Ark Restaurants (ARKR) investor relations material

Executive summary

• Adjusted EBITDA increased by $150,000 year-over-year to $1,529,000, reflecting operational efficiency gains, while net income dropped to $896,000 from $3,164,000.

• Revenue for the quarter was $40,749,000, down 9.4% year-over-year, with the prior year including $998,000 from the now-closed Tampa Food Court.

• Operated 16 restaurants, 12 fast food concepts, and catering operations in the U.S. as of December 27, 2025.

• The business is highly seasonal, with best results in warmer months and geographic diversity mitigating some risk.

• The quarter was described as quiet, with no significant balance sheet changes or impairments.

Financial highlights

• Q1 2026 revenues were $40.7M, down 9.4% year-over-year; food and beverage sales fell 9.4%.

• Operating income was $1.1M, down 80.8% year-over-year due to a prior-year $5.2M gain from lease termination; excluding one-time items, operating income rose 82.2%.

• Net income attributable to shareholders was $0.9M ($0.25 per share basic/diluted), down from $3.2M ($0.88 per share).

• Cash and cash equivalents at quarter-end were $9.1M; total debt was $3.0M.

• Cost of sales decreased by 270 basis points and payroll by 349 basis points sequentially from Q4.

Outlook and guidance

• Cash position is expected to improve after completion of restaurant buildouts, with the March quarter typically being the annual low point.

• Management expects continued adverse impact from the Bryant Park lease dispute.

• Believes existing cash, internal cash generation, and banking facilities are sufficient for at least the next 12 months.

• No other trends or events expected to materially affect capital requirements or liquidity.

• Monitoring potential expansion opportunities in Las Vegas.