What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-12 compared with 2026-02-10 · 157 added, 66 removed, 128 unchanged (64% of the section changed)

9 unchanged sentences

Unless otherwise stated, references to particular years, quarters, months or periods refer to our fiscal years and the associated quarters, months and periods of those fiscal years.

As of December 27, 2025, the Company owned and operated 16 restaurants and bars, 12 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and service, class of customer and distribution methods.

As of March 28, 2026, the Company owned and operated 16 restaurants and bars, 12 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and services, class of customers and distribution methods.

The Company believes it meets the criteria for aggregating its operating components into a single operating segment in accordance with applicable accounting guidance.

4 unchanged sentences

Under this method certain years will contain 53 weeks.

The periods ended December 27, 2025 and December 28, 2024 each included 13 weeks.

The periods ended March 28, 2026 and March 29, 2025 each included 13 and 26 weeks.

The Company has substantial fixed costs that do not decline proportionally with sales.

3 unchanged sentences

however, this is partially offset by our locations in Florida as they experience increased results in the winter months.

We generally achieve our best results during the warmer weather, attributable to our extensive outdoor dining availability, particularly at Bryant Park in New York and Sequoia in Washington, D.C.

We generally achieve our best results during the warmer weather, attributable to our extensive outdoor dining availability, particularly at Bryant Park Grill and the Bryant Park Café in New York and Sequoia in Washington, D.C.

(our largest restaurants) and our outdoor cafes.

2 unchanged sentences

Recent Developments

Bryant Park Grill & Cafe and The Porch at Bryant Park

The Company’s lease agreements for the Bryant Park Grill & Café and The Porch at Bryant Park expired in April 2025 and March 2025, respectively.

Bryant Park Grill, the Bryant Park Café and The Porch at Bryant Park

The Company’s lease agreements for the Bryant Park Grill, the Bryant Park Café and The Porch at Bryant Park expired in April 2025 and March 2025, respectively.

In response to requests for proposals issued by the landlord in 2023, the Company submitted bids for new long-term agreements.

5 unchanged sentences

Management is unable to predict the outcome of the litigation at this time.

The Bryant Park Grill & Café and The Porch at Bryant Park represented a significant portion of the Company’s revenues, accounting for approximately 19.5% and 22.3% of total revenue for the 13 weeks ended December 27, 2025 and December 28, 2024, respectively.

The Bryant Park Grill, the Bryant Park Café and The Porch at Bryant Park represented a significant portion of the Company’s revenues, accounting for approximately 13.3% and 15.0% of total revenue for the 26 weeks ended March 28, 2026 and March 29, 2025, respectively.

The ongoing uncertainty related to this dispute has had, and is expected to continue to have, a material adverse effect on the Company’s business, financial condition, and results of operations while the matter remains unresolved and if the Company is ultimately unable to retain these locations on favorable terms, or at all.

Historically, the Company has made rent payments related to the Bryant Park Grill and the Bryant Park Café based on prior year sales as required in the relevant agreements.

As a result of the decline in sales due to the above litigation, such payments were in excess of the contractual minimums and were recorded as prepaid rent as they were expected to be applied against future lease obligations or otherwise recovered.

However, based on the status of ongoing legal proceedings, and in consultation with external legal counsel, management determined during the current period that the prepaid rent balance is not probable of recovery.

As a result, during the 13 weeks ended March 28, 2026, the Company recorded a charge of $566,000 to write off the amount of prepaid rent, which is included in occupancy expenses in the accompanying consolidated condensed statements of operations.

Further discussion related to these matters is included in Note 8 of the consolidated condensed financial statements.

3 unchanged sentences

Such amendment will require a three-fifths vote in both legislative chambers followed by a voter referendum in a general election before becoming law.

It is possible that a referendum could be on the ballot in November 2026 and if it were to pass, NMR could open a temporary facility in 2027 and a permanent one by 2028.

To date, no vote on this amendment has been scheduled by the state legislature;

however, the deadline for submission of proposed amendments to the State of New Jersey Constitution to be voted upon at the November 2026 general election is August 3, 2026.

If this were to happen and the voting results were favorable, NMR could possibly open a temporary facility in early 2027 and a permanent one by 2028.

In conjunction with such referendum, NMR will need to raise substantial capital to fund a marketing campaign to support the passage of the referendum.

4 unchanged sentences

Results of Operations

The Company's operating income for the 13 weeks ended December 27, 2025 decreased 80.8% as compared to operating income in the same period of the prior year (which includes a loss on the closure of El Rio Grande in the amount of $146,000 and a gain on the termination of our Tampa Food Court lease in the amount of $5,235,000).

