Ark Restaurants(ARKR) - 2025 Q4 - Annual Results

Financial Performance - Total revenues for the 13 weeks ended September 27, 2025 were $37,323,000, a decrease of 14% compared to $43,406,000 for the same period in 2024[5] - Total revenues for the year ended September 27, 2025 were $165,751,000, down 9.7% from $183,545,000 in 2024[6] - The consolidated net loss attributable to Ark Restaurants Corp. for the 52 weeks ended September 27, 2025, was $11.466 million, compared to a loss of $3.896 million for the prior year, representing an increase in loss of 194.5%[34] - The Company recorded a gain of $5,235,000 from the termination of the lease for the Tampa Food Court during the year ended September 27, 2025[23] EBITDA and Operating Loss - EBITDA, as adjusted, for the 13 weeks ended September 27, 2025 was $(1,071,000), down from $503,000 in the same quarter last year[3][8] - EBITDA for the 13 weeks ended September 27, 2025, was $(823) thousand, an improvement from $(4.610) million for the same period in 2024[34] - The company reported a total operating loss of $1.722 million for the 13 weeks ended September 27, 2025, compared to a loss of $5.519 million for the same period in 2024[34] Impairment and Expenses - The Company recognized a non-cash goodwill impairment charge of $3,440,000 for the year ended September 27, 2025 due to a decline in stock price and uncertainty regarding lease renewals[27] - The company incurred impairment losses on right-of-use and long-lived assets amounting to $4.700 million for the 52 weeks ended September 27, 2025[34] - The ongoing litigation related to the Bryant Park operations has negatively impacted revenue and cash flow, with litigation expenses exceeding $400,000 in the current quarter[3] Sales and Revenue Sources - Company-wide same store sales decreased by 10.1% and 4.2% for the 13 and 52 weeks ended September 27, 2025, primarily due to lower catering and a la carte revenue at the Bryant Park Grill[7] - The Bryant Park Grill & Cafe and The Porch at Bryant Park accounted for $25.5 million and $31.1 million of total revenues for the years ended September 27, 2025 and September 28, 2024, representing approximately 15.4% and 17.4% of total revenue, respectively[16] Cash and Debt Position - The Company had cash and cash equivalents of $11,324,000 and total outstanding debt of $3,609,000 as of September 27, 2025[4] Operational Strategy - The company operates 16 restaurants and bars, 12 fast food concepts, and catering operations primarily in New York City, Florida, Washington, DC, Las Vegas, and Alabama[31] - The company plans to operate Bryant Park Grill & Café and The Porch at Bryant Park until lease extensions are awarded or they are ordered to vacate, indicating ongoing strategic management of restaurant locations[32] - The company expressed uncertainty regarding its ability to open new restaurants in existing and new markets due to challenges in site selection and lease negotiations[32] Payroll and Employment - Payroll expenses for the 13 weeks ended September 27, 2025, were $14.242 million, down from $15.875 million in the same period in 2024, reflecting a decrease of 10.3%[34]