213		$	30,680	$	533			1.7	%	$	64,262	$	62,437	$	1,825			2.9	%
Other revenue		335			357		(22	)		-6.2	%		644		739		(95	)		-12.9	%
Total revenues		31,548			31,037		511			1.6	%		64,906		63,176		1,730			2.7	%
COSTS AND EXPENSES:
Food and beverage cost of sales		9,171			8,373		798			9.5	%		17,918		16,227		1,691			10.4	%
Payroll expenses		11,285			10,559		726			6.9	%		22,139		21,038		1,101			5.2	%
Occupancy expenses		3,823			4,154		(331	)		-8.0	%		8,016		8,555		(539	)		-6.3	%
Other operating costs and expenses		4,374			4,322		52			1.2	%		8,614		8,529		85			1.0	%
General and administrative expenses		2,431			2,374		57			2.4	%		5,431		5,223		208			4.0	%
Depreciation and amortization		1,098			1,106		(8	)		-0.7	%		2,203		2,253		(50	)		-2.2	%
Total costs and expenses		32,182			30,888		1,294			4.2	%		64,321		61,825		2,496			4.0	%
OPERATING INCOME (LOSS)	$	(634	)	$	149	$	(783	)		NM		$	585	$	1,351	$	(766	)		-56.7	%

NM – not meaningful

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Revenues

During the Company’s 13 and 26-week periods ended March 28, 2015, revenues increased 1.6% and 2.7% as compared to revenues in the 13 and 26-week periods ended March 29, 2014. This increase resulted primarily from: (i) revenues related to The Rustic Inn in Dania Beach, FL (which was acquired on February 24, 2014), (ii) revenues relate to The Rustic Inn in Jupiter Florida (“RI Jupiter”, which opened on January 28, 2015), and (ii) strong catering revenues in New York, partially offset by increased competition and a decrease in the usage of complimentaries by the ownership of the casinos at our Florida properties combined with the closure of four properties in Las Vegas as a result of lease expirations (The Sporting House, Rialto Deli, Shake & Burger and Towers Deli) all subsequent to the 26-weeks ended March 29, 2014.

Food and Beverage Same-Store Sales

On a Company-wide basis, same-store sales decreased 6.1% during the second fiscal quarter of 2015 as compared to the same period last year as follows:

	13 Weeks Ended				Variance
	March 28, 2015		March 29, 2014		$			%
	(in thousands)
Las Vegas	$	11,784	$	12,626	$	(842	)		-6.7	%
New York		5,710		5,681		29			0.5	%
Washington, DC		1,966		2,118		(152	)		-7.2	%
Atlantic City, NJ		1,635		1,452		183			12.6	%
Boston		513		607		(94	)		-15.5	%
Connecticut		890		957		(67	)		-7.0	%
Florida		4,357		5,149		(792	)		-15.4	%
Same-store sales		26,855		28,590	$	(1,735	)		-6.1	%
Other		4,358		2,090
Food and beverage sales	$	31,213	$	30,680

Same-store sales in Las Vegas (which exclude The Sporting House, Rialto Deli, Shake & Burger and Towers Deli properties as they were closed subsequent to the 13-weeks ended March 29, 2014) decreased 6.7% primarily as a result of the negative impact of additional room capacity without a corresponding increase in overall traffic and increased competition. Same-store sales in New York increased 0.5%, primarily as a result of improved performance at Clyde Frazier’s Wine & Dine. Same-store sales in Washington, DC decreased 7.2% as a result of poor weather conditions. Same-store sales in Atlantic City increased 12.6%, primarily due to increased traffic at properties in which we operate our restaurants. Same-store sales in Boston decreased 15.5% as a result of poor weather conditions. Same-store sales in Connecticut decreased 7.0% due to declining traffic at the Foxwoods Resort and Casino where our properties are located. Same-store sales in Florida (which include The Rustic Inn from the acquisition date of February 24, 2014) decreased 15.4% due to a decrease in the usage of complimentaries by the ownership of the casinos where our food court properties are located and increased competition at one of our food court properties. Other food and beverage sales consist of sales related to new restaurants opened during the applicable period (RI Jupiter) and sales related to properties that were closed due to lease expiration and other closures.

Costs and Expenses

Costs and expenses from continuing operations for the 13 and 26-weeks ended March 28, 2015 and March 29, 2014 were as follows (in thousands):

	13 Weeks					13 Weeks																26 Weeks
	Ended		%			Ended		%			Increase						26 Weeks Ended		% to			Ended		% to			Increase
	March 28,		to Total			March 29,		to Total			(Decrease)						March 28,		Total			March 29,		Total			(Decrease)
	2015		Revenues			2014		Revenues			$			%			2015		Revenues			2014		Revenues			$			%
Food and beverage cost of sales	$	9,171		29.1	%	$	8,373		27.0	%	$	798			9.5	%	$	17,918		27.6	%	$	16,227		25.7	%	$	1,691			10.4	%
Payroll expenses		11,285		35.8	%		10,559		34.0	%		726			6.9	%		22,139		34.1	%		21,038		33.3	%		1,101			5.2	%
Occupancy expenses		3,823		12.1	%		4,154		13.4	%		(331	)		-8.0	%		8,016		12.4	%		8,555		13.5	%		(539	)		-6.3	%
Other operating costs and expenses		4,374		13.9	%		4,322		13.9	%		52			1.2	%		8,614		13.3	%		8,529		13.5	%		85			1.0	%
General and administrative expenses		2,431		7.7	%		2,374		7.6	%		57			2.4	%		5,431		8.4	%		5,223		8.3	%		208			4.0	%
Depreciation and amortization		1,098		3.5	%		1,106		3.6	%		(8	)		-0.7	%		2,203		3.4	%		2,253		3.6	%		(50	)		-2.2	%
	$	32,182				$	30,888				$	1,294					$	64,321				$	61,825				$	2,496

Increases in food and beverage costs as a percentage of total revenues for the 13 and 26-weeks ended March 28, 2015 compared to the same period of last year are a result of higher food costs as a percentage of sales, particularly related to The Rustic Inn and

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RI Jupiter, seafood restaurants which, consistent with the industry, operate at higher food cost structures. Excluding the impact of these costs, food and beverage costs as a percentage of total revenues in 2015 were consistent with the same periods of last year.

Payroll expenses as a percentage of total revenues for the 13 and 26-weeks ended March 28, 2015 increased primarily as a result of payroll incurred at our new restaurant RI Jupiter, which opened in January 2015.

Occupancy expenses as a percentage of total revenues for the 13 and 26-weeks ended March 28, 2015 decreased as compared to the same periods of last year as a result of higher sales at properties where rents are relatively fixed or where the Company owns the premises at which the property operates (The Rustic Inn). Excluding the impact of The Rustic Inn, occupancy expenses as a percentage of total revenues were consistent with the same periods of last year.

Other operating costs and expenses as a percentage of total revenues for the 13 and 26-weeks ended March 28, 2015 were consistent with the same periods of last year.

General and administrative expenses (which relate solely to the corporate office in New York City) as a percentage of total revenues for the 13 and 26-weeks ended March 28, 2015 were consistent, as expected, as compared to the same period of last year.

