Greetings, and welcome to Ark Restaurants Fourth Quarter and Year-End 2025 Results Call. This conference is being recorded. I would now like to turn the call over to your host, Christopher Love, Secretary for Ark Restaurants. Thank you. You may begin.

Thank you, operator. Good morning, and thank you for joining us on our conference call for the fourth quarter and year ended September 27, 2025. My name is Christopher Love, and I am the Secretary of Ark Restaurants. With me on the call today is Michael Weinstein, our Chairman and CEO; and Anthony Sirica, our President and CFO. For those of you who have not yet obtained a copy of our press release, it was issued over the Newswires yesterday and is available on our website. To review the full text of that press release, along with the associated financial tables, please go to our homepage at www.arkrestaurants.com. Before we begin, however, I'd like to read the safe harbor statement. I need to remind everyone that part of our discussion this morning will include forward-looking statements and that these statements are not guarantees of future performance, and therefore, undue reliance should not be placed on them. We refer everyone to our filings with the Securities and Exchange Commission for a more detailed discussion of the risks that may have a direct bearing on our operating results, performance, and financial condition. I'll now turn the call over to Anthony.

Good morning, everyone. I want to go over a few items regarding our balance sheet. Our cash stands at $11.3 million, which has remained relatively stable each quarter compared to last year’s $10.2 million, showing a slight increase. We currently have $3.6 million in debt. In terms of our financial performance, our adjusted EBITDA for the year was $1.4 million, down from $6.1 million last year, primarily due to issues related to Bryant Park. The rise in legal fees, which were about $2 million, along with nearly another $2 million impact mainly from our Catering business, accounts for this decline. The overall decrease can be attributed to Bryant Park. For the full year, we have a tax provision, despite reporting a pretax loss, stemming from a write-off of our deferred tax assets in the previous quarter. In the current quarter, our EBITDA was negative $1 million, compared to $500,000 in the same quarter last year, again largely because of the Bryant Park situation. Lastly, in this quarter, we have a tax provision even with a pretax loss due to these naked tax credits related to indefinite-lived intangibles. Since we maintain a full valuation allowance on our deferred taxes, we must recognize tax expense on these credits as they are not anticipated to reverse soon. Other than that, there’s nothing out of the ordinary in the current quarter's financials.

Hi, everybody. I want to focus mainly on the Meadowlands and Bryant Park today. Overall, this December quarter is ahead compared to last December. The restaurants are operating more efficiently, and cash flows have improved, particularly in Las Vegas, at Robert, and in New York; our Alabama properties are performing well. However, we are experiencing revenue declines in our Florida properties, which appears to be a common issue in Southern Florida. The decrease is between 5% to 7%, depending on the full-service restaurant. Recently, we saw stagnation or slight decline in the Food Court and the Hollywood Casino after previously doing well. Florida has been a consistent challenge in terms of revenues and cash flow, but business remains strong in Las Vegas, Alabama, and at Robert in New York. Regarding Bryant Park, Sequoia has had a tough year, likely due to the political climate in Washington, D.C., which has substantially impacted our Catering business. Consequently, our Event business in Washington, D.C. has not been beneficial. Overall, we anticipate this December will be significantly better than last December. Regarding the Meadowlands: the issuance of casino licenses in downstate New York saw three licenses granted in early December. We had long anticipated that New Jersey would not issue casino licenses outside of Atlantic City until there was progress in downstate New York. Recently, a bill was passed in the New Jersey legislature indicating a referendum for casino approval on the upcoming November ballot, specific to the Meadowlands Racetrack and Monmouth Racetrack. It remains unclear whether the referendum will group them together or treat them separately. If a casino license is granted to the Meadowlands Racetrack, we could potentially have operations in place by the first quarter of 2027, assuming all environmental clearances are met. This would be a significant opportunity for us as minority owners of Meadowlands LLC, which oversees the racetrack, along with our exclusive food and beverage rights if a casino is built there. While there are potential obstacles and no guarantees, we’ve been anticipating New York’s issuance of these casino licenses for some time. As for Bryant Park, we are currently engaged in litigation, which has not disrupted the merit of our case. We are operational, but the impact on our business has been notable, particularly as we were unable to host events due to concerns over our future. This uncertainty has also affected our ability to book social events, which typically require 1 to 18 months of lead time. However, we are starting to see an increase in corporate events, which are beginning to bring in positive cash flow that covers our litigation and consultant costs. This aspect is self-sustaining. I have no opinion on how the litigation will resolve or if there will be a political settlement with the new mayor, but the longer we operate, the stronger our position becomes. Currently, I don’t see anything immediate that could interfere with our operations at the Bryant Park facility. That’s all from me. Please feel free to ask any questions.

Our first question comes from Jeffrey Kaminsky with JJK Consultants.

I'm going to ask a question that I've raised before without receiving a satisfactory answer. Last time, I noted that our stock reached another new low today, falling below $6 on significant volume. I've previously inquired about our strategy for turning the core business around. We're still waiting on the Meadowlands, which may not happen. The situation with the Meadowlands appears to be more precarious now, especially with three New York casinos approved just 30 miles away. Initially, our goal with the Meadowlands was to partner with Hard Rock, but now they are associated with the Queen's casino that received approval alongside Steve Cohen. This means there's much stronger competition in the Meadowlands if it ever moves forward. The partner Ark intended to work with is no longer involved. While I appreciate that you want to discuss the Meadowlands, it feels more like a long shot at this stage. The real concern is the fundamental business of Ark Restaurants. I've consistently asked for the strategy to reverse our fortunes, but the response has been that we’re always on the lookout for properties to acquire. At the same time, there are complaints about rising input costs like labor, food, and insurance, yet there’s still a desire to acquire properties. Previously, we closed sites and sold a lease in Tampa and shut down El Rio Grande, resulting in a shrinking footprint with underperformance. As a shareholder facing significant losses, I notice that while our competitors may not be having stellar years, none are reaching all-time lows according to Hospitality Restaurant Indexes. So, I will repeat my question: what is the strategy going forward to turn Ark around?

