Core Viewpoint - Ark Restaurants Corp. reported a decline in revenues and net income for the first quarter of fiscal 2026, with challenges stemming from various operational issues and external factors impacting performance [2][4][11]. Financial Performance - Total revenues for the first quarter were $40.7 million, down 9.4% from $44.9 million in the prior-year period, with a comparable decrease of about 7.4% when excluding closed operations [2]. - Net income fell sharply to $0.9 million, or $0.25 per diluted share, representing a 71.7% decline in net income and a 71.6% drop in earnings per share compared to the previous year [4]. - Operating income decreased by 80.8% to $1.1 million from $5.7 million a year earlier [4]. Operational Metrics - Company-wide same-store sales, excluding Tampa, decreased by 7.3% year over year, primarily due to lower revenues at key locations [3]. - Food and beverage costs declined by 11.9% to $10.7 million, while payroll expenses decreased by 13.4% to $14.2 million, indicating effective cost control measures [5]. - Adjusted EBITDA rose by 10.9% to $1.5 million, reflecting the absence of one-time items that had previously inflated the prior-year results [4]. Management Insights - Management described the quarter as "quiet" compared to previous periods, with a focus on operational efficiencies and cost controls [7]. - Strong performance was noted in Las Vegas, particularly at the New York-New York Hotel & Casino, despite lower overall traffic on the Las Vegas Strip [7]. - Challenges were reported in Florida, with revenues down 10% to 13% at full-service locations due to demand and weather disruptions [8]. Strategic Outlook - While no formal financial guidance was provided, management indicated expectations for improved cash flow as renovation spending at the America property decreases [13]. - The company is pursuing opportunities related to its investment in New Meadowlands Racetrack LLC, with potential long-term growth avenues contingent on a New Jersey referendum on casino gambling [13][15]. - Ongoing legal proceedings concerning leases at Bryant Park could have a material adverse effect if the company loses these locations [14].

Financial Performance - The Company's operating income for the 13 weeks ended December 27, 2025, decreased by 80.8% compared to the same period last year, with adjusted operating income increasing by 82.2% to $1,093,000[116]. - Total revenues for the 13 weeks ended December 27, 2025, decreased by 9.4% to $40,749,000, primarily due to declines in same-store sales and the closure of the Tampa Food Court[119]. - Same-store sales decreased by 7.3% during the 13 weeks ended December 27, 2025, with significant declines in New York (14.7%) and Las Vegas (6.4%)[120]. - Food and beverage sales for the 13 weeks ended December 27, 2025, were $40,246,000, down from $44,442,000 in the prior year, reflecting a decrease of 9.4%[118]. - Payroll expenses decreased by 13.4% to $14,209,000, representing 34.9% of total revenues, down from 36.5% in the previous year[122]. - Food and beverage cost of sales decreased by 11.9% to $10,662,000, accounting for 26.2% of total revenues, compared to 26.9% in the prior year[122]. Legal and Operational Challenges - The Company is involved in ongoing litigation regarding the lease for Bryant Park Grill & Café, which accounted for approximately 19.5% of total revenue for the 13 weeks ended December 27, 2025[111]. - The Company has initiated legal proceedings to challenge the lease award process for Bryant Park locations, which could materially affect its financial condition[110]. - The Company continues to operate its restaurants while facing uncertainty regarding the lease dispute, which may adversely affect future revenues[111]. Investments and Future Prospects - The New Meadowlands Racetrack LLC is pursuing a full casino license, with a potential referendum in November 2026 that could impact the Company's investment[113]. - The company has made a total investment of $5,256,000 in New Meadowlands Racetrack LLC since March 2013[141]. Cash Flow and Financial Position - As of December 27, 2025, the company had cash and cash equivalents of $9,139,000, total debt of $2,987,000, and a working capital deficit of $4,954,000, an improvement from a deficit of $5,377,000 at September 27, 2025[132]. - Net cash used in operating activities for the 13 weeks ended December 27, 2025 was $550,000, a decrease from $1,346,000 in the same period last year[134]. - Net cash used in investing activities for the 13 weeks ended December 27, 2025 was $858,000, compared to net cash provided of $4,895,000 in the same period last year[135]. - The company entered into a Credit Agreement that reduced the maximum permitted obligations from $30,000,000 to $20,000,000 and extended the maturity date to June 1, 2028[145]. - The company believes its existing cash balances and internal cash-generating capabilities are sufficient to finance capital expenditures and operating activities for at least the next 12 months[147]. Asset Management - Depreciation and amortization expense for the 13 weeks ended December 27, 2025 decreased due to certain assets becoming fully depreciated and the removal of assets associated with the Tampa Food Court[127]. - The company recorded a loss of $876,000 related to the closure of El Rio Grande, with additional operating losses of $146,000 incurred during the 13 weeks ended December 28, 2024[128]. - A gain of $5,235,000 was recorded from the termination of the Tampa Food Court lease during the 13 weeks ended December 28, 2024[130]. - The Bryant Park Grill & Cafe and The Porch at Bryant Park accounted for $7.9 million and $9.9 million of total revenues for the 13 weeks ended December 27, 2025 and December 28, 2024, respectively, representing approximately 19.5% and 22.3% of total revenue[139].

