ARKR · Ark Restaurants Corp.

Ark Restaurants reported improved Q2 fiscal 2026 results with net loss narrowing to $(1.8)M or $(0.50) per share from $(9.3)M or $(2.57) prior year, driven by absence of prior year's $3.4M goodwill impairment and $4.8M tax valuation allowance. Adjusted EBITDA loss of $(592,000) marked a $99,000 improvement from $(691,000), despite 7.6% same-store sales decline and 7.9% revenue drop to $36.6M, reflecting broad weakness. Year-to-date revenues fell 8.7% to $77.3M (or 7.5% adjusted for Tampa closure), with adjusted EBITDA swinging positive to $939,000 from $688,000. CEO Michael Weinstein highlighted Bryant Park operations suffering from lease uncertainty, causing marketplace confusion and sales declines, while noting better performance at Robert in NYC, commitment to challenging D.C. market, improved Las Vegas cash flow despite traffic drops, and Florida pressures; balance sheet remains strong. Bryant Park leases (Grill, Café, Porch) expired in early 2025; company litigates landlord's new operator selection, asserting first refusal rights, with summary judgment oral arguments set for June 16, 2026, and pre-trial conference September 22, 2026. These locations were 13-15% of H1 revenues; ongoing uncertainty materially impacts business, compounded by $566,000 prepaid rent write-off in Q2 occupancy costs, though recoverable if litigation succeeds. No impairment on NMR investment amid stalled casino license pursuit, but high uncertainty persists with potential dilution or material write-down risks if gaming expansion fails. Conference call scheduled May 12, 2026.