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<SEC-DOCUMENT>0000930413-08-000882.txt : 20080212
<SEC-HEADER>0000930413-08-000882.hdr.sgml : 20080212
<ACCEPTANCE-DATETIME>20080212164651
ACCESSION NUMBER:		0000930413-08-000882
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20071229
FILED AS OF DATE:		20080212
DATE AS OF CHANGE:		20080212

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ARK RESTAURANTS CORP
		CENTRAL INDEX KEY:			0000779544
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING PLACES [5812]
		IRS NUMBER:				133156768
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09453
		FILM NUMBER:		08599042

	BUSINESS ADDRESS:	
		STREET 1:		85 FIFTH AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10003-3019
		BUSINESS PHONE:		2122068800

	MAIL ADDRESS:	
		STREET 1:		85 FIFTH AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10003-3019
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>c52294_10-q.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE>c52294_10-q.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">



<P align=center><FONT face=serif size=2>SECURITIES AND EXCHANGE COMMISSION </FONT><BR>
<FONT face=serif size=2>Washington, D.C. 20549 </FONT><BR>
<BR>
<B><FONT face=serif size=2>____________________ </FONT></B><BR>
<BR>
<FONT face=serif size=2>FORM 10-Q </FONT><BR>
<BR>
<FONT face=serif size=2>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) </FONT><BR>
<FONT face=serif size=2>OF THE SECURITIES EXCHANGE ACT OF 1934 </FONT><BR>
<BR>
<FONT face=serif size=2>For the quarterly period ended December 29, 2007 </FONT><BR>
<BR>
<FONT face=serif size=2>Commission file number 0-14030 </FONT><BR>
<BR>
<B><U><FONT face=serif size=2>ARK RESTAURANTS CORP.</FONT></U></B><B><FONT face=serif size=2> </FONT></B><BR>
<FONT face=serif size=2>(Exact name of registrant as specified in its charter)</FONT><FONT face=serif size=2> </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="20%"></TD>
     <TD width="60%"></TD>
     <TD width="20%"></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center><FONT face=serif size=2>New York</FONT> </TD>
    <TD>&nbsp; </TD>
     <TD noWrap align=center style="BORDER-BOTTOM: #000000 1px solid"><FONT face=serif size=2>13-3156768</FONT></TD>
</TR>
<TR vAlign=bottom>
     <TD noWrap align=center>&nbsp;<FONT face=serif size=2>(State or other jurisdiction of</FONT> </TD>
    <TD>&nbsp; </TD>
     <TD noWrap align=center><FONT face=serif size=2>(I.R.S. Employer</FONT> </TD>
</TR>
<TR vAlign=bottom>
     <TD noWrap align=center>&nbsp; &nbsp;<FONT face=serif size=2>incorporation or organization)</FONT> </TD>
    <TD>&nbsp; </TD>
     <TD noWrap align=center><FONT face=serif size=2>Identification No.)</FONT> </TD>
</TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;<U><FONT face=serif size=2>85 Fifth Avenue, New York, New York</FONT></U> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=center style="BORDER-BOTTOM: #000000 1px solid"><FONT face=serif size=2>10003</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=2>(Address of principal executive offices)</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=center>&nbsp; &nbsp;<FONT face=serif size=2>(Zip Code)</FONT> </TD>
</TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Registrant&#146;s telephone number, including area code: (212) 206-8800</FONT></P>
<P align=justify><FONT face=serif size=2>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 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.<br>
Yes <u>&nbsp;X&nbsp;</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></P>
<P align=justify><FONT face=serif size=2>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of &#147;accelerated filer and large accelerated filer&#148; in Rule 12b-2 of the
Exchange Act.<br>
Large accelerated filer _____ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerated filer _____ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated filer <u>&nbsp;&nbsp;X&nbsp;&nbsp;</U></FONT></P>
<P align=justify><FONT face=serif size=2>Indicate by check mark whether the Registrant is a shell company (as defined in Exchange Act Rule 12b-2).<br>
Yes <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No <u>&nbsp;X&nbsp;</u></FONT></P>
<P align=justify><FONT face=serif size=2>Indicate the number of shares outstanding of each of the issuer&#146;s classes of common stock, as of the latest practicable date: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="20%"></TD>
     <TD width="60%"></TD>
     <TD width="20%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center><FONT face=serif size=2><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT> </TD>
    <TD>&nbsp; </TD>
     <TD noWrap align=center><U><FONT face=serif size=2>Outstanding shares at January 24, 2008</FONT></U> </TD>
</TR>
<TR vAlign=bottom>
     <TD noWrap align=center><FONT face=serif size=2>(Common stock, $.01 par value)</FONT> </TD>
    <TD>&nbsp; </TD>
     <TD noWrap align=center><FONT face=serif size=2>3,596,799</FONT> </TD>
</TR></TABLE><BR>
<P align=center><FONT face=serif size=2>- 1 - </FONT></P>
<HR align=center width="100%" noShade SIZE=4>


<P align="left" style="page-break-before:always"></P><PAGE>

<P align="center">
<U><FONT size=2 face="serif">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We may make statements in this Quarterly Report on Form 10-Q</FONT><FONT size=2 face="serif"> </FONT><FONT size=2 face="serif">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&#146;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 and Section 21E of the Securities Exchange Act of 1934. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Words or phrases such as &#147;anticipates,&#148; &#147;believes,&#148; &#147;estimates,&#148; &#147;expects,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;predicts,&#148;
&#147;projects,&#148; &#147;targets,&#148; &#147;will likely result,&#148; &#147;hopes,&#148; &#147;will continue&#148; 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&#146;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. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 of 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
&#147;Item 1A Risk Factors&#148; in Part I of our Annual Report on Form 10-K for the fiscal year ended September 29, 2007 as updated by the information contained under the caption &#147;Item 1A. Risk Factors&#148; in Part II of this Quarterly Report
on Form 10-Q. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">From time to time, oral or written forward-looking statements are also included in our reports on Forms 10-K, 10-Q and 8-K, our Schedule 14A, our press releases and other materials released to
the public. Although we believe that at the time made, the expectations reflected in all of these forward-looking statements are and will be reasonable, any or all of the forward-looking statements in this Quarterly Report on Form 10-Q, our reports
on Forms 10-K and 8-K, our Schedule 14A and any other public statements that are made by us 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. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed
to any further disclosures made on related subjects in our subsequent periodic reports filed with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K and Schedule 14A. </FONT></P>
<P align="justify">
<FONT size=2 face="serif"> Unless the context requires otherwise, references to &#147;we,&#148; &#147;us,&#148; &#147;our,&#148; &#147;ARKR&#148; and the &#147;Company&#148; refer specifically to Ark Restaurants Corp. and its subsidiaries and
predecessor entities. </FONT></P>
<P align="center">
<FONT size=2 face="serif">2 </FONT></P>

