UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTIONS 13 AND 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 27, 2025 or, ☐ TRANSITION REPORT PURSUANT TO SECTIONS 13 AND 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-09453 ARK RESTAURANTS CORP. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) 85 Fifth Avenue, New York, NY 1 ...

Ark Restaurants Corp.’s (ARKR) investors have been experiencing some short-term losses from the stock lately, despite its bumpy ride over recent months. Shares of the owners and operators of restaurants and bars, fast food concepts and catering operations have lost 31.8% in the past six months compared with the industry’s 5.1% decline. It has also underperformed the sector and the S&P 500’s gains of 6% and 16.3%, respectively, in the same time frame.A key recent development for ARKR was the release of its f ...

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Ark Restaurants (NasdaqGM:ARKR) Q4 2025 Earnings Call December 16, 2025 11:00 AM ET Company ParticipantsAnthony Sirica - President and CFOMichael Weinstein - Chairman and CEOConference Call ParticipantsJeffrey Kaminsky - Research AnalystOperatorGreetings and welcome to Ark Restaurants' Fourth Quarter and Year-End 2025 Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during t ...

Ark Restaurants (NasdaqGM:ARKR) Q4 2025 Earnings Call December 16, 2025 11:00 AM ET Company ParticipantsMichael Weinstein - Chairman and CEOChristopher Love - SecretaryAnthony Sirica - President and CFOConference Call ParticipantsJeffrey Kaminsky - Research AnalystOperatorGreetings and welcome to Ark Restaurants' fourth quarter and year-end 2025 results call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require ...

Ark Restaurants (NasdaqGM:ARKR) Q4 2025 Earnings Call December 16, 2025 11:00 AM ET Speaker3Greetings and welcome to Ark Restaurants' fourth quarter and year-end 2025 results call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over ...

Exhibit 99.1 Ark Restaurants Announces Financial Results for the Fourth Quarter and Fiscal Year Ended 2025 CONTACT: Anthony J. Sirica (212) 206-8800 ajsirica@arkrestaurants.com NEW YORK, New York - December 15, 2025 -- Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the fourth quarter and fiscal year ended September 27, 2025. The Company's fiscal year ends on the Saturday nearest September 30. The fiscal years ended September 27, 2025 and September 28, 2024 both included 52 weeks an ...

As of September 27, 2025, the Company had cash and cash equivalents of $11,324,000 and total outstanding debt of $3,609,000. Total revenues for the 13 weeks ended September 27, 2025 were $37,323,000 versus $43,406,000 for the 13 weeks ended September 28, 2024. No revenues for El Rio Grande and the Tampa Food Court (see below) are included in the 13 weeks ended September 27, 2025. The 13 weeks ended September 28, 2024 includes revenues of $812,000 and $1,239,000 related to El Rio Grande and the Tampa Food Co ...

Core Viewpoint - Ark Restaurants Corp. (ARKR) has experienced a significant stock performance fluctuation, gaining 10.6% post-earnings report while facing a monthly decline of 12.9% against the S&P 500's rise of 2.5% [1] Revenue and Earnings Performance - For the third quarter of fiscal 2025, Ark Restaurants reported revenues of $43.7 million, a decrease of 13.3% from $50.4 million year-over-year [2] - Food and beverage sales contributed to the revenue decline, falling 12.7% to $42.9 million from $49.2 million [2] - The company recorded a net loss of $3.5 million, or $0.96 per share, compared to a net income of $0.6 million, or $0.18 per share, in the previous year [2] - Adjusted EBITDA on a non-GAAP basis decreased by 46.9% to $1.8 million from $3.4 million [2] Year-to-Date Performance - For the 39-week period, revenues fell 8.4% to $128.4 million from $140.1 million, with a net loss widening to $9.5 million from a net income of $0.6 million last year [3] Segment Performance - Same-store sales declined by 7.4% in the quarter, with New York and Washington, D.C. experiencing steep declines of 20.9%, partially offset by a modest gain of 1.8% in Florida [4] - The decline in New York was attributed to lost catering and event revenues due to ongoing landlord litigation, while the D.C. downturn was linked to reduced traffic from hybrid work schedules and safety concerns [4] Cost and Expense Analysis - Food and beverage costs as a percentage of revenues increased to 27.6% from 26.4% year-over-year, reflecting higher commodity prices [5] - Payroll expenses decreased by 12.6% to $15.3 million, accounting for approximately 34.9% of revenues [5] - Occupancy expenses fell by 13% to $5.4 million, while other operating costs declined by 4.2%, impacted by legal fees related to the Bryant Park dispute [5] Non-Cash Charges - The company recorded $4.7 million in impairment charges at its Sequoia restaurant and recognized a $3.4 million goodwill impairment earlier in the fiscal year [6][9] - Despite these