Ark Restaurants (ARKR)

Item 6.           Selected Consolidated Financial Data

Not applicable.

Item 7.           Management's Discussion and Analysis of Financial Condition and Results of Operations

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 fiscal years ended September 29, 2007 and September 27, 2008 each included 52 weeks.

Overview

We have reclassified our consolidated statements of operations data for the prior periods presented below, in accordance with SFAS 144, as a result of the:

          --           sale of two of our restaurants and the closure of three of our restaurants during the fiscal year ended September 29, 2007; and

          --           closure of two of our restaurants during the fiscal year ended September 27, 2008.

The operations of these restaurants have been presented as discontinued operations for the fiscal years ended September 29, 2007 and September 27, 2008. See “Item 1 -Recent Restaurant Dispositions and Charges”, “Item 7 - Recent Restaurant Dispositions” and Note 3 of Consolidated Financial Statements.

Revenues

Total revenues increased by 6.4% from fiscal 2007 to fiscal 2008. Revenues for fiscal 2008 were reduced by $3,100,000 and revenues for fiscal 2007 were reduced by $2