<HR noshade align="center" width="100%" size=4>



<P style="PAGE-BREAK-BEFORE: always" align=left><PAGE></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face=serif size=1>ARK RESTAURANTS CORP. AND SUBSIDIARIES</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face=serif size=1>CONSOLIDATED CONDENSED BALANCE SHEETS</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left><FONT face=serif size=1>(In Thousands)</FONT> </TD></TR></TABLE><BR>
<TABLE align="center" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="70%"></TD>
     <TD width="2%"></TD>
     <TD width="2%"></TD>
     <TD width="10%"></TD>
     <TD width="2%"></TD>
     <TD width="2%"></TD>
     <TD width="10%"></TD>
     <TD width="2%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=right>&nbsp; </TD>
     <TD noWrap align=center>&nbsp;<FONT face=serif size=1>December 29,</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD align=center><FONT face=serif size=1>September 29,</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center><FONT face=serif size=1>2007</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center><FONT face=serif size=1>2007</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=right>&nbsp; </TD>
     <TD noWrap align=center><FONT face=serif size=1>(unaudited)</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=center><FONT face=serif size=1>Note 1</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left><U><FONT face=serif size=1>ASSETS</FONT></U> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=right>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>CURRENT ASSETS:</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=right>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Cash and cash equivalents</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left><FONT face=serif size=1>$</FONT> </TD>
     <TD noWrap align=right><FONT face=serif size=1>2,669</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left><FONT face=serif size=1>$</FONT> </TD>
     <TD noWrap align=right><FONT face=serif size=1>4,009</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Short-term investments in available-for-sale securities</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>9,471</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>9,201</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Accounts receivable</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>2,151</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>2,657</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Related party receivables, net</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>1,474</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>1,318</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Employee receivables</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>300</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>316</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Current portion of long-term receivables</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>116</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>114</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Inventories</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>1,562</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>1,410</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Prepaid expenses and other current assets</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>712</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>649</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Assets held for sale</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>-</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>1,120</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Total current assets</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>18,455</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>20,794</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left><FONT face=serif size=1>LONG-TERM RECEIVABLES</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>322</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>352</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>FIXED ASSETS - At cost:</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Leasehold improvements</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>26,455</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>27,094</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Furniture, fixtures and equipment</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>25,367</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>25,692</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Construction in progress</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>2,495</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>1,142</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>54,317</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>53,928</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Less accumulated depreciation and amortization</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>33,442</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>33,880</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>FIXED ASSETS - Net</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>20,875</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>20,048</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left><FONT face=serif size=1>INTANGIBLE ASSETS - Net</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>76</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>80</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>GOODWILL</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>5,107</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>5,107</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left><FONT face=serif size=1>TRADEMARKS</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>721</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>721</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>DEFERRED INCOME TAXES</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>4,790</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>4,763</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left><FONT face=serif size=1>OTHER ASSETS</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>435</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>316</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>TOTAL</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=left><FONT face=serif size=1>$</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face=serif size=1>50,781</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=left><FONT face=serif size=1>$</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face=serif size=1>52,181</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR>
     <TD colSpan=8>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left><U><FONT face=serif size=1>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</FONT></U> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>CURRENT LIABILITIES:</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Accounts payable - trade</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left><FONT face=serif size=1>$</FONT> </TD>
     <TD noWrap align=right><FONT face=serif size=1>2,342</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left><FONT face=serif size=1>$</FONT> </TD>
     <TD noWrap align=right><FONT face=serif size=1>2,404</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Accrued expenses and other current liabilities</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>4,293</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>5,503</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Accrued income taxes</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>1,149</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>1,135</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Current portion of note payable</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>184</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>181</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Total current liabilities</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>7,968</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>9,223</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>OPERATING LEASE DEFERRED CREDIT</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>3,659</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>3,771</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left><FONT face=serif size=1>NOTE PAYABLE</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>657</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>704</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>OTHER LIABILITIES</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>211</FONT></TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>229</FONT></TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left><FONT face=serif size=1>TOTAL LIABILITIES</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>12,495</FONT></TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>13,927</FONT></TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>LIMITED PARTNER INTEREST IN VARIABLE INTEREST ENTITY</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>164</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>164</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left><FONT face=serif size=1>COMMITMENTS AND CONTINGENCIES</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>SHAREHOLDERS' EQUITY:</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Common stock, par value $.01 per share - authorized, 10,000 shares; issued, 5,667</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>shares at December 29, 2007 and September 29, 2007, respectively</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>57</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>57</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Additional paid-in capital</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>21,834</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>21,756</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Accumulated other comprehensive income</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>59</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>49</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Retained earnings</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>24,682</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>24,780</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>46,632</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>46,642</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Less stock option receivable</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>(124</FONT> </TD>
     <TD noWrap align=left><FONT face=serif size=1>)</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD noWrap align=right><FONT face=serif size=1>(166</FONT> </TD>
     <TD noWrap align=left><FONT face=serif size=1>)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Less treasury stock of 2,070 shares at December 29, 2007 and September 29, 2007</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>(8,386</FONT> </TD>
     <TD noWrap align=left><FONT face=serif size=1>)</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>(8,386</FONT> </TD>
     <TD noWrap align=left><FONT face=serif size=1>)</FONT> </TD></TR>
<TR vAlign=bottom bgColor=#e5ffff>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=1>Total shareholders&#146; equity</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>38,122</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right><FONT face=serif size=1>38,090</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face=serif size=1>TOTAL</FONT> </TD>
     <TD>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=left><FONT face=serif size=1>$</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face=serif size=1>50,781</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=left><FONT face=serif size=1>$</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" noWrap align=right><FONT face=serif size=1>52,181</FONT> </TD>
     <TD noWrap align=left>&nbsp; </TD></TR></TABLE>
<BR>
<P align=justify><FONT face=serif size=1>See notes to consolidated condensed financial statements.</FONT></P>
<P align=center><FONT face=serif size=2>- 3 - </FONT></P>
<HR align=center width="100%" noShade SIZE=4>


<P align="left" style="page-break-before:always"></P><PAGE>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR>
     <TD width=100%></TD></TR>
<TR valign="bottom">
	<TD align=left nowrap>
<B><FONT size=1 face="serif">ARK RESTAURANTS CORP. AND SUBSIDIARIES</FONT></B>
	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<B><FONT size=1 face="serif">CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(In Thousands, Except Per Share Amounts)</FONT>
	</TD>
</TR>
</TABLE><BR>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR>
     <TD width=70%></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=2%></TD></TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD colspan="5" align=center nowrap style="border-bottom:1px solid #000000;">
      <FONT size=1 face="serif">13 Weeks Ended</FONT>		</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">December 29,</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=center nowrap><FONT size=1 face="serif">December 30,</FONT> </TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2007</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"><FONT size=1 face="serif">2006</FONT> </TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>

