Ark Restaurants (NASDAQ:ARKR) said third-quarter EBITDA declined by $1.4 million from the prior-year period as sales and gross margin fell, with Las Vegas and Florida continuing to weigh on traffic and customer counts.
Speaking on the company’s conference call for the quarter ended June 27, 2026, President and CFO Anthony Sirica said cash totaled $9.4 million and debt was $7.1 million. Debt increased about $4.5 million from the preceding quarter after the company drew $5 million in April to finance construction at America in Las Vegas.
Las Vegas and Florida Sales Decline
Las Vegas sales fell 11% during the quarter, which Sirica attributed to lower traffic and the partial closure of America. The restaurant is expected to fully reopen sometime in September, he said.
Florida sales declined 10%, as the company continued to face what Sirica called a challenging local economic climate that has resulted in lower headcounts.
Chairman and CEO Michael Weinstein said that, despite sales being down 10% to 11% at New York-New York in Las Vegas, cash flow at that location improved from the prior year. He credited local management with operating more efficiently and said the company expects those efficiencies to support stronger cash flow if sales recover.
Overall, Weinstein said Ark’s sales were down 6% for the quarter and cash flow was “sort of mirroring” the quarter’s sales performance. He said payroll, cost of goods and occupancy expense ratios were generally in line with expectations, and management remains focused on further operating efficiencies while maintaining food quality and service.
Las Vegas Development Plans
Ark Restaurants reached an agreement with MGM Management to build a new bar at New York-New York, Weinstein said. Construction is expected to begin in roughly two to three months, with an opening targeted for early next year.
Weinstein also said the company is negotiating for two potential additional venues in Las Vegas. He characterized the opportunities as likely to proceed but said the company would provide an update next quarter.
Sequoia Lease Savings and Bryant Park Litigation
Sirica said Ark finalized a two-year lease restructuring for its Sequoia location in early July. The revised arrangement is expected to generate annual savings of approximately $200,000 to $300,000.
Weinstein also addressed the company’s litigation involving Bryant Park. He said Ark believes the case has been progressing favorably, noting that a judge awarded the company the right to seek monetary damages related to an alleged breach of lease by Bryant Park Corporation.
A hearing to establish a trial date is scheduled for September, and Weinstein said he expects a trial could take place early next year. He said potential monetary damages could be significant, though he emphasized that the ruling does not ensure Ark will obtain a new lease.
Any future lease arrangement would require negotiations involving the Parks Department and representatives of Bryant Park Corporation, Weinstein said. He added that a damages award could provide the company with an opening for those discussions.
Meadowlands Casino Referendum Delayed
In New Jersey, lawmakers did not place the referendum needed for a Meadowlands casino license on the ballot this year, Weinstein said. He said the governor did not support moving forward this year, although she indicated she would support the referendum next year.
Weinstein said some legislators supported the measure, but there were not enough votes to advance it. Ark remains hopeful about the proposal, he said, arguing that a Meadowlands casino license “makes a lot of sense.”
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.
