Ark Restaurants Q1 Revenues Drop 9.4% as Net Income Falls 71.7%
Ark Restaurants reported Q1 fiscal 2026 revenues of $40.7 million, down 9.4% year over year, with same-store sales falling 7.3% excluding Tampa. Net income plunged 71.7% to $0.9 million while adjusted EBITDA rose 10.9% to $1.5 million, aided by 11.9% lower food costs and a $9.1 million cash balance.
1. Q1 Financial Results
Ark Restaurants reported total revenues of $40.7 million for the quarter ended Dec. 27, 2025, down 9.4% year over year, with same-store sales falling 7.3% excluding the Tampa Food Court closure. Net income collapsed 71.7% to $0.9 million ($0.25 per diluted share) while adjusted EBITDA rose 10.9% to $1.5 million.
2. Cost Controls and Liquidity
Food and beverage costs declined 11.9% to $10.7 million and payroll expenses dropped 13.4% to $14.2 million, driving efficiency gains. The company ended the quarter with $9.1 million in cash against $2.9 million of outstanding debt, reflecting a strong liquidity position.
3. Operational Factors and Outlook
Revenue declines were driven by lower catering and à la carte sales, partial renovations at the Las Vegas property, severe Florida weather and uncertainty over Bryant Park lease litigation. Management expects cash flow to improve as renovation spending winds down and is evaluating potential casino opportunities at Meadowlands.