charges, Ark Restaurants maintained a solid balance sheet with $12.3 million in cash against $3.9 million in debt [6] Management Commentary - CEO Michael Weinstein noted that individual restaurants, excluding Bryant Park and Sequoia, are performing well, with Las Vegas properties growing cash flow despite a slowdown in visitors [7] - Management acknowledged that litigation-related costs and negative publicity continue to impact Bryant Park Grill, a significant source of revenue volatility [7] Factors Influencing Results - Ongoing legal disputes over Bryant Park Grill & Cafe have generated over $800,000 in legal expenses and negatively affected the restaurants' reputation, leading to lost bookings and weaker traffic [8] - The recognition of impairment charges at Sequoia highlighted broader challenges in the D.C. dining market, where demand has been suppressed due to hybrid work patterns and safety concerns [10] Year-over-Year Comparisons - The closure of El Rio Grande and the Tampa Food Court contributed to revenue declines, as these locations accounted for several million dollars in sales in prior periods [11] Guidance and Future Outlook - Management did not provide formal quantitative guidance but expressed a cautious outlook regarding the ongoing litigation over Bryant Park [12] - Potential upside exists from a possible Meadowlands casino license, which would allow Ark Restaurants to operate food and beverage concessions if approved [12] Other Developments - Ark Restaurants continues to operate Bryant Park Grill & Cafe while pursuing legal challenges, with these locations generating $19.7 million, or 15.4% of total revenues for the first nine months of fiscal 2025 [13] - The company completed extensions of key Las Vegas leases, committing to property refreshes slated for completion by late 2025 and early 2026 [14]

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides key administrative details about the company's SEC filing, including stock registration and filer status Stock Registration Details | Title of each class | Trading symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, par value $.01 per share | ARKR | The NASDAQ Stock Market LLC | Filer Status Classification | Large accelerated filer | ☐ | Accelerated filer | ☐ | | :-------------------- | :-- | :---------------- | :-- | | Non-accelerated filer | ☒ | Smaller Reporting Company | ☒ | | Emerging Growth Company | ☐ | | | - As of August 8, 2025, there were **3,606,157 shares** of the registrant's common stock outstanding[5](index=5&type=chunk) [Special Note Regarding Forward-Looking Statements](index=3&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section outlines forward-looking statements and inherent risks that could cause actual results to differ materially - The report contains forward-looking statements identified by words like "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "targets," "will likely result," "hopes," "will continue" or similar expressions[9](index=9&type=chunk) - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including economic conditions, sales, labor costs, food product costs, weather, consumer preferences, and competition[9](index=9&type=chunk) - Key risk factors include the adverse impact of the current political climate and economic conditions (inflation) on operating results, debt compliance, and asset impairment; increases in food, beverage, supply, wage, and benefit costs; challenges in opening new restaurants; vulnerability to consumer preferences, local conditions, adverse weather, and natural disasters; lease renewal difficulties (specifically Bryant Park Grill & Cafe and The Porch at Bryant Park); negative publicity; food safety concerns; reliance on executive officers; and IT system security breaches[10](index=10&type=chunk) [Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) This part presents the company's comprehensive financial statements and management's detailed analysis of its performance [Item 1. Consolidated Condensed Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Condensed%20Financial%20Statements) This section presents unaudited consolidated financial statements, including balance sheets, income, equity, and cash flows [Consolidated Condensed Balance Sheets](index=5&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) This section details the company's financial position, showing assets, liabilities, and equity at specific dates Consolidated Condensed Balance Sheets (In Thousands) | ASSETS | June 28, 2025 (unaudited) | September 28, 2024 (Note 1) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $12,325 | $10,273 | | Total current assets | $19,942 | $18,225 | | Fixed assets - Net | $28,390 | $31,569 | | Operating lease right-of-use assets - Net | $74,863 | $84,977 | | Goodwill | $— | $3,440 | | Total Assets | $136,340 | $156,041 | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | $22,709 | $28,884 | | Operating lease liabilities, less current portion | $77,427 | $83,516 | | Notes payable, less current portion, net | $2,015 | $— | | Total Liabilities | $102,151 | $112,400 | | Total Equity | $34,189 | $43,641 | | Total Liabilities and Equity | $136,340 | $156,041 | - Goodwill decreased from **$3,440 thousand** to **$0**, indicating a full impairment during the period[16](index=16&type=chunk) - Total assets decreased by **$19,701 thousand**, and total liabilities decreased by **$10,249 thousand** from September 28, 2024, to June 28, 2025[16](index=16&type=chunk) [Consolidated Condensed Statements of Operations](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) This section details the company's financial performance, showing revenues, expenses, and net income or loss Consolidated Condensed Statements of Operations (In Thousands, Unaudited) | Item | 13 Weeks Ended June 28, 2025 | 13 Weeks Ended June 29, 2024 | 39 Weeks Ended June 28, 2025 | 39 Weeks Ended June 29, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total revenues | $43,715 | $50,396 | $128,428 | $140,139 | | Total costs and expenses | $47,130 | $49,572 | $130,770 | $138,914 | | Operating income (loss) | $(3,415) | $824 | $(2,342) | $1,225 | | Income (loss) before income taxes | $(3,114) | $686 | $(2,245) | $1,088 | | Provision (benefit) for income taxes | $81 | $(213) | $5,019 | $(202) | | Consolidated net income (loss) | $(3,195) | $899 | $(7,264) | $1,290 | | Net income (loss) attributable to Ark Restaurants Corp. | $(3,454) | $640 | $(9,548) | $561 | | Basic EPS | $(0.96) | $0.18 | $(2.65) | $0.16 | | Diluted EPS | $(0.96) | $0.18 | $(2.65) | $0.15 | - The Company reported a significant operating loss of **$(3,415) thousand** for the 13 weeks ended June 28, 2025, compared to an operating income of **$824 thousand** in the prior year period, a **514.4% decrease**[17](index=17&type=chunk) - For the 39 weeks ended June 28, 2025, total revenues decreased by **8.4%** to **$128,428 thousand**, and the Company incurred a net loss attributable to Ark Restaurants Corp. of **$(9,548) thousand**, a substantial decline from a net income of **$561 thousand** in the prior year[17](index=17&type=chunk) [Consolidated Condensed Statements of Changes in Equity](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Changes%20in%20Equity) This section tracks changes in the company's equity, reflecting net income, stock transactions, and distributions Consolidated Condensed Statements of Changes in Equity (In Thousands) | Item | Balance - September 28, 2024 | Net income (loss) | Exercise of stock options | Stock-based compensation activity | Distributions to non-controlling interests | Balance - June 28, 2025 | | :-------------------------------- | :-------------------------- | :---------------- | :------------------------ | :-------------------------------- | :--------------------------------------- | :-------------------------- | | Total Ark Restaurants Corp. Shareholders' Equity | $44,137 | $(9,548) | $21 | $60 | $— | $34,670 | | Non-controlling Interests | $(496) | $2,284 | $— | $— | $(2,269) | $(481) | | Total Equity | $43,641 | $(7,264) | $21 | $60 | $(2,269) | $34,189 | - Total Ark Restaurants Corp. shareholders' equity decreased from **$44,137 thousand** at September 28, 2024, to **$34,670 thousand** at June 28, 2025, primarily due to the net loss incurred[19](index=19&type=chunk) - For the 39 weeks ended June 29, 2024, dividends paid amounted to **$2,028 thousand**, and distributions to non-controlling interests were **$1,158 thousand**[21](index=21&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) This section summarizes cash flows from operating, investing, and financing activities over specific periods Consolidated Condensed Statements of Cash Flows (In Thousands, Unaudited) | Item | 39 Weeks Ended June 28, 2025 | 39 Weeks Ended June 29, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $1,119 | $3,926 | | Net cash provided by (used in) investing activities | $4,662 | $(1,204) | | Net cash used in financing activities | $(3,729) | $(4,670) | | Net increase (decrease) in cash and cash equivalents | $2,052 | $(1,948) | | Cash and cash equivalents, End of period | $12,325 | $11,467 | - Net cash provided by operating activities decreased significantly from **$3,926 thousand** in 2024 to **$1,119 thousand** in 2025[22](index=22&type=chunk) - Net cash provided by investing activities saw a substantial increase to **$4,662 thousand** in 2025, primarily due to a **$5,500 thousand** payment from the termination of the Tampa Food Court lease and **$829 thousand** from condominium sales[22](index=22&type=chunk) [Notes to Consolidated Condensed Financial Statements](index=10&type=section&id=NOTES%20TO%20CONSOLIDATED%20CONDENSED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations and additional information supporting the consolidated financial statements [1. Basis of Presentation and Significant Accounting Policies](index=10&type=section&id=1.