Financial Performance - Total revenues for the first quarter ended December 28, 2024, were $44,988,000, a decrease of 5.3% compared to $47,487,000 for the same period in 2023[3] - Company-wide same store sales decreased by 2.3% for the 13 weeks ended December 28, 2024, compared to the prior year[4] - Net income attributable to Ark Restaurants Corp. for the quarter was $3,164,000, or $0.88 per share, compared to $1,370,000, or $0.38 per share, for the same period in 2023[5] - Adjusted EBITDA for the quarter was $1,378,000, down from $2,572,000 in the prior year[5] - Operating income for the quarter was $5,689,000, significantly higher than $1,603,000 in the same period last year[18] Cash and Debt Position - The company had cash and cash equivalents of $13,101,000 and total outstanding debt of $4,702,000 as of December 28, 2024[6] Impact of Closures - The closure of El Rio Grande resulted in a loss of $146,000 during the quarter, following a prior loss of $876,000 recorded in the previous fiscal year[7] - A gain of $5,235,000 was recorded from the closure of the Tampa Food Court during the quarter[8] - The company plans to distribute approximately 35% of the net proceeds from the Tampa Food Court closure to other equity holders during the second fiscal quarter of 2025[8] Lease Management - The company is pursuing options to protect its interests regarding the leases for Bryant Park Grill & Cafe and The Porch at Bryant Park, which expire on April 30, 2025[10]

Lease Agreements and Terminations - The company owns a 19.2% interest in the partnership that owns El Rio Grande and will terminate the lease and close the property permanently on or around January 1, 2025[31] - The company owns a 64.4% interest in the partnership that owns the Tampa and Hollywood Food Courts and agreed to terminate its lease for the food court at The Hard Rock Hotel and Casino in Tampa, FL on November 26, 2024[33] - The company extended its lease for Gallagher's Steakhouse at the New York-New York Hotel and Casino in Las Vegas, NV through December 31, 2032, spending approximately $1,900,000 on refresh[36] - The company extended its lease for America at the New York-New York Hotel and Casino in Las Vegas, NV through December 31, 2033, agreeing to spend a minimum of $4,000,000 on refresh, with $100,000 spent to date[37] - The company extended its lease for the Village Eateries at the New York-New York Hotel and Casino in Las Vegas, NV through December 31, 2034, agreeing to spend a minimum of $3,500,000 on refresh, with $950,000 spent to date[38] - The company recorded a loss of $876,000 in connection with the termination of the El Rio Grande lease, including $398,000 in rent and other costs, $94,000 in severance, $269,000 in impairment charges, and $238,000 in security deposit write-off[42] Investments and Distributions - The company made a total investment of $5,108,000 in New Meadowlands Racetrack LLC, with an effective ownership interest of 7.4%[43] - The company received distributions of $26,000 and $52,000 from New Meadowlands Racetrack LLC for the years ended September 28, 2024, and September 30, 2023, respectively[45] Employment and Seasonality - The company employed 1,862 persons as of November 30, 2024, including 1,246 full-time and 616 part-time employees[55] - The company’s business is highly seasonal, with the second quarter (January, February, and March) being the poorest performing quarter, while the warmer weather months yield the best results[64] Company Information and SEC Reports - Company's annual, quarterly, and current reports are available on its website www.arkrestaurants.com[65] - SEC reports can be accessed through the investor relations section of the company's website[65] - Information on the company's website is not part of any SEC filings[65] - SEC reports are also available at the SEC's Office of Investor Education and Advocacy[66] - SEC maintains an Internet website www.sec.gov for viewing company information[66] - Company's principal executive offices are located at 85 Fifth Avenue, New York, New York 10003[67] - Company's telephone number is (212) 206-8800[67] Market Risk Disclosures - Quantitative and Qualitative Disclosures About Market Risk are not applicable[180]