Income Taxes

The Company’s provision for income taxes consists of Federal, state and local taxes in amounts necessary to align the Company’s year-to-date provision for income taxes with the effective tax rate that the Company expects to achieve for the full year. The income tax provision on income from continuing operations for the 26-week periods ended March 28, 2015 and March 29, 2014 reflect effective tax rates of approximately 28% and 32%, respectively. . The Company expects its effective tax rate for its current fiscal year to be lower than the statutory rate as a result of tax credits, income from lower tax jurisdictions and operating income attributable to the non-controlling interests of the VIEs that is not taxable to the Company. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual tax rate could differ from current estimates.

The Company’s overall effective tax rate in the future will be affected by factors such as the 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; however, in recent years, we have utilized bank and other borrowings to finance specific transactions.

Net cash flow provided by operating activities for the 26-weeks ended March 28, 2015 was $1,488,000, compared to $3,445,000 for the same period of last year. This decrease was primarily attributable to changes in net working capital combined with a decrease in operating income as discussed above.

Net cash used in investing activities for the 26-week period ended March 28, 2015 was $1,103,000 and resulted primarily from purchases of fixed assets at existing restaurants and improvements made at our new property, The Rustic Inn in Jupiter, FL, which was opened in the last week of January 2015.

Net cash used in investing activities for the 26-week period ended March 29, 2014 was $3,462,000 and resulted primarily from purchases of fixed assets at existing restaurants, an additional $464,000 investment in New Meadowlands Racetrack LLC and the cash portion of the purchase of The Rustic Inn in the amount of $1,710,000.

Net cash used in financing activities for the 26-week periods ended March 28, 2015 and March 29, 2014 of $2,844,000 and $3,164,000, respectively, resulted from the payment of dividends, principal payments on notes payable and distributions to non-controlling interests.

The Company had a working capital deficiency of $2,565,000 at March 28, 2015, as compared to a working capital deficiency of $1,303,000 at September 27, 2014. We believe that our existing cash balances and cash provided by operations will be sufficient to meet our liquidity and capital spending requirements at least through the next 12 months.

On March 3, 2015, the Board of Directors declared a quarterly dividend of $0.25 per share on the Company’s common stock to be paid on April 2, 2015 to shareholders of record at the close of business on March 16, 2015. The Company intends to continue

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to pay such quarterly cash dividends for the foreseeable future, however, the payment of future dividends is at the discretion of the Company’s Board of Directors and is based on future earnings, cash flow, financial condition, capital requirements, changes in U.S. taxation and other relevant factors.

Recent Restaurant Expansion

On July 18, 2014, the Company, through a wholly-owned subsidiary, Ark Jupiter RI, LLC, entered into an agreement with Crab House, Inc., and acquired certain assets and the related lease for a restaurant and bar located in Jupiter, Florida for approximately $250,000. In connection with this transaction, the Company entered into an amended lease for an initial period expiring through December 31, 2015. The Company has the option to extend the lease through 2033. Renovations to the property totaled approximately $750,000. The restaurant opened in the last week of January 2015 and, as a result, the Consolidated Condensed Statements of Operations for the 13 and 26-weeks ended March 28, 2015 include approximately $498,000 and $667,000 of pre-opening and early operating losses, respectively.

Recent Restaurant Dispositions

Lease Expirations – The Company was advised by the landlord that it would have to vacate The Sporting House property located in New York-New York Hotel and Casino in Las Vegas, NV which was on a month-to-month lease. The closure of this property occurred in June 2014 and did not result in a material charge.

On May 31, 2014, the Company’s lease at the Rialto Deli located at the Venetian Casino Resort in Las Vegas, NV expired. The closure of this property did not result in a material charge.

On October 31, 2014, the Company’s lease at the Towers Deli located at the Venetian Casino Resort in Las Vegas, NV expired. The closure of this property did not result in a material charge.

On November 30, 2014, the Company’s lease at the Shake & Burger located at the Venetian Casino Resort in Las Vegas, NV expired. The closure of this property did not result in a material charge.

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 identified an immaterial error in previously issued financial statements related to an overstatement of its gift card liability in the amount of $224,000 ($161,000 net of tax or $0.05 per basic and diluted share for the 13 and 26-weeks ended March 28, 2015). The Company reviewed this accounting error utilizing SEC Staff Accounting Bulletin No. 99, “Materiality” (“SAB 99”) and SEC Staff Accounting Bulletin No. 108, “Effects of Prior Year Misstatements on Current Year Financial Statements” (“SAB 108”) and determined the impact of the error to be immaterial to any prior period’s presentation. The accompanying consolidated financial statements as of March 28, 2015 reflects the correction of the aforementioned immaterial error.

The Company’s critical accounting policies are described in the Company’s Form 10-K for the year ended September 27, 2014. There have been no significant changes to such policies during fiscal 2015 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 2015 and the expected dates of adoption and the anticipated impact on the Consolidated Condensed Financial Statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company purchases commodities such as chicken, beef, lobster, crabs 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

- 17 -

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 March 28, 2015 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 second quarter of fiscal 2015 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.

- 18 -

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 27, 2014 (the “2014 Form 10-K”). There have been no material changes to the risk factors previously disclosed in the 2014 Form 10-K. The risks described in the 2014 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.

- 19 -

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:	May 12, 2015
	ARK RESTAURANTS CORP.
By:	/s/ Michael Weinstein
	Michael Weinstein
	Chairman & Chief Executive Officer
	(Principal Executive Officer)
By:	/s/ Robert J. Stewart
	Robert J. Stewart
	President and Chief Financial Officer
	(Authorized Signatory and Principal
	Financial and Accounting Officer)

- 20 -

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: May 12, 2015

/s/    MICHAEL WEINSTEIN

Michael Weinstein

Chairman and Chief Executive Officer

(Principal Executive Officer)

- 21 -

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: May 12, 2015

/s/    Robert J. Stewart

Robert J. Stewart

President and Chief Financial Officer
(Authorized Signatory and Principal
Financial and Accounting Officer)

22

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 March 28, 2015 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 May 2015

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

23

XML

INCOME TAXES (Details)	6 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	28.00%	32.00%

XML

STOCK OPTIONS (Tables)

6 Months Ended

Mar. 28, 2015

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

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

A summary of stock option activity is presented below:

	2015
	Shares			Weighted Average Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding, beginning of period		704,161		$	21.66	5.5 Years
Options:
Granted		—
Exercised		(16,861	)	$	12.88
Canceled or expired		(136,500	)	$	29.60
Outstanding and expected to vest, end of period (a)		550,800		$	19.96	6.5 Years	$	2,098,659
Exercisable, end of period (a)		345,300		$	18.44	5.0 Years	$	2,098,659

XML

STOCK OPTIONS (Details) (USD $)	3 Months Ended			6 Months Ended
	Mar. 28, 2015	Dec. 27, 2014	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014
STOCK OPTIONS (Details) [Line Items]
Number of Stock Option Plans				2
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period (in Shares)		136,500		136,500
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price (in Dollars per share)		$ 29.60		$ 29.60
Share-based Compensation	$ 103,000		$ 78,000	$ 208,000	$ 157,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 504,000			$ 504,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				1 year 3 months
Stock Option 2004 Plan [Member]
STOCK OPTIONS (Details) [Line Items]
Terminated Unissued Options (in Shares)				400
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period				10 years
Stock Option 2010 Plan [Member]
STOCK OPTIONS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period				10 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)	500,000			500,000