%20BASIS%20OF%20PRESENTATION%20AND%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines accounting principles, presentation methods, and key factors influencing financial reporting - The financial statements are prepared in accordance with GAAP for interim financial information and SEC rules, condensing or omitting certain disclosures[23](index=23&type=chunk) - Operating results in fiscal 2025 continued to be impacted by supply chain challenges and increased commodity and wage inflation, which could lead to further shifts in consumer behavior, staffing challenges, and potential asset impairments[24](index=24&type=chunk) - The Company's business is highly seasonal, with the second fiscal quarter (January-March) typically being the poorest performing, partially offset by Florida locations; best results are generally achieved in warmer weather due to outdoor dining, but these can be affected by adverse weather[28](index=28&type=chunk) - As of June 28, 2025, the Company operates **16 restaurants and bars**, **12 fast food concepts**, and catering operations, aggregated into a single operating segment[44](index=44&type=chunk) [2. Recent Restaurant Expansion and Other Developments](index=13&type=section&id=2.%20RECENT%20RESTAURANT%20EXPANSION%20AND%20OTHER%20DEVELOPMENTS) This note details recent lease extensions, renovation commitments, and new concept openings impacting the portfolio - The Company extended its lease for America at the New York-New York Hotel and Casino in Las Vegas, NV, through December 31, 2033, with a commitment to spend a minimum of **$4,000,000** on premises refresh by December 31, 2025; approximately **$400,000** has been spent to date, with completion expected by February 28, 2026[51](index=51&type=chunk) - Leases for Village Eateries, Broadway Burger Bar and Grill, and Gonzalez y Gonzalez in Las Vegas were extended through December 31, 2034 (or 2033 for the latter two), with a **$3,500,000** refresh commitment by December 31, 2025; a new concept, Lucky Pig, opened in November 2024 at a cost of **$700,000**, and an additional **$750,000** has been spent on other refreshes[52](index=52&type=chunk) [3. Recent Restaurant Dispositions and Other Developments](index=13&type=section&id=3.%20RECENT%20RESTAURANT%20DISPOSITIONS%20AND%20OTHER%20DEVELOPMENTS) This note describes recent restaurant closures, lease terminations, and asset sales, including associated gains - El Rio Grande closed permanently on January 3, 2025; the Company recognized a gain of **$178,000** for the 13 weeks ended June 28, 2025, and **$173,000** for the 39 weeks ended June 28, 2025, due to refinements of estimates related to its closure[53](index=53&type=chunk) - The lease for the food court at The Hard Rock Hotel and Casino in Tampa, FL, was terminated on November 26, 2024; the Company received a termination payment of **$5,500,000** and recorded a net gain of **$5,235,000** during the 13 weeks ended December 28, 2024[54](index=54&type=chunk) - The Company sold two condominium units at Island Beach Resort in Jensen Beach, FL, for net proceeds of **$829,000**, recording a gain of **$391,000** during the 13 weeks ended June 28, 2025; the Company plans to sell all remaining units[55](index=55&type=chunk) [4. Investment in and Receivable from New Meadowlands Racetrack](index=14&type=section&id=4.%20INVESTMENT%20IN%20AND%20RECEIVABLE%20FROM%20NEW%20MEADOWLANDS%20RACETRACK) This note details the company's investment and loan to New Meadowlands Racetrack, including ownership and rights - The Company's total investment in New Meadowlands Racetrack LLC (NMR) reached **$5,256,000** as of May 13, 2025, with an additional **$148,000** investment made during the period[56](index=56&type=chunk) - The Company holds an effective ownership interest of **7.4%** in NMR and has the exclusive right to operate food and beverage concessions in the gaming facility if casino gaming is approved[59](index=59&type=chunk) - A loan of **$1,500,000** to Meadowlands Newmark, LLC, with **3%** compounded monthly interest, is due June 30, 2029; the principal and accrued interest totaled **$1,476,000** as of June 28, 2025[62](index=62&type=chunk) [5. Accrued Expenses and Other Current Liabilities](index=15&type=section&id=5.%20ACCRUED%20EXPENSES%20AND%20OTHER%20CURRENT%20LIABILITIES) This note provides a breakdown of short-term financial obligations, including sales tax, wages, and customer deposits Accrued Expenses and Other Current Liabilities (In Thousands) | Item | June 28, 2025 | September 28, 2024 | | :-------------------------------- | :------------ | :----------------- | | Sales tax payable | $820 | $761 | | Accrued wages and payroll related costs | $3,605 | $4,548 | | Customer advance deposits | $2,736 | $4,382 | | Accrued occupancy and other operating expenses | $3,074 | $2,354 | | Total | $10,235 | $12,045 | - Total accrued expenses and other current liabilities decreased by **$1,810 thousand** from September 28, 2024, to June 28, 2025, primarily due to decreases in accrued wages and customer advance deposits[63](index=63&type=chunk) [6. Leases](index=15&type=section&id=6.