Highlights

  • Fiscal Q3 2026 Revenue fell to US$40.9 million from US$43.7 million, with same-store sales down 6.6%.
  • Net loss attributable to Ark narrowed to US$347,000, or US$0.10 per share, from US$3.45 million a year earlier.
  • A New York court granted the Bryant Park landlord ejectment on 18 June 2026, and Ark is appealing.
  • No Meadowlands gaming referendum will occur in 2026, leaving November 2027 as the earliest possible vote.

Ark Restaurants Corp. (NASDAQ:ARKR) entered the final stretch of its 2026 fiscal year with a sharply smaller loss, yet the restaurant operator's future at three of its best-known Manhattan sites still rests with the New York courts.

In results for the 13 weeks ended 27 June 2026, released on 10 August 2026, the company reported lower sales across a mixed regional footprint but an improved bottom line, helped by the absence of the Impairment charges that weighed on the prior-year quarter. At the same time, management warned that losing its Bryant Park locations could have a material effect on the business.

Smaller Loss on Softer Sales

Total revenue for fiscal Q3 2026 declined to US$40.9 million from US$43.7 million, and same-store sales fell 6.6%. For the 39 weeks to 27 June 2026, revenue was US$118.2 million against US$128.4 million a year earlier, with same-store sales down 7.2%.

The net loss attributable to Ark narrowed to US$347,000, or US$0.10 per share, from US$3.45 million, or US$0.96 per share, in the prior-year quarter, which included a US$4.7 million impairment. Adjusted EBITDA, a non-GAAP measure, slipped to US$358,000 from US$1.79 million. The company ended the quarter with US$9.49 million in cash and equivalents and US$7.12 million of total debt.

Chief Executive Michael Weinstein pointed to rising Cash Flow in Las Vegas despite weaker Strip traffic and strong revenue and cash flow growth in Alabama, while Washington, D.C. was difficult and Florida remained pressured by local economic conditions.

Bryant Park Ruling Puts Key Sites at Risk

The Bryant Park Grill, Bryant Park Café and The Porch at Bryant Park generated US$17.1 million, or about 14.5%, of revenue in the first 39 weeks of fiscal 2026. Their leases expired in 2025, and the landlord selected a new operator.

On 18 June 2026, a New York State court granted the landlord summary judgment on ejectment while finding Ark entitled to pursue damages for breach of the Grill Lease and its right of first lease for the Café. Ark appealed, and ejectment was stayed until about 16 October 2026, conditioned on a US$125,000 undertaking and continued use-and-occupancy payments. The landlord's motion to reargue was denied on 3 August 2026.

Appeal and Meadowlands Timeline Ahead

Management planned to seek an extended stay and said it could not predict the outcome; unless the rulings were reversed or the stay extended, Ark expected to vacate the Bryant Park sites around 16 October 2026. A trial on damages remains pending.

Separately, expanded casino gaming at the Meadowlands, where Ark holds an Investment in New Meadowlands Racetrack, requires a state constitutional amendment approved by voters, with November 2027 the earliest possible referendum. Ark recorded no impairment on the investment but noted that a rejected referendum could lead to a material one. Shares closed at US$5.01 on 30 October 2026, up 7.97% on the day, giving a market Capitalization of about US$18.07 million.