Excluding these items in the prior period, operating income of $1,093,000 for the 13 weeks ended December 27, 2025 increased 82.2% as compared to adjusted operating income of $600,000 for the 13 weeks ended December 28, 2024.

The following table summarizes the significant components of the Company’s operating results for the 13 weeks ended December 27, 2025 and December 28, 2024:

13 Weeks Ended Variance

2025 December 28,

(in thousands)

The Company's operating loss for the 13 weeks ended March 28, 2026 (which includes a one-time, non-recurring prepaid rent write-off in the amount of $566,000 related to the Bryant Park Grill and the Bryant Park Café as discussed above) decreased 64.1% as compared to an operating loss in the same period of the prior year (which includes a loss on the closure of El Rio Grande in the amount of $140,000 and a goodwill impairment charge of $3,440,000).

Excluding these items, the adjusted operating loss of $1,091,000 for the 13 weeks ended March 28, 2026 decreased 17.2% as compared to an adjusted operating loss of $1,317,000 for the 13 weeks ended March 29, 2025.

The Company reported an operating loss of $563,000 for the 26 weeks ended March 28, 2026 (which includes a one-time, non-recurring prepaid rent write-off in the amount of $566,000 related to the Bryant Park Grill and the Bryant Park Café as discussed above) as compared to operating income of $1,073,000 in the same period of the prior year (which includes a loss on the closure of El Rio Grande of $5,000, a gain on the termination of our Tampa Food Court lease of $5,235,000, and a goodwill impairment charge of $3,440,000), representing a period-over-period decrease of $1,636,000.

Excluding these items, adjusted operating income of $3,000 for the 26 weeks ended March 28, 2026 as compared to an adjusted operating loss of $717,000 for the 26 weeks ended March 29, 2025, representing a period-over-period increase of $720,000.

In addition to financial measures prepared in accordance with generally accepted accounting principles ("GAAP"), the above discussion includes adjusted operating income (loss), a non-GAAP financial measure that excludes certain items management believes are not reflective of the Company's ongoing operating performance.

Management presents this measure because it believes it provides investors with a more meaningful comparison of the Company's core operating results across periods by excluding items that are non-recurring, infrequent, or otherwise not indicative of the Company's underlying business trends.

Adjusted operating income (loss) should not be considered as an alternative to operating income (loss) or any other measure of

financial performance calculated in accordance with GAAP, and may not be comparable to similarly titled measures used by other companies.

The table below reconciles GAAP operating income (loss) to adjusted operating income (loss) for each period presented.

13 Weeks Ended 26 Weeks Ended

2026 March 29,

2025 March 28,

2026 March 29,

(in thousands) (in thousands)

GAAP operating income (loss) $ (1,657) $ (4,617) $ (563) $ 1,073

Prepaid rent write-off (a) 566 — 566 —

(Gain) loss on closure of El Rio Grande (b) — (140) — 5

Gain on termination of Tampa Food Court lease (c) — — — (5,235)

Goodwill impairment (d) — 3,440 — 3,440

Adjusted operating income (loss) $ (1,091) $ (1,317) $ 3 $ (717)

____________________________________________________________________________________________

(a) Represents a one-time, non-recurring charge to write off prepaid rent related to the Bryant Park Grill and the Bryant Park Café.

See Note 8 — Commitments and Contingencies.

(b) Represents the gain recognized during the 13 weeks ended March 29, 2025 as a result of refinements of estimates related to final lease negotiations with the El Rio Grande landlord, partially offset by operating losses incurred during the 26-week period prior to closure.

(c) Represents the gain recognized in connection with the early termination of the Company's lease for the Tampa Food Court at The Hard Rock Hotel and Casino.

(d) Represents a non-cash impairment charge to write off the remaining balance of goodwill during the 13 weeks ended March 29, 2025.

