Ark Restaurants (ARKR) investor relations material

Executive summary

• Most restaurants performed well, with strong cash flow in Las Vegas, Rustic Inn (FL), and Robert (NYC), while Sequoia (D.C.) and Bryant Park underperformed due to market challenges and litigation.

• Revenues for Q3 2025 were $43.7M, down 13.3% year-over-year, with net loss of $3.45M for the quarter and $9.55M year-to-date, mainly due to asset impairments and litigation.

• Operating loss for the quarter was $3.4M, compared to $0.8M operating income last year.

• Significant non-recurring items included a $5.2M gain on lease termination, $4.7M in asset impairments, and a $3.4M goodwill impairment.

• Legal disputes over key New York leases, especially Bryant Park, which accounted for 15.4% of year-to-date revenue, pose ongoing risk.

Financial highlights

• Cash and equivalents at quarter end were $12.3M; debt stood at $3.86M.

• Food and beverage sales fell 12.7% for the quarter; same-store sales dropped 7.4% for Q3 and 3.3% year-to-date.

• Adjusted EBITDA for Q3 2025 was $1.79M, down from $3.38M last year.

• Net cash provided by operating activities was $1.1M year-to-date, down from $3.9M last year.

• No advances were outstanding under the credit facility as of quarter-end.

Outlook and guidance

• Management remains optimistic about restaurant performance and is monitoring casino license opportunities in New Jersey.

• Ongoing litigation at Bryant Park is expected to last two to three years and could materially impact results.

• Existing cash, internal cash generation, and banking facilities are expected to cover capital needs for at least the next 12 months.

• Management remains committed to Sequoia despite D.C. market challenges.

• Inflation, labor costs, and macroeconomic uncertainty are expected to continue impacting operations.