XML

VARIABLE INTEREST ENTITIES

6 Months Ended

Mar. 28, 2015

Variable Interest Entities [Abstract]

Variable Interest Entities [Text Block]

2. VARIABLE INTEREST ENTITIES

The Company consolidates any variable interest entities in which it holds a variable interest and is the primary beneficiary. Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The primary beneficiary of a VIE is generally the entity that has (a) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

The Company has determined that it is the primary beneficiary of three VIEs and, accordingly, consolidates the financial results of these entities. Following are the required disclosures associated with the Company’s consolidated VIEs:

	March 28, 2015		September 27, 2014
	(in thousands)
Cash and cash equivalents	$	419	$	584
Accounts receivable		395		440
Inventories		17		19
Prepaid expenses and other current assets		166		173
Due from Ark Restaurants Corp. and affiliates (1)		92		105
Fixed assets - net		54		59
Other assets		71		71
Total assets	$	1,214	$	1,451
Accounts payable - trade	$	72	$	58
Accrued expenses and other current liabilities		238		179
Operating lease deferred credit		78		75
Total liabilities		388		312
Equity of variable interest entities		826		1,139
Total liabilities and equity	$	1,214	$	1,451

(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.

XML

RECENT RESTAURANT EXPANSION (Details) (USD $)	3 Months Ended		6 Months Ended		1 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014	Feb. 28, 2014
RECENT RESTAURANT EXPANSION (Details) [Line Items]
Net Income (Loss) Attributable to Parent	$ (583,000)	$ (174,000)	$ 140,000	$ 389,000
Lease Expiration Year			2032
The Rustic Inn [Member]
RECENT RESTAURANT EXPANSION (Details) [Line Items]
Business Combination, Consideration Transferred					7,710,000
Bank Loan Related to Acquisition					6,000,000
Sales Revenue, Services, Net	4,608,000		7,800,000
Net Income (Loss) Attributable to Parent	1,133,000		1,569,000
Crab House [Member]
RECENT RESTAURANT EXPANSION (Details) [Line Items]
Proceeds from Sale of Property, Plant, and Equipment			250,000
Lease Expiration Date			Dec. 31, 2015
Lease Expiration Year			2033
Investment Owned, at Cost	750,000		750,000
Pre-opening and early operating loss	$ 498,000		$ 667,000

XML

VARIABLE INTEREST ENTITIES (Details) - Schedule of variable interest entities (USD $) In Thousands, unless otherwise specified	Mar. 28, 2015		Sep. 27, 2014
Schedule of variable interest entities [Abstract]
Cash and cash equivalents	$ 419		$ 584
Accounts receivable	395		440
Inventories	17		19
Prepaid expenses and other current assets	166		173
Due from Ark Restaurants Corp. and affiliates (1)	92	[1]	105	[1]
Fixed assets - net	54		59
Other assets	71		71
Total assets	1,214		1,451
Accounts payable - trade	72		58
Accrued expenses and other current liabilities	238		179
Operating lease deferred credit	78		75
Total liabilities	388		312
Equity of variable interest entities	826		1,139
Total liabilities and equity	$ 1,214		$ 1,451

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

XML

RECENT RESTAURANT EXPANSION (Details) - Schedule of fair value assets acquired (USD $)	Mar. 28, 2015	Sep. 27, 2014
RECENT RESTAURANT EXPANSION (Details) - Schedule of fair value assets acquired [Line Items]
Goodwill	$ 6,813,000	$ 6,813,000
The Rustic Inn [Member]
RECENT RESTAURANT EXPANSION (Details) - Schedule of fair value assets acquired [Line Items]
Inventory	210,000
Land	2,000,000
Building	2,800,000
Furniture, fixtures and equipment	200,000
Trademarks	500,000
Goodwill	2,000,000
	$ 7,710,000

XML

RECENT RESTAURANT EXPANSION (Details) - Schedule of unaudited pro forma financial information (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended	6 Months Ended
	Mar. 29, 2014	Mar. 29, 2014
Schedule of unaudited pro forma financial information [Abstract]
Total revenues	$ 33,124	$ 68,249
Net income	$ 131	$ 728
Net income per share - basic	$ 0.04	$ 0.22
Net income per share - diluted	$ 0.04	$ 0.21

XML

CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

6 Months Ended

Mar. 28, 2015

Consolidated Condensed Financial Statements [Abstract]

Consolidated Condensed Financial Statements [Text Block]

1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

The consolidated condensed balance sheet as of September 27, 2014, which has been derived from audited financial statements included in the Form 10-K, and the unaudited interim consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. All adjustments that, in the opinion of management are necessary for a fair presentation for the periods presented, have been reflected as required by Regulation S-X, Rule 10-01. Such adjustments are of a normal, recurring nature. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended September 27, 2014. The results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year or any other interim period.

The Company identified an immaterial error in previously issued financial statements related to an overstatement of its gift card liability in the amount of $224,000 ($161,000 net of tax or $0.05 per basic and diluted share for the 13 and 26-weeks ended March 28, 2015). The Company reviewed this accounting error utilizing SEC Staff Accounting Bulletin No. 99, “Materiality” (“SAB 99”) and SEC Staff Accounting Bulletin No. 108, “Effects of Prior Year Misstatements on Current Year Financial Statements” (“SAB 108”) and determined the impact of the error to be immaterial to any prior period’s presentation. The accompanying consolidated financial statements as of March 28, 2015 reflects the correction of the aforementioned immaterial error.

PRINCIPLES OF CONSOLIDATION — The consolidated condensed interim financial statements include the accounts of Ark Restaurants Corp. and all of its wholly-owned subsidiaries, partnerships and other entities in which it has a controlling interest, collectively herein referred to as the “Company”. Also included in the consolidated condensed interim financial statements are certain variable interest entities (“VIEs”). All significant intercompany balances and transactions have been eliminated in consolidation.

SEASONALITY — The Company has substantial fixed costs that do not decline proportionally with sales. The first and second fiscal quarters, which include the winter months, usually reflect lower customer traffic than in the third and fourth fiscal quarters. In addition, sales in the third and fourth fiscal quarters can be adversely affected by inclement weather due to the significant amount of outdoor seating at the Company’s restaurants.

FAIR VALUE OF FINANCIAL INSTRUMENTS — The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair values of notes receivable and payable are determined using current applicable rates for similar instruments as of the balance sheet date and approximate 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.

CONCENTRATIONS OF CREDIT RISK — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company reduces credit risk by placing its cash and cash equivalents with major financial institutions with high credit ratings. At times, such amounts may exceed Federally insured limits. The concentration of credit risk with respect to accounts receivable is generally limited due to the short payment terms extended by the Company and the number of customers comprising the Company’s customer base.

For the 26-week period ended March 28, 2015, the Company did not make purchases from any one vendor that accounted for 10% or greater of total purchases. For the 26-week period ended March 29, 2014, the Company made purchases from two vendors that accounted for approximately 21% of total purchases. For the 13-week period ended March 28, 2015, the Company made purchases from one vendor that accounted for approximately 10% of total purchases. For the 13-week period ended March 29, 2014, the Company made purchases from two vendors that accounted for approximately 22% of total purchases.

