Ark Restaurants Corp. reported total revenues of $39,725,000 for the 13 weeks ended March 29, 2025, a decrease from $42,257,000 in the prior year's second quarter. Excluding revenues from the closed El Rio Grande and Tampa Food Court, company-wide same-store sales increased by 0.4% for the quarter. For the 26 weeks ended March 29, 2025, total revenues were $84,714,000, down from $89,743,000 in the comparable prior period.
The company reported a net loss attributable to Ark Restaurants Corp. of $(9,258,000), or $(2.57) per basic and diluted share, for the second quarter of 2025. This loss includes a full valuation allowance related to deferred tax assets in the amount of $4,799,000. Adjusted EBITDA for the quarter was $(691,000), a decline from $(321,000) in the prior year's second quarter.
A non-cash goodwill impairment charge of $3,440,000 was recognized during the second quarter of 2025. This impairment was primarily triggered by a decline in the company's stock price and the continued uncertainty surrounding the expiration of the Bryant Park Grill & Cafe and The Porch at Bryant Park leases. The El Rio Grande property was vacated and delivered to the landlord on April 30, 2025, with a gain of $140,000 recognized in Q2 2025 due to refinements of estimates.
The company's agreements for the Bryant Park Grill & Cafe and The Porch at Bryant Park expired on April 30, 2025, and March 31, 2025, respectively. On March 28, 2025, Ark Restaurants filed a complaint in New York State Supreme Court, alleging a defective bid process by the landlord and violations of applicable law. Concurrently, a motion for a preliminary injunction to prevent eviction was filed.
The Court denied the motion for a preliminary injunction on April 24, 2025, prompting Ark Restaurants to file a notice of appeal and another motion for a preliminary injunction in the Appellate Division on April 29, 2025. The Bryant Park Grill & Cafe and The Porch at Bryant Park collectively accounted for $12.7 million, or approximately 15.0%, of the company's total revenues for the 26 weeks ended March 28, 2025. Ark Restaurants continues to operate these properties as a holdover tenant.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.