ARKR

• Balance Sheet and Capital: Cash balance totals $9.4 million, with total debt of $7.1 million. Debt increased $4.5 million from the prior quarter after a $5 million drawdown in April to fund construction of the America restaurant location in Las Vegas.
• Operational Updates: A partial closure of the America location in Las Vegas contributed to weaker quarterly performance; full reopening is expected by September 2026. A two-year lease restructuring for the Sequoia location was finalized in early July 2026, expected to deliver annual cost savings of $200,000 to $300,000. Despite weaker sales in Las Vegas' New York New York location, on-site management improved operational efficiency, leading to higher year-over-year cash flow for the location. A new bar construction project at the New York New York location in partnership with MGM management will start in 2-3 months, with opening planned for early 2027. Management is currently negotiating for two potential new restaurant venues, with updates to come next quarter.
• Legal and Strategic Projects: Litigation regarding the Bryant Park location with Brian Park Corporation is progressing favorably. The court granted the company the right to pursue monetary damages for lease breach by Brian Park Corporation; a September hearing will set a trial date expected to occur in early 2027. Damages could be significant, which management hopes will open the door for future lease renewal negotiations. The proposed Meadowlands casino license referendum was not added to the 2026 ballot, but the New Jersey governor has committed to supporting the ballot measure in 2027, and management remains hopeful for the project.
• Overall Business Focus: Core operational metrics including payroll as a percentage of sales, cost of goods as a percentage of sales, and occupancy costs remain in line with targets. Management is prioritizing continued efficiency gains and maintaining high quality for food and customer service.

Management did not issue formal full-year or quarterly numeric guidance, nor any explicit upward or downward revisions of prior targets. The only forward-looking statements are operational timelines that were maintained during the call, including full reopening of the Las Vegas America location by September 2026, a trial for the Bryant Park litigation in early 2027, and opening of the new Las Vegas bar in early 2027, and the Meadowlands casino referendum is now expected to be voted on in 2027 rather than 2026.

The call does not break out financial performance by formal product or business segments. Aggregate overall results for the 13-week quarter ended June 27, 2026 are: total EBITDA decreased $1.4 million year-over-year, driven by an approximate 6.5% drop in sales and gross margin that was not offset by corresponding payroll cost reductions. Two key geographic markets underperformed: Las Vegas same-market sales were down 11%, and Florida same-market sales were down 10% year-over-year, pulling down overall company sales by 6% for the quarter.

• Weak macroeconomic and traffic conditions in key markets: Reduced consumer traffic in Las Vegas and a challenging local economic climate in Florida drove double-digit sales declines in both markets, pulling down overall company results.
• Sticky payroll costs: Payroll costs did not decline in line with lower sales, resulting in compressed margin and lower year-over-year EBITDA.
• Uncertainty around the Bryant Park lease: While the company won the right to pursue significant monetary damages for lease breach, there is no guarantee that the company will be able to negotiate a new lease to retain the Bryant Park location.
• Uncertainty around the Meadowlands casino project: The referendum required to approve a casino license failed to get placed on the 2026 ballot, and despite political commitments for 2027, the project's future remains uncertain.
• Construction risk for new projects: New construction projects in Las Vegas carry execution uncertainty that could impact costs and opening timelines.

No questions were submitted by participants during the Q&A portion of the call.