%20LEASES) This note details the company's lease agreements, including lease expenses, weighted average terms, and discount rates - The Company leases restaurant locations and its corporate office under non-cancelable real estate lease agreements expiring through **2046**, all classified as operating leases[64](index=64&type=chunk)[65](index=65&type=chunk) Components of Lease Expense (In Thousands) | Item | 13 Weeks Ended June 28, 2025 | 13 Weeks Ended June 29, 2024 | 39 Weeks Ended June 28, 2025 | 39 Weeks Ended June 29, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Operating lease expense - occupancy expenses | $3,289 | $3,471 | $9,964 | $10,394 | | Variable lease expense - occupancy expenses | $775 | $994 | $2,730 | $3,118 | | Total lease expense | $4,185 | $4,584 | $13,057 | $13,875 | Weighted Average Lease Terms and Discount Rates | Item | June 28, 2025 | September 28, 2024 | | :-------------------------------- | :------------ | :----------------- | | Weighted average remaining lease term | 11.1 years | 11.5 years | | Weighted average discount rate | 6.3 % | 6.3 % | [7. Notes Payable](index=16&type=section&id=7.%20NOTES%20PAYABLE) This note outlines the company's promissory notes and the terms of its credit agreement with Bank Hapoalim B.M Notes Payable (In Thousands) | Item | June 28, 2025 | September 28, 2024 | | :------------------------------------------ | :------------ | :----------------- | | Promissory Note - Rustic Inn purchase | $2,403 | $2,617 | | Promissory Note - JB's on the Beach purchase | $1,000 | $1,750 | | Promissory Note - Sequoia renovation | $456 | $800 | | Promissory Note - Blue Moon Fish Company | $— | $68 | | Total | $3,859 | $5,235 | | Less: Current maturities | $(1,742) | $(5,193) | | Long-term portion | $2,015 | $— | - The Company's Credit Agreement with Bank Hapoalim B.M. (BHBM) was extended to **June 1, 2028**, and the maximum permitted obligations were reduced from **$30,000,000** to **$20,000,000**; the minimum tangible net worth covenant increased from **$22,000,000** to **$28,000,000**, and the annual net income covenant was removed[70](index=70&type=chunk) - As of June 28, 2025, no advances were outstanding under the Credit Agreement, and the weighted average interest on outstanding BHBM indebtedness was approximately **8.0%**[70](index=70&type=chunk) [8. Commitments and Contingencies](index=17&type=section&id=8.%20COMMITMENTS%20AND%20CONTINGENCIES) This note discusses ongoing legal disputes, particularly concerning Bryant Park leases, and other potential obligations - The Company is involved in a legal dispute regarding the leases for Bryant Park Grill & Cafe and The Porch at Bryant Park, which expired on **April 30, 2025**, and **March 31, 2025**, respectively; the Landlord selected a new operator, but the Company filed a lawsuit alleging a defective bid process and age discrimination[78](index=78&type=chunk)[79](index=79&type=chunk) - The Bryant Park locations collectively accounted for **$19.7 million** (**15.4%**) and **$23.3 million** (**16.7%**) of total revenues for the 39 weeks ended June 28, 2025, and June 29, 2024, respectively; the inability to extend these leases could have a material adverse effect on the Company's business[81](index=81&type=chunk) - Management believes that the ultimate resolution of various lawsuits (accidents, workers' compensation, employment discrimination) will not have a material adverse effect on the Company's financial position[77](index=77&type=chunk) [9. Stock Options](index=18&type=section&id=9.%20STOCK%20OPTIONS) This note provides details on stock option grants, activity, and associated compensation costs for reporting periods - On December 2, 2024, options to purchase **10,000 shares** of common stock were granted at an exercise price of **$9.99 per share**, with a grant date fair value of **$2.94 per share**, totaling approximately **$29,000**[83](index=83&type=chunk) Stock Option Activity (2025) | Item | Shares | Weighted Average Exercise Price | | :-------------------------------- | :----- | :------------------------------ | | Outstanding, beginning of period | 415,750 | $17.89 | | Granted | 10,000 | $9.99 | | Exercised | (2,000) | $10.65 | | Canceled or expired | (17,000) | $18.84 | | Outstanding and expected to vest, end of period | 406,750 | $17.45 | | Exercisable, end of period | 319,875 | $18.52 | | Shares available for future grant | 360,000 | | - Compensation cost for stock-based programs was approximately **$32,000** for the 13 weeks ended June 28, 2025 (down from **$51,000** in 2024), and **$114,000** for the 39 weeks ended June 28, 2025 (down from **$196,000** in 2024)[86](index=86&type=chunk) [10. Income Taxes](index=19&type=section&id=10.