Financial Data and Key Metrics Changes - Adjusted EBITDA improved by approximately $150,000 compared to the previous year [8] - Cash balance stands at over $9 million, with total debt at $3 million, indicating a stable balance sheet [8][10] Business Line Data and Key Metrics Changes - Las Vegas operations are performing well despite a 11% decline on the Strip, with improved efficiency noted [11] - Full-service restaurants in Florida are experiencing a revenue decline of 10% to 13%, leading to squeezed margins [11] - Hollywood fast food at Hard Rock continues to perform exceptionally well [12] - New management at Sequoia in Washington is showing promise, with signs of improvement [12] Market Data and Key Metrics Changes - Alabama's market conditions are stable, while Florida has faced severe weather impacting revenue, with some restaurants down 40% recently [28] - New York's Bryant Park is still affected by ongoing litigation, impacting event business but showing signs of recovery [12][13] Company Strategy and Development Direction - The company is focusing on operational efficiency and cost management rather than significant price increases [19][20] - There are potential expansion opportunities in Las Vegas, indicating a strategic focus on growth in that market [11] - The Meadowlands project is under survey to gauge public support for a casino, which could influence future operations [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of weather on traffic, particularly in Florida and New York, but remains optimistic about future revenue from events [28][12] - The company expects cash position to improve following the completion of the America build-out [10] Other Important Information - The company is in litigation regarding Bryant Park, with management expressing confidence in their position based on recent discoveries [39] - Potential dilution of ownership at the Meadowlands is acknowledged, but management emphasizes the importance of maintaining exclusive rights to food and beverage operations [41][42] Q&A Session Summary Question: Impact of cost reductions on traffic - Management noted that while costs have decreased, it is difficult to determine the exact impact on traffic due to various external factors [19][20] Question: Weather impact on traffic trends - Management confirmed that Florida has faced severe cold weather, significantly affecting restaurant performance [28] Question: Litigation status at Bryant Park - Management expressed confidence in their position due to beneficial discoveries during the litigation process [39] Question: Expected dilution from Meadowlands ownership - Management indicated that while there may be some dilution, exclusive rights to food and beverage operations would remain intact [41][42]