<TR>
	<TD colspan=8>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">REVENUES</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Food and beverage sales</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">29,668</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">26,886</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Other income</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=1 face="serif">650</FONT> </TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">635</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;Total revenues</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">30,318</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">27,521</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">COST AND EXPENSES:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Food and beverage cost of sales</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">7,734</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,816</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Payroll expenses</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">9,541</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">8,666</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Occupancy expenses</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">4,019</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,875</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Other operating costs and expenses</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">4,084</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,111</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">General and administrative expenses</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,151</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,983</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Depreciation and amortization</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=1 face="serif">677</FONT> </TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">632</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost and expenses</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">28,206</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">25,083</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">OPERATING INCOME</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,112</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,438</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">OTHER (INCOME) EXPENSE:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Interest expense</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap><FONT size=1 face="serif">15</FONT> </TD>
	<TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Interest income</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap><FONT size=1 face="serif">(145</FONT> </TD>
	<TD align=left nowrap><FONT size=1 face="serif">)</FONT> </TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(110</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>&nbsp;<FONT size=1 face="serif">Other income</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=1 face="serif">(119</FONT> </TD>
	<TD align=left nowrap><FONT size=1 face="serif">)</FONT> </TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(242</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=1 face="serif">(249</FONT> </TD>
	<TD align=left nowrap><FONT size=1 face="serif">)</FONT> </TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(352</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">Income from continuing operations before provision for income taxes and limited partner</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;interest in variable interest entity</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,361</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,790</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">Provision for income taxes</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap><FONT size=1 face="serif">852</FONT> </TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">935</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">Limited partner interest in income of variable interest entity</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=1 face="serif">-</FONT> </TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(13</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">INCOME FROM CONTINUING OPERATIONS</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,509</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,842</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">DISCONTINUED OPERATIONS:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Income (loss) from operations of discontinued restaurants (includes net gain on</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">disposal of &#36;7,814 for the 13 weeks ended December 30, 2006)</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap><FONT size=1 face="serif">(37</FONT> </TD>
	<TD align=left nowrap><FONT size=1 face="serif">)</FONT> </TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">7,139</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Provision (benefit) for income taxes</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=1 face="serif">(13</FONT> </TD>
	<TD align=left nowrap><FONT size=1 face="serif">)</FONT> </TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,391</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">INCOME (LOSS) FROM DISCONTINUED OPERATIONS</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=1 face="serif">(24</FONT> </TD>
	<TD align=left nowrap><FONT size=1 face="serif">)</FONT> </TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,748</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">NET INCOME</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">1,485</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">6,590</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">PER SHARE INFORMATION - BASIC AND DILUTED:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">Income from continuing operations</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36;</FONT>	<FONT size=1 face="serif">0.42</FONT></TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">0.51</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">Discontinued operations</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(0.01</FONT>	</TD>
	<TD align=left nowrap><FONT size=1 face="serif">)</FONT></TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1.33</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">BASIC</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	<FONT size=1 face="serif">0.41</FONT></TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">1.84</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">Income from continuing operations</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36;</FONT>	<FONT size=1 face="serif">0.41</FONT></TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">0.51</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">Discontinued operations</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(0.01</FONT>	</TD>
	<TD align=left nowrap><FONT size=1 face="serif">)</FONT></TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1.33</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">DILUTED</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	<FONT size=1 face="serif">0.40</FONT></TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">1.84</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">WEIGHTED AVERAGE NUMBER OF SHARES - BASIC</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,597</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,571</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">WEIGHTED AVERAGE NUMBER OF SHARES - DILUTED</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,641</FONT>	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,576</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=1 face="serif">See notes to consolidated condensed financial statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">- 4 - </FONT></P>

<HR noshade align="center" width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR>
     <TD width=99%></TD></TR>
<TR valign="bottom">
	<TD align=left nowrap>
<B><FONT size=1 face="serif">ARK RESTAURANTS CORP. AND SUBSIDIARIES</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<B><FONT size=1 face="serif">CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(In Thousands)</FONT>
	</TD>
</TR>
</TABLE><BR>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR>
     <TD width=72%></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=2%></TD></TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
	<TD colspan="4" align=center nowrap style="border-bottom:1px solid #000000;"><FONT size=1 face="serif">13
    Weeks Ended</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=center nowrap><FONT size=1 face="serif">December 29,</FONT> </TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;</TD>
	<TD align=center nowrap><FONT size=1 face="serif">December 30,</FONT></TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;"><FONT size=1 face="serif">2007</FONT> </TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2006</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">CASH FLOWS FROM OPERATING ACTIVITIES:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Net income</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,485</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,590</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Adjustments to reconcile net income to net cash</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">provided by operating activities:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Deferred income taxes</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(27</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Stock-based compensation</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">78</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">174</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Depreciation and amortization</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">677</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">638</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Gain on disposal of discontinued operation</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(7,814</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Impairment loss on assets held for sale of discontinued operations</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">537</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Limited partner interest in income of consolidated variable interest entity</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">13</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Operating lease deferred credit</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(112</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(70</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Changes in operating assets and liabilities:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Accounts receivable</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">506</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(738</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Related party receivables</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(156</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">151</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Employee receivables</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">16</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">25</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Inventories</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(152</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(133</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Prepaid expenses and other current assets</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(80</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(305</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Other assets</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(119</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">44</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Accounts payable - trade</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(62</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">34</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Accrued income taxes</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">14</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,120</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Accrued expenses and other current liabilities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(1,210</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(802</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash provided by continuing operating activities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">858</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">464</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash provided by discontinued operating activities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">72</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">32</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash provided by operating activities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">930</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">496</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">CASH FLOWS FROM INVESTING ACTIVITIES:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Purchases of fixed assets</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap colspan=2>
<FONT size=1 face="serif">(1,644</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(606</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Proceeds from sale of discontinued operation</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,030</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">14,000</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Purchases of investment securities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap colspan=2>
<FONT size=1 face="serif">(4,651</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(14,655</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Proceeds from sales of investment securities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">4,391</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,493</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Payments received on long-term receivables</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">28</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">108</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash provided by (used in) continuing investing activities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(846</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">340</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash provided by discontinued investing activities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">161</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash provided by (used in) investing activities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(685</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">340</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">CASH FLOWS FROM FINANCING ACTIVITIES:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Tax benefit on exercise of stock options</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">70</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Principal payments on note payable</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(44</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Dividends paid</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap colspan=2>
<FONT size=1 face="serif">(1,583</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(1,189</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Exercise of stock options</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">50</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Payments received on stock option receivable</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">42</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Distributions to limited partners of consolidated variable interest entity</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(61</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash used in financing activities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(1,585</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(1,130</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">NET DECREASE IN CASH AND CASH EQUIVALENTS</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap colspan=2>
<FONT size=1 face="serif">(1,340</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">(294</FONT>	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">)</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">CASH AND CASH EQUIVALENTS, Beginning of period</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,009</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,671</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">CASH AND CASH EQUIVALENTS, End of period</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">2,669</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">7,377</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Cash paid during the period for:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Interest</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">15</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Income taxes</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">852</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">1,179</FONT>	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=1 face="serif">See notes to consolidated condensed financial statements. </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 5 - </FONT></P>

<HR noshade align="center" width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>
<P align="justify">
<B><U><FONT size=2 face="serif">ARK RESTAURANTS CORP. AND SUBSIDIARIES</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B><BR>
<BR>
<B><FONT size=2 face="serif">NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS </FONT></B><BR>
<FONT size=2 face="serif">December 29, 2007</FONT><B><FONT size=2 face="serif"> </FONT></B><BR>
<U><FONT size=2 face="serif">(Unaudited)</FONT></U><FONT size=2 face="serif"> </FONT><BR>
<BR>
<B><FONT size=2 face="serif">1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following condensed balance sheet as of September 29, 2007, which has been derived from audited financial statements, and the unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended September 29, 2007.
The results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year. </FONT></P>

