Ark Restaurants (ARKR) investor relations material

Executive summary

• Q3 ended June 27, 2026, saw overall sales decline by 6%–6.6% year-over-year, with notable drops in Las Vegas (down 11%) and Florida (down 10%), while Alabama operations performed well.

• Operated 16 restaurants, 12 fast food concepts, and catering operations in the U.S. as of June 27, 2026.

• Cash flow improved at New York-New York and Las Vegas despite lower sales, attributed to increased operational efficiency.

• Significant legal dispute and lease uncertainty at Bryant Park venues, which accounted for 14.5% of YTD revenues, with possible forced exit in October 2026.

• Management remains focused on efficiency, maintaining high service and product quality, and monitoring legislative developments for Meadowlands investment.

Financial highlights

• Q3 revenues were $40.9M, down from $43.7M year-over-year; nine-month revenues were $118.2M, down from $128.4M.

• Net loss attributable to shareholders was $(347)K for Q3 2026, compared to $(3.45)M prior year; nine-month net loss was $(1.26)M vs. $(9.55)M prior year.

• Adjusted EBITDA for Q3 2026 was $358K, down from $1.79M in Q3 2025; adjusted EBITDA margin was 0.9% (vs. 4.1% prior year).

• Cash and cash equivalents at quarter-end were $9.5M; total debt was $7.1M, up $4.5M from the prior quarter due to a $5M drawdown for Las Vegas construction.

• Working capital deficit was $4.4M at quarter-end.

Outlook and guidance

• Management expects sufficient liquidity for at least 12 months, but warns of material adverse impact if Bryant Park locations are lost.

• America in Las Vegas is partially closed but expected to fully reopen by September; new bar construction at New York-New York to begin in 2-3 months, with opening anticipated early next year.

• Two potential new Las Vegas venues are under negotiation.

• No referendum on casino gaming at Meadowlands will occur in 2026; future value of related investment remains uncertain.

• Additional capital expenditures for FY26 expected to be ~$1M, funded by cash and credit facility.