Ark Restaurants (ARKR) Q1 2026 earnings summary

Executive summary

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

• Revenue for the quarter was $40,749,000, down 9.4% from $44,988,000 in the same period last 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, with the prior year including a $5.2M gain from lease termination.

• Excluding one-time items, operating income rose 82.2% to $1.1M from $0.6M year-over-year.

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

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

Outlook and guidance

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

• Cash position expected to improve after completion of the America restaurant build-out.

• March quarter typically marks the annual low point for cash, with improvement anticipated in coming months.

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

• Expansion opportunities are being explored in Las Vegas.