Executive Summary

Q3 2025 delivered $43.72M revenue and $(0.96) diluted EPS, down year over year primarily on Bryant Park litigation costs (~$0.8M), Washington D.C. demand weakness, and a $4.70M impairment at Sequoia; adjusted EBITDA was $1.79M .
Same-store sales ex-closed units fell 7.4% in the quarter, with Bryant Park event business negatively impacted by landlord dispute publicity; Las Vegas cash flow improved despite broader Strip softness .
Balance sheet remains resilient: cash $12.33M and debt $3.86M at quarter-end; credit facility maturity extended to June 1, 2028, with covenants revised and net income covenant removed .
No formal forward guidance; management focus centers on litigating to retain Bryant Park leases, mitigating D.C. softness, and opportunistic growth; Q3 call featured no Q&A, keeping catalysts concentrated on legal outcomes and operating execution .

What Went Well and What Went Wrong

Las Vegas operations increased cash flow despite Strip softness; Robert (NYC) and Rustic Inn (FL) performing better than last year, with “the rest of our portfolio restaurants continue to meet expectations” .
Liquidity/financing de-risked: credit facility extended to 2028; minimum net worth covenant raised; net income covenant removed, preserving flexibility .
Adjusted EBITDA remained positive at $1.79M despite headwinds; cash held at $12.33M provides support for growth initiatives .

Bryant Park litigation drove ~$0.8M expense and damaged catering/a la carte demand, causing SSS to decline 7.4% in Q3; management cites “negative publicity” impact .
Sequoia (Washington D.C.) saw additional $4.70M impairment as future cash flow projections no longer support carrying values; D.C. market demand described as difficult .
Year-over-year revenue fell to $43.72M vs $50.40M, and net income swung to $(3.45)M vs $0.64M, reflecting litigation costs and impairments, plus removal of Tampa Food Court and El Rio Grande revenue contributions .

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$50.40	$44.99	$39.73	$43.72
Diluted EPS ($USD)	$0.18	$0.88	$(2.57)	$(0.96)
Operating Income ($USD Millions)	$0.82	$5.69	$(4.62)	$(3.42)
Net Income ($USD Millions)	$0.64	$3.16	$(9.26)	$(3.45)
Adjusted EBITDA ($USD Millions)	$3.38	$1.38	$(0.69)	$1.79

Notes:

Q/Q: Revenue improved vs Q2 ($43.72M vs $39.73M) while losses narrowed (EPS $(0.96) vs $(2.57)) as litigation expense persisted but goodwill impairment was concentrated in Q2 .
Y/Y: Revenue down ~13%, EPS down from $0.18 to $(0.96), reflecting Bryant Park event business softness and Sequoia impairment .

Balance Sheet Snapshot

Metric	Q1 2025	Q2 2025	Q3 2025
Cash and Equivalents ($USD Millions)	$13.10	$11.12	$12.33
Total Outstanding Debt ($USD Millions)	$4.70	$4.28	$3.86

Segment/Contribution Snapshot (YTD)

Item	39 Weeks Ended Jun 29, 2024	39 Weeks Ended Jun 28, 2025
Bryant Park Grill & Café + The Porch revenue ($USD Millions)	$23.3 (16.7% of total)	$19.7 (15.4% of total)

KPIs and Non-GAAP Adjustments

KPI / Item	Q3 2025	Q2 2025	Q1 2025
Company-wide SSS ex El Rio Grande/Tampa Food Court	-7.4% (13 weeks)	+0.4% (13 weeks)	-2.3% (13 weeks)
Litigation expense (Bryant Park)	>$0.80M (quarter)	~$0.65M (consulting/legal impact on EBITDA narrative)	—
Impairment – Sequoia ROU + long-lived assets	$4.70M (quarter)	—	—
Goodwill impairment	$3.44M (YTD, recorded in Q2 period)	$3.44M	—
Adjusted EBITDA	$1.79M	$(0.69)M	$1.38M

No quantitative forward guidance was provided. Financing and covenant changes materially updated:

Metric	Period	Previous Guidance/Terms	Current Guidance/Terms	Change
Credit Agreement maturity	Facility	June 1, 2025	June 1, 2028	Extended
Max permitted obligations	Facility	$30.0M	$20.0M (incl. promissory notes)	Lowered
Minimum tangible net worth covenant	Facility	$22.0M	$28.0M	Raised
Annual net income covenant	Facility	Required	Removed	Removed

Dividend/Buyback posture noted previously as contingent on Bryant Park lease outcome (Q1 call), not formal guidance .