<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">PRINCIPLES OF CONSOLIDATION &#150; The consolidated interim financial statements include the accounts of the Company and all of its partnerships and other entities in which it has a controlling interest. Also included in
the consolidated financial statements are certain variable interest entities, as discussed below.  All significant intercompany balances and transactions have been eliminated in consolidation.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">RECLASSIFCATIONS</FONT><FONT size=2 face="sans-serif"> &#150; </FONT><FONT size=2 face="serif">In connection with the closure of one facility, the operations of this restaurant has
been presented as discontinued operations for the 13-week period ended December 29, 2007 and the Company has reclassified its statements of operations and cash flows data for the prior periods presented, in accordance with Statement of Financial
Accounting Standards (&#147;SFAS&#148;) No. 144, &#147;Accounting for the Impairment or Disposal of Long-Lived Assets&#148; (&#147;FAS 144&#148;). These dispositions are discussed below in &#147;Recent Restaurant Dispositions.&#148; </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">CONSOLIDATION OF VARIABLE INTEREST ENTITIES &#151; In June 2005, the Emerging Issues Task Force (&#147;EITF&#148;) issued EITF No. 04-5, &#147;Determining Whether a General Partner, or the General
Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights&#148; (&#147;EITF 04-5&#148;).  EITF 04-5 presumes that a general partner controls a limited partnership and therefore should
consolidate the partnership.  This presumption can be overcome of the limited partners have kick-out or substantive participating rights. EITF 04-5 was effective for the Company&#146;s quarter ended December 30, 2006 and accordingly management has
made an assessment of the limited partnership or similar entities that the Company provides management services to where it is also the general partner in the entity that owns the property. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Effective October 1, 2006 the Company determined that one of its managed restaurants, El Rio Grande (&#147;Rio&#148;), should be presented on a consolidated basis in accordance with EITF 04-5
and as a result included Rio in its consolidated financial statements. The impact of such consolidation was not material to the Company&#146;s condensed consolidated financial position or results of operations for any period presented. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">CASH AND CASH EQUIVALENTS &#151; Cash and cash equivalents, which primarily consist of money market funds, are stated at cost, which approximates fair value. For financial statement
presentation purposes, the Company considers all highly liquid investments having original maturities of three months or less to be cash equivalents. Outstanding checks in excess of account balances, typically vendor payments, payroll and other
contractual obligations disbursed on or near the last day of a reporting period are reported as a current liability in the accompanying consolidated balance sheets.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">AVAILABLE-FOR-SALE SECURITIES</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="monospace">&#151; </FONT><FONT size=2 face="serif">Available-for-sale securities consist of US
Treasury Bills, government bonds, corporate bonds and other fixed income securities, all of which have a high degree of liquidity and are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income.
The cost of investments in available-for-sale securities is determined on a specific identification basis. Realized gains or losses and declines in value judged to be other than temporary, if any, are reported in other income, net. The Company
evaluates its investments periodically for possible impairment and reviews factors such as the length of time and extent to which fair value has been below cost basis and the Company's ability and intent to hold the investment for a period of time
which may be sufficient for anticipated recovery in market value. </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 6 - </FONT></P>

<HR noshade align="center" width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>
<P align="justify">
<B><FONT size=2 face="serif">2. RECENT RESTAURANT DISPOSITIONS </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the first fiscal quarter of 2008 we discontinued the operation of our Columbus Bakery retail and wholesale bakery located in New York City. Columbus Bakery was originally
intended to serve as the bakery that would provide all of our New York restaurants with baked goods as well as being a retail bakery operation. As a result of the sale and closure of several of our restaurants in New York City during the last
several years, this bakery operation was no longer profitable.  We have agreed with certain third party investors to participate in a new concept at this location called &#147;Pinch &amp; S&#146;Mac&#148; which will feature pizza and macaroni and
cheese. We will contribute Columbus Bakery&#146;s net fixed assets and cash into this venture and will receive an ownership interest of 37.5%.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">3. RECEIVABLES FROM EMPLOYEES IN RESPECT OF STOCK OPTION EXERCISES </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Receivables from employees in respect of stock option exercises includes amounts due from officers and directors totaling &#36;124,000 and &#36;166,000 at December 29, 2007 and September 29,
2007, respectively. Such amounts, which are due from the exercise of stock options in accordance with the Company&#146;s Stock Option Plan, are payable on demand with interest at 0.5% above prime (7.75% at December 29, 2007). </FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">4. INCOME PER SHARE OF COMMON STOCK </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net income per share is computed in accordance with Statement of Financial Accounting Standards No. 128, </FONT><I><FONT size=2 face="serif">Earnings Per Share</FONT></I><FONT size=2 face="serif">, and is calculated on the basis of the weighted average number of common shares outstanding during each period plus, for diluted earnings per share, the additional dilutive effect of potential common stock.  Potential common stock
using the treasury stock method consists of dilutive stock options and warrants.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">For the 13-week period ended December 29, 2007, options to purchase 271,500 shares of common stock at a price range of &#36;29.60 - &#36;32.15 were included in diluted earnings per share. For
the 13-week period ended December 30, 2006, options to purchase 8,000 shares of common stock at a price of &#36;6.30 were included in diluted earnings per share. Options to purchase 194,000 shares of common stock at a price of &#36;29.60 were not
included in diluted earnings per share as their impact was antidilutive for the 13-week period ended December 30, 2006.</FONT><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">During the 13-week period ended December 29, 2007, no options were exercised.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">5. STOCK-BASED COMPENSATION </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Company has options outstanding under its 2004 Stock Option Plan (the &#147;2004 Plan&#148;). 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. During fiscal 2005, options to purchase 194,000 shares of common stock were granted and are exercisable as to 50% of the shares
commencing on the first anniversary of the date of grant and as to an additional 50% commencing on the second anniversary of the date of grant. During fiscal 2007, options to purchase 105,000 shares of common stock were granted and are exercisable
as to 25% of the shares commencing on the first anniversary of the date of grant and as to an additional 25% commencing on each of the second, third and fourth anniversaries of the grant date. </FONT></P>
<P align="justify">
<FONT size=2 face="serif">A summary of stock option activity is presented below: </FONT></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR>
     <TD width=27%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<B><FONT size=1 face="serif">Weighted</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<B><FONT size=1 face="serif">Weighted</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<B><FONT size=1 face="serif">Weighted</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<B><FONT size=1 face="serif">Average</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<B><FONT size=1 face="serif">Average</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<B><FONT size=1 face="serif">Average</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<B><FONT size=1 face="serif">Aggregate</FONT></B>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<B><FONT size=1 face="serif">Excersie</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<B><FONT size=1 face="serif">Fair</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<B><FONT size=1 face="serif">Contractual</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<B><FONT size=1 face="serif">Intrinsic</FONT></B>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<B><U><FONT size=1 face="serif">Options</FONT></U></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<B><U><FONT size=1 face="serif">Shares</FONT></U></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<B><U><FONT size=1 face="serif">Price</FONT></U></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<B><U><FONT size=1 face="serif">Value</FONT></U></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<B><U><FONT size=1 face="serif">Term (Yrs.)</FONT></U></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<B><U><FONT size=1 face="serif">Value</FONT></U></B>	</TD>
</TR>
<TR>
	<TD colspan=14>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">Outstanding as September 29, 2007:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">271,500</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">30.59</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">9.22</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">7.76</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">Granted</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">Exercised</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap>&nbsp;	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">Forfeited/Cancelled</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=14>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="serif">Outstanding at December 29, 2007</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">271,500</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">30.59</FONT></TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">9.22</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7.76</FONT></TD>
	<TD>&nbsp;	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="serif">1,727,775</FONT>	</TD>
</TR>
<TR>
	<TD colspan=14>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="serif">Exercisable at December 29, 2007</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">192,750</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">29.95</FONT></TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;</FONT>	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">8.51</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7.26</FONT></TD>
	<TD>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="serif">1,203,795</FONT>	</TD>
</TR>
</TABLE>
<BR>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Compensation cost is recognized on a straight-line basis over the vesting period during which employees perform related services. The Company has applied a forfeitures assumption of 5%
per year in the calculation of such expense. As of December 29, 2007, there was approximately &#36;768,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of approximately three
years. </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 7 - </FONT></P>

