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Investment thesis
The last few quarters have not been easy for shareholders of Ark Restaurants (NASDAQ:ARKR), and proof of this is the steep fall in the price of shares coupled with the cancellation of
Ark Restaurants: Fundamentals Are Improving Very Fast
Summary
- Results of the last quarter have shown the coronavirus crisis has been overcome.
- The management's strategy is moving from leasing locations to fully acquire the land and buildings where its restaurants operate.
- Profit margins have recovered forcefully and increased menu prices should keep them healthy.
- Long-term debt is rapidly declining while the company is accumulating vast amounts of cash.
- This represents a good entry point for patient investors.
Subscribe for an average ~14% return per year according to Tipranks. I am a long-term Dividend Growth Investor always looking for new opportunities in the stock market since 2015. In order to find good deals in the stock market, I look for companies that are going through a bad time and carefully assess the chances that the financial situation will return to the path of profitability and growth. My objective is to find stocks that can be bought and held for many years and try to get them for the lowest price possible during temporary headwinds. For me, the most important aspects when analyzing a stock's turnaround chances are that the company's products are essential to a big portion of the population, healthy and stable profit margins, a sustainable debt and dividend, and a long-term trend that suggests the products and services offered will continue to be essential for the decades to come.
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