Core Viewpoint - Ark Restaurants Corp. has faced significant challenges in its financial performance, with a notable decline in stock value and revenues, while management is exploring new growth opportunities and operational efficiencies [1][2][3]. Financial Performance - For Q4 fiscal 2024, total revenues were $43.4 million, down 2.2% from $44.4 million year-over-year, with a net loss of $4.5 million or $1.24 per share compared to a net loss of $10.4 million or $2.88 per share in the prior year [2]. - For the full fiscal year, revenues decreased by 0.7% to $183.5 million from $184.8 million, while the net loss narrowed to $3.9 million or $1.08 per share from a loss of $5.9 million or $1.65 per share in fiscal 2023 [3]. - Adjusted EBITDA for Q4 was $0.5 million, a 14% decrease from $0.6 million in the previous year, and for the full year, it was $6.1 million, down 33.9% from $9.3 million [2][3]. Operational Metrics - Same-store sales fell by 3.6% during the quarter and 1.1% for the fiscal year, indicating a challenging operating environment, with Florida and Washington, DC markets underperforming [5]. - Operational costs remain a concern, with slight decreases in food and beverage costs and payroll expenses offset by higher occupancy and administrative expenses [6]. Management Insights - Management noted that elevated labor and insurance costs have stabilized, but reluctance to raise menu prices due to soft demand is constraining margins [7]. - CEO Michael Weinstein mentioned ongoing efforts to refine operations and explore new growth opportunities, including the potential expansion of the new Asian dining concept "Lucky Pig" [8]. Future Focus - The company did not provide formal guidance for fiscal 2025 but emphasized a focus on improving operational efficiency and testing scalable dining concepts [9]. - Ark Restaurants is actively lobbying for potential casino-related opportunities in the Meadowlands, which could provide long-term growth [9]. Recent Developments - The company reached an agreement to terminate its lease for the Tampa food court at the Hard Rock Hotel and Casino, receiving a $5.5 million termination payment [10]. - Ark Restaurants is negotiating extensions for its Bryant Park locations in New York City, with management engaging external advisors to ensure a fair process amid landlord interest in selecting another operator [11].

Financial Data and Key Metrics Changes - The company ended the year with $10.3 million in cash and $5.2 million in debt, with one more principal payment due on February 1 and a remaining debt balance of $4.4 million maturing on June 1 [6][7] - The company reported a loss of $876,000 related to the closure of El Rio Grande, which included write-offs of a security deposit, six months of rent, and severance [9] - An additional goodwill impairment of $4 million was recorded, following a previous $10 million impairment last year [10][11] Business Line Data and Key Metrics Changes - The company experienced reduced sales and a challenging revenue environment, particularly in Florida and Washington DC, while Alabama performed consistently well [14][15] - Labor costs have stabilized, but expenses related to insurance premiums and payroll increases continue to impact margins [14][15] Market Data and Key Metrics Changes - The revenue environment remains challenging in several markets, with Las Vegas showing okay revenues but impacted by increased expenses [15] - New York's business is described as decent, but there are no significant new business developments [15][16] Company Strategy and Development Direction - The company is exploring new business opportunities, including the Lucky Pig concept, which is operational and expected to expand [80][84] - The company is also focused on improving existing businesses, enhancing efficiency, and increasing marketing efforts to drive customer traffic [87] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges in the revenue environment and the impact of rising costs on margins [14][15] - The company is optimistic about the potential for a casino license in the Meadowlands, which could significantly enhance revenue opportunities [30][39] Other Important Information - The company is in discussions to extend its credit agreement and term out the remaining debt over several years [7] - The landlord of the food court in Tampa has agreed to pay $5.5 million for the company to vacate the space, which will add to the cash on the balance sheet [12][50] Q&A Session Summary Question: Developments regarding the casino licenses in New York City - Management discussed the competition for downtown licenses and the potential impact on New Jersey's gaming revenue if a casino opens in Manhattan [22][30] Question: Non-cash write-downs and their implications - Management confirmed that the total non-cash write-downs over the last two years amount to approximately $16.5 million, primarily due to stock price performance [39][43] Question: Future growth drivers for the stock - Management highlighted ongoing efforts to explore new concepts and improve existing operations as key drivers for future stock performance [80][87]