SEGMENT REPORTING — As of March 28, 2015, the Company owned and operated 21 restaurants and bars, 19 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and service, class of customers and distribution methods. The Company believes it meets the criteria for aggregating its operating segments into a single reporting segment in accordance with applicable accounting guidance.

RECENTLY ADOPTED ACCOUNTING STANDARDS — In April 2014, the FASB issued new accounting guidance that changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This guidance became effective for annual reporting periods beginning on or after December 15, 2014 and is to be applied prospectively. The adoption of this guidance did not have a material impact on the Company’s consolidated condensed financial statements.

NEW ACCOUNTING STANDARDS NOT YET ADOPTED — In January 2015, the FASB issued guidance simplifying the income statement presentation by eliminating the concept of extraordinary items. Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. The amendments are effective for annual reporting periods, including interim periods within those reporting periods, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the annual reporting period. The Company does not believe this guidance will have a material impact on its Consolidated Financial Statements.

In February 2015, the FASB amended the consolidation standards for reporting entities that are required to evaluate whether they should consolidate certain legal entities. Under the new guidance, all legal entities are subject to reevaluation under the revised consolidation model. Specifically, the guidance (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (ii) eliminates the presumption that a general partner should consolidate a limited partnership; (iii) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (iv) provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act for registered money market funds. The amendments are effective for annual reporting periods, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements.

XML

NOTE RECEIVABLE (Details) (USD $)	1 Months Ended	6 Months Ended
	Jun. 07, 2011	Mar. 28, 2015
Receivables [Abstract]
Period of Agreement	10 years
Fees Amount Of Constructed Restaurant And Catering Service	$ 1,000,000
Financing Receivable, Net		1,000,000
Notes Receivable Interest Rate Stated Percentage		4.00%
Notes Receivable Number Of Equal Periodic Installments		38
Notes Receivable Amount of Equal Periodic Installments		$ 9,000

XML

INCOME PER SHARE OF COMMON STOCK (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014
Exercise Price One [Member]
INCOME PER SHARE OF COMMON STOCK (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	85,500	147,800
Exercise Price Of Common Stock Options Excluded From Computation Of Earnings Per Share	$ 12.04	$ 12.04
Dilutive Securities Included In Computation Of Earnings Per Share Amount			85,500	147,800
Exercise Price Of Common Stock Options Included In Computation Of Earnings Per Share			$ 12.04	$ 12.04
Exercise Price Two [Member]
INCOME PER SHARE OF COMMON STOCK (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	169,800	233,726
Exercise Price Of Common Stock Options Excluded From Computation Of Earnings Per Share	$ 14.40	$ 14.40
Dilutive Securities Included In Computation Of Earnings Per Share Amount			169,800	233,726
Exercise Price Of Common Stock Options Included In Computation Of Earnings Per Share			$ 14.40	$ 14.40
Exercise Price Three [Member]
INCOME PER SHARE OF COMMON STOCK (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	205,500	136,500	205,500	136,500
Exercise Price Of Common Stock Options Excluded From Computation Of Earnings Per Share	$ 22.50	$ 29.60	$ 22.50	$ 29.60
Exercise Price Four [Member]
INCOME PER SHARE OF COMMON STOCK (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	90,000	90,000	90,000	90,000
Exercise Price Of Common Stock Options Excluded From Computation Of Earnings Per Share	$ 32.15	$ 32.15	$ 32.15	$ 32.15

XML

CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 28, 2015	Sep. 27, 2014
CURRENT ASSETS:
Cash and cash equivalents (includes $419 at March 28, 2015 and $584 at September 27, 2014 related to VIEs)	$ 6,203	$ 8,662
Accounts receivable (includes $395 at March 28, 2015 and $440 at September 27, 2014 related to VIEs)	2,737	3,016
Employee receivables	394	399
Inventories (includes $17 at March 28, 2015 and $19 at September 27, 2014 related to VIEs)	1,841	1,832
Prepaid expenses and other current assets (includes $166 at March 28, 2015 and $173 at September 27, 2014 related to VIEs)	1,747	1,491
Current portion of note receivable		25
Total current assets	12,922	15,425
FIXED ASSETS - Net (includes $54 at March 28, 2015 and $59 at September 27, 2014 related to VIEs)	28,164	29,019
NOTE RECEIVABLE, LESS CURRENT PORTION		228
INTANGIBLE ASSETS - Net	108	95
GOODWILL	6,813	6,813
TRADEMARKS	1,221	1,221
DEFERRED INCOME TAXES	5,217	5,214
OTHER ASSETS (includes $71 at March 28, 2015 and September 27, 2014 related to VIEs)	7,440	7,348
TOTAL ASSETS	61,885	65,363
CURRENT LIABILITIES:
Accounts payable - trade (includes $72 at March 28, 2015 and $58 at September 27, 2014 related to VIEs)	2,412	2,592
Accrued expenses and other current liabilities (includes $238 at March 28, 2015 and $179 at September 27, 2014 related to VIEs)	10,196	10,336
Accrued income taxes	415	1,162
Dividend payable	847	844
Current portion of notes payable	1,617	1,794
Total current liabilities	15,487	16,728
OPERATING LEASE DEFERRED CREDIT (includes $78 at March 28, 2015 and $75 at September 27, 2014 related to VIEs)	4,008	4,219
NOTES PAYABLE, LESS CURRENT PORTION	4,715	5,524
TOTAL LIABILITIES	24,210	26,471
COMMITMENTS AND CONTINGENCIES
EQUITY:
Common stock, par value $.01 per share - authorized, 10,000 shares; issued, 4,750 shares at March 28, 2015 and 4,733 shares at September 27, 2014; outstanding, 3,394 shares at March 28, 2015 and 3,377 shares at September 27, 2014	48	47
Additional paid-in capital	25,646	25,167
Retained earnings	23,002	24,554
	48,696	49,768
Less treasury stock, at cost, of 1,356 shares at March 28, 2015 and September 27, 2014	(13,220)	(13,220)
Total Ark Restaurants Corp. shareholders’ equity	35,476	36,548
NON-CONTROLLING INTERESTS	2,199	2,344
TOTAL EQUITY	37,675	38,892
TOTAL LIABILITIES AND EQUITY	$ 61,885	$ 65,363

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CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY (Parentheticals) (USD $)	6 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
Dividends, per share	$ 0.50	$ 0.50
Retained Earnings [Member]
Dividends, per share	$ 0.50	$ 0.50
Parent [Member]
Dividends, per share	$ 0.50	$ 0.50

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - Schedule of accrued expenses and other current liabilities (USD $) In Thousands, unless otherwise specified	Mar. 28, 2015	Sep. 27, 2014
Schedule of accrued expenses and other current liabilities [Abstract]
Sales tax payable	$ 1,091	$ 833
Accrued wages and payroll related costs	1,486	1,532
Customer advance deposits	3,638	3,895
Accrued occupancy and other operating expenses	3,981	4,076
	$ 10,196	$ 10,336

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VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Mar. 28, 2015

Variable Interest Entities [Abstract]

Schedule of Variable Interest Entities [Table Text Block]

Following are the required disclosures associated with the Company’s consolidated VIEs:

	March 28, 2015		September 27, 2014
	(in thousands)
Cash and cash equivalents	$	419	$	584
Accounts receivable		395		440
Inventories		17		19
Prepaid expenses and other current assets		166		173
Due from Ark Restaurants Corp. and affiliates (1)		92		105
Fixed assets - net		54		59
Other assets		71		71
Total assets	$	1,214	$	1,451
Accounts payable - trade	$	72	$	58
Accrued expenses and other current liabilities		238		179
Operating lease deferred credit		78		75
Total liabilities		388		312
Equity of variable interest entities		826		1,139
Total liabilities and equity	$	1,214	$	1,451

(1) Amounts Due from Ark Restaurants Corp. and affiliates are eliminated upon consolidation.

