Ark Restaurants Corp.

What they do

Ark owns and operates destination restaurants and bars with distinctive decor, typically located in high-traffic locations, and also runs fast food concepts and catering. As of September 27, 2025, the 16 restaurants and bars were located in New York City (3), Washington, D.C. (1), Las Vegas (5), Atlantic City (1), east coast Florida (4) and the Gulf Coast of Alabama (2). All expansion in recent years has come through acquisitions, including The Rustic Inn (2014), Shuckers (2016), two Original Oyster Houses (2017), JB's on the Beach (2019) and Blue Moon Fish Company (2021). The company reports its operating components as a single segment.

Revenue drivers

• Restaurants and bars — The company owned and/or operated 16 restaurants and bars as of September 27, 2025, the largest part of the business; a majority of net sales come from dinner rather than lunch.
• Bryant Park Grill & Caf and The Porch at Bryant Park — These New York properties generated $25.5M, or 15.4% of total revenue, in fiscal 2025, down from $31.1M, or 17.4%, in fiscal 2024; the leases expired in 2025 and the company operates under a court-ordered stay.
• Fast food concepts and catering — The company also operates 12 fast food concepts and catering operations, which supplement restaurant and bar sales.
• Seasonal outdoor dining — Warm-weather results benefit from extensive outdoor dining, particularly at Bryant Park Grill & Caf, The Porch at Bryant Park and Sequoia in Washington, D.C.; the fiscal second quarter (January-March) is the poorest performing quarter, partly offset by Florida winter results.

Recent performance

For the 13 weeks ended June 27, 2026, total revenues were $40,881,000 versus $43,715,000 in the prior-year quarter, with same-store sales down 6.6%. Adjusted EBITDA for the quarter was $358,000 versus $1,791,000 a year earlier, and net loss attributable to Ark Restaurants Corp. was $(347,000), or $(0.10) per diluted share, compared with a net loss of $(3,454,000), or $(0.96) per diluted share. For the 39 weeks ended June 27, 2026, revenues were $118,214,000 versus $128,428,000, with company-wide same-store sales down 7.2%; the net loss was $(1,259,000), or $(0.35) per diluted share, versus $(9,548,000), or $(2.65) per diluted share, which included a $4,799,000 valuation allowance on deferred tax assets. As of June 27, 2026, cash and cash equivalents were $9,492,000 and total outstanding debt was $7,117,000.

Strategy

Management cites two markets performing well: operations at the New York-New York Hotel and Casino in Las Vegas showing increased cash flow despite lower Las Vegas Strip traffic, and Alabama locations showing strong revenue and cash flow growth. The company continues to operate the Bryant Park Grill, Bryant Park Caf and The Porch at Bryant Park under a court-ordered stay of ejectment, expected to expire on or about October 16, 2026, while it litigates its right of first lease and breach of contract claim against the landlord. Management states its balance sheet remains strong and supports future growth. It has used acquisitions for all recent expansion and notes that prior acquisitions broadened its geographic reach to mitigate seasonality.

Risks

• Loss of Bryant Park locations — The Bryant Park Grill, Bryant Park Caf and The Porch at Bryant Park leases expired in 2025, the landlord selected a new operator, and the court-ordered stay permitting continued operation is expected to expire on or about October 16, 2026, after which the company would have to vacate.
• Same-store sales declines — Company-wide same-store sales fell 7.2% for the 39 weeks ended June 27, 2026, with weakness in Florida and a difficult D.C. market, and the company says Bryant Park catering and a la carte revenues continue to suffer from lease uncertainty.
• Litigation outcome uncertainty — The company is pursuing a lawsuit over the lease award process and its right of first lease; on June 18, 2026 the court granted the landlord summary judgment in part and the company's cross-motion in part, and management states it cannot predict the outcome.
• Inflation and cost pressures — The company cites commodity and wage inflation, supply chain challenges and staffing issues as continuing to affect operating results in fiscal 2025, with possible future actions including suspending dividends, increasing borrowings or impairing assets.

Outlook

Management points to continued strength in Las Vegas and Alabama and year-over-year improvement at Robert in NYC, while flagging that Bryant Park catering and a la carte revenues remain pressured by the lease dispute. The D.C. market is described as difficult and Florida revenues remain challenged by the local economic climate. The company says its balance sheet remains strong to support future growth, and operations at Bryant Park will continue only until the lease extensions are awarded or the company is ordered to vacate.