Ark Restaurants Corp. Q1 FY2026 earnings call

• Cash balance: New lease with MGM for New York, New York required work in restaurants, redo of America (opening in April) took cash, litigation bills at Bryant Park took cash; cash position expected to improve after America build-out is completed.
• Operations by venue: Las Vegas operations are efficient, Keith doing a great job; Florida full-service restaurants affected by cold weather; Hollywood fast food is strong; Sequoia in Washington has new management with potential; New York Bryant Park in litigation but more event business expected; Meadowlands in survey for casino referendum.

Las Vegas remains a high point with better results despite the strip being down 11%; Alabama is fine; Florida full-service restaurants have revenue down 10%-13%, margins squeezed due to inflation; Hollywood fast food in the Hard Rock is doing extremely well; Sequoia in Washington has new management with a little perk up; New York Bryant Park is in litigation mode but more event business starting to be signed up; Meadowlands is in survey phase for a casino referendum. Adjusted EBITDA was about $150,000 better than last year. Cash was $9 million and change, debt $3 million.

• Cash position: Expect cash to start improving in the next couple of months after America build-out is completed.
• Event business: Expect to be better on the revenue side in the event and corporate/social event side in New York this year.
• Meadowlands: Survey for casino referendum in Meadowlands to be complete in 1-1.5 months, hoping for positive result.

• Litigation at Bryant Park: Continues to hurt events, but discovery process has brought beneficial things to light, but litigation and appeals could be ongoing.
• Weather impact: Cold weather in Florida and New York has negatively affected revenues.
• Meadowlands dilution: Uncertainty regarding dilution based on the deal made with an operator and money-raising needs, which could impact Ark's ownership.

Q: It looks like cost decreased in food beverage and payroll, menu prices were raised, and has it affected traffic?

A: Too hard to answer if it affected traffic due to various factors; reengineered menu items, tried to be more efficient on payrolls; raised prices a little bit on certain items due to cost increases like King Crab Legs.

Q: On Bryant Park litigation, what gives belief they're in good shape? And on Meadowlands dilution impact?

A: On Bryant Park, discovery process brought beneficial things and belief they have significant time to resolve issues while remaining in possession; on Meadowlands, too many moving parts, no dilution in exclusive food and beverage but potential dilution based on operator deal and money-raising, uncertain on exact impact.