Ark Restaurants Corp. (NASDAQ: ARKR) reported a net loss attributable to the company of $(347,000), or $(0.10) per share, for the third quarter ended June 27, 2026. This represents a substantial improvement from the net loss of $(3,454,000), or $(0.96) per share, recorded in the corresponding period of the prior year. The bottom-line recovery occurred despite total revenues declining to $40,881,000 from $43,715,000, a decrease of approximately 6.5% year-over-year. The divergence between improving profitability metrics and declining top-line performance highlights the company’s ongoing cost management efforts amidst challenging market conditions.

The revenue contraction was driven by a 6.6% drop in company-wide same-store sales. For the 13 weeks ended June 27, 2026, adjusted EBITDA stood at $358,000, down sharply from $1,791,000 in the prior-year quarter. Over the first 39 weeks of the fiscal year, total revenues amounted to $118,214,000, compared to $128,428,000 in the prior year. The cumulative net loss for the 39-week period was $(1,259,000), or $(0.35) per share, versus $(9,548,000), or $(2.65) per share, previously. The prior-year full-period loss included a $4,799,000 valuation allowance related to deferred tax assets.

Regional Performance and Operational Drivers

Michael Weinstein, CEO, noted that operations at the New York-New York Hotel and Casino in Las Vegas continue to generate increased cash flow despite lower customer traffic on the Strip. Similarly, the company’s Alabama locations demonstrated strong growth in both revenue and cash flow. Conversely, the New York City market remains under pressure; while Robert continues to improve year-over-year, revenues for catered events and à la carte dining at the Bryant Park Grill and Bryant Park Café suffer due to ongoing lease uncertainty. The Washington, D.C. market has also proven difficult, and Florida revenues face headwinds from the local economic climate.

Legal Proceedings at Bryant Park

The company faces significant legal risks regarding its New York City leases. The leases for the Bryant Park Grill, Bryant Park Café, and The Porch at Bryant Park expired in early 2025. Although Ark Restaurants submitted bids for new long-term agreements, the landlord selected a new operator. The company filed a complaint in New York State Supreme Court challenging the process and asserting its right of first lease.

On June 22, 2026, the court granted the landlord’s motion for summary judgment on ejectment but granted the company’s cross-motion on its breach of contract claim, entitling it to damages. A trial to determine damages is scheduled after a pre-trial conference on September 22, 2026. The court issued a judgment of ejectment on June 26, 2026, which the company appealed. A stay of enforcement was granted through approximately October 16, 2026, conditioned on the company filing a $125,000 undertaking and continuing monthly use and occupancy payments. The company filed the undertaking on July 21, 2026, and intends to seek an extension of the stay pending the appeal's resolution.

Financial Highlights Table

Investment in New Meadowlands Racetrack LLC

Ark Restaurants continues to monitor its investment in New Meadowlands Racetrack LLC (NMR), which is pursuing a casino license in New Jersey. A proposed constitutional amendment to allow casino gambling at the Meadowlands missed the August 3, 2026 deadline for inclusion in the November 2026 general election ballot. Consequently, no voter referendum will occur in 2026. The company evaluated its NMR investment for impairment during the quarter and concluded that its fair value exceeds its carrying value, recording no impairments. Management stated that if a future referendum is rejected, the company would expect to record a material impairment charge, as the existing operations may not support the current carrying value.