Ark Restaurants Reports Modest Q1 Improvement Amid Las Vegas Renovations and Litigation Costs

Company sees continued strength in Las Vegas but challenges in Florida and Washington, D.C. markets

Published on Feb. 10, 2026

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Ark Restaurants (NASDAQ:ARKR) executives highlighted modest year-over-year improvement in operating performance during the company's fiscal first-quarter 2026 earnings call, but discussed cash usage tied to Las Vegas renovation work and ongoing litigation costs. Management also provided updates on performance by market, including continued strength in Las Vegas amid weaker broader Strip trends, weather-related pressure in Florida, and early signs of improvement at Sequoia in Washington, D.C. The company also outlined early steps toward gauging public support for a potential casino referendum in northern New Jersey tied to the Meadowlands Racetrack.

Why it matters

Ark Restaurants' performance and strategic initiatives provide insight into the broader restaurant industry's recovery from the pandemic, as well as the company's ability to navigate challenges like inflation, litigation, and market-specific headwinds in key regions like Las Vegas and Florida.

The details

During the earnings call, Ark Restaurants executives discussed the company's cash position, which included $9 million in cash and $3 million in debt. They noted significant cash usage tied to required work under a new lease with MGM at New York-New York in Las Vegas, as well as ongoing litigation bills connected to the Bryant Park location in New York. The company's Las Vegas operations were cited as a 'high point,' with better results despite broader Strip weakness, while Florida restaurants remained challenged by 10-13% revenue declines. In Washington, D.C., the company said it is 'starting to see a little perk up' at its Sequoia restaurant under new management. Ark Restaurants also outlined early steps to gauge public support for a potential casino referendum in northern New Jersey related to the Meadowlands Racetrack.

  • Ark Restaurants' fiscal first-quarter 2026 earnings call covered the period ended Dec. 27, 2025.
  • The company expects the 'new facility' being built at New York-New York in Las Vegas to open in April.
  • Ark Restaurants said the March quarter is typically the company's annual low point for cash.

The players

Ark Restaurants

A Boca Raton, Florida-based restaurant operator that owns and manages a portfolio of casual and upscale dining venues featuring Cuban-inspired menus, full-service bars, and live entertainment.

Michael Weinstein

Chairman and CEO of Ark Restaurants.

Keith Eure

Runs the Las Vegas operations for Ark Restaurants.

Meadowlands Racetrack

A racetrack in northern New Jersey where Ark Restaurants has exclusive food-and-beverage rights, and the company is exploring a potential casino referendum.

Bryant Park

A location in New York City where Ark Restaurants operates a restaurant that has been affected by ongoing litigation.

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What they’re saying

“Las Vegas 'remains a high point' for the company, citing better results despite the Strip being down 11%.”

— Michael Weinstein, Chairman and CEO (transcriptdaily.com)

“Florida 'has been a disaster,' describing unusually cold temperatures and stating that in the prior week some Florida full-service restaurants were down 40%.”

— Michael Weinstein, Chairman and CEO (transcriptdaily.com)

What’s next

If the results of the public sentiment survey at the Meadowlands Racetrack are positive, Ark Restaurants believes it could provide 'ammunition' for the legislature to put a casino referendum on the ballot in northern New Jersey in November.

The takeaway

Ark Restaurants is navigating a mix of challenges, including inflation, litigation, and market-specific headwinds, while also exploring potential growth opportunities in Las Vegas and the possibility of a casino referendum in New Jersey. The company's performance provides a window into the broader restaurant industry's recovery and ability to adapt to evolving market conditions.