Financial Data and Key Metrics Changes - Adjusted EBITDA improved by approximately $150,000 compared to the previous year [8] - Cash balance stands at over $9 million, with total debt at $3 million, indicating a stable balance sheet with no significant changes [8][10] Business Line Data and Key Metrics Changes - Las Vegas operations are performing well despite a general decline of 11% on the Strip, with improved efficiency noted [11] - Full-service restaurants in Florida are experiencing a revenue decline of 10-13%, leading to squeezed margins [11] - Fast food operations in Hollywood at the Hard Rock are performing exceptionally well [12] Market Data and Key Metrics Changes - Alabama's market conditions are stable, while Florida has faced severe weather impacting revenue, with some restaurants down 40% in the last week [11][28] - New York's Bryant Park location is still affected by ongoing litigation, impacting event business but showing signs of improvement [12][13] Company Strategy and Development Direction - The company is focusing on operational efficiency and has reengineered menu items to reduce costs without significantly raising prices [20][25] - There are potential expansion opportunities in Las Vegas, and the company is surveying public opinion regarding a casino referendum in the Meadowlands [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of inflation on expenses, despite efforts to maintain efficiency [12] - The company expects cash flow to improve following the completion of the America build-out and anticipates better revenue from events in Bryant Park this year [10][13] Other Important Information - The company is in a litigation process regarding Bryant Park, with management feeling optimistic about their position based on recent discoveries [39] - There may be dilution in ownership related to the Meadowlands casino, but the company retains exclusivity on food and beverage operations [41][42] Q&A Session Summary Question: Impact of cost reductions on traffic - Management noted that while costs have decreased, it is difficult to determine the exact impact on traffic due to various external factors [19][20] Question: Weather impact on traffic trends - Management confirmed that Florida's recent cold weather has severely affected restaurant traffic, with significant revenue drops reported [28] Question: Litigation status at Bryant Park - Management expressed confidence in their position due to beneficial findings during the discovery process, although the outcome remains uncertain [39] Question: Ownership dilution at Meadowlands - Management indicated that while there may be dilution, the exclusivity on food and beverage operations will remain intact [41][42]

Financial Data and Key Metrics Changes - Adjusted EBITDA improved by approximately $150,000 compared to the previous year [8] - Cash balance stands at over $9 million, with total debt at $3 million, indicating a stable balance sheet [8] Business Line Data and Key Metrics Changes - Las Vegas operations are performing well despite a general decline of 11% on the Strip, with improved efficiency noted [11] - Full-service restaurants in Florida are experiencing a revenue decline of 10-13%, leading to squeezed margins [12] - Hollywood fast food at Hard Rock continues to perform exceptionally well [12] - New management at Sequoia in Washington is showing promise, with signs of improvement [12] Market Data and Key Metrics Changes - Alabama's market conditions are stable, while Florida has faced significant challenges due to unusually cold weather, impacting revenues by as much as 40% in some locations [26][28] - New York's Bryant Park location is still affected by ongoing litigation, but there are signs of potential recovery in event business [12][13] Company Strategy and Development Direction - The company is focused on improving operational efficiency rather than significantly raising prices, with some menu reengineering to reduce costs [20] - There are ongoing efforts to explore expansion opportunities in Las Vegas [11] - The company is conducting surveys regarding public support for a casino in the Meadowlands, which could influence future operations [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of inflation on expenses, despite efforts to maintain efficiency [12] - The company expects cash flow to improve following the completion of the America build-out [10] - Management is optimistic about the potential for increased event business in Bryant Park despite current challenges [13] Other Important Information - The company is in a litigation process regarding Bryant Park, with management expressing confidence in their position based on recent discoveries [40] - There may be dilution of ownership in the Meadowlands casino project, but the company retains exclusive rights to food and beverage operations [43] Q&A Session Summary Question: Impact of cost reductions on traffic - Management noted that while costs have decreased, it is difficult to determine the exact impact on traffic due to various external factors [19] Question: Clarification on Bryant Park litigation - Management believes they are in a strong position due to beneficial findings during the discovery process, although the outcome remains uncertain [40] Question: Ownership dilution in Meadowlands - Management indicated that while there may be dilution based on the deal made with an operator, exclusive rights to food and beverage will remain unaffected [43]

