Ark Restaurants (NASDAQ:ARKR) said on its second-quarter 2026 earnings call that sales remain under pressure across several markets, while management pointed to improved cost controls, a stable balance sheet and potential catalysts in Las Vegas and New Jersey.
Chairman and Chief Executive Officer Michael Weinstein said the company has not made meaningful menu price increases, even as customers appear to be cutting back. He said check averages have remained “pretty much the same,” but the company is losing what it considers the lower end of its customer base as consumers contend with their own household costs, including grocery and gas prices.
Sales Down Across Key Markets
Weinstein said sales in Las Vegas are down about 11%, which he said is generally in line with the city’s reported decline in visitation. Despite the lower revenue, he said cash flow in Las Vegas has improved because Ark has become better at managing payroll and other expenses.
“We’re really very well managed there,” Weinstein said.
In Florida, Weinstein said sales are down 10%. He said the company has checked with other restaurant operators and vendors and believes its performance is broadly in line with the market.
Washington, D.C., is also seeing lower revenue, with sales down 5%, according to Weinstein. However, he said new management has helped the company operate more efficiently with lower payroll costs. As a result, he said the business is performing slightly ahead of last year in terms of reducing losses.
In New York, Weinstein said “Robert is doing very well,” but the company remains challenged by events at Bryant Park because of ongoing litigation. He said the location remains “very profitable,” though litigation expenses are offsetting a significant portion of that profitability.
Balance Sheet Remains Stable
President and Chief Financial Officer Anthony Sirica said the company drew down $5 million before the end of the quarter to finance leasehold improvements in Las Vegas. At quarter-end, Ark had $11.5 million in cash and $7.6 million in debt.
Sirica described the balance sheet as “very stable and in good shape,” adding that there was little else of note from a balance sheet perspective during the quarter.
Las Vegas Project Expected to Open in July
Weinstein said Ark is hopeful it will open its new America restaurant in Las Vegas in early July. He said management believes the project could “help us dramatically” by repositioning the restaurant from one that primarily serves hotel customers into a more sought-after destination.
The company did not provide financial projections for the new restaurant during the call.
Bryant Park Litigation Continues
Weinstein said litigation related to Bryant Park remains ongoing and encouraged interested parties to review filings on the court website. He said there is currently no indication the litigation will end soon.
According to Weinstein, a trial will likely take place late this calendar year or early next year. He added that whichever side loses the trial would likely appeal, potentially extending the matter by another year and a half.
Meadowlands Referendum Remains Uncertain
Weinstein also discussed the company’s Meadowlands-related opportunity, saying Ark is hopeful New Jersey lawmakers will put a referendum on the November ballot. He said there continues to be strong opposition from Atlantic City legislators, while northern New Jersey legislators are pushing for the measure.
Weinstein said the company expects to know more within the next month or so about whether the referendum will be placed on the ballot. He cited three public polls, all showing support for the measure. One poll showed narrow support at 51% to 49%, while two others showed support ranging from 62% to 66%.
“I think the polling should be persuasive, but again, this is Jersey politics, and we’re just hopeful we get on the ballot this year,” Weinstein said.
The call concluded without any analyst or investor questions. Weinstein closed by saying, “See you next quarter. Thank you very much.”
About Ark Restaurants (NASDAQ:ARKR)
Ark Restaurants Corp., traded on NASDAQ under the ticker ARKR, is a Boca Raton, Florida–based restaurant operator. The company owns and manages a portfolio of casual and upscale dining venues that feature Cuban-inspired menus, full-service bars and live entertainment. Its concepts emphasize traditional Latin flavors paired with modern culinary techniques to appeal to a broad range of diners.
Ark Restaurants serves both on-premise and off-premise customers, offering dine-in seating, take-out, delivery and catering services.