Revenue Performance - Total revenues for Q4 2024 were $43,406,000, a decrease of 2.2% from $44,400,000 in Q4 2023[3] - Total revenues for the fiscal year 2024 were $183,545,000, down from $184,793,000 in fiscal year 2023[4] - Total revenues for the 13 weeks ended September 28, 2024, were $43,406,000, a decrease of 2.2% compared to $44,400,000 for the same period in 2023[20] Same Store Sales - Company-wide same store sales decreased by 3.6% for Q4 2024 and 1.1% for the fiscal year 2024 compared to the previous year[5] Net Loss - Net loss for Q4 2024 was $(4,457,000) or $(1.24) per share, an improvement from a net loss of $(10,364,000) or $(2.88) per share in Q4 2023[6] - Net loss for the fiscal year 2024 was $(3,896,000) or $(1.08) per share, compared to a net loss of $(5,928,000) or $(1.65) per share in fiscal year 2023[7] - Consolidated net loss attributable to Ark Restaurants Corp. for the 13 weeks ended September 28, 2024, was $4,457,000, compared to a net loss of $10,364,000 for the same period in 2023, representing a 57.0% improvement[20] - Basic net loss per share for the 13 weeks ended September 28, 2024, was $(1.24), an improvement from $(2.88) for the same period in 2023[20] EBITDA and Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $503,000, down from $585,000 in Q4 2023[6] - Adjusted EBITDA for the fiscal year 2024 was $6,128,000, compared to $9,266,000 in fiscal year 2023[7] - EBITDA for the 13 weeks ended September 28, 2024, was $(4,610,000), an improvement from $(9,597,000) for the same period in 2023[20] Costs and Expenses - Total costs and expenses for the 13 weeks ended September 28, 2024, were $48,925,000, a decrease of 11.3% compared to $55,103,000 for the same period in 2023[20] - Payroll expenses for the 13 weeks ended September 28, 2024, were $15,875,000, down from $17,295,000 for the same period in 2023, reflecting a 8.2% reduction[20] - Occupancy expenses increased to $6,254,000 for the 13 weeks ended September 28, 2024, compared to $5,884,000 for the same period in 2023, representing a 6.3% increase[20] Goodwill Impairment - The company recorded a goodwill impairment charge of $4,000,000 for Q4 2024, compared to $10,000,000 for Q4 2023[12] - Goodwill impairment for the 52 weeks ended September 28, 2024, was $4,000,000, down from $10,000,000 for the same period in 2023[20] Lease Termination - The company plans to terminate the lease for El Rio Grande, resulting in a loss of $876,000 recorded in fiscal year 2024[9] Cash and Debt - As of September 28, 2024, the company had cash and cash equivalents of $10,273,000 and total outstanding debt of $5,235,000[8] Operating Loss - Operating loss for the 52 weeks ended September 28, 2024, was $4,294,000, a slight improvement from a loss of $4,840,000 for the same period in 2023[20] Shares Outstanding - The weighted average number of common shares outstanding for the 13 weeks ended September 28, 2024, was 3,604,000, consistent with 3,602,000 for the same period in 2023[20]

Core Insights - Ark Restaurants Corp. reported a significant decline in earnings per share, which fell 79.5% to 18 cents in Q3 fiscal 2024 from 88 cents in the same quarter last year [1] - The company's revenues decreased by 1.3% year over year to $50.4 million, primarily due to a drop in same-store sales [2] Revenue Details - Revenues from Food and beverage sales were $49.2 million, also down 1.3% from the previous year [3] - Same-store sales in Las Vegas increased by 2.5%, while New York saw a decrease of 5.2%, Washington, D.C. dropped by 15.8%, and Atlantic City fell by 8% [3][4] - Other revenues amounted to $1.2 million, down 1.9% year over year [4] Profitability Metrics - Gross profit declined by 1.9% to $37.1 million, with a gross margin contraction of 46 basis points to 73.6% [5] - Operating profit fell 77.3% to $0.8 million, and net income decreased by 79.9% to $0.6 million [7] - Adjusted EBITDA was reported at $3.4 million, down 27.6% from the previous year [7] Expense Analysis - Payroll expenses increased by 1.7% to $17.5 million, while occupancy expenses rose by 1.8% to $6.3 million [6] - General and administrative expenses saw a significant decline of 23% to $2.7 million [6] Liquidity and Cash Flow - The company ended Q3 fiscal 2024 with cash and cash equivalents of $11.5 million, up from $10.4 million at the end of Q2 [8] - Cumulative net cash provided by operating activities was $3.9 million, down from $6.9 million a year ago [9] Overall Assessment - The company experienced disappointing results in both top-line and bottom-line metrics, with lower revenues and same-store sales in key locations [10] - Positive aspects included increased sales at Gallagher's Steakhouse and same-store sales growth in Las Vegas, Alabama, and Florida [10]