%20INCOME%20TAXES) This note explains the company's income tax provision, effective tax rates, and factors influencing tax liabilities - The provision for income taxes for the 13 weeks ended June 28, 2025, was **$81,000**, with an effective tax rate of **2.6%**, differing from the federal statutory rate of **21%** due to no tax benefit on current year pre-tax operating losses[89](index=89&type=chunk) - For the 39 weeks ended June 28, 2025, the provision for income taxes was **$5,019,000**, with an effective tax rate of **223.6%**, primarily due to a discrete tax provision of **$4,799,000** as net deferred tax assets were deemed no longer realizable[89](index=89&type=chunk) - The income tax benefit for the 39 weeks ended June 29, 2024, was **($202,000)**, with an effective tax rate of **18.6%**, influenced by FICA tax credits, non-controlling interest income, and PPP Loan forgiveness[90](index=90&type=chunk) [11. Income Per Share of Common Stock](index=20&type=section&id=11.%20INCOME%20PER%20SHARE%20OF%20COMMON%20STOCK) This note reconciles shares used in calculating basic and diluted earnings per share, including dilutive securities Reconciliation of Shares Used in Calculating EPS (In Thousands) | Item | 13 Weeks Ended June 28, 2025 | 13 Weeks Ended June 29, 2024 | 39 Weeks Ended June 28, 2025 | 39 Weeks Ended March 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Basic | 3,605 | 3,604 | 3,605 | 3,604 | | Effect of dilutive securities: Stock options | — | 23 | — | 24 | | Diluted | 3,605 | 3,627 | 3,605 | 3,628 | - For the 13- and 39-week periods ended June 28, 2025, the dilutive effect of **396,750 options** was not included in diluted EPS calculations as their impact would be anti-dilutive[94](index=94&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results, analyzing performance drivers, recent developments, and inflation impact [Recent Developments](index=22&type=section&id=Recent%20Developments) This section highlights key events, including the Bryant Park lease dispute and its potential financial implications - The Company is actively litigating to extend its leases for Bryant Park Grill & Cafe and The Porch at Bryant Park, which expired in **April** and **March 2025**, respectively; the Landlord selected a new operator, but the Company alleges a defective bid process and age discrimination[98](index=98&type=chunk)[99](index=99&type=chunk) - The Bryant Park locations generated **$19.7 million** (**15.4%** of total revenues) for the 39 weeks ended June 28, 2025, and **$23.3 million** (**16.7%** of total revenues) for the 39 weeks ended June 29, 2024; loss of these leases could materially impact the Company's financial results[101](index=101&type=chunk)[102](index=102&type=chunk) [Inflation and Other Matters](index=23&type=section&id=Inflation%20and%20Other%20Matters) This section addresses macroeconomic events like inflation, their impact on operations, and potential mitigation - Operating results continue to be impacted by geopolitical and macroeconomic events, leading to increased commodity prices, wage inflation, and other costs[103](index=103&type=chunk) - Potential future impacts include shifts in consumer behavior, staffing challenges, supply chain disruptions, and delays in restaurant openings/acquisitions; mitigation actions, such as dividend suspension or increased borrowings, may be necessary and could lead to asset impairments[103](index=103&type=chunk) [Overview](index=23&type=section&id=Overview) This section provides a brief description of the company's business, including its restaurant portfolio and operating segment - As of June 28, 2025, the Company owned and operated **16 restaurants and bars**, **12 fast food concepts**, and catering operations exclusively in the United States, all aggregated into a single operating segment[104](index=104&type=chunk) [Accounting Period](index=23&type=section&id=Accounting%20Period) This section explains the company's fiscal year-end and its 52/53-week accounting format for consistent comparisons - The Company's fiscal year ends on the Saturday nearest September 30, using a 52/53-week format to improve year-to-year comparisons[105](index=105&type=chunk) [Seasonality](index=23&type=section&id=Seasonality) This section describes the seasonal nature of the company's business, with varying performance across fiscal quarters - The business is highly seasonal with substantial fixed costs; the second fiscal quarter (January-March) is typically the poorest, while warmer weather months, especially at outdoor dining locations like Bryant Park and Sequoia, yield the best results[106](index=106&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) This section summarizes the company's financial performance, highlighting operating income or loss and key variances - Operating loss for the 13 weeks ended June 28, 2025, was **$(3,415) thousand**, a **514.4% decrease** from operating income of **$824 thousand** in the prior year, primarily due to increased impairment charges[107](index=107&type=chunk)[109](index=109&type=chunk) - For the 39 weeks ended June 28, 2025, operating loss was **$(2,342) thousand**, a **291.2% decrease** from operating income of **$1,225 thousand** in the prior year, driven by significant impairment