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Shares of Ark Restaurants Corp. (ARKR - Free Report) have lost 3.6% since the company reported earnings for the quarter ended Sept. 27, 2025. This compares unfavorably with the S&P 500 Index’s 2.3% gain over the same time frame. Over the past month, the stock has lost 10.3% versus the S&P 500’s 8.1% rise.
ARKR’s Earnings Snapshot
For the fourth quarter of fiscal 2025, Ark Restaurants reported total revenues of $37.3 million, down 14% year over year from $43.4 million. Excluding revenues from El Rio Grande and the Tampa Food Court, which were no longer contributing, comparable revenues also showed weakness. The company posted a net loss attributable to ARKR of $1.9 million, or a loss of $0.53 per share compared with a net loss of $4.5 million, or a loss of $1.24 per share in the prior-year quarter, marking a notable improvement in per-share results despite lower sales. Adjusted EBITDA swung to a negative $1.1 million from positive adjusted EBITDA of $0.5 million a year earlier.
For the full fiscal year, revenues declined 9.7% to $165.8 million from $183.5 million, while the net loss widened to $11.5 million, or $3.18 per share, from $3.9 million, or $1.08 per share, in fiscal 2024, largely due to impairment charges and litigation-related costs.
Ark Restaurants’ Other Key Business Metrics
Same-store sales trends remained weak. Excluding the closed El Rio Grande and the Tampa Food Court, companywide same-store sales declined 10.1% for the 13-week period and 4.2% for the full fiscal year. Management attributed much of this softness to lower catering and à la carte revenues at the Bryant Park Grill, as well as reduced traffic on the Las Vegas Strip.
For the full fiscal year, adjusted EBITDA declined 77% to $1.4 million from $6.1 million in fiscal 2024, underscoring the cumulative impact of litigation costs, lower volumes and challenging demand conditions.
From a balance sheet perspective, Ark Restaurants ended the quarter with cash and cash equivalents of $11.3 million and total debt of $3.6 million. Management described liquidity as stable compared with the prior year, providing some financial flexibility despite ongoing operating losses.
Ark Restaurants Corp. Price, Consensus and EPS Surprise
Management commentary focused heavily on operational divergence across the portfolio and on external challenges. Chairman and CEO Michael Weinstein emphasized that litigation related to the Bryant Park Grill and The Porch at Bryant Park was a major drag on quarterly performance, citing more than $400,000 of related expenses in the quarter alone. He noted that uncertainty around the leases curtailed the event business, particularly long-lead social events, though corporate events have begun to return gradually. Weinstein also highlighted improved efficiency and cash flow at the company’s Las Vegas operations, even amid lower traffic on the Las Vegas Strip, as well as solid performance at Rustic Inn in Florida and Robert in New York City.
Several one-time and structural factors influenced reported results. The quarter and the full year were affected by elevated legal fees tied to the Bryant Park dispute, which management identified as the primary driver of the decline in adjusted EBITDA. In addition, the Washington, DC market remained difficult, weighing on the Sequoia property and contributing to additional impairment charges during fiscal 2025.
Additionally, ARKR recorded significant non-cash charges during fiscal 2025, including $3.4 million in goodwill impairment and $4.7 million in impairment losses on right-of-use and long-lived assets, primarily related to underperformance at the Sequoia location in Washington, DC.
ARKR’s Guidance
Ark Restaurants did not provide formal financial guidance. However, management expressed cautious optimism about near-term operating trends, noting that December-quarter performance was tracking ahead of the prior year and that efficiency initiatives were beginning to show results in certain markets. At the same time, executives acknowledged that the operating environment remains challenging, particularly in Florida and Washington, DC., and that the outcome and timing of the Bryant Park litigation remain uncertain.
Ark Restaurants’ Other Developments
During fiscal 2025, Ark Restaurants completed several notable actions. The company permanently closed El Rio Grande, recognizing a modest gain of $173,000 in fiscal 2025 following a loss recorded in fiscal 2024. It also terminated the Tampa Food Court lease, receiving a $5.5 million termination payment and recording a net gain of $5.2 million.
Additionally, ARKR continued to highlight its minority investment in New Meadowlands Racetrack LLC, noting potential upside if a New Jersey casino referendum advances. However, management cautioned that this outcome is uncertain and could require additional capital contributions.
