Financial Results Ark Restaurants Reports Third-Quarter 2026 Performance
Ark Restaurants Corp. (NASDAQ: ARKR) has reported its financial results for the third quarter ended June 27, 2026, highlighting continued strength in selected markets while facing challenging operating conditions in several other locations. The restaurant company also provided an update on the ongoing legal dispute involving its Bryant Park properties in New York City, which remains a significant factor affecting its business outlook.
For the quarter, Ark Restaurants generated total revenue of $40.9 million, compared with $43.7 million during the comparable period of the previous year. The decline reflected a 6.6% decrease in same-store sales. For the first 39 weeks of fiscal 2026, revenue reached $118.2 million, compared with $128.4 million in the same period of fiscal 2025. Company-wide same-store sales declined 7.2% during the 39-week period.
Despite the pressure on sales, the company maintained a relatively strong balance sheet. As of June 27, 2026, Ark Restaurants reported $9.5 million in cash and cash equivalents and $7.1 million in total outstanding debt. Management said the financial position provides the company with flexibility to pursue future growth opportunities.
Mixed Performance Across Key Markets
Michael Weinstein, CEO of Ark Restaurants, said the company continues to see positive performance in two important markets. Operations at the New York-New York Hotel and Casino in Las Vegas have continued to generate increased cash flow despite lower customer traffic on the Las Vegas Strip. The company’s Alabama restaurants have also delivered strong growth in both revenue and cash flow.
Performance in New York City has been mixed. According to management, Robert has continued to improve on a year-over-year basis. However, the company’s Bryant Park Grill and Bryant Park Café businesses remain under pressure because of uncertainty surrounding their leases.
The Washington, D.C., market has also remained difficult, while restaurants in Florida continue to experience challenges associated with the local economic environment. These varying regional trends contributed to the company’s overall decline in same-store sales during the quarter.
Third-Quarter Profitability
Ark Restaurants reported adjusted EBITDA of $358,000 for the 13 weeks ended June 27, 2026. This compared with adjusted EBITDA of $1.8 million during the same period in 2025. The company noted that adjusted EBITDA is a non-GAAP financial measure and that the calculation excludes certain items detailed in the company’s financial release.
The company recorded a net loss attributable to Ark Restaurants of $347,000, equivalent to a loss of $0.10 per basic and diluted share. This represented a significant improvement from the $3.5 million net loss, or $0.96 per basic and diluted share, recorded during the third quarter of the previous year.
For the first 39 weeks of fiscal 2026, adjusted EBITDA totaled $1.3 million, compared with $2.5 million in the corresponding period of fiscal 2025. Ark Restaurants reported a net loss of $1.3 million, or $0.35 per basic and diluted share, for the 39-week period.
The comparable period in fiscal 2025 included a substantially larger net loss of $9.5 million, or $2.65 per basic and diluted share. That previous-year result included a $4.8 million full valuation allowance related to the company’s deferred tax assets.
Bryant Park Lease Dispute Remains a Major Issue
One of the most important developments for Ark Restaurants involves its long-running lease dispute concerning the Bryant Park Grill, Bryant Park Café and The Porch at Bryant Park.
The lease agreements for Bryant Park Grill and Bryant Park Café expired on April 30, 2025, while the lease for The Porch at Bryant Park expired on March 31, 2025. In response to requests for proposals issued by the landlord in 2023, Ark Restaurants submitted bids seeking new long-term agreements for the properties.
The landlord subsequently announced in the second quarter of 2025 that a new operator had been selected. However, Ark Restaurants stated that, to its knowledge, the necessary approvals from the New York City Department of Parks & Recreation and the New York Public Library had not been obtained and no new lease had become effective.
Ark Restaurants challenged the lease award process in New York State Supreme Court. The company filed its complaint on March 28, 2025, asserting its contractual rights, including its claimed right of first lease relating to Bryant Park Café.
The legal proceedings continued into 2026. On June 18, 2026, with the decision entered on June 22, the court ruled on motions for summary judgment filed by both sides. The court granted Ark Restaurants summary judgment on its breach-of-contract claim, determining that the company is entitled to damages to the extent that it was harmed by a breach of its right of first lease.
At the same time, the court ruled in favor of the landlord on counterclaims involving ejectment and use and occupancy and ordered that Ark Restaurants be ejected from the three Bryant Park properties. A judgment of ejectment was issued on June 26, 2026.
Ark Restaurants appealed the decision and subsequently sought a stay of enforcement while the appeal proceeds. Following additional proceedings, the court granted a three-month stay of the ejectment order, extending through approximately October 16, 2026, subject to specified conditions.
The company was required to file a $125,000 undertaking and continue making monthly use and occupancy payments. Ark Restaurants filed the required undertaking on July 21 and said it has continued making the required payments. The company also intends to seek an extension of the stay from the Appellate Division while its appeal is pending.
As of the filing, Ark Restaurants continues to operate all three Bryant Park locations under the current stay.
Significant Revenue Exposure
The Bryant Park properties represent a substantial portion of Ark Restaurants’ business. For the first 39 weeks of fiscal 2026, the three locations collectively generated approximately $17.1 million in revenue, representing about 14.5% of the company’s total revenue. In the comparable period of fiscal 2025, the locations generated $19.7 million, or approximately 15.4% of total revenue.
Management warned that uncertainty surrounding the leases has already had a material adverse effect on the company’s business, financial condition and operating results. The company also cautioned that losing the locations after the current stay expires, or being unable to retain them under favorable terms, could have a significant additional impact.
The ultimate outcome remains uncertain, as management said it is currently unable to predict the result of the appeal or related proceedings.
Meadowlands Racetrack Investment
Ark Restaurants also provided an update regarding its investment in and receivable from New Meadowlands Racetrack LLC, or NMR.
NMR has been pursuing a full casino license that would allow the Meadowlands Racetrack to expand beyond its existing horse racing and sports betting activities and potentially offer casino games such as slot machines and table games.
Under New Jersey law, casino gaming outside Atlantic City would require an amendment to the state’s constitution, followed by licensing approval from the New Jersey Casino Control Commission.
In January 2026, a New Jersey Senate committee proposed a constitutional amendment that could permit casino gambling at Monmouth Park and the Meadowlands Racetrack. However, the proposed amendment did not receive the required legislative approval before the August 3 deadline for inclusion on the November 2026 general election ballot.
As a result, there will be no voter referendum on Meadowlands casino gaming in 2026. A similar proposal could potentially appear on a future ballot, possibly as early as November 2027, although there is no assurance that the legislature will approve an amendment or that voters will ultimately consider the issue.
Ark Restaurants said a future voter referendum would be a major factor in determining the potential value of its investment in NMR. If casino gaming is approved and the necessary license and development requirements are completed, the expansion could support the investment’s value. Conversely, if casino gaming is rejected or becomes unlikely, the company could ultimately need to recognize an impairment charge.
For the current reporting period, Ark Restaurants evaluated its NMR investment and concluded that its fair value exceeded its carrying value. Consequently, the company did not record an impairment for the 13- or 39-week periods ended June 27, 2026.
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