Financial Performance - The company's operating income for the 13 weeks ended June 29, 2024, decreased by 77.3% to $824,000, and for the 39 weeks, it decreased by 79.1% to $1,225,000, primarily due to increased labor costs and inflationary pressures [101]. - Total revenues for the 13 weeks ended June 29, 2024, were $50,396,000, a decrease of 1.3% compared to $51,051,000 for the same period last year [102]. - Same-store sales decreased by 0.7% during the 13 weeks ended June 29, 2024, with notable declines in New York (-5.2%) and Washington, D.C. (-15.8%) [105]. - The company reported a total of $49,572,000 in costs and expenses for the 13 weeks ended June 29, 2024, an increase of 4.6% from $47,414,000 in the prior year [102]. - Total costs and expenses for the 39 weeks ended June 29, 2024, were $138,914,000, an increase of $1,884,000 compared to $134,530,000 for the same period last year [110]. - Net cash provided by operating activities for the 39 weeks ended June 29, 2024, was $3,926,000, down from $6,872,000 in the same period last year [117]. Labor and Costs - Labor costs increased by 1.7% to $17,479,000 for the 13 weeks ended June 29, 2024, compared to $17,194,000 in the prior year [102]. - Payroll expenses increased to 34.7% of total revenues for the 13 weeks ended June 29, 2024, compared to 33.7% in the same period last year [111]. - General and administrative expenses decreased by 23.0% to $2,690,000 for the 13 weeks ended June 29, 2024, compared to $3,495,000 in the same period last year [112]. - Food and beverage costs as a percentage of total revenues for the 39 weeks ended June 29, 2024, were 26.8%, slightly up from 26.7% in the prior year [110]. Impairment and Fixed Costs - Impairment losses on right-of-use and long-lived assets amounted to $2,500,000, representing a 100% increase compared to the previous period [102]. - The company faced substantial fixed costs that do not decline proportionally with sales, impacting overall profitability during the seasonal downturn [100]. - The company recognized impairment charges of $2,500,000 related to Sequoia's right-of-use and long-lived assets due to lower-than-expected operating results [113]. Future Outlook and Strategic Adjustments - The company anticipates potential future cash flow impacts due to ongoing inflation and geopolitical events, which may lead to strategic adjustments such as suspending dividends or increasing borrowings [97]. - 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 twelve months [125]. Credit and Financing - The Company entered into a Second Amended and Restated Credit Agreement on March 30, 2023, establishing a new revolving credit facility of $10,000,000, maturing on June 1, 2025 [123]. - As of June 29, 2024, no advances were outstanding under the Credit Agreement, and the weighted average interest on the outstanding indebtedness was approximately 9.0% [123]. - The Credit Agreement requires the Company to meet minimum quarterly tangible net worth amounts and maintain a minimum fixed charge coverage ratio [124]. - The Credit Agreement allows the Company to obtain letters of credit up to a sublimit of $1,000,000 [123]. - The Company has a 0.30% per annum fee for any unused portion of the $10,000,000 revolving facility [123]. Operational Updates - As of June 29, 2024, the company operated 17 restaurants and bars, 16 fast food concepts, and catering operations exclusively in the United States [98]. - Revenues from Gallagher's Steakhouse increased significantly post-renovation, with $3,056,000 for the current period compared to $1,068,000 during its closure [104]. - Same-store sales in Las Vegas increased by 1.9% to $42,175,000, while New York saw a 3.4% increase to $28,561,000; however, Washington, D.C. experienced a 12.6% decline to $7,079,000 [108]. - The company has committed to spend a minimum of $4,000,000 to refresh its premises at the New York-New York Hotel and Casino by December 31, 2024 [119]. Compliance and Controls - There have been no significant changes to the Company's critical accounting estimates during the second fiscal quarter of 2024 [127]. - The Company is not subject to pending legal proceedings that would materially impact results of operations [131]. - The Company has evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of June 29, 2024 [128]. - There have been no changes in internal control over financial reporting that materially affected the Company's internal control during the third quarter of fiscal 2024 [129].

