Ark Restaurants Q1 Earnings Call Highlights

Ark Restaurants (NASDAQ:ARKR) executives highlighted modest year-over-year improvement in operating performance and discussed cash usage tied to Las Vegas renovation work and ongoing litigation costs during the company’s fiscal first-quarter 2026 earnings call covering the period ended Dec. 27, 2025.

Management also provided updates on performance by market, including continued strength in Las Vegas amid weaker broader Strip trends, weather-related pressure in Florida, and early signs of improvement at Sequoia in Washington, D.C. The company also outlined early steps toward gauging public support for a potential casino referendum in northern New Jersey tied to the Meadowlands Racetrack.

Financial snapshot and balance sheet

President and CFO Anthony Sirica described the quarter as “really a quiet quarter” compared with recent periods that included impairments. Sirica said adjusted EBITDA was about $150,000 better than the same period last year.

On the balance sheet, Sirica reported cash of “$9 million and change” and debt of $3 million, adding that there were no significant balance sheet changes during the quarter.

Chairman and CEO Michael Weinstein added context on the cash balance, noting the company has been investing in required work under a new lease with MGM at New York-New York in Las Vegas. He said most of the work is completed, but a rebuild of America is still in progress. Weinstein said the restaurant is open, but the “new facility” being built is expected to open in April, and the project has consumed significant cash in recent months.

Weinstein also said litigation bills connected to Bryant Park in New York have taken “a lot of cash.” He expects the company’s cash position to improve after the America build-out is completed and reiterated that the March quarter is typically the company’s annual low point for cash.

Operating performance by market

Weinstein said Las Vegas “remains a high point” for the company, citing better results despite the Strip being down 11%. He attributed performance to increased efficiency and praised Keith Eure, who runs the Las Vegas operations. Weinstein also said the company is beginning to see potential expansion opportunities in Las Vegas for its concepts.

Elsewhere, Weinstein described Alabama as “fine,” while Florida remained challenged. He said the company’s Florida restaurants have continued to be down 10% to 13% on the revenue side, squeezing margins as expenses remain higher than a couple of years ago due to inflation. Weinstein said the softness is concentrated in the company’s full-service restaurants, while its Hollywood fast food location in the Hard Rock “continues to do extremely well.”

In Washington, D.C., Weinstein said Sequoia has new management and that he was in the market recently. He characterized Washington as a difficult environment broadly and said the project where Sequoia is located is not doing well overall. Still, he said the company is “starting to see a little perk up” at Sequoia.

In New York, Weinstein said Bryant Park remains affected by ongoing litigation, which has hurt event business. However, he said the company believes it is in “good shape” in the litigation and noted that more event business is beginning to be signed despite the dispute being widely known. Weinstein said he expects this year to be better on the revenue side for corporate and social events than it has been, indicating he expects some pickup.

Weinstein also said “Robert continues to do very well,” without providing additional detail on the call.

Costs, pricing, and weather impacts

During the Q&A session, analyst Roger Lipton of Lipton Financial asked about apparent improvements in costs and whether menu price increases were affecting traffic. Weinstein said it was “too hard to answer” whether price changes have affected traffic, citing variables such as weather and other factors. He also said the company has not raised prices significantly and emphasized operational efficiency efforts.

Sirica added that the company has “reengineered some menu items” and has been working to improve payroll efficiency, including reducing overtime.

Weinstein acknowledged that some prices have increased, pointing to examples where ingredient costs have risen sharply. He cited king crab legs as an example, saying a menu item that was $99 pre-COVID is now $235 due to the cost per pound increasing significantly. He described other increases as “very modest,” aside from certain items affected by shortages and cost inflation.

Weather was also a major focus. Weinstein said Florida “has been a disaster,” describing unusually cold temperatures and stating that in the prior week some Florida full-service restaurants were down 40%. He also said New York was similarly impacted, as “nobody was going out.” Weinstein said the first two weeks of the quarter were “very, very tough,” and added that comparisons will be easier next year if conditions normalize.

Bryant Park litigation and Meadowlands casino process

Another analyst, Jeffrey Kaminsky of JJK Consultants, asked about the company’s confidence regarding the Bryant Park litigation. Weinstein said the discovery process has brought certain information to light that the company believes is beneficial. He also pointed to the time the company expects to remain in possession while litigation and potential appeals proceed, saying the company believes it has a “significant amount of time to resolve the issues.” Weinstein encouraged listeners to review the public court documentation available through the New York State Supreme Court website.

Kaminsky also asked about potential dilution tied to Ark’s ownership position in the Meadowlands should a casino license be granted. Weinstein said there are “too many moving parts” to quantify, but he expects there would be some dilution depending on the structure of any deal with an operator and the amount of capital required. He said the company’s exclusive food-and-beverage rights at the Meadowlands would not be diluted even if ownership is.

Weinstein also provided an update on the early-stage effort to gauge support for a northern New Jersey casino referendum. He said the Meadowlands Racetrack owners have begun surveying public sentiment. If the results are positive, he said management believes it could provide “ammunition” for the legislature to put a referendum on the ballot in November. Weinstein said the survey process had started about a week prior and could take a month to a month and a half to complete.

Weinstein closed the call by thanking participants and saying the company would provide another update in three months.

About Ark Restaurants (NASDAQ:ARKR)

Ark Restaurants Corp., traded on NASDAQ under the ticker ARKR, is a Boca Raton, Florida–based restaurant operator. The company owns and manages a portfolio of casual and upscale dining venues that feature Cuban-inspired menus, full-service bars and live entertainment. Its concepts emphasize traditional Latin flavors paired with modern culinary techniques to appeal to a broad range of diners.

Ark Restaurants serves both on-premise and off-premise customers, offering dine-in seating, take-out, delivery and catering services.