Ark Restaurants Reports First Quarter Fiscal 2026 Financial Results
Ark Restaurants Corp. (NASDAQ: ARKR) today announced its financial results for the first quarter of fiscal 2026, ended December 27, 2025, highlighting improved operating profitability, continued resilience across much of its restaurant portfolio, and ongoing challenges related to lease uncertainty at its flagship Bryant Park locations.
First Quarter Performance Overview
For the first quarter of fiscal 2026, Ark Restaurants reported adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $1.53 million, representing an increase of approximately $150,000 compared with adjusted EBITDA of $1.38 million in the same quarter of the prior year.
Net income attributable to Ark Restaurants Corp. for the quarter totaled $896,000, or $0.25 per basic and diluted share, compared with net income of $3.16 million, or $0.88 per basic and diluted share, in the first quarter of fiscal 2025.
Michael Weinstein, Chairman and Chief Executive Officer of Ark Restaurants, commented on the results, noting both operational improvements and ongoing headwinds.
Adjusted EBITDA improved year over year, reflecting the strength of the majority of our portfolio,” said Weinstein. “However, as we have discussed in prior quarters, our business at Bryant Park Grill & Café continues to be adversely affected by the uncertainty surrounding our lease situation, which has caused confusion in the marketplace and led many visitors and residents to believe the restaurant is closed.
Revenue Trends and Same-Store Sales
Total revenues for the 13 weeks ended December 27, 2025, were $40.75 million, compared with $44.99 million for the 13 weeks ended December 28, 2024. The prior-year period included $998,000 in revenues related to the Tampa Food Court, which was permanently closed on December 19, 2024. Excluding the Tampa Food Court, revenues for the comparable 2024 period were $43.99 million.
On a same-store basis, excluding the Tampa Food Court, company-wide sales declined 7.3% year over year. The decrease was driven primarily by reduced catering and à la carte sales at Bryant Park Grill, stemming from negative publicity related to the Company’s dispute with its landlord, as well as lower revenues at the America restaurant in Las Vegas due to partial closures for renovation work.
Despite these challenges, Weinstein emphasized that performance across the rest of the portfolio remained solid.
Outside of Bryant Park and Washington, D.C., the remainder of our restaurants performed well and generally met or exceeded expectations,” he said.
Operating Highlights Across the Portfolio
Ark Restaurants’ operations at the New York-New York Hotel and Casino in Las Vegas continued to generate increased cash flow, even as customer traffic along the Las Vegas Strip declined. The Company also reported year-over-year improvement at its Rustic Inn property in Florida and Robert in New York City, both of which delivered stronger performance compared with the prior year.
While the Washington, D.C. market remained challenging for Restaurants and the broader restaurant industry, the Company reiterated its commitment to maintaining its presence in the market.
Balance Sheet and Liquidity Position
As of December 27, 2025, Restaurants reported cash and cash equivalents of $9.14 million and total outstanding debt of $2.99 million, reflecting a strong balance sheet that management believes positions the Company to support future growth initiatives and withstand ongoing uncertainty.
EBITDA and Non-GAAP Financial Measures
Adjusted EBITDA for the quarter totaled $1.53 million, compared with $1.38 million in the prior-year period. EBITDA is considered a non-GAAP financial measure. A reconciliation of EBITDA to net income, along with details of adjustments, is provided in the accompanying financial tables included with the Company’s earnings release.
Bryant Park Grill & Café Lease Dispute
The Company’s lease agreements for Bryant Park Grill & Café and The Porch at Bryant Park expired in April 2025 and March 2025, respectively. Following requests for proposals issued by the landlord in 2023, Restaurants submitted bids seeking new long-term lease agreements. In the second quarter of 2025, the landlord publicly announced the selection of a new operator for both locations.
However, required approvals from the City of New York Department of Parks & Recreation and the New York Public Library have not been obtained, and no new lease has gone into effect as of the filing date.
Ark Restaurants has initiated legal proceedings in New York State Supreme Court challenging the lease award process and asserting its contractual rights, including its claimed right of first lease for the Bryant Park Café. The litigation remains ongoing, with discovery continuing and motions pending, including a motion for summary judgment filed by the landlord.
While the court has required the Company to make use and occupancy payments during the proceedings, Ark Restaurants continues to operate both restaurants and intends to do so unless ordered to vacate or granted lease extensions.
Management noted that the Bryant Park Grill & Café and The Porch at Bryant represented approximately 19.5% and 22.3% of total revenues for the first quarters of fiscal 2026 and fiscal 2025, respectively. The Company cautioned that the unresolved dispute has had, and is expected to continue to have, a material adverse effect on its financial condition and operating results.
Investment in New Meadowlands Racetrack LLC
Ark Restaurants also provided an update on its investment in New Meadowlands Racetrack LLC (NMR), which is pursuing a full casino license to expand beyond its current horse racing and sports betting operations.
In January 2026, a New Jersey Senate committee proposed a constitutional amendment that would allow casino gambling at both the Meadowlands Racetrack and Monmouth Park. The amendment would require approval by a three-fifths vote in both legislative chambers and passage by voters in a general election, potentially as early as November 2026.
If approved, NMR could open a temporary casino facility in 2027 and a permanent facility by 2028. However, the Company cautioned that there are no assurances the amendment will be placed on the ballot or approved by voters. Failure to secure approval could result in a reassessment and potential impairment of the Company’s investment.
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