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COMMITMENTS AND CONTINGENCIES (Details)	6 Months Ended
	Mar. 28, 2015
Commitments and Contingencies Disclosure [Abstract]
Lease Expiration Year	2032

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

6 Months Ended

Mar. 28, 2015

Disclosure Text Block Supplement [Abstract]

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

Accrued expenses and other current liabilities consist of the following:

	March 28,		September 27,
	2015		2014
	(In thousands)
Sales tax payable	$	1,091	$	833
Accrued wages and payroll related costs		1,486		1,532
Customer advance deposits		3,638		3,895
Accrued occupancy and other operating expenses		3,981		4,076
	$	10,196	$	10,336

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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income	$ 436,000	$ 1,006,000
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Deferred income taxes	(3,000)	(3,000)
Stock-based compensation	208,000	157,000
Depreciation and amortization	2,203,000	2,253,000
Operating lease deferred credit	(211,000)	(191,000)
Changes in operating assets and liabilities:
Accounts receivable	279,000	24,000
Inventories	(9,000)	(46,000)
Prepaid, refundable and accrued income taxes	(747,000)	(97,000)
Prepaid expenses and other current assets	(256,000)	(335,000)
Other assets	(92,000)	(209,000)
Accounts payable - trade	(180,000)	266,000
Accrued expenses and other current liabilities	(140,000)	620,000
Net cash provided by operating activities	1,488,000	3,445,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed assets	(1,361,000)	(1,476,000)
Loans and advances made to employees	(87,000)	(168,000)
Payments received on employee receivables	92,000	79,000
Payments received on note receivable	253,000	277,000
Net cash used in investing activities	(1,103,000)	(3,462,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable	(986,000)	(1,000,000)
Dividends paid	(1,689,000)	(1,630,000)
Proceeds from issuance of stock upon exercise of stock options	218,000	192,000
Excess tax benefits related to stock-based compensation	54,000	34,000
Distributions to non-controlling interests	(441,000)	(760,000)
Net cash used in financing activities	(2,844,000)	(3,164,000)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(2,459,000)	(3,181,000)
CASH AND CASH EQUIVALENTS, Beginning of period	8,662,000	8,748,000
CASH AND CASH EQUIVALENTS, End of period	6,203,000	5,567,000
Cash paid during the period for:
Interest	125,000	59,000
Income taxes	866,000	547,000
Non-cash financing activity:
Accrued dividend	847,000	816,000
Note payable in connection with the purchase of The Rustic Inn		6,000,000
Meadowlands Newmark LLC [Member]
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of member interest in Meadowlands Newmark LLC		(464,000)
The Rustic Inn [Member]
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of The Rustic Inn		$ (1,710,000)

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CONSOLIDATED CONDENSED BALANCE SHEETS (Parentheticals) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 28, 2015	Sep. 27, 2014
VIEs, Cash and cash equivalents	$ 419	$ 584
VIEs, Accounts receivable	395	440
VIEs, Inventories	17	19
VIEs, Prepaid expenses and other current assets	166	173
VIEs, Fixed assets	54	59
VIEs, Other assets	71	71
VIEs, Accounts payable trade	72	58
VIEs, Accrued expenses and other current liabilities	238	179
VIEs, Operating lease deferred credit	$ 78	$ 75
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)	4,750	4,733
Common stock, shares outstanding (in Shares)	3,394	3,377
Treasury stock, shares (in Shares)	1,356	1,356

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STOCK OPTIONS

6 Months Ended

Mar. 28, 2015

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

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 the 13-week period ended December 27, 2014, options to purchase 136,500 shares of common stock at an exercise price of $29.60 per share expired unexercised.

A summary of stock option activity is presented below:

	2015
	Shares			Weighted Average Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding, beginning of period		704,161		$	21.66	5.5 Years
Options:
Granted		—
Exercised		(16,861	)	$	12.88
Canceled or expired		(136,500	)	$	29.60
Outstanding and expected to vest, end of period (a)		550,800		$	19.96	6.5 Years	$	2,098,659
Exercisable, end of period (a)		345,300		$	18.44	5.0 Years	$	2,098,659

Compensation cost charged to operations for the 26-week periods ended March 28, 2015 and March 29, 2014 was $208,000 and $157,000, respectively, and for the 13-week periods ended March 28, 2015 and March 29, 2014 was $103,000 and $78,000, respectively.. The compensation cost recognized is classified as a general and administrative expense in the Consolidated Condensed Statements of Operations.

As of March 28, 2015, there was approximately $504,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of approximately 1.25 years.

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Document And Entity Information	6 Months Ended
	Mar. 28, 2015	May 06, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	ARK RESTAURANTS CORP
Document Type	10-Q
Current Fiscal Year End Date	--09-26
Entity Common Stock, Shares Outstanding		3,394,028
Amendment Flag	false
Entity Central Index Key	0000779544
Entity Filer Category	Smaller Reporting Company
Document Period End Date	Mar. 28, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

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INCOME TAXES

6 Months Ended

Mar. 28, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

11. INCOME TAXES

The Company’s provision for income taxes consists of Federal, state and local taxes in amounts necessary to align the Company’s year-to-date provision for income taxes with the effective tax rate that the Company expects to achieve for the full year. The income tax provision on income from continuing operations for the 26-week periods ended March 28, 2015 and March 29, 2014 reflect effective tax rates of approximately 28% and 32%, 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 of tax credits, income from lower tax jurisdictions 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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CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014
REVENUES:
Food and beverage sales	$ 31,213	$ 30,680	$ 64,262	$ 62,437
Other revenue	335	357	644	739
Total revenues	31,548	31,037	64,906	63,176
COSTS AND EXPENSES:
Food and beverage cost of sales	9,171	8,373	17,918	16,227
Payroll expenses	11,285	10,559	22,139	21,038
Occupancy expenses	3,823	4,154	8,016	8,555
Other operating costs and expenses	4,374	4,322	8,614	8,529
General and administrative expenses	2,431	2,374	5,431	5,223
Depreciation and amortization	1,098	1,106	2,203	2,253
Total costs and expenses	32,182	30,888	64,321	61,825
OPERATING INCOME (LOSS)	(634)	149	585	1,351
OTHER (INCOME) EXPENSE:
Interest expense	57	39	125	59
Interest income	(12)	(6)	(23)	(13)
Other income, net	(64)	(115)	(121)	(181)
Total other income, net	(19)	(82)	(19)	(135)
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES	(615)	231	604	1,486
Provision (benefit) for income taxes	(173)	81	168	480
CONSOLIDATED NET INCOME (LOSS)	(442)	150	436	1,006
Net income attributable to non-controlling interests	(141)	(324)	(296)	(617)
NET INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP.	$ (583)	$ (174)	$ 140	$ 389
NET INCOME (LOSS) PER ARK RESTAURANTS CORP. COMMON SHARE:
Basic (in Dollars per share)	$ (0.17)	$ (0.05)	$ 0.04	$ 0.12
Diluted (in Dollars per share)	$ (0.17)	$ (0.05)	$ 0.04	$ 0.11
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic (in Shares)	3,382	3,262	3,380	3,259
Diluted (in Shares)	3,382	3,262	3,490	3,405