<HR noshade align="center" width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>
<P align="justify">
<FONT size=2 face="serif"> The Company, generally, issues new shares upon the exercise of employee stock options. </FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">6. INVESTMENT SECURITIES </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value of available for sale debt and fixed income securities by major type and class at December 29, 2007 and September 29, 2007
are as follows (dollar amounts in thousands): </FONT></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR>
     <TD></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD>
     <TD width=2%></TD>
     <TD width=2%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD colspan="2" align=center nowrap>
      <B><FONT size=1 face="sans-serif">Amortized</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD colspan="2" align=center nowrap>
      <B><FONT size=1 face="sans-serif">Gross Unrealized</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD colspan="2" align=center nowrap>
      <B><FONT size=1 face="sans-serif">Gross Unrealized</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
      <B><FONT size=1 face="sans-serif">Cost</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
      <B><FONT size=1 face="sans-serif">Holding Gains</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
      <B><FONT size=1 face="sans-serif">Holding Losses</FONT></B>	</TD>
	<TD>&nbsp;	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
      <B><FONT size=1 face="sans-serif">Fair Value</FONT></B>	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">At December 29, 2007</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">Available for sales short-term:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">Government debt securities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="sans-serif">4,868</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="sans-serif">16</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="sans-serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="sans-serif">4,884</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">Corporate debt securities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">4,545</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">42</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">4,587</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">9,413</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">58</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">9,471</FONT>	</TD>
</TR>

	<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">At September 29, 2007</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">Available for sales short-term:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">Government debt securities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="sans-serif">3,130</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="sans-serif">14</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="sans-serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap>
<FONT size=1 face="sans-serif">3,144</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">Corporate debt securities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">5,427</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">35</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">5,462</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">8,557</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">49</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="sans-serif">8,606</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">At September 29, 2007</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">Available for sales long-term:</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
	<TD align=left nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=1 face="sans-serif">Corporate debt securities</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">595</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">595</FONT>	</TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
	<TD align=left nowrap>&nbsp;	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">595</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">-</FONT>	</TD>
	<TD>&nbsp;	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="sans-serif">595</FONT>	</TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<B><FONT size=2 face="serif">7. DIVIDENDS </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A quarterly cash dividend in the amount of &#36;0.35 per share was declared on October 12, 2004. Subsequent to October 12, 2004, quarterly cash dividends in the amount of &#36;0.35 per share
were declared on January 12, April 12, July 12, October 10 and December 20, 2006 and on April 12, 2007. We declared an increase in our quarterly cash dividend to &#36;0.44 per share on May 23, 2007 and subsequent quarterly cash dividends reflecting
this increased amount were declared on October 12, 2007 and January 11, 2008. In addition, we declared a special cash dividend in the amount of &#36;3.00 per share on December 20, 2006. The Company intends to continue to pay quarterly cash dividends
for the foreseeable future; however, the payment of future dividends is at the discretion of the Company&#146;s Board of Directors and is based on future earnings, cash flows, financial condition, capital requirements, changes in U.S. taxation and
other relevant factors. </FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">8. RELATED PARTY TRANSACTIONS </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Receivables due from officers and employees, excluding stock option receivables, totaled &#36;300,000 at December 29, 2007 and &#36;316,000</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">at September 29, 2007. Such loans bear interest at the minimum statutory rate (4.13% at December 29, 2007). </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Receivables due from unconsolidated restaurants, totaled &#36;1,474,000 and &#36;1,318,000 at December 29, 2007 and September 29, 2007, respectively, net of an allowance of
&#36;174,000.</FONT></P>
<P align="center">
<FONT size=2 face="serif">- 8 - </FONT></P>