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ARKR Stock Slips Despite Q4 Earnings Improvement Amid Challenges
Shares of Ark Restaurants Corp. (ARKR - Free Report) have lost 3.6% since the company reported earnings for the quarter ended Sept. 27, 2025. This compares unfavorably with the S&P 500 Index’s 2.3% gain over the same time frame. Over the past month, the stock has lost 10.3% versus the S&P 500’s 8.1% rise.
ARKR’s Earnings Snapshot
For the fourth quarter of fiscal 2025, Ark Restaurants reported total revenues of $37.3 million, down 14% year over year from $43.4 million. Excluding revenues from El Rio Grande and the Tampa Food Court, which were no longer contributing, comparable revenues also showed weakness. The company posted a net loss attributable to ARKR of $1.9 million, or a loss of $0.53 per share compared with a net loss of $4.5 million, or a loss of $1.24 per share in the prior-year quarter, marking a notable improvement in per-share results despite lower sales. Adjusted EBITDA swung to a negative $1.1 million from positive adjusted EBITDA of $0.5 million a year earlier.
For the full fiscal year, revenues declined 9.7% to $165.8 million from $183.5 million, while the net loss widened to $11.5 million, or $3.18 per share, from $3.9 million, or $1.08 per share, in fiscal 2024, largely due to impairment charges and litigation-related costs.
Ark Restaurants’ Other Key Business Metrics
Same-store sales trends remained weak. Excluding the closed El Rio Grande and the Tampa Food Court, companywide same-store sales declined 10.1% for the 13-week period and 4.2% for the full fiscal year. Management attributed much of this softness to lower catering and à la carte revenues at the Bryant Park Grill, as well as reduced traffic on the Las Vegas Strip.
For the full fiscal year, adjusted EBITDA declined 77% to $1.4 million from $6.1 million in fiscal 2024, underscoring the cumulative impact of litigation costs, lower volumes and challenging demand conditions.
From a balance sheet perspective, Ark Restaurants ended the quarter with cash and cash equivalents of $11.3 million and total debt of $3.6 million. Management described liquidity as stable compared with the prior year, providing some financial flexibility despite ongoing operating losses.
Ark Restaurants Corp. Price, Consensus and EPS Surprise
Ark Restaurants Corp. price-consensus-eps-surprise-chart | Ark Restaurants Corp. Quote
ARKR’s Management Commentary
Management commentary focused heavily on operational divergence across the portfolio and on external challenges. Chairman and CEO Michael Weinstein emphasized that litigation related to the Bryant Park Grill and The Porch at Bryant Park was a major drag on quarterly performance, citing more than $400,000 of related expenses in the quarter alone. He noted that uncertainty around the leases curtailed the event business, particularly long-lead social events, though corporate events have begun to return gradually. Weinstein also highlighted improved efficiency and cash flow at the company’s Las Vegas operations, even amid lower traffic on the Las Vegas Strip, as well as solid performance at Rustic Inn in Florida and Robert in New York City.
Factors Influencing Ark Restaurants’ Headline Numbers
Several one-time and structural factors influenced reported results. The quarter and the full year were affected by elevated legal fees tied to the Bryant Park dispute, which management identified as the primary driver of the decline in adjusted EBITDA. In addition, the Washington, DC market remained difficult, weighing on the Sequoia property and contributing to additional impairment charges during fiscal 2025.
Additionally, ARKR recorded significant non-cash charges during fiscal 2025, including $3.4 million in goodwill impairment and $4.7 million in impairment losses on right-of-use and long-lived assets, primarily related to underperformance at the Sequoia location in Washington, DC.
ARKR’s Guidance
Ark Restaurants did not provide formal financial guidance. However, management expressed cautious optimism about near-term operating trends, noting that December-quarter performance was tracking ahead of the prior year and that efficiency initiatives were beginning to show results in certain markets. At the same time, executives acknowledged that the operating environment remains challenging, particularly in Florida and Washington, DC., and that the outcome and timing of the Bryant Park litigation remain uncertain.
Ark Restaurants’ Other Developments
During fiscal 2025, Ark Restaurants completed several notable actions. The company permanently closed El Rio Grande, recognizing a modest gain of $173,000 in fiscal 2025 following a loss recorded in fiscal 2024. It also terminated the Tampa Food Court lease, receiving a $5.5 million termination payment and recording a net gain of $5.2 million.
Additionally, ARKR continued to highlight its minority investment in New Meadowlands Racetrack LLC, noting potential upside if a New Jersey casino referendum advances. However, management cautioned that this outcome is uncertain and could require additional capital contributions.