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NOTE RECEIVABLE

6 Months Ended

Mar. 28, 2015

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

5. NOTE RECEIVABLE

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. Under the terms of the agreement, the owner of the property was to construct the facility at their expense and the Company was to pay the owner an annual fee based on sales, as defined in the agreement. Since the owner had not delivered the facility to the Company within the specified timeframe, the parties executed a promissory note for repayment of the $1,000,000 exclusivity fee. The note bears interest at 4.0% per annum and the remaining principal balance is payable in 38 equal monthly installments of approximately $9,000. As of March 28, 2015 the note had been repaid in full.

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RECENT RESTAURANT DISPOSITIONS

6 Months Ended

Mar. 28, 2015

Recent Restaurant Dispositions [Abstract]

Recent Restaurant Dispositions [Text Block]

4. RECENT RESTAURANT DISPOSITIONS

Lease Expirations – The Company was advised by the landlord that it would have to vacate The Sporting House property located in New York-New York Hotel and Casino in Las Vegas, NV which was on a month-to-month lease. The closure of this property occurred in June 2014 and did not result in a material charge.

On May 31, 2014, the Company’s lease at the Rialto Deli located at the Venetian Casino Resort in Las Vegas, NV expired. The closure of this property did not result in a material charge.

On October 31, 2014, the Company’s lease at the Towers Deli located at the Venetian Casino Resort in Las Vegas, NV expired. The closure of this property did not result in a material charge.

On November 30, 2014, the Company’s lease at the Shake & Burger located at the Venetian Casino Resort in Las Vegas, NV expired. The closure of this property did not result in a material charge.

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RECENT RESTAURANT EXPANSION (Tables)

6 Months Ended

Mar. 28, 2015

Recent Restaurant Expansion [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The fair values of the assets acquired were allocated as follows:

Inventory	$	210,000
Land		2,000,000
Building		2,800,000
Furniture, fixtures and equipment		200,000
Trademarks		500,000
Goodwill		2,000,000
	$	7,710,000

Schedule of Annual Financial Information [Table Text Block]

The unaudited pro forma financial information set forth below is based upon the Company’s historical Consolidated Condensed Statements of Operations for the 13 and 26-weeks ended March 29, 2014.

	13 Weeks Ended March 29, 2014		26 Weeks Ended March 29, 2014
	(in thousands, except per share amounts)
Total revenues	$	33,124	$	68,249
Net income	$	131	$	728
Net income per share - basic	$	0.04	$	0.22
Net income per share - diluted	$	0.04	$	0.21

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INCOME PER SHARE OF COMMON STOCK

6 Months Ended

Mar. 28, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

12. INCOME PER SHARE OF COMMON STOCK

Net income per share is calculated on the basis of the weighted average number of common shares outstanding during each period plus, for diluted net income per share, the additional dilutive effect of potential common stock. Potential common stock using the treasury stock method consists of dilutive stock options.

For the 13-week period ended March 28, 2015, options to purchase 85,500, 169,800, 205,500 and 90,000 shares of common stock at exercise prices of $12.04, $14.40, $22.50 and $32.15 per share, respectively, were not included in diluted earnings per share as their impact was anti-dilutive.

For the 26-week period ended March 28, 2015, options to purchase 85,500 shares of common stock at an exercise price of $12.04 per share and options to purchase 169,800 shares of common stock at an exercise price $14.40 per share were included in diluted earnings per share. Options to purchase 205,500 shares of common stock at an exercise price of $22.50 per share and options to purchase 90,000 shares of common stock at an exercise price of $32.15 per share were not included in diluted earnings per share as their impact was anti-dilutive.

For the 13-week period ended March 29, 2014, options to purchase 147,800, 233,726, 136,500 and 90,000 shares of common stock at exercise prices of $12.04, $14.40, $29.60 and $32.15 per share, respectively, were not included in diluted earnings per share as their impact was anti-dilutive.

For the 26-week period ended March 29, 2014, options to purchase 147,800 shares of common stock at an exercise price of $12.04 per share and options to purchase 233,726 shares of common stock at an exercise price $14.40 per share were included in diluted earnings per share. Options to purchase 136,500 shares of common stock at an exercise price of $29.60 per share and options to purchase 90,000 shares of common stock at an exercise price of $32.15 per share were not included in diluted earnings per share as their impact was anti-dilutive.

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

6 Months Ended

Mar. 28, 2015

Disclosure Text Block Supplement [Abstract]

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:

	March 28,		September 27,
	2015		2014
	(In thousands)
Sales tax payable	$	1,091	$	833
Accrued wages and payroll related costs		1,486		1,532
Customer advance deposits		3,638		3,895
Accrued occupancy and other operating expenses		3,981		4,076
	$	10,196	$	10,336

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INVESTMENT IN NEW MEADOWLANDS RACETRACK

6 Months Ended

Mar. 28, 2015

Disclosure Text Block Supplement [Abstract]

Cost and Equity Method Investments Disclosure [Text Block]

6. INVESTMENT IN NEW MEADOWLANDS RACETRACK

On March 12, 2013, the Company made a $4,200,000 investment in the New Meadowlands Racetrack LLC (“NMR”) through its purchase of a membership interest in Meadowlands Newmark, LLC, an existing member of NMR. On November 19, 2013, the Company invested an additional $464,000 in NMR through a purchase of an additional membership interest in Meadowlands Newmark, LLC resulting in a total ownership of 11.6% of Meadowlands Newmark, LLC. In addition to the Company’s ownership interest in NMR through Meadowlands Newmark, LLC, if casino gaming is approved at the Meadowlands and NMR is granted the right to conduct said gaming, neither of which can be assured, the Company shall be granted the exclusive right to operate the food and beverage concessions in the gaming facility with the exception of one restaurant. This investment has been accounted for based on the cost method and is included in Other Assets in the accompanying Consolidated Condensed Balance Sheets at March 28, 2015 and September 27, 2014. The Company periodically reviews its investments for impairment. If the Company determines that an other-than-temporary impairment has occurred, it will write-down the investment to its fair value. No indication of impairment was noted as of March 28, 2015.

In conjunction with this investment, the Company, through a 97% owned subsidiary, Ark Meadowlands LLC (“AM VIE”), also entered into a long-term agreement with NMR for the exclusive right to operate food and beverage concessions serving the new raceway facilities (the “Racing F&B Concessions”) located in the new raceway grandstand constructed at the Meadowlands Racetrack in northern New Jersey. Under the agreement, NMR is responsible to pay for the costs and expenses incurred in the operation of the Racing F&B Concessions, and all revenues and profits thereof inure to the benefit of NMR. AM VIE receives an annual fee equal to 5% of the net profits received by NMR from the Racing F&B Concessions during each calendar year. At March 28, 2015, it was determined that AM VIE is a variable interest entity. However, based on qualitative consideration of the contracts with AM VIE, the operating structure of AM VIE, the Company’s role with AM VIE, and that the Company is not obligated to absorb any expected losses of AM VIE, the Company has concluded that it is not the primary beneficiary and not required to consolidate the operations of AM VIE.