<HR noshade align="center" width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR>
     <TD width=5%></TD>
     <TD></TD></TR>
<TR valign="bottom">
	<TD align=left nowrap>
<B><U><FONT size=2 face="serif">Item 2.</FONT></U></B>	</TD>
	<TD align=left nowrap>
<B><U><FONT size=2 face="serif">Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations</FONT></U></B>	</TD>
</TR>
</TABLE>
<BR>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In connection with the sale of two facilities and the closure of one facility, the operations of these restaurants have been presented as discontinued operations for the 13-week period ended
December 29, 2007 and the Company has reclassified its statements of operations and cash flows data for the prior periods presented below, in accordance with Statement of Financial Accounting Standards (&#147;SFAS&#148;) No. 144, &#147;Accounting for the
Impairment or Disposal of Long-Lived Assets&#148; (&#147;FAS 144&#148;) based on the fact that the Company has met the criteria under FAS 144. These dispositions are discussed below in &#147;Recent Restaurant Dispositions.&#148; </FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Revenues </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the Company&#146;s first fiscal quarter of 2008, total revenues of &#36;30,318,000 increased 10.2% compared to total revenues of &#36;27,521,000 in the first fiscal quarter of
2007. Revenues were reduced by &#36;139,000 during the first fiscal quarter of 2008 and by &#36;1,905,000 during the first fiscal quarters of 2007 as a result of the sale of two facilities and the closure of one. The Company had net income of
&#36;1,485,000 in the first fiscal quarter of 2008 compared to net income of &#36;6,590,000 in the first fiscal quarter of 2007. During the first fiscal quarter of 2008 we had pre-opening expenses of &#36;150,000 related to our new Mexican
restaurant and lounge located in the Planet Hollywood Casino in Las Vegas, Nevada, additional expenses related to the expansion and renovation of the banquet facilities in the New York-New York Hotel &amp; Casino, and the payment of year-end bonuses
to Company employees in excess of those paid during the first quarter last year. Net income for the first fiscal quarter of 2007 included an after tax gain of &#36;5,196,000 related to the sale of two facilities.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On a company wide basis same store sales increased 3.7% during the first fiscal quarter of 2008 compared to the same period last year. Same store sales in Las Vegas increased by &#36;40,000 or
0.3% in the first fiscal quarter of 2008 compared to the first fiscal quarter of 2007. Same store sales in Las Vegas were negatively affected by the closure of the banquet facilities in the New York-New York Casino for expansion and renovations.
Catering sales in these facilities decreased &#36;410,000 in the first fiscal quarter of 2008 compared to the same period in 2007. These banquet facilities reopened during the second fiscal quarter of 2008. Same store sales in New York increased
&#36;782,000 or 10.0% during the first quarter. Same store sales in Washington D.C. increased by &#36;159,000 or 4.2% during the first quarter. Same store sales in Atlantic City increased by &#36;5,000, or 0.6%, in the first quarter. The increase in
New York was principally due to improved catering sales.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Costs and Expenses</FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Food and beverage costs for the first quarter of 2008 as a percentage of total revenues were 25.5% compared to 24.8% in the first quarter of 2007. Increased food costs during this period had a
negative effect on this category of expenses. Although the Company had not raised the price of menu items offered to its customers for several years due to business conditions, the impact of the increase in food costs has caused the Company to
review the price of menu items offered to its customers. The Company has determined to increase the price of menu items offered to its customers in specific locations where the Company believes consumer demand has created some elasticity.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Payroll expenses as a percentage of total revenues were 31.5% for both the first quarter of 2008 and 2007. Occupancy expenses as a percentage of total revenues were 13.3% during the 13-week
period ended December 29, 2007 compared to 14.1% for the 13-week period ended December 30, 2006. The decrease in occupancy expenses as a percentage of revenue was primarily due to increased sales. Other operating costs and expenses as a percentage
of total revenues were 13.5% during the first fiscal quarter of 2008 compared to 11.3% in the first quarter of 2007. General and administrative expenses as a percentage of total revenues were 7.1% during the first fiscal quarter of 2008 and 7.2%
during the first fiscal quarter of 2007. </FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Income Taxes</FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The provision for income taxes reflects Federal income taxes calculated on a consolidated basis and state and local income taxes calculated by each New York subsidiary on a non-consolidated
basis. Most of the restaurants owned or managed by the Company are owned or managed by separate subsidiaries. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">For state and local income tax purposes, the losses incurred by a subsidiary may only be used to offset that subsidiary&#146;s income, with the exception of the restaurants operating in the
District of Columbia.  Accordingly, the Company&#146;s overall effective tax rate has varied depending on the level of losses incurred at individual subsidiaries.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Company&#146;s overall effective tax rate in the future will be affected by factors such as the level of losses incurred at the Company&#146;s New York facilities, which cannot be
consolidated for state and local tax purposes, pre-tax income earned outside </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 9 - </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>
<P align="justify">
<FONT size=2 face="serif">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. In order to utilize more effectively tax loss carryforwards at restaurants that were unprofitable, the Company has merged certain profitable subsidiaries with certain loss subsidiaries.
</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Liquidity and Capital Resources</FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Company&#146;s primary source of capital has been cash provided by operations. The Company from time to time also utilizes equipment financing in connection with the construction of a restaurant
and seller financing in connection with the acquisition of a restaurant. The Company utilizes capital primarily to fund the cost of developing and opening new restaurants, acquiring existing restaurants owned by others and remodeling existing
restaurants owned by the Company. </FONT><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Company had a working capital surplus of &#36;10,487,000</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">at December 29, 2007 as compared to a working capital
surplus of &#36;11,571,000</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">at September 29, 2007.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Company&#146;s Revolving Credit and Term Loan Facility matured on March 12, 2005.  The Company does not currently plan to enter into another credit facility and expects required cash to be
provided by operations. </FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Restaurant Expansion </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In October 2006, the Company converted its bar, </FONT><I><FONT size=2 face="serif">Luna Lounge</FONT></I><FONT size=2 face="serif">, at the Resorts Atlantic City Hotel and Casino in Atlantic
City, New Jersey, into a restaurant, </FONT><I><FONT size=2 face="serif">Gallagher&#146;s Burger Bar</FONT></I><FONT size=2 face="serif">. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Also in 2006, we entered into an agreement to lease space for a Mexican restaurant, </FONT><I><FONT size=2 face="serif">Yolos,</FONT></I><FONT size=2 face="serif"> at the Planet Hollywood
Resort and Casino (formerly known as the Aladdin Resort and Casino) in Las Vegas, Nevada. The obligation to pay rent for </FONT><I><FONT size=2 face="serif">Yolos</FONT></I><FONT size=2 face="serif"> was not effective until the restaurant opens for
business. This restaurant opened during the second quarter of the 2008 fiscal year. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On January 8, 2007, the Company began operating the </FONT><I><FONT size=2 face="serif">Durgin Park Restaurant and the Black Horse Tavern </FONT></I><FONT size=2 face="serif">in Boston,
Massachusetts. The Company purchased this facility from the previous owner for &#36;2,000,000 in cash and a &#36;1,000,000 five year promissory note bearing interest at a rate of 7% per year. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In June 2007, we entered into an agreement to design and lease a food court at the to be constructed MGM Grand Casino at the Foxwoods Resort Casino. The obligation to pay rent for this facility
is not effective until the food court opens for business. We anticipate the food court will open during our third quarter of the 2008 fiscal year. All pre-opening expenses will be borne by outside investors who will invest in a limited liability
company established to develop, construct, operate and manage the food court. We will be the managing member of this limited liability company and, through this limited liability company, we will lease and manage the operations of the food court in
exchange for a monthly management fee equal to five-percent of the gross receipts of the food court. Neither we nor any of our subsidiaries will contribute any capital to this limited liability company. None of the obligations of this limited
liability company will be guaranteed by us and investors in this limited liability company will have no recourse against us or any of our assets. </FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Recent Restaurant Dispositions </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the first fiscal quarter of 2008 we discontinued the operation of our Columbus Bakery retail and wholesale bakery located in New York City. Columbus Bakery was originally
intended to serve as the bakery that would provide all of our New York restaurants with baked goods as well as being a retail bakery operation. As a result of the sale and closure of several of our restaurants in New York City during the last
several years, this bakery operation was no longer profitable.  We have agreed with certain third party investors to participate in a new concept at this location called &#147;Pinch &amp; S&#146;Mac&#148; which will feature pizza and macaroni and
cheese. We will contribute Columbus Bakery&#146;s net fixed assets and cash into this venture and will receive an ownership interest of 37.5% .</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Critical Accounting Policies </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 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&#146;s
financial statements include allowances for potential bad debts on accounts and notes receivable, 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&#146;s consolidated financial position or the results of operation, differences in actual results could be material to the financial statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">- 10 - </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Company&#146;s critical accounting policies are described in the Company&#146;s Form 10-K for the year ended September 29, 2007. There have been no significant changes to such policies
during fiscal 2008, other than the implementation of FASB Interpretation No. 48, &#147;Accounting for Uncertainty in Income Taxes &#150; an interpretation of FASB Statement No. 109&#148;, as discussed below.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Recent Accounting Developments</FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Financial Accounting Standards Board has recently issued the following accounting pronouncements:</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In June 2006, the FASB issued FASB Interpretation No. 48, &#147;Accounting for Uncertainty in Income Taxes &#150; an interpretation of FASB Statement No. 109&#148; (&#147;FIN 48&#148;).  FIN 48
clarifies the accounting for uncertainty in income taxes recognized in financial statements in accordance with FASB Statement No. 109, &#147;Accounting for Income Taxes.&#148;  FIN 48 prescribes a recognition threshold and measurement attribute for
the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure,
and transition. The Company adopted the provisions of FIN 48 during the first fiscal quarter of 2008. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"> In September 2006, the FASB issued FASB Statement No. 157
(&#147;SFAS 157&#148;), &#147;Fair Value Measurements.&#148; SFAS 157 establishes a framework for measuring fair value in generally accepted accounting
principles and expands disclosures about fair value measurements. SFAS 157 is effective for all financial statements issued for fiscal years beginning after November 15, 2007.  The Company is currently assessing the impact of SFAS 157 on its
consolidated financial position and results of operations. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In February 2007, the FASB issued SFAS No. 159, &#147;The Fair Value
Option for Financial Assets and Financial Liabilities - including an amendment of FASB Statement No. 115&#148; (&#147;SFAS 159&#148;). SFAS 159
permits entities to elect to measure many financial instruments and certain other items at fair value. Upon adoption of SFAS 159, an entity may elect the fair value option for eligible items that exist at the adoption date. Subsequent to the initial
adoption, the election of the fair value option should only be made at initial recognition of the asset or liability or upon a remeasurement event that gives rise to new-basis accounting. SFAS 159 does not affect any existing accounting literature
that requires certain assets and liabilities to be carried at fair value nor does it eliminate disclosure requirements included in other accounting standards. SFAS 159 is effective for fiscal years beginning after November 15, 2007.  The Company is
currently assessing the impact of SFAS 159 on its consolidated financial position and results of operations. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On December 4, 2007, the FASB issued SFAS No. 141(R), &#147;Business Combinations&#148; (&#147;SFAS 141(R)&#148;), and SFAS No. 160, &#147;Noncontrolling Interests in Consolidated Financial
Statements, an amendment of ARB No. 51&#148; (&#147;SFAS 160&#148;). These new standards will significantly change the accounting for and reporting for business combination transactions and noncontrolling (minority) interests in consolidated
financial statements. SFAS 141(R) and SFAS 160 are required to be adopted simultaneously and are effective for the first annual reporting period beginning on or after December 15, 2008. Earlier adoption is prohibited. We are currently evaluating the
impact of adopting SFAS 141(R) and SFAS 160 on our consolidated financial statements. </FONT></P>
<P align="justify">
<B><U><FONT size=2 face="serif">Item 3. Quantitative and Qualitative Disclosures about Market Risk</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Company purchases commodities such as chicken, beef, lobster and shrimp for the Company&#146;s restaurants. The prices of these commodities may be volatile depending upon market conditions.
The Company does not purchase forward commodity contracts because the changes in prices for them have historically been short-term in nature and, in the Company&#146;s view, the cost of the contracts is in excess of the benefits. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Company&#146;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. </FONT></P>
<P align="justify">
<B><U><FONT size=2 face="serif">Item 4. Controls and Procedures</FONT></U></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Based on their evaluation, the Company&#146;s principal executive officer and principal financial officer have concluded that the Company&#146;s disclosure controls and procedures (as defined
in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)) are effective as of December 29, 2007 to ensure that information required to be disclosed by the Company in reports that the
Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">There were no changes in the Company&#146;s internal control over financial reporting during the first quarter of fiscal year 2008 that materially affected or are reasonably likely to
materially affect the Company&#146;s internal control over financial reporting. </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 11 - </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>
<P align="center">
<B><FONT size=2 face="serif">PART II </FONT></B><BR>
<B><FONT size=2 face="serif">OTHER INFORMATION </FONT></B></P>
<P align="justify">
<B><U><FONT size=2 face="serif">Item 1. Legal Proceedings</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Company is not subject to any other pending legal proceedings, other than ordinary routine claims incidental to its business, which the Company does not believe will materially impact
results of operations</FONT><FONT size=2 face="serif">.</FONT><FONT face="serif"> </FONT></P>
<P align="justify">
<B><U><FONT size=2 face="serif">Item 1A. Risk Factors</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The most significant risk factors applicable to the Company are described in Part I, Item 1A (Risk Factors) of the Company&#146;s Annual Report on Form 10-K for the fiscal year ended September 29, 2007 (the &#147;2007 Form
10-K&#148;). There have been no material changes to the risk factors previously disclosed in the 2007 Form 10-K. The risks described in the 2007 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&#146;s business, financial condition, and/or operating results. </FONT></P>
<P align="justify">
<B><U><FONT size=2 face="serif">Item 2. Unregistered Sales of Equity Securities and Use of Proceeds</FONT></U></B><FONT size=2 face="serif"> </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">None. </FONT></P>
<P align="justify">
<B><U><FONT size=2 face="serif">Item 3. Defaults upon Senior Securities</FONT></U></B><FONT size=2 face="serif"> </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">None. </FONT></P>
<P align="justify">
<B><U><FONT size=2 face="serif">Item 4. Submissions of Matters to a Vote of Security Holders</FONT></U></B><FONT size=2 face="serif"> </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">None. </FONT></P>
<P align="justify">
<B><U><FONT size=2 face="serif">Item 5. Other Information</FONT></U></B><FONT size=2 face="serif"> </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">None. </FONT></P>
<P align="justify">
<B><U><FONT size=2 face="serif">Item 6. Exhibits</FONT></U></B></P>
<P align="justify">
<FONT size=2 face="serif">31.1 Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</FONT></P>
<P align="justify">
<FONT size=2 face="serif">31.2 Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</FONT></P>
<P align="justify">
<FONT size=2 face="serif">32 &nbsp;&nbsp;&nbsp;Certificate of Chief Executive and Chief Financial Officers Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 12 - </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P align="center">
<B><U><FONT size=2 face="serif">SIGNATURES</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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.
</FONT></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR>
     <TD width=5%></TD>
     <TD width=2%></TD>
     <TD></TD></TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">Date:</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">February 12, 2008</FONT>
	</TD>
</TR>
<TR>
	<TD colspan=3>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">ARK RESTAURANTS CORP.</FONT></B>
	</TD>
</TR>
<TR>
	<TD colspan=3>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">By:</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<U><FONT size=2 face="serif">/s/ Michael Weinstein</FONT></U>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">Michael Weinstein</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">Chairman, President &amp; Chief Executive Officer</FONT>
	</TD>
</TR>
<TR>
	<TD colspan=3>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">By:</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<U><FONT size=2 face="serif">/s/ Robert J. Stewart</FONT></U>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">Robert Stewart</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">Chief Financial Officer</FONT>
	</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="serif">- 13 - </FONT></P>

