Ark Restaurants Corp Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jeffrey Kaminsky - JJK Consultants - Analyst : I'm going to ask a question that I've asked a number of times on this call, not really got a satisfactory answer. Last time I pointed out that our stock had hit another new low today its under $6 on big volume. The question that I have asked in the past has been what is the strategy going forward to turn the core business around? We're still waiting on the Meadowlands. It may or may not happen. I think the Meadowlands situation is much more precarious than in the past. You've now got approval of three New York casinos that are going to be 30 miles away from the Meadowlands. And our interest in the Meadowlands was initially to be partnered with Hard Rock and Hard Rock is now embed with the Queen's casino that got approval with Steve Cohen. So you now have much deeper competition in Meadowlands should it ever pass. And the partner that Ark was supposed to be partnering with is not even involved any longer. So let's put that aside. I appreciate, Michael, that you wanted to talk about the Meadowlands, but that's just a hail mary at this point. What's not a hail mary is the basic business of Ark Restaurants. I've always asked what the strategy is going forward to turn things around, okay? And I always get back, well we're always looking for properties. We're looking to acquire the right properties. At the same time, you bemoan the fact that input costs are higher, labor, food, insurance and yet you still want to acquire properties. While you are saying that, a couple of years ago, you closed sites -- you sold off the lease in Tampa and you closed El Rio Grande. So the footprint is shrinking, business is not really good. And again, as a shareholder who's getting crushed, while your competition may not have had banner years, but nobody is at all-time lows when you look at hospitality restaurant indexes. So my question simply again is, what is the strategy going forward to turn Ark around?

Question: Jeffrey Kaminsky - JJK Consultants - Analyst : With all due respect, but if you lose Hard Rock, which you did, someone is going to need to raise capital, which is going to dilute our ownership. So by losing --

Question: Jeffrey Kaminsky - JJK Consultants - Analyst : In turning Vegas around, which you have spoken highly of, which is a good thing, which is the head count is down, but the numbers are better. You hired a new manager apparently. So doesn't that indicate that with better management at your properties, you can actually do LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 4:00PM, ARKR.OQ - Q4 2025 Ark Restaurants Corp Earnings Call better business. Vegas just proved that. So what about finding managers to turn other properties around or take this guy in Vegas who did such a good job and give him an expanded role and all. And one last point, Michael, one last point. In looking at your Board of Directors, you have outside Board members who get paid as Board of Directors, two or three of which have restaurant and hospitality background, which is why they sit on your Board. What are they saying? What is the strategy that they are bringing to the table? That's why they're on the Board, right? Three senior people in the restaurant industry. You guys don't have a quarterly meeting and talk about how we're going to turn business around other than finding another restaurant to buy? I'm just puzzled by the fact that you are in the restaurant business, and we're talking about a casino that may or may not happen and if it does terrific, but you're not in the casino business, okay? And we're going to talk about litigation at Bryant Park, which is also puzzling to me. I understand you dug in, but I also understand that they don't want you there. That was also my understanding that whatever the cases that Ark is making about an unfair practice or an unfair procedure in losing the lease. It's my understanding that Ark didn't even come in second, that Ark came in third. So even if you're proved as Jean-George who won the lease, did so in a failed process, you guys didn't even come in second place, you came in third. So you spent $2 million on Bryant Park and the weather was still windy and then that litigation, the casino is a casino. But as far as I know and the reason I was a shareholder on Ark is because you're in the restaurant business. And I'm asking for some answers on how you expect to turn your restaurant business around? Why not give the guy in Vegas a bigger role, let them turn your other businesses around?

Question: Jeffrey Kaminsky - JJK Consultants - Analyst : So where is the insider buying, Michael? Where are you and your insiders are not buying stock. Traded at $5.75 for Ark stock. Markets have a way of being efficient, Michael. There's a reason the stock is where it is. You could tell us not to pay attention to --

Question: Jeffrey Kaminsky - JJK Consultants - Analyst : So insiders should be buying. Your Boards of Directors should be buying. You have three people on the Board who are in the restaurant business. They must -- they don't see value at $5.75. What about the C-suite? Why isn't the insider buying?

Question: Jeffrey Kaminsky - JJK Consultants - Analyst : Okay. So I shouldn't pay attention to the press release. I shouldn't pay attention to the noise coming out of the litigation at Bryant Park, and the stock price is also going --

Question: Jeffrey Kaminsky - JJK Consultants - Analyst : Well, the market has gotten it right, Mike. The market has gotten it right, when it traded down from $14 to $12 to $10, you had impairment charges because you didn't want to do a buyback, et cetera. The stock sits at $5.75. I've taken much of everybody's time. I hope there are some other people who have something to say because somehow, I feel are the only one I want to say anything. So anyway, good luck.