The Company’s maximum exposure to loss as a result of its involvement with AM VIE is limited to a receivable from AM VIE’s primary beneficiary (NMR, a related party) which aggregated approximately $267,000 and $266,000 at March 28, 2015 and September 27, 2014, respectively, and are included in Prepaid Expenses and Other Current Assets in the Consolidated Condensed Balance Sheets.

On April 25, 2014, the Company loaned $1,500,000 to Meadowlands Newmark, LLC. The note bears interest at 3%, compounded monthly and added to the principal, and is due in its entirety on January 31, 2024. The note may be prepaid, in whole or in part, at any time without penalty or premium. The principal and accrued interest related to this note in the amount of $1,522,954 is included in Other Assets in the Consolidated Condensed Balance Sheets at March 28, 2015 and September 27, 2014.

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NOTES PAYABLE

6 Months Ended

Mar. 28, 2015

Notes Payable For Treasury Stock Repurchase [Abstract]

Notes Payable For Treasury Stock Repurchase [Text Block]

7. NOTES PAYABLE

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, for 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. The note, which was repaid in full in November 2014, bore interest at 0.19% per annum, and was payable in 24 equal monthly installments of $88,541, commencing on December 1, 2012.

Bank – On February 25, 2013, the Company issued a promissory note, secured by all assets of the Company, to a bank for $3,000,000. The note bore interest at LIBOR plus 3.5% per annum, and was payable in 36 equal monthly installments of $83,333, commencing on March 25, 2013. On February 24, 2014, in connection with the acquisition of The Rustic Inn, the Company borrowed an additional $6,000,000 from this bank under the same terms and conditions as the original loan which was consolidated with the remaining principal balance from the original borrowing at that date. The new loan is payable in 60 equal monthly installments of $134,722, which commenced on March 25, 2014. As of March 28, 2015, the outstanding balance of this note payable was approximately $6,332,000.

The loan agreement provides, among other things, that the Company meet minimum quarterly tangible net worth amounts, as defined, and minimum annual net income amounts, and contains customary representations, warranties and affirmative covenants. The agreement also contains customary negative covenants, subject to negotiated exceptions, on liens, relating to other indebtedness, capital expenditures, liens, affiliate transactions, disposal of assets and certain changes in ownership. The Company was in compliance with all debt covenants as of March 28, 2015.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Mar. 28, 2015

Commitments and Contingencies Disclosure [Abstract]

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.

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.

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NOTES PAYABLE (Details) (USD $)	6 Months Ended
	Mar. 28, 2015
NOTES PAYABLE (Details) [Line Items]
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
Payments for Repurchase of Common Stock	1,000,000
Note Payable In Connection With Purchase Of Treasury Shares	2,125,000
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
Notes Payable to Banks [Member]
NOTES PAYABLE (Details) [Line Items]
Number of Installments	36
Debt Instrument, Periodic Payment	83,333
Debt Instrument, Date of First Required Payment	Mar. 25, 2013
Debt Instrument, Face Amount	3,000,000
Debt Instrument, Interest Rate Terms	LIBOR plus 3.5% per annum
Debt Instrument, Basis Spread on Variable Rate	3.50%
Note Payable to Bank Balance Outstanding	6,332,000
The Rustic Inn [Member]
NOTES PAYABLE (Details) [Line Items]
Number of Installments	60
Debt Instrument, Date of First Required Payment	Mar. 25, 2014
Bank Loan Related to Acquisition	6,000,000
Bank Loan Periodic Payment	$ 134,722
Unsecured Promissory Note [Member]
NOTES PAYABLE (Details) [Line Items]
Number of Installments	24

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Accounting Policies, by Policy (Policies)

6 Months Ended

Mar. 28, 2015

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

PRINCIPLES OF CONSOLIDATION — The consolidated condensed interim financial statements include the accounts of Ark Restaurants Corp. and all of its wholly-owned subsidiaries, partnerships and other entities in which it has a controlling interest, collectively herein referred to as the “Company”. Also included in the consolidated condensed interim financial statements are certain variable interest entities (“VIEs”). All significant intercompany balances and transactions have been eliminated in consolidation.

Seasonality [Policy Text Block]

SEASONALITY — The Company has substantial fixed costs that do not decline proportionally with sales. The first and second fiscal quarters, which include the winter months, usually reflect lower customer traffic than in the third and fourth fiscal quarters. In addition, sales in the third and fourth fiscal quarters can be adversely affected by inclement weather due to the significant amount of outdoor seating at the Company’s restaurants.

Fair Value of Financial Instruments, Policy [Policy Text Block]

FAIR VALUE OF FINANCIAL INSTRUMENTS — The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair values of notes receivable and payable are determined using current applicable rates for similar instruments as of the balance sheet date and approximate 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.

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 and accounts receivable. The Company reduces credit risk by placing its cash and cash equivalents with major financial institutions with high credit ratings. At times, such amounts may exceed Federally insured limits. The concentration of credit risk with respect to accounts receivable is generally limited due to the short payment terms extended by the Company and the number of customers comprising the Company’s customer base.

For the 26-week period ended March 28, 2015, the Company did not make purchases from any one vendor that accounted for 10% or greater of total purchases. For the 26-week period ended March 29, 2014, the Company made purchases from two vendors that accounted for approximately 21% of total purchases. For the 13-week period ended March 28, 2015, the Company made purchases from one vendor that accounted for approximately 10% of total purchases. For the 13-week period ended March 29, 2014, the Company made purchases from two vendors that accounted for approximately 22% of total purchases.

Segment Reporting, Policy [Policy Text Block]

SEGMENT REPORTING — As of March 28, 2015, the Company owned and operated 21 restaurants and bars, 19 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and service, class of customers and distribution methods. The Company believes it meets the criteria for aggregating its operating segments into a single reporting segment in accordance with applicable accounting guidance.

Recently Adopted Accounting Standards [Policy Text Block]

RECENTLY ADOPTED ACCOUNTING STANDARDS — In April 2014, the FASB issued new accounting guidance that changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This guidance became effective for annual reporting periods beginning on or after December 15, 2014 and is to be applied prospectively. The adoption of this guidance did not have a material impact on the Company’s consolidated condensed financial statements.

New Accounting Pronouncements, Policy [Policy Text Block]

NEW ACCOUNTING STANDARDS NOT YET ADOPTED — In January 2015, the FASB issued guidance simplifying the income statement presentation by eliminating the concept of extraordinary items. Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. The amendments are effective for annual reporting periods, including interim periods within those reporting periods, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the annual reporting period. The Company does not believe this guidance will have a material impact on its Consolidated Financial Statements.

In February 2015, the FASB amended the consolidation standards for reporting entities that are required to evaluate whether they should consolidate certain legal entities. Under the new guidance, all legal entities are subject to reevaluation under the revised consolidation model. Specifically, the guidance (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (ii) eliminates the presumption that a general partner should consolidate a limited partnership; (iii) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (iv) provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act for registered money market funds. The amendments are effective for annual reporting periods, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements.