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<SEQUENCE>2
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<P align="right">
<B><FONT size=2 face="serif">EXHIBIT 31.1 </FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO </FONT></B><FONT size=2 face="serif"> </FONT><BR>
<B><FONT size=2 face="serif">SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 </FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="left"><FONT size=2 face="serif">I, Michael Weinstein, President and
Chief Executive Officer of Ark Restaurants Corp., certify that:</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><FONT size=2 face="serif">1.</FONT></td>
    <td colspan="2"><FONT size=2 face="serif">I have reviewed this quarterly
    report on Form 10-Q of Ark Restaurants Corp. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="94%">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><FONT size=2 face="serif">2.</FONT></td>
    <td colspan="2"><div align="justify"><FONT size=2 face="serif">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;</FONT></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><FONT size=2 face="serif">3.</FONT></td>
    <td colspan="2"><div align="justify"><FONT size=2 face="serif">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;</FONT></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><FONT size=2 face="serif">4.</FONT></td>
    <td colspan="2"><div align="justify"><FONT size=2 face="serif">The registrant&#146;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)) for the registrant and have: </FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><FONT size=2 face="serif">a)</FONT></td>
    <td><div align="justify"><FONT size=2 face="serif">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;</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><FONT size=2 face="serif">b)</FONT></td>
    <td><div align="justify"><FONT size=2 face="serif"> Evaluated the effectiveness
          of the registrant&#146;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</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><FONT size=2 face="serif">c)</FONT></td>
    <td><div align="justify"><FONT size=2 face="serif">Disclosed in this report
          any change in the registrant&#146;s internal control over financial reporting that occurred
      during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s
      fourth fiscal quarter in the case of an annual report) that has materially
      affected, or is reasonably likely to materially affect, the registrant&#146;s
    internal control over financial reporting; and</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><FONT size=2 face="serif">5.</FONT></td>
    <td colspan="2"><div align="justify"><FONT size=2 face="serif">The registrant&#146;s other certifying officer(s)
      and I have disclosed, based on our most recent evaluation of internal
      control over financial reporting, to the registrant&#146;s accountants
      and the audit committee of the registrant&#146;s board of directors (or
    persons performing the equivalent functions):</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><FONT size=2 face="serif">a)</FONT></td>
    <td><div align="justify"><FONT size=2 face="serif">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&#146;s
      ability to record, process, summarize and report financial information;
    and</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT size=2 face="serif">b)</FONT></td>
    <td><div align="justify"><FONT size=2 face="serif">Any fraud, whether or
          not material, that involves management or other employees who have
          a significant role in the registrant&#146;s
    internal control over financial reporting. </FONT></div></td>
  </tr>
</table>


