ARK RESTAURANTS CORP Q1 FY2025 earnings call

• Tampa Food Court was bought out by the landlord, with $5.5 million received, including a $5.2 million gain in P&L; Rio Grande closed with $146,000 residual losses. - Operating with sales and inflated expenses, not raising prices to maintain quality value. - Alabama sales good, Vegas decent, NY properties like Bryant Park and Robert do well with events, DC has demand issues. - Starting to revamp schedules, payrolls, and personnel to be more efficient, which will show in operating profits. - Las Vegas has a new lease and is running ahead of last year, needs 10%-12% more business to justify new rents and is more efficient payroll-wise. - Washington, DC has a new manager with 26 years of experience. - Meadowlands expects New Jersey to issue casino license once NY issues downstate licenses; Bryant Park is in a process where they believe they have a chance to retain the operation despite the Bryant Park Corporation's move, thinking the request for proposal process was flawed.

The Tampa Food Court was bought out by the landlord, with the company receiving a buyout payment of $5.5 million on December 19, including a gain of $5.2 million in the P&L. There were residual losses of $146,000 related to the closure of Rio Grande. In terms of sales, Alabama sales continue to be very good, sales in Vegas are decent, New York properties like Bryant Park and Robert do well with events, Washington, DC has demand problems, and Florida sales exceed last year when weather is good.

• Without Bryant Park cash flow, no dividends or buybacks. - Looking for expansion opportunities with partnerships that don't require tremendous capital, actively engaged in finding sensible expansion areas.

• Risk of losing Bryant Park operation. - Uncertainty in casino license issuance in New Jersey and New York affecting Meadowlands project. - Operational risks from rising payroll and insurance costs.

Q: With respect to Bryant Park and the process, are there public sessions that can be attended and what's preventing shareholders from attending?

A: There's nothing preventing public from attending public sessions like community board sessions. The community board meeting was a public forum with robust conversation.

Q: Moving forward, how are you thinking about capital allocation on dividends or buybacks?

A: Without Bryant Park cash flow, no dividends or aggressive buybacks. Looking at expanding business with partnerships that don't need tremendous capital, actively engaged in finding sensible expansion areas