The following table summarizes the significant components of the Company’s operating results for the 13 weeks ended March 28, 2026 and March 29, 2025:

13 Weeks Ended Variance 26 Weeks Ended Variance

2026 March 29,

2025 $ % March 28,

2026 March 29,

(in thousands) (in thousands)

Food and beverage sales $ 36,148 $ 39,123 $ (2,975) -7.6 % $ 76,394 $ 83,566 $ (7,172) -8.6 %

10 unchanged sentences

Depreciation and amortization 582 701 (119) -17.0 % 1,193 1,479 (286) -19.3 %

Loss on closure of El Rio Grande — 146 (146) N/A

(Gain) loss on closure of El Rio

Grande — (140) 140 N/A — 5 (5) N/A

Gain on termination of Tampa

Food Court lease — (5,235) 5,235 N/A

Food Court lease — — — N/A — (5,235) 5,235 N/A

Goodwill impairment — 3,440 (3,440) N/A — 3,440 (3,440) N/A

Total costs and expenses 38,241 44,342 (6,101) -13.8 % 77,896 83,641 (5,745) -6.9 %

OPERATING INCOME $ 1,093 $ 5,689 $ (4,596) -80.8 %

During the 13 weeks ended December 27, 2025, revenues decreased 9.4% as compared to revenues for the 13 weeks ended December 28, 2024.

We attribute this decrease primarily to the decreases in same-store sales discussed below and the closure of the Tampa Food Court .

OPERATING INCOME (LOSS) $ (1,657) $ (4,617) $ 2,960 64.1 % $ (563) $ 1,073 $ (1,636) -152.5 %

During the 13- and 26-week periods ended March 28, 2026, revenues decreased 7.9% and 8.7%, respectively, as compared to revenues for the 13- and 26-week periods ended March 29, 2025.

We attribute this decrease primarily to the decreases in same-store sales discussed below and the closures of El Rio Grande and the Tampa Food Court .

Food and Beverage Same-Store Sales

On a Company-wide basis, same-store sales decreased 7.3% during the 13 weeks ended December 27, 2025 as compared to the same period of last year as follows:

On a Company-wide basis, same-store sales decreased 7.6% during the 13 weeks ended March 28, 2026 as compared to the same period of last year as follows:

13 Weeks Ended Variance

2025 December 28,

2026 March 29,

(in thousands)

7 unchanged sentences

Same-store sales 36,057 39,034 $ (2,977) -7.6 %

Food and beverage sales $ 36,148 $ 39,123

Same-store sales in Las Vegas decreased 6.6%, which we attribute primarily to lower revenues at our America property as a result of partial closure for renovations.

Same-store sales in New York decreased 12.3%, which we attribute primarily to decreases in both catering and a la carte revenue at the Bryant Park Grill and the Bryant Park Café as a result of the negative publicity related to our dispute with the landlord combined with an unusually cold and snowy winter in the northeast.

Same-store sales in Washington, D.C.

decreased 18.7%, which we attribute primarily to lower headcounts as a result of decreased customer traffic at the complex where we are located.

Same-store sales in Atlantic City, NJ decreased 10.8%, which we attribute primarily to lower than expected customer traffic at the property where we are located.

Same-store sales in Alabama increased 2.1%, which we attribute primarily to better-than-expected customer traffic.

Same-store sales in Florida decreased 8.3%, which we attribute primarily to lower headcounts from increased competition.

On a Company-wide basis, same-store sales decreased 7.5% during the 26 weeks ended March 28, 2026 as compared to the same period of last year as follows:

26 Weeks Ended Variance

2026 March 29,

(in thousands)

Las Vegas $ 26,408 $ 28,254 $ (1,846) -6.5 %

New York 13,061 15,201 (2,140) -14.1 %

Washington, D.C.

3,235 3,392 (157) -4.6 %

Atlantic City, NJ 1,074 1,230 (156) -12.7 %

Alabama 6,671 6,743 (72) -1.1 %

Florida 24,650 26,340 (1,690) -6.4 %

Same-store sales 75,099 81,160 $ (6,061) -7.5 %

Other 1,295 2,406

1 unchanged sentence

Same-store sales in Las Vegas decreased 6.5%, which we attribute primarily to lower revenues at our America property as a result of partial closure for renovations and lower visitor counts in Las Vegas.

Same-store sales in New York decreased 14.7%, which we attribute primarily to decreases in both catering and a la carte revenue at the Bryant Park Grill & Cafe as a result of the negative publicity related to our dispute with the landlord.

Same-store sales in New York decreased 14.1%, which we attribute primarily to decreases in both catering and a la carte revenue at the Bryant Park Grill and the Bryant Park Café as a result of the negative publicity related to our dispute with the landlord.

Same-store sales in Washington, D.C.

increased 5.0%, which we attribute primarily to an increased number of catered events.

decreased 4.6%,

which we attribute primarily to lower headcounts as a result of decreased customer traffic at the complex where we are located.

Same-store sales in Atlantic City, NJ decreased 12.7%, which we attribute primarily to lower than expected customer traffic at the property where we are located.

Same-store sales in Alabama decreased 4.4%, which we attribute primarily to lower customer traffic as a result of economic pressures on the customers who

frequent our properties.

