On Friday, Ark Restaurants (NASDAQ:ARKR) rejected the unsolicited takeover bid it received from Landry's two weeks ago.

Landry's is the owner of restaurant chains including Rainforest Cafe, Bubba Gump Shrimp Co., and McCormick & Schmick's. On Feb. 8, Landry's offered to buy all outstanding Ark Restaurants stock for $22 cash per share.

Ark, however, "after careful consideration," has determined that this bid is "inadequate." Chairman and Chief Executive Officer Michael Weinstein said in a statement: "The board believes that the proposal by Landry's significantly undervalues the company and its future prospects. In the board's judgment, Ark's shareholders will be better served by our experienced management operating and growing our business."

The $22 offer works out to only a 2.7% premium to Ark's current $21.42 share price. Ark itself pays shareholders a 4.7% dividend yield annually.

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