Financial Performance - Total revenues for the 13 weeks ended December 27, 2025, were $40,749,000, a decrease from $44,988,000 for the same period in 2024, reflecting a decline of approximately 5.5%[5] - EBITDA, as adjusted, for the current quarter was $1,529,000, an increase of about $150,000 compared to $1,378,000 in the prior year comparable quarter[3] - Net income attributable to Ark Restaurants Corp. for the current quarter was $896,000, or $0.25 per share, down from $3,164,000, or $0.88 per share, in the prior year[7] Sales Performance - Same store sales decreased by 7.3% for the 13 weeks ended December 27, 2025, primarily due to declines in catering and a la carte revenue at the Bryant Park Grill[6] - The Bryant Park Grill & Café and The Porch at Bryant Park accounted for approximately 19.5% and 22.3% of total revenue for the current and prior year quarters, respectively[11] Financial Position - The company had cash and cash equivalents of $9,139,000 and total outstanding debt of $2,987,000 as of December 27, 2025[4] Legal and Operational Issues - The ongoing lease dispute for the Bryant Park Grill & Café is expected to have a material adverse effect on the company's business and financial condition[11] - The company is pursuing legal action regarding the lease award process for the Bryant Park locations, which remains unresolved[10] Business Operations - Ark Restaurants operates 16 restaurants and bars across multiple locations, including New York City, Florida, Washington, D.C., and Las Vegas[18] Future Prospects - The New Meadowlands Racetrack is seeking a full casino license, which could significantly impact future revenue if successful[12]

Core Viewpoint - Ark Restaurants Corp. reported a decline in net income and revenues for the first quarter of 2026, primarily due to challenges at the Bryant Park Grill & Café and the D.C. market, while other locations performed well [1][2]. Financial Performance - EBITDA for the first quarter ended December 27, 2025, was $1,529,000, an increase of approximately $150,000 from $1,378,000 in the same quarter of the previous year [1]. - Net income for the current quarter was $896,000, or $0.25 per share, compared to $3,164,000, or $0.88 per share, in the prior year [1][3]. - Total revenues for the 13 weeks ended December 27, 2025, were $40,749,000, down from $44,988,000 for the same period in 2024 [1][3]. - Same store sales decreased by 7.3% for the 13 weeks ended December 27, 2025, compared to the previous year, largely due to declines in catering and a la carte revenue at the Bryant Park Grill [1]. Operational Insights - The Bryant Park Grill & Café and The Porch at Bryant Park leases expired in 2025, and the company is involved in legal proceedings regarding the lease award process, which has created uncertainty affecting revenues [1][2]. - The Bryant Park Grill & Café accounted for approximately 19.5% of total revenue for the current quarter, down from 22.3% in the prior year [1]. - Operations at the New York-New York Hotel and Casino in Las Vegas showed increased cash flow despite lower customer traffic on the Strip, while other locations like Rustic Inn in Florida and Robert in NYC performed better than last year [1]. Investment and Future Prospects - Ark Restaurants has invested in New Meadowlands Racetrack LLC, which is pursuing a full casino license that could significantly impact future revenues if successful [2]. - A proposed constitutional amendment in New Jersey could allow for casino gambling at the Meadowlands Racetrack, with potential for a referendum in November 2026 [2].