So the answer to that, unfortunately, is maybe not what you want to hear. I don't think I agree with you on the Meadowlands being a hail mary, quite the opposite. I'm very optimistic about it. We...

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...

Jeffrey, I won't interrupt you. Please, I'll provide you with your answers. First, I believe we shouldn't have any trouble finding a new partner, possibly under better terms than we had with Hard Rock. The demographics in Northern New Jersey are very attractive for a casino. When we initially looked for a partner years ago, the referendum that was proposed then didn't pass and required a partner that owned a casino in Atlantic City. At that time, Hard Rock did not own a casino. They subsequently purchased the Taj Mahal, mainly because it seemed like a good investment, especially since Atlantic City has been a declining market for a long time. They made that acquisition primarily to qualify to operate a casino in the northern part of the state alongside us. The same appealing demographics will attract other operators, making it unlikely for us to struggle in finding a new one. Those negotiations have just begun, and I don't see it as a desperate move at all. Regarding our regular business, we've been working to improve efficiency in very challenging circumstances. Our insurance premiums and labor costs have risen significantly. We’ve only recently felt comfortable enough to raise some prices, perhaps later than I should have, due to the increased costs of the products we purchase to serve our customers. We've been putting in a lot of effort into our operations. The most significant improvement has been in Vegas, where we have an excellent manager we hired late last year. The cash flow from that location has improved significantly, even though Vegas is facing challenges and headcount has decreased by around 10 to 11%. Bryant Park has certainly been a major distraction for us. I've invested a considerable amount of time working with consultants and lawyers to ensure we can maintain this operation. In the meantime, we are exploring other properties. We currently have two letters of intent out and are undergoing due diligence. We are also negotiating for a brand. The challenge with acquisitions has been that the numbers for targeted properties often decline during the due diligence period. We've been primarily focusing on the South, but the comparative revenues there have been disappointing. The deals we evaluate are based on last year’s figures, but by the time we complete due diligence, the numbers usually show deterioration for the targets. Additionally, landlords sometimes use the acquisition process to seek better leasing terms. Consequently, we have faced difficulties over the past 18 to 24 months in finalizing deals that initially seemed promising. However, as I mentioned, we currently have two letters of intent and we're pursuing another brand acquisition. We're actively searching for opportunities rather than remaining passive. We just haven't yet identified the right ones. I apologize for that, but our plan has always been to keep moving forward.

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 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 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 backgrounds, 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 are 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-Goerge 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 in 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 him turn your other businesses around?

I understand your frustration, and I share it as well. I wish you wouldn't rely on the press releases or articles regarding Bryant Park, as they may not present the full picture. We believe our position is strong. While we may not necessarily win, we entered this litigation with the belief that we had a solid case. Recent decisions from December 11, where the Judge dismissed certain claims from the Bryant Park Corporation, suggest that we have a fair Judge. Bryant Park Corporation tried for a summary dismissal and was unsuccessful, indicating that they are not likely to succeed in that approach. So far, there hasn’t been anything in the litigation that makes us feel uneasy about our stance. I advise my team, who have remained committed from the start, to avoid the press and maintain calm. We truly believe in our position, and I encourage you to view it similarly. I also acknowledge that we haven't successfully found a way to expand beyond our current restaurants. We sold our Tampa location as Hard Rock requested it to make way for their expansion, and we worked cooperatively with them to achieve a fair deal. While we do miss the EBITDA from that location, we believe it was a fair transaction. I agree we haven’t discovered the right path moving forward, but we feel closer with the current opportunities we’re exploring, even though the environment is challenging. As a point of reference, the stock is currently trading at about 1 to 1.5 times the value of the restaurant EBITDA and cash, which seems absurd.

So where is the insider buying, Michael? Where are you and your insiders not buying stock? It 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...

I could have that discussion with you at any time. Our stock is very illiquid. Anybody who goes to sell will knock it down substantially. Anybody who goes to buy it will probably knock it up. But the company at $5, whatever, or $6, in my opinion, that doesn't represent the value of what we have here even without the Meadowlands or without the...

Insiders should be purchasing shares. The Board of Directors should also be investing. There are three members on the Board who work in the restaurant industry. They must not recognize the value at $5.75. What about the executives? Why aren’t they buying shares?

That's a question that's not appropriate. But everybody makes their own decisions.

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...

No. What I said to you is you should not pay attention to the press. Read the decisions that are public decisions and they'll be informative. But the press is not always right.

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, etc. The stock sits at $5.75. I've taken much of everybody else's time. I hope there are some other people who have something to say because somehow I feel I'm the only one who wants to say anything. So anyway, good luck.

Thank you. That concludes our question-and-answer session. I'll turn the floor back to Mr. Weinstein for any final comments.

All right. Thank you all. Have a good holiday, and we'll speak to you on the next conference call.

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.