Ark Restaurants Corp. (NASDAQ: ARKR) has reported its financial results for the fourth quarter and full fiscal year ended September 27, 2025, reflecting a challenging operating environment shaped by litigation-related expenses, softer demand at select locations, and continued uncertainty surrounding key leases in New York City. Despite these pressures, the company emphasized the resilience of its broader restaurant portfolio, a solid balance sheet, and ongoing cash flow strength at several flagship properties.
Ark Restaurants’ fiscal year concludes on the Saturday closest to September 30. Both fiscal 2025 and fiscal 2024 consisted of 52 weeks, while the fourth quarters of each year spanned 13 weeks.
Fourth-Quarter Performance Impacted by Litigation Costs
For the fourth quarter of fiscal 2025, Ark Restaurants reported negative adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $1.07 million, compared with positive adjusted EBITDA of $503,000 in the same period last year. According to Chairman and Chief Executive Officer Michael Weinstein, the decline was driven primarily by significant legal expenses associated with ongoing litigation related to the company’s Bryant Park operations, which exceeded $400,000 during the quarter.
Net loss attributable to Ark Restaurants Corp. for the quarter totaled $1.92 million, or $0.53 per basic and diluted share. This compares with a net loss of $4.46 million, or $1.24 per share, reported in the prior-year quarter. While the company continued to post losses, management highlighted that year-over-year results improved at the net income level despite the EBITDA deterioration.
Weinstein noted that uncertainty surrounding the Bryant Park Grill has had a tangible impact on the company’s event business at that location, negatively affecting both revenue and cash flow. He also pointed to ongoing challenges in the Washington, D.C. market, which has proven difficult not only for Ark Restaurants but for many operators across the restaurant industry.
Despite these headwinds, Weinstein emphasized that the remainder of the company’s portfolio performed well. Operations at the New York-New York Hotel & Casino in Las Vegas generated increased cash flow even amid lower pedestrian traffic along the Las Vegas Strip. Additionally, the Rustic Inn property in Florida and Robert restaurant in New York City continued to outperform prior-year results, while most other Ark Restaurants locations met internal expectations. Management reiterated that the company’s balance sheet remains strong, positioning it to pursue future growth opportunities.
Revenue Trends and Same-Store Sales
Total revenues for the fourth quarter ended September 27, 2025, were $37.32 million, down from $43.41 million in the comparable quarter of fiscal 2024. The year-over-year comparison reflects the absence of revenue contributions from El Rio Grande and the Tampa Food Court, both of which were included in the prior-year period.
In the fourth quarter of fiscal 2024, El Rio Grande and the Tampa Food Court contributed $812,000 and $1.24 million in revenue, respectively. Excluding those locations, revenues for the fourth quarter of fiscal 2024 were $41.36 million.
For the full fiscal year, Ark Restaurants reported total revenues of $165.75 million, compared with $183.55 million in fiscal 2024. Fiscal 2025 results exclude revenues from El Rio Grande entirely and include $974,000 from the Tampa Food Court, while fiscal 2024 included $3.19 million from El Rio Grande and $5.24 million from the Tampa Food Court. On a comparable basis, excluding those two operations, fiscal 2024 revenues totaled $175.12 million.
Company-wide same-store sales, excluding El Rio Grande and the Tampa Food Court, declined 10.1% for the fourth quarter and 4.2% for the full fiscal year. These decreases were largely attributed to reduced catering and à la carte revenues at Bryant Park Grill due to negative publicity stemming from the landlord dispute, as well as lower customer traffic in Las Vegas.
Full-Year Profitability and Non-Cash Charges
For the full 52 weeks ended September 27, 2025, Ark Restaurants reported adjusted EBITDA of $1.41 million, down sharply from $6.13 million in fiscal 2024. Net loss attributable to the company totaled $11.47 million, or $3.18 per basic and diluted share, compared with a net loss of $3.90 million, or $1.08 per share, in the prior year.
Fiscal 2025 results include a full valuation allowance related to deferred tax assets amounting to $4.80 million, which significantly contributed to the reported net loss.
As of September 27, 2025, Ark Restaurants reported cash and cash equivalents of $11.32 million and total outstanding debt of $3.61 million, underscoring what management described as a healthy liquidity position.
Bryant Park Lease Dispute Remains a Central Issue
One of the most significant uncertainties facing Ark Restaurants remains the status of its Bryant Park Grill & Café and The Porch at Bryant Park leases. The company’s agreements with the Bryant Park Corporation expired on April 30, 2025, for the Grill & Café and March 31, 2025, for The Porch.
Ark Restaurants responded to requests for proposals issued in 2023 that sought new 10-year agreements with an optional five-year renewal. In the second quarter of fiscal 2025, the landlord publicly announced the selection of a new operator. However, Ark Restaurants stated that, to its knowledge, no new agreements have received the required approvals from the New York City Department of Parks & Recreation or the New York Public Library.
The company continues to operate both properties while pursuing legal action to protect its rights, including enforcing its claimed right of first lease. Management emphasized that it intends to remain in operation until either lease extensions are granted or it is ordered to vacate.
The Bryant Park Grill & Café and The Porch collectively generated $25.5 million in revenue during fiscal 2025 and $31.1 million in fiscal 2024, representing approximately 15.4% and 17.4% of total company revenues, respectively. Management acknowledged that the dispute has already had a material adverse impact and warned that continued litigation or unfavorable outcomes could further affect results.
Other Notable Developments
Ark Restaurants continues to hold an investment in New Meadowlands Racetrack LLC (NMR), with cumulative investments totaling $5.26 million. NMR is pursuing a full casino license in New Jersey, contingent on voter approval of a constitutional amendment via a potential 2026 referendum. While management outlined a possible timeline that could see a temporary casino open in 2027 and a permanent facility by 2028, it cautioned that failure to secure approval could result in a significant impairment of the company’s investment.
The company also finalized the closure of El Rio Grande, which permanently ceased operations in January 2025. A gain of $173,000 was recorded in fiscal 2025 following refinements to earlier estimates. In contrast, Ark Restaurants recognized a substantial gain of $5.24 million related to the termination of its Tampa Food Court lease after receiving a $5.5 million termination payment.
Asset and Goodwill Impairments
Ark Restaurants recorded additional impairment charges related to its Sequoia property in Washington, D.C., reflecting continued underperformance. In fiscal 2025, the company recognized $2.94 million in impairment charges for right-of-use assets and $1.76 million for long-lived assets.
Additionally, the company recorded a non-cash goodwill impairment charge of $3.44 million in fiscal 2025 following an interim impairment test triggered by a decline in stock price and uncertainty surrounding the Bryant Park leases. This follows a $4.0 million goodwill impairment recorded in fiscal 2024.
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