On this page of StockholderLetter.com we present the latest annual shareholder letter from ARK RESTAURANTS CORP — ticker symbol ARKR. Reading current and past ARKR letters to shareholders can bring important insights into the investment thesis.

 •  1/30/2026 Letter Continued (Full PDF)
 •  2/2/2024 ARKR Stockholder Letter
 •  2/3/2025 ARKR Stockholder Letter
 •  More "Hotels" Category Stockholder Letters
 •  ARKR Benford's Law Stock Score = 79

ARKR Shareholder/Stockholder Letter Transcript:

ARK RESTAURANTS CORP.
2025 ANNUAL REPORT


January 26, 2026
Shareholders, Employees, and Friends of our Company,
Headwinds continued to pressure cash flow and Earnings Before Interest, Taxes, Depreciation and
Amortization this past year. The precipitous slide from the excess demand the Company
experienced in the post-covid reopening of our restaurants has over the past three years been
replaced by continued deteriorating demand and increased cost of operating our restaurants.
However, the major factors affecting our performance in the current year can be attributed to our
lease situation in Bryant Park and our Sequoia operation in Washington D.C. I will get to these in
a moment as well as discuss our opportunity at The Meadowlands Raceway in northern New
Jersey, but first, a venue-by-venue discussion should provide some insight.
Our businesses away from Sequoia are generally profitable, Bryant Park included, although less
so than in the prior year. Las Vegas experienced fewer visitors in 2025. Calculations by the Vegas
Visitor Bureau estimate that number to be 9% less than 2024. In 2022 we signed extensions of our
leases at New York New York Hotel and Casino (   NYNY   ) resulting in a minimum rent increase
of approximately $2 million annually. Also required as a condition of the extension was a
substantial investment in refurbishing the restaurants and food court areas that we control. We
were fortunate that in late 2024 we hired a new Vice President of Operations for Las Vegas who
has significantly improved the efficiency and quality of our services, and we are now seeing these
improvements bolster cash flow. We are also excited about the refurbishment of our America
restaurant which is expected to be completed by May 2026. To some extent, the work of
transforming America has been interruptive to its revenue. At completion, we believe that revenue
will benefit greatly from the visual content created and that this should make this a destination
venue beyond just servicing NYNY hotel guests.
Our two restaurants in Alabama continue to perform well with consistent revenue levels. Cash
flow is somewhat constrained by the increased costs we are experiencing. While in general we
have been slow to increase prices in all our restaurants, fearing to do so in the face of lessening
demand, the steady demand for these two restaurants has provided an opportunity to offset some
of these costs.
In Florida we operate the fast-food court at The Hard Rock Hotel and Casino in Hollywood and
four full-service restaurants elsewhere. The fast-food court continues to be a stellar performer.
Demand remains strong thanks in no small measure to the attraction of the Hotel. The margins at
the four restaurants have been squeezed by lessening demand and higher costs. Increased pricing,
which has been modest compared to other restaurants on the southeast coast, has not overcome the
demand/expense squeeze. It is no consolation that we hear this to be a problem in general for
restaurants in the areas where we operate. I keep reminding myself that a bad economic
environment can defeat good management. We have good management and we are not defeated.
These four restaurants all turn a profit. Their locations are first class, and it is my belief that we
will be rewarded for our quality of product.

Washington D.C. has been difficult for us. Sequoia was for many years a good performer but has
been abused by our mistakes in management. We are working on this and as we did in Las Vegas
we need to find the right mix of stronger management, a new look for the menu, and better
communication in marketing our product.
Robert in New York City had a very good year. We see no reason that this will be interrupted.
Regarding our operations in Bryant Park, we are litigating with Bryant Park Corporation, the
manager of the park, under a management agreement with the Parks Department of the City of
New York. After 30 years of operations our lease expired in April 2025. Bryant Park Corporation
attempted, through a Request for Proposal process, to replace us with another tenant. We claim in
the litigation that the RFP process was tainted and unfairly influenced. The litigation is our effort
to retain this operation and secure the continued employment of some 250 employees, many of
whom have been in their positions for 20 years or more. We continue to operate the restaurants,
but the uncertainty of our lease situation has greatly impacted our event business, once
considerable, and created confusion in the marketplace as many visitors and residents were led to
believe that the restaurants were closed. That as well as the costs associated with the litigation has
had an outsized negative impact on our cash flow. The underlying lawsuit filed by the Company
to protect its rights continues, and we will pursue all available options to protect the Company's
interests. While the outcome of any litigation is always in doubt, we believe in our position.
In December 2025 the State of New York made its choice for the issuance of three casino licenses
to three venues in proximity to Manhattan. We have stated in the past that our investment in The
Meadowlands Raceway in northern New Jersey was made on the assumption that if New Jersey
were to ever issue a casino license outside of Atlantic City that the raceway at the Meadowlands
for many reasons would be best situated for a license. We also were certain that New Jersey would
not consider a license in the northern part of the state unless New York approved downstate
licenses. Now that this has occurred our opinion is that a casino license for The Meadowlands
Raceway is now in play. It will require a ballot referendum to be approved by a simple majority
of New Jersey voters, and we expect that this referendum will have a chance to appear on the
ballot this November or next year.
We continue to address the disappointment of our results along four lines. One is to continue to
litigate our lease situation at Bryant Park. Second is to pursue efficiency in our operating expenses
and improve efficiency in marketing. Third is addressing the highly unsatisfactory performance at
Sequoia, and fourth by pursuing additional acquisitions. Regarding the latter, we have been
fortunate in the acquisitions made in the past as all have provided strong returns on capital
deployed. Although we are eager to expand our business and have a balance sheet and lines of
credit that allow for this, we are not inclined to overpay.
Sincerely,
Michael

ARK RESTAURANTS CORP.
Corporate Office
Michael Weinstein, Chairman and Chief Executive Officer
Anthony J. Sirica, President, Chief Financial Officer and Treasurer
Jennifer Jordan, Co-Chief Operating Officer
Samuel Weinstein, Co-Chief Operating Officer
Walter Rauscher, Vice President     Corporate Sales & Catering
Keith Eure, Vice President     Las Vegas Operations
Nancy Alvarez, Corporate Controller
Teresita Mendoza, Director of Finance and Administration     Las Vegas Operations
Linda Clous, Director of Facilities Management
Shane Monaco, Director, Food and Beverage     Las Vegas Operations
Guisela Nunez, Director of Human Resources
John Oldweiler, Director of Purchasing
Evyette Ortiz, Director of Marketing
Christopher Love, Secretary
Blair Roy, Director of Maintenance     Las Vegas Operations
Executive Chefs
Mark Purdy, Las Vegas, NV
Brandon Greenwood, Assistant Executive Chef, Las Vegas, NV
Restaurant General Manager     New York
Ana Harris, Robert
Donna Simms, Bryant Park Grill
Restaurant General Managers     Washington, D.C.
Des Comer, Sequoia
Restaurant General Manager     Atlantic City, NJ
Jason Kowerski, Broadway Burger Bar
Restaurant General Manager     Meadowlands, NJ
Gina Palazzolo, Victory Sports Bar & Club
Restaurant General Managers     Las Vegas
Justin Otos, Yolos Mexican Grill
Logo Stevens, Director of Sales and Catering
Edwin Villatoro, Gonzalez y Gonzalez
Bret Frabbiele, Gallagher   s Steakhouse
Johnny Palmer, America
Randal Murillo, Village Streets
Elena Munez, Broadway Burger Bar



 1/30/2026 Letter Continued (Full PDF)