Ark Restaurants Corp. Reports 9.4% Revenue Decline and 80.8% Drop in Operating Income

Ark Restaurants Corp. reported a decline in financial performance for the 13 weeks ended December 27, 2025, with total revenues of $40.7 million, a decrease of 9.4% compared to $45.0 million in the same period last year. The company's operating income fell significantly by 80.8% to $1.1 million, down from $5.7 million in the prior year. This decline was attributed to lower same-store sales, particularly in New York and Las Vegas, as well as the impact of the closure of the Tampa Food Court. The company’s food and beverage sales decreased by 9.4% to $40.2 million, while other revenue sources contributed $503,000.

In terms of operational metrics, same-store sales across the company decreased by 7.3%, with notable declines in New York (14.7%) and Las Vegas (6.4%). The company attributed these declines to reduced catering and a la carte revenue, particularly at the Bryant Park Grill & Café, which has been affected by ongoing disputes with its landlord. Despite these challenges, the company managed to reduce its food and beverage costs by 11.9% and payroll expenses by 13.4%, indicating some operational efficiencies.

Strategically, Ark Restaurants has been involved in significant lease negotiations and renovations. The company extended its lease for the America restaurant at the New York-New York Hotel and Casino in Las Vegas through December 2033, committing to a $4 million refresh of the premises. Additionally, the company opened a new concept, Lucky Pig, in the Village Eateries at the same location, which cost approximately $850,000. However, the company also faced challenges, including the permanent closure of the El Rio Grande restaurant and the termination of its lease at the Tampa Food Court, which resulted in a gain of $5.2 million in the previous fiscal period.

Looking ahead, Ark Restaurants is navigating a complex legal situation regarding its leases at the Bryant Park Grill & Café and The Porch at Bryant Park, which accounted for approximately 19.5% of total revenue in the latest quarter. The company is actively pursuing legal action to protect its interests in these locations. Additionally, the company has invested $5.3 million in the New Meadowlands Racetrack LLC, which is seeking a casino license that could significantly impact future revenues. The company maintains a cautious outlook, emphasizing the need to manage operational costs and navigate ongoing legal challenges while leveraging its existing cash reserves and banking facilities to support future growth.