Ark Restaurants(US:ARKR)2026-02-10 21:16Financial 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].