Core Insights - The restaurant industry is facing mixed operating conditions characterized by cautious consumer spending, cost pressures, and the need to protect margins without sacrificing traffic [1][2] Company Overview - Rave Restaurant Group, Inc. (RAVE) operates an asset-light, franchise-driven model focused on Pizza Inn and Pie Five, generating revenue mainly through royalties and franchise-related fees [1][2] - Ark Restaurants Corp. (ARKR) employs a more asset- and operations-intensive model, owning and running a portfolio of full-service and fast-casual restaurants, which exposes it to higher operational risks [1][2] Stock Performance & Valuation - RAVE has outperformed ARKR in stock performance, with RAVE up 11.2% over the past three months and 35.3% over the past year, while ARKR is down 3.7% and 44.1% respectively [3] - RAVE's trailing 12-month enterprise value-to-sales (EV/S) ratio is 2.8X, above its five-year median of 1.9X, while ARKR's is at 0.1X, below its median of 0.3X [5] Factors Driving Rave Restaurant's Stock - RAVE's focused, franchise-led strategy aims for consistent profitability, supported by the strength of the Pizza Inn brand and solid franchisee engagement [8] - The asset-light business model limits exposure to labor and food cost volatility, supporting margin stability and sustained profitability [9] - RAVE's strong balance sheet, with no debt and ample liquidity, provides strategic flexibility for franchise development and brand initiatives [10] Factors Driving Ark Restaurants' Stock - ARKR's performance is influenced by its diversified restaurant portfolio, with some locations showing improved efficiency despite challenges in others [11] - The ongoing lease dispute at Bryant Park has impacted results, but management reports positive cash flow from current operations, which may stabilize performance [12] - ARKR maintains solid liquidity and manageable leverage, with potential growth from its investment tied to the Meadowlands Racetrack [13] Investment Recommendation - RAVE is viewed as the more attractive investment option due to its strong stock performance, scalable structure, and fewer near-term execution risks [15][17] - ARKR's low valuation reflects ongoing operational uncertainties, and until these issues are resolved, the valuation gap may not lead to sustained upside [16]

Core Viewpoint - Ark Restaurants Corp. will hold a conference call to discuss its financial results for the first quarter ending December 27, 2025, on February 10, 2026, at 11:00 a.m. Eastern Time [1] Group 1 - The conference call is intended for investors and analysts [1] - Dial-in numbers for participation include a toll-free number (1-877-407-4018) and an international number (1-201-689-8471) [1] - Participants can also access the conference call through a provided online link [1]

Core Viewpoint - Restaurant operators are facing challenges due to uneven consumer spending, high labor and food costs, and the need for concept refreshment, with Ark Restaurants Corp. (ARKR) and Flanigan's Enterprises, Inc. (BDL) representing two distinct strategies within the industry [1][3]. Company Overview - Ark Restaurants operates destination-oriented restaurants and bars in high-traffic urban and tourist markets, while Flanigan's focuses on casual dining in Florida and includes package liquor stores in its portfolio [1][2]. - BDL's business model benefits from a diversified revenue base, including high-volume liquor retail, which provides consistent demand despite economic fluctuations [7][16]. Stock Performance & Valuation - Over the past three months, BDL's stock has decreased by 1%, outperforming ARKR, which has seen a decline of 7.7%. In the past year, BDL has increased by 23.5%, while ARKR has lost 50.4% [4]. - BDL's trailing enterprise value-to-sales (EV/S) ratio is 0.28X, above its five-year median of 0.26X, while ARKR's ratio is 0.09X, below its median of 0.27X. Both companies are considered inexpensive compared to the Retail-Wholesale sector average of 1.90X [5]. Factors Driving Flanigan's Stock - Flanigan's dual-revenue structure allows it to capture both on-premise dining and off-premise alcohol sales, enhancing revenue stability [7]. - The company has effectively managed inflationary pressures through strategic price increases and centralized purchasing, leading to improved profitability despite rising operating costs [8]. - Flanigan's controlled expansion strategy through limited partnerships helps maintain operational oversight and reduces capital risk while enhancing cash flow visibility [9]. Factors Driving Ark Restaurants Stock - Ark Restaurants' portfolio is centered around large, destination restaurants in urban and tourist locations, benefiting from event-driven demand and seasonal traffic [10]. - The company is actively reshaping its portfolio by exiting underperforming assets and reallocating capital to higher-return opportunities, which supports long-term operational stability [11]. - Ark's minority investment in New Meadowlands Racetrack offers potential long-term revenue opportunities tied to a possible casino development, adding an element of optionality for investors [12]. Comparative Analysis - The differing operational models of ARKR and BDL present contrasting risk-reward profiles, with BDL's stability and diversified revenue mix providing more consistent demand visibility compared to ARKR's event-sensitive structure [15][16]. - BDL's stock performance and operational structure suggest it is a more compelling choice for investors seeking stability, while ARKR remains a higher-risk option due to its concentrated asset risk [17].