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Bryant Park leases/litigation	Landlord selected a new operator; outcome uncertain; capital allocation constrained by lease uncertainty	Holdover tenant; filed suit; injunction denied; appeal pending; 26-week revenue contribution 15.0%	Litigation ongoing; discovery beginning; Q3 event demand pressured; 39-week contribution 15.4%	Intensifying legal process; operational headwind continues
Washington D.C. demand (Sequoia)	Operational efforts; market weakness noted	—	Impairment $4.70M; event business dried up; market difficult	Worsened
Las Vegas performance	Operational efficiency improving; cash flows ahead of projections	—	Cash flow increased despite Strip softness	Improving execution vs macro softness
Capital structure/liquidity	Cash $13.10M; debt $4.70M	In process of renewing credit facility	Facility extended; debt $3.86M; cash $12.33M	De-risked
Macro demand/SSS	SSS -2.3% (Q1)	SSS +0.4% (Q2)	SSS -7.4% (Q3)	Volatile; Q3 worsened
Meadowlands casino license	Strategic optionality tied to NY downstate licensing	Strategic optionality reiterated	Belief closer to NJ referendum trigger post NY licenses	Monitoring (potential upside catalyst)
Dividend/buyback posture	Dependent on Bryant Park outcome	—	—	Unchanged dependency

“The current quarter showed positive EBITDA of $1,791,000… due in large part to the expense of our ongoing litigation involving our Bryant Park operations which exceeded $800,000 in the quarter.” – Michael Weinstein, CEO .
“Our operations at the New York-New York Hotel and Casino in Las Vegas increased cash flow despite softness on the Las Vegas Strip.” – Michael Weinstein .
“We recognized additional impairment charges of $2,940,000 and $1,760,000 during the 13 weeks ended June 28, 2025 related to Sequoia’s ROU and long-lived assets, respectively.” – Company disclosure .
“We did extend our credit agreement during the quarter through… 2028 with $20,000,000 of capacity… and removed the annual net income covenant.” – Anthony Sirica, CFO .

No analyst questions on the Q3 call; management reiterated focus on Bryant Park litigation, operating performance, and Meadowlands optionality .

S&P Global consensus for Q3 2025 appears unavailable for EPS and revenue (no estimates and counts returned). As a result, no beat/miss vs Street can be determined; investors should note low/limited coverage for ARKR. Values retrieved from S&P Global.*

Near-term results are dominated by Bryant Park lease litigation: expect continued event/catering pressure and legal costs until resolution; stock sensitivity to legal updates is high .
Operational resilience: Las Vegas, Robert (NYC), and Rustic Inn (FL) offset some headwinds; focus on efficiency/cash flow remains a mitigating factor .
Impairment risk persists in weaker markets (Washington D.C.); monitoring future performance at Sequoia and potential further impairments is prudent .
Liquidity and covenants are favorable post credit facility extension, reducing financing risk and supporting selective growth initiatives .
Quarterly SSS volatility suggests macro sensitivity and venue-specific issues; traders should watch Q4 seasonality and Bryant Park event calendar normalization .
With no formal guidance and minimal Street coverage, price action likely tied to legal milestones (injunctions/appeals), operational updates from Las Vegas/NYC, and any Meadowlands progress .
Capital allocation (dividends/buybacks) remains on hold pending Bryant Park lease outcome; medium-term thesis hinges on lease retention and stabilization of D.C. .