<p><FONT size=2 face="serif">Dated: February 12, 2008</FONT></p>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
  <TR>
    <TD width=40%></TD>
    <TD width=20%></TD>
    <TD width=40%></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">/s/ Michael Weinstein</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif"><b>Michael Weinstein</b></FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif"><i>Chairman, President and Chief
        Executive Officer</i></FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>

<br>

<P align="center"><font size="2">- 14 -</font></P>
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<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>c52294_ex31-2.htm
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<P align="right">
<B><FONT size=2 face="serif">EXHIBIT 31.2 </FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO </FONT></B><FONT size=2 face="serif"> </FONT><BR>
<B><FONT size=2 face="serif">SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 </FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="justify">
<FONT size=2 face="serif">I, Robert Stewart, Chief Financial Officer of Ark Restaurants Corp., certify that:</FONT></P>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><FONT size=2 face="serif">1.</FONT></td>
    <td colspan="2"><div align="justify"><FONT size=2 face="serif">I have reviewed this quarterly
    report on Form 10-Q of Ark Restaurants Corp. </FONT></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="94%">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><FONT size=2 face="serif">2.</FONT></td>
    <td colspan="2"><div align="justify"><FONT size=2 face="serif"> 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;</FONT></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><FONT size=2 face="serif">3.</FONT></td>
    <td colspan="2"><div align="justify"><FONT size=2 face="serif">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;</FONT></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><FONT size=2 face="serif">4.</FONT></td>
    <td colspan="2"><div align="justify"><FONT size=2 face="serif">The registrant&#146;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)) for the registrant and have: </FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><FONT size=2 face="serif">a)</FONT></td>
    <td><div align="justify"><FONT size=2 face="serif">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;</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><FONT size=2 face="serif">b)</FONT></td>
    <td><FONT size=2 face="serif"> Evaluated the effectiveness of the registrant&#146;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</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><FONT size=2 face="serif">c)</FONT></td>
    <td><div align="justify"><FONT size=2 face="serif">Disclosed in this report
          any change in the registrant&#146;s internal control over financial reporting that occurred
      during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s
      fourth fiscal quarter in the case of an annual report) that has materially
      affected, or is reasonably likely to materially affect, the registrant&#146;s
    internal control over financial reporting; and</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><FONT size=2 face="serif">5.</FONT></td>
    <td colspan="2"><div align="justify"><FONT size=2 face="serif">The registrant&#146;s other certifying officer(s)
      and I have disclosed, based on our most recent evaluation of internal
      control over financial reporting, to the registrant&#146;s accountants
      and the audit committee of the registrant&#146;s board of directors (or
    persons performing the equivalent functions):</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><FONT size=2 face="serif">a)</FONT></td>
    <td><div align="justify"><FONT size=2 face="serif">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&#146;s
      ability to record, process, summarize and report financial information;
    and</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT size=2 face="serif">b)</FONT></td>
    <td><FONT size=2 face="serif">Any fraud, whether or not material, that involves
        management or other employees who have a significant role in the registrant&#146;s
    internal control over financial reporting. </FONT></td>
  </tr>
</table>



<P align="justify"><FONT size=2 face="serif">Dated: February 12, 2008 </FONT><BR>
  <TABLE border=0 width=100% cellspacing=0 cellpadding=0>
    <TR>
      <TD width=40%></TD>
      <TD width=20%></TD>
      <TD width=40%></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">/s/
          Robert Stewart</FONT> </TD>
      <TD>&nbsp;</TD>
      <TD align=left nowrap>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left nowrap><FONT size=2 face="serif"><b>Robert Stewart</b></FONT> </TD>
      <TD>&nbsp;</TD>
      <TD align=left nowrap>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left nowrap><FONT size=2 face="serif"><i>Chief Financial Officer</i></FONT> </TD>
      <TD>&nbsp;</TD>
      <TD align=left nowrap>&nbsp;</TD>
    </TR>
  </TABLE>
<BR>

<P align="center">
<FONT size=2 face="serif">- 15 - </FONT></P>

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<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>c52294_ex32.htm
<TEXT>

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<P align="right">
<B><FONT size=2 face="serif">Exhibit 32</FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Certificate of Chief Executive and Chief Financial Officers</FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">The following statement is being made to the Securities and Exchange Commission solely for purposes of Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), which carries with it certain criminal penalties in
the event of a knowing or willful misrepresentation.</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">Securities and Exchange Commission </FONT><BR>
<FONT size=2 face="serif">450 Fifth Street, NW </FONT><BR>
<FONT size=2 face="serif">Washington, DC 20549 </FONT><BR>
<BR>
<FONT size=2 face="serif">Re: Ark Restaurants Corp. </FONT></P>
<P align="justify">
<FONT size=2 face="serif">Ladies and Gentlemen: </FONT></P>
<P align="justify">
<FONT size=2 face="serif">In accordance with the requirements of Section 906 of the Sarbanes-Oxley Act of 2002 (18 USC 1350), each of the undersigned hereby certifies that: </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(i) this report on Form 10-Q fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(ii) the information contained in this report fairly presents, in all material respects, the financial condition and results of operations of Ark Restaurants Corp. </FONT></P>
<P align="justify">
<FONT size=2 face="serif">Dated as of this 12th day of February 2008. </FONT></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR>
     <TD width=40%></TD>
     <TD width=20%></TD>
     <TD width=40%></TD></TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">/s/ Michael Weinstein</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">/s/ Robert Stewart</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">Michael Weinstein</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">Robert Stewart</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">Chairman, President and Chief Executive Officer</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">Chief Financial Officer</FONT>
	</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="serif">- 16 - </FONT></P>

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