charges and a goodwill impairment[108](index=108&type=chunk)[109](index=109&type=chunk) Operating Results Summary (In Thousands) | Item | 13 Weeks Ended June 28, 2025 | 13 Weeks Ended June 29, 2024 | Variance ($) | Variance (%) | 39 Weeks Ended June 28, 2025 | 39 Weeks Ended June 29, 2024 | Variance ($) | Variance (%) | | :------------------------------------------ | :-------------------------- | :-------------------------- | :----------- | :----------- | :-------------------------- | :-------------------------- | :----------- | :----------- | | Total revenues | $43,715 | $50,396 | $(6,681) | -13.3 % | $128,428 | $140,139 | $(11,711) | -8.4 % | | Total costs and expenses | $47,130 | $49,572 | $(2,442) | -4.9 % | $130,770 | $138,914 | $(8,144) | -5.9 % | | OPERATING INCOME (LOSS) | $(3,415) | $824 | $(4,239) | -514.4 % | $(2,342) | $1,225 | $(3,567) | -291.2 % | [Revenues](index=24&type=section&id=Revenues) This section analyzes the drivers behind changes in total revenues, including same-store sales and restaurant closures - Total revenues decreased by **13.3%** for the 13 weeks ended June 28, 2025, and by **8.4%** for the 39 weeks ended June 28, 2025, primarily due to decreases in same-store sales and the closures of El Rio Grande and the Tampa Food Court[110](index=110&type=chunk) [Food and Beverage Same-Store Sales](index=24&type=section&id=Food%20and%20Beverage%20Same-Store%20Sales) This section provides a detailed breakdown of same-store sales performance across different geographic locations Company-wide Same-Store Sales Variance (13 Weeks Ended June 28, 2025 vs. June 29, 2024) | Location | Sales (2025) | Sales (2024) | Variance ($) | Variance (%) | | :--------------- | :----------- | :----------- | :----------- | :----------- | | Las Vegas | $13,225 | $13,532 | $(307) | -2.3 % | | New York | $8,273 | $10,455 | $(2,182) | -20.9 % | | Washington, D.C. | $2,515 | $3,178 | $(663) | -20.9 % | | Atlantic City, NJ | $595 | $734 | $(139) | -18.9 % | | Alabama | $5,333 | $5,690 | $(357) | -6.3 % | | Florida | $12,801 | $12,575 | $226 | 1.8 % | | **Same-store sales** | **$42,742** | **$46,164** | **$(3,422)** | **-7.4 %** | - Same-store sales in New York decreased **20.9%** due to reduced catering and a la carte revenue at Bryant Park Grill, attributed to negative publicity from the landlord dispute[112](index=112&type=chunk) - Washington, D.C. same-store sales decreased **20.9%** due to lower headcounts from hybrid work schedules, government layoffs, and elevated crime rates[112](index=112&type=chunk) Company-wide Same-Store Sales Variance (39 Weeks Ended June 28, 2025 vs. June 29, 2024) | Location | Sales (2025) | Sales (2024) | Variance ($) | Variance (%) | | :--------------- | :----------- | :----------- | :----------- | :----------- | | Las Vegas | $41,479 | $42,175 | $(696) | -1.7 % | | New York | $23,474 | $26,188 | $(2,714) | -10.4 % | | Washington, D.C. | $5,907 | $7,079 | $(1,172) | -16.6 % | | Atlantic City, NJ | $1,825 | $2,052 | $(227) | -11.1 % | | Alabama | $12,076 | $12,334 | $(258) | -2.1 % | | Florida | $39,141 | $38,355 | $786 | 2.0 % | | **Same-store sales** | **$123,902** | **$128,183** | **$(4,281)** | **-3.3 %** | [Costs and Expenses](index=28&type=section&id=Costs%20and%20Expenses) This section analyzes cost categories as a percentage of total revenues, including food, payroll, and impairment losses Costs and Expenses as % of Total Revenues (13 & 39 Weeks Ended June 28, 2025 vs. June 29, 2024) | Expense Category | 13 Weeks 2025 (% of Rev) | 13 Weeks 2024 (% of Rev) | 39 Weeks 2025 (% of Rev) | 39 Weeks 2024 (% of Rev) | | :------------------------------------------ | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Food and beverage cost of sales | 27.6 % | 26.4 % | 27.8 % | 26.8 % | | Payroll expenses | 35.0 % | 34.7 % | 35.9 % | 35.7 % | | Occupancy expenses | 12.5 % | 12.4 % | 13.3 % | 13.1 % | | Other operating costs and expenses | 13.8 % | 12.5 % | 13.6 % | 13.0 % | | General and administrative expenses | 6.5 % | 5.3 % | 7.2 % | 6.5 % | | Depreciation and amortization | 2.2 % | 2.0 % | 1.9 % | 2.3 % | | Impairment losses on right-of-use and long-lived assets | 10.8 % | 5.0 % | 3.7 % | 1.8 % | | Goodwill impairment | — % | — % | 2.7 % | — % | - Food and beverage costs as a percentage of total revenues increased due to higher commodity prices and weaker event business in New York City and Washington, D.C[114](index=114&type=chunk) - Impairment losses on right-of-use and long-lived assets at the Sequoia property totaled **$4,700,000** for the 39 weeks ended June 28, 2025, an increase from **$2,500,000** in the prior year, due to lower than expected operating results[123](index=123&type=chunk) - A non-cash goodwill impairment charge of **$3,440,000** was recognized for the 39 weeks ended June 28, 2025, triggered by a decline in stock price and uncertainty regarding the Bryant Park leases[125](index=125&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet financial obligations, including cash position