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Ark Restaurants (ARKR) investor relations material
Ark Restaurants Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Most individual restaurants performed well, with strong cash flow in Las Vegas and above-expectation results in New York and Fort Lauderdale, while Bryant Park and Sequoia underperformed due to local market conditions, litigation, and event business decline.
Revenues for the 13 and 39 weeks ended June 28, 2025, decreased 13.3% and 8.4% year-over-year, mainly due to lower same-store sales and closures.
Operating loss for the quarter was $3.4M, with a net loss of $3.5M for the quarter and $9.5M year-to-date, compared to net 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, which accounted for 15.4% of year-to-date revenue, and ongoing litigation at Bryant Park are expected to last two to three years.
Financial highlights
Cash and equivalents at quarter end were $12.3M; debt stood at $3.86M.
Q3 2025 revenue was $43.7M, down from $50.4M in Q3 2024; 39-week revenue was $128.4M, down from $140.1M year-over-year.
Food and beverage sales fell 12.7% for the quarter and 7.7% year-over-year; other revenue declined 36.2% and 38.8%, respectively.
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 securing a casino license in the Meadowlands, pending legislative developments in New Jersey and New York.
Management expects continued challenges from inflation, labor costs, and macroeconomic uncertainty, and will pursue all legal options to retain key New York locations.
Existing cash, internal cash generation, and banking facilities are expected to cover capital needs for at least the next 12 months.
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