Financial Data and Key Metrics Changes - The company ended the quarter with $11.5 million in cash and $5.7 million in debt, with all debt being current [6] - An impairment charge of $2.5 million was taken on the Sequoia restaurant, broken down into $939,000 for long-lived assets and $1.5 million for the right-of-use asset [6][7] Business Line Data and Key Metrics Changes - Comp sales were down slightly by 3% when excluding the closure of Gallagher's from the previous year [8] - Full-service restaurants in Florida experienced significant declines in headcounts, while Alabama performed well and New York benefited from events in Bryant Park [10] Market Data and Key Metrics Changes - The company noted that the Florida market is facing challenges, with many restaurants down 15% to 20% in sales [16] - Increased minimum wage legislation and higher insurance costs are impacting margins across various locations [8][10] Company Strategy and Development Direction - The company is focusing on acquisitions and refurbishing costs in Las Vegas, while also eliminating dividends temporarily to preserve cash [11][12] - There is an ongoing effort to expand the event business in Florida, similar to successful operations in New York and D.C. [30] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over inflationary pressures affecting gross margins and the difficulty in finding qualified staff [8] - The company anticipates that the current economic environment will improve, leading to increased sales and expanded margins in the future [33] Other Important Information - The company is exploring automation options to reduce labor costs, including testing a burger-making machine [37][39] - The Bryant Park lease situation remains uncertain, with potential significant impacts on EBITDA if not renewed [63][64] Q&A Session Summary Question: What is the strategy for addressing weaknesses in Florida? - Management acknowledged the challenges in Florida but emphasized that they are looking at acquisitions and believe they have good locations [16][18] Question: What self-help measures can be implemented to drive traffic? - Management mentioned they are improving their social media presence and exploring menu changes, but emphasized that existing restaurants are still profitable [43][44] Question: Why suspend the dividend? - The decision to suspend the dividend was made to preserve cash for refurbishing costs and potential acquisitions, given the uncertainty surrounding the Bryant Park lease [47][52] Question: What is the impact of the Bryant Park lease not being renewed? - If the lease is not renewed, the company could face a $3.5 million to $4 million hit to EBITDA, which influenced the decision to eliminate the dividend [63][64] Question: Are there plans to invest in more favorable jurisdictions? - Management indicated they have not seen much activity in other jurisdictions but are open to exploring opportunities [72]

Exhibit 99.1 Ark Restaurants Announces Financial Results for the Third Quarter of 2024 CONTACT: Anthony J. Sirica (212) 206-8800 ajsirica@arkrestaurants.com NEW YORK, New York - August 12, 2024 -- Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the third quarter ended June 29, 2024. Financial Results Total revenues for the 13 weeks ended June 29, 2024 were $50,396,000 versus $51,051,000 for the 13 weeks ended July 1, 2023 and total revenues for the 39 weeks ended June 29, 2024 were ...

Zacks Investment Research has recently initiated coverage of Ark Restaurants Corp. (ARKR) , assigning an "Underperform" recommendation to the company's shares. This bearish stance reflects significant concerns over the company’s recent financial performance and operational challenges.Ark Restaurants, based in New York, operates as an owner and operator of 17 restaurants and bars, 16 fast food concepts, and catering operations across the United States. Its establishments, situated in key locations such as Ne ...