and credit facilities - Cash and cash equivalents stood at **$12,325,000** as of June 28, 2025; the working capital deficit decreased from **$10,659,000** at June 29, 2024, to **$2,767,000** at June 28, 2025, driven by the Tampa Food Court lease termination payment, amended notes payable due dates, and condominium sales proceeds[128](index=128&type=chunk) - Net cash provided by operating activities decreased to **$1,119,000** for the 39 weeks ended June 28, 2025, from **$3,926,000** in the prior year, primarily due to a decrease in operating income excluding specific gains and impairments[131](index=131&type=chunk) - The Credit Agreement with Bank Hapoalim B.M. was extended to **June 1, 2028**, with the maximum permitted obligations reduced to **$20,000,000** and the minimum tangible net worth covenant increased to **$28,000,000**[134](index=134&type=chunk) - A valuation allowance of **$4,799,000** was recorded against net deferred tax assets as of March 29, 2025, due to the Company being in a cumulative loss position, primarily from the goodwill impairment[137](index=137&type=chunk) - Management believes existing cash, internal cash generation, current banking facilities, and ability to secure additional financing are sufficient for capital expenditures, debt maturities, and operating activities for at least the next **12 months**, excluding the potential material impact of losing the Bryant Park leases[142](index=142&type=chunk) [Critical Accounting Estimates](index=32&type=section&id=Critical%20Accounting%20Estimates) This section identifies key accounting judgments and assumptions that significantly impact the financial statements - Critical accounting estimates include projected cash flows for fixed asset impairments, allowances for bad debts, discount rates for lease accounting, useful lives and recoverability of long-lived assets, fair values of financial instruments, and the realizable value of tax assets[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there are no applicable quantitative and qualitative disclosures about market risk for the Company - Not Applicable[145](index=145&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures, with no material changes in internal control - Management, including the principal executive officer and principal financial officer, concluded that the Company's disclosure controls and procedures were effective as of **June 28, 2025**[146](index=146&type=chunk) - There have been no material changes in internal control over financial reporting during the third quarter of fiscal **2025**[147](index=147&type=chunk) - A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that objectives are met due to inherent limitations[148](index=148&type=chunk) [Part II. Other Information](index=34&type=section&id=PART%20II%20OTHER%20INFORMATION) This part covers miscellaneous disclosures not included in the financial statements, such as legal proceedings and exhibits [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 for information regarding legal proceedings, primarily the Bryant Park leases dispute - Information regarding legal proceedings is incorporated by reference from Note 8 - Commitments and Contingencies to the Consolidated Condensed Financial Statements[151](index=151&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section indicates that there are no new or updated risk factors to report for this quarterly period - Not Applicable[152](index=152&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or use of proceeds to report - None[153](index=153&type=chunk) [Item 3. Defaults upon Senior Securities](index=34&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This section indicates that there were no defaults upon senior securities to report - None[154](index=154&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the Company - Not Applicable[155](index=155&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) This section provides information on insider trading arrangements, noting no new Rule 10b5-1 plans in Q3 2025 - During the third quarter of **2025**, none of the Company's directors or executive officers adopted or terminated Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements[156](index=156&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including credit agreement amendments and certifications - Key exhibits include the Omnibus Amendment (**10.1**), CEO and CFO certifications (**31.1**, **31.2**, **32**), and various XBRL documents (**101.INS**, **101.SCH**, **101.CAL**, **101.DEF**, **101.LAB**, **101.PRE**, **104**)[158](index=158&type=chunk) [Signatures](index=35&type=section&id=SIGNATURES) This section contains the required signatures for the Form 10-Q, confirming its submission by executive officers - The report was signed on **August 12, 2025**, by Michael Weinstein, Chairman of the Board and Chief Executive Officer, and Anthony J. Sirica, President, Chief Financial Officer and Director[160](index=160&type=chunk)[161](index=161&type=chunk)