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CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Details) [Line Items]
Gift Card Liability, Current (in Dollars)	$ 224,000		$ 224,000
Liabilities for Gift Cards Net of tax (in Dollars)	$ 161,000		$ 161,000
Liabilities for Unredeemed Gift Cards Per Share Amount (in Dollars per share)	$ 0.05		$ 0.05
Number of Significant Vendors	1	2	1	2
Restaurants and Bars [Member]
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Details) [Line Items]
Number of Operating Segments			21
Fast Food Concepts and Catering Operations [Member]
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Details) [Line Items]
Number of Operating Segments			19
Supplier Concentration Risk [Member]
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Details) [Line Items]
Supplier Concentration Risk Description	the Company made purchases from one vendor that accounted for approximately 10% of total purchases.	the Company made purchases from two vendors that accounted for approximately 22% of total purchases.	the Company did not make purchases from any one vendor that accounted for 10% or greater of total purchases.	the Company made purchases from two vendors that accounted for approximately 21% of total purchases.
Concentration Risk, Percentage	10.00%	22.00%	10.00%	21.00%

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DIVIDENDS (Details) (USD $)	Mar. 28, 2015
Dividends [Abstract]
Dividends Payable, Amount Per Share	$ 0.25

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CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY (USD $) In Thousands, except Share data	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
BALANCE at Sep. 28, 2013	$ 46	$ 22,978	$ 22,950	$ (13,220)	$ 32,754	$ 2,594	$ 35,348
BALANCE (in Shares) at Sep. 28, 2013	4,610,000
Net income			389		389	617	1,006
Exercise of stock options		192			192		192
Exercise of stock options (in Shares)	15,000
Tax benefit on exercise of stock options		34			34		34
Stock-based compensation		157			157		157
Distributions to non-controlling interests						(760)	(760)
Accrued and paid dividends - $0.50 per share			(1,632)		(1,632)		(1,632)
BALANCE at Mar. 29, 2014	46	23,361	21,707	(13,220)	31,894	2,451	34,345
BALANCE (in Shares) at Mar. 29, 2014	4,625,000
BALANCE at Sep. 27, 2014	47	25,167	24,554	(13,220)	36,548	2,344	38,892
BALANCE (in Shares) at Sep. 27, 2014	4,733,000
Net income			140		140	296	436
Exercise of stock options	1	217			218		218
Exercise of stock options (in Shares)	17,000						16,861
Tax benefit on exercise of stock options		54			54		54
Stock-based compensation		208			208		208
Distributions to non-controlling interests						(441)	(441)
Accrued and paid dividends - $0.50 per share			(1,692)		(1,692)		(1,692)
BALANCE at Mar. 28, 2015	$ 48	$ 25,646	$ 23,002	$ (13,220)	$ 35,476	$ 2,199	$ 37,675
BALANCE (in Shares) at Mar. 28, 2015	4,750,000

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RECENT RESTAURANT EXPANSION

6 Months Ended

Mar. 28, 2015

Recent Restaurant Expansion [Abstract]

Recent Restaurant Expansion [Text Block]

3. RECENT RESTAURANT EXPANSION

On February 24, 2014, the Company, through a wholly-owned subsidiary, Ark Rustic Inn LLC, completed its acquisition of the assets of The Rustic Inn Crab House (“The Rustic Inn”), a restaurant and bar located in Dania Beach, Florida, for a total purchase price of approximately $7,710,000. The acquisition is accounted for as a business combination and was financed with a bank loan in the amount of $6,000,000 and cash from operations. The fair values of the assets acquired were allocated as follows:

Inventory	$	210,000
Land		2,000,000
Building		2,800,000
Furniture, fixtures and equipment		200,000
Trademarks		500,000
Goodwill		2,000,000
	$	7,710,000

The Consolidated Condensed Statements of Operations for the 13-weeks ended March 28, 2015 include revenues and earnings of approximately $4,608,000 and $1,133,000, respectively, related to The Rustic Inn. The Consolidated Condensed Statements of Operations for the 26-weeks ended March 28, 2015 include revenues and earnings of approximately $7,800,000 and $1,569,000, respectively, related to The Rustic Inn. The unaudited pro forma financial information set forth below is based upon the Company’s historical Consolidated Condensed Statements of Operations for the 13 and 26-weeks ended March 29, 2014. The unaudited pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the acquisition of The Rustic Inn occurred on the dates indicated, nor does it purport to represent the results of operations for future periods.

	13 Weeks Ended March 29, 2014		26 Weeks Ended March 29, 2014
	(in thousands, except per share amounts)
Total revenues	$	33,124	$	68,249
Net income	$	131	$	728
Net income per share - basic	$	0.04	$	0.22
Net income per share - diluted	$	0.04	$	0.21

On July 18, 2014, the Company, through a wholly-owned subsidiary, Ark Jupiter RI, LLC, entered into an agreement with Crab House, Inc., and acquired certain assets and the related lease for a restaurant and bar located in Jupiter, Florida for approximately $250,000. In connection with this transaction, the Company entered into an amended lease for an initial period expiring through December 31, 2015. The Company has the option to extend the lease through 2033. Renovations to the property totaled approximately $750,000. The restaurant opened in the last week of January 2015 and, as a result, the Consolidated Condensed Statements of Operations for the 13 and 26-weeks ended March 28, 2015 include approximately $498,000 and $667,000 of pre-opening and early operating losses, respectively.

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VARIABLE INTEREST ENTITIES (Details)	Mar. 28, 2015
Variable Interest Entities [Abstract]
Number of VIEs with Primary Benefits	3

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STOCK OPTIONS (Details) - Schedule of stock options, activity (USD $)	3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 27, 2014	Mar. 28, 2015	Sep. 27, 2014
Schedule of stock options, activity [Abstract]
Outstanding, beginning of period			704,161
Outstanding, beginning of period			$ 21.66
Outstanding, beginning of period		6 years 6 months	5 years 6 months
Options:
Exercised		(16,861)
Exercised		$ 12.88
Canceled or expired	(136,500)	(136,500)
Canceled or expired	$ 29.60	$ 29.60
Outstanding and expected to vest, end of period (a)		550,800
Outstanding and expected to vest, end of period (a)		$ 19.96
Outstanding and expected to vest, end of period (a)		6 years 6 months	5 years 6 months
Outstanding and expected to vest, end of period (a)		$ 2,098,659
Exercisable, end of period (a)		345,300
Exercisable, end of period (a)		$ 18.44
Exercisable, end of period (a)		5 years
Exercisable, end of period (a)		$ 2,098,659

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DIVIDENDS

6 Months Ended

Mar. 28, 2015

Dividends [Abstract]

Dividends [Text Block]

13. DIVIDENDS

On March 3, 2015, the Board of Directors declared a quarterly dividend of $0.25 per share on the Company’s common stock to be paid on April 2, 2015 to shareholders of record at the close of business on March 16, 2015. The Company intends to continue to pay such quarterly cash dividends for the foreseeable future, however, the payment of future dividends is at the discretion of the Company’s Board of Directors and is based on future earnings, cash flow, financial condition, capital requirements, changes in U.S. taxation and other relevant factors.