ARK RESTAURANTS CORP Annual Report - How They Did This Year

Hey there, fellow investor! Let's take a look at what we know from ARK RESTAURANTS CORP's latest filing:

Key Business Updates & Operations:

• Restaurant Portfolio Changes: In the prior fiscal year (ending September 2024), the company closed its El Rio Grande restaurant. In November 2024, they made an investment in Ark Hollywood Tampa Investment LLC.
• Credit Line Update: In May 2025, ARK RESTAURANTS CORP updated its revolving credit line. The interest rates on this credit line are now tied to current market rates like the Prime Rate or SOFR (Secured Overnight Financing Rate). This facility is mentioned in relation to properties like The Rustic Inn, JB's On The Beach, and the Sequoia Renovation.
• Employee Incentives: The company continued to use stock options to incentivize its employees, issuing new grants in January and December of 2024 under their 2016 and 2022 stock option plans.

Important Relationships & Risks to Watch:

• Revenue Concentration: A significant portion of the company's revenue comes from one location: the Bryant Park Grill & Cafe and The Porch at Bryant Park.
• Customer & Supplier Concentration: ARK RESTAURANTS CORP relies heavily on one hotel operator for a significant portion of its accounts receivable. A large part of their costs for food and beverages comes from just one or two main suppliers.
• Related Party Dealings: The company had various transactions with related parties, including family members of management and other entities like New Meadowlands Racetrack LLC and Ark Meadowlands LLC. These dealings also included payments for design services.

Key Takeaways: This past year, ARK RESTAURANTS CORP saw changes in its restaurant portfolio with the closure of El Rio Grande and an investment in Ark Hollywood Tampa. They also updated their credit line, linking interest rates to market benchmarks and highlighting key properties like The Rustic Inn and JB's On The Beach. Employee incentives through stock options continued. Investors should note the company's significant revenue concentration at Bryant Park, as well as its reliance on single customers and suppliers, and ongoing related party transactions.