Same-store sales in Florida decreased 3.7%, which we attribute primarily to increased competition.

Other food and beverage sales consist of sales related to properties that were closed (the Tampa Food Court in December 2024 ) and other fees.

Same-store sales in Alabama decreased 1.1%, which we attribute primarily to lower customer traffic in the first quarter as a result of economic pressures on the customers who frequent our properties offset by better-than-expected customer traffic in the second quarter.

Same-store sales in Florida decreased 6.4%, which we attribute primarily to lower headcounts from increased competition.

Other food and beverage sales consist of sales related to properties that were closed.

Costs and Expenses

Costs and expenses for the 13 weeks ended December 27, 2025 and December 28, 2024 were as follows (in thousands):

Costs and expenses for the 13 and 26 weeks ended March 28, 2026 and March 29, 2025 were as follows (in thousands):

13 Weeks Ended

1 unchanged sentence

Revenues Increase

Food and beverage cost of sales $ 10,662 26.2 % $ 12,107 26.9 % $ (1,445) -11.9 %

(Decrease) 26 Weeks Ended

Revenues 26 Weeks Ended

Revenues Increase

Food and beverage cost of

sales $ 10,398 28.4 % $ 11,484 28.9 % $ (1,086) -9.5 % $ 21,061 27.2 % $ 23,591 27.8 % $ (2,530) -10.7 %

Payroll expenses 13,647 37.3 % 14,415 36.3 % (768) -5.3 % 27,856 36.0 % 30,823 36.4 % (2,967) -9.6 %

Occupancy expenses 6,170 16.9 % 5,536 13.9 % 634 11.5 % 11,849 15.3 % 11,684 13.8 % 165 1.4 %

Other operating costs and expenses 5,317 13.0 % 5,800 12.9 % (483) -8.3 %

General and administrative expenses 3,179 7.8 % 3,148 7.0 % 31 1.0 %

Depreciation and amortization 610 1.5 % 777 1.7 % (167) -21.5 %

Loss on closure of El Rio Grande — — % 146 0.3 % (146) N/A

Gain on termination of Tampa Food Court lease — — % (5,235) -11.6 % 5,235 N/A

Other operating costs and

expenses 5,076 13.9 % 5,584 14.1 % (508) -9.1 % 10,393 13.4 % 11,384 13.4 % (991) -8.7 %

General and administrative

expenses 2,368 6.5 % 3,322 8.4 % (954) -28.7 % 5,544 7.2 % 6,470 7.6 % (926) -14.3 %

Depreciation and

amortization 582 1.6 % 701 1.8 % (119) -17.0 % 1,193 1.5 % 1,479 1.7 % (286) -19.3 %

(Gain) loss on closure of El Rio Grande — — % (140) (0.4) % 140 N/A — — % 5 — % (5) N/A

Gain on termination of Tampa Food Court lease — — % — — % — N/A — — % (5,235) -6.2 % 5,235 N/A

Goodwill impairment — — % 3,440 8.7 % (3,440) N/A — — % 3,440 4.1 % (3,440) -100.0 %

Total costs and expenses $ 38,241 $ 44,342 $ (2,661) $ 77,896 $ 83,641 $ (2,305)

Food and beverage costs as a percentage of total revenues for the 13 weeks ended December 27, 2025 decreased as compared with the same period of last year as a result of targeted menu engineering.

Payroll expenses as a percentage of total revenues for the 13 weeks ended December 27, 2025 decreased as compared with the same period of last year as a result of better shift management of related overtime hours and lower performance bonuses in the current year.

Occupancy expenses as a percentage of total revenues for the 13 weeks ended December 27, 2025 increased marginally as compared with the same period of last year primarily as a result of increases in property and liability insurance premiums partially offset by lower percentage rents as a result of the sales decreases discussed above.

Other operating costs and expenses as a percentage of total revenues for the 13 weeks ended December 27, 2025 increased marginally as compared to the same period of last year primarily as a result of restaurant-level legal fees incurred in connection with the Bryant Park Grill & Café and The Porch at Bryant Park dispute with the landlord.

General and administrative expenses (which relate solely to the corporate office in New York City and are relatively fixed) for the 13 weeks ended December 27, 2025 increased as compared to the same periods of last year primarily as a result of the sales decreases discussed above.

Depreciation and amortization expense for the 13 weeks ended December 27, 2025 decreased as compared to the same periods of last year primarily as a result of certain assets becoming fully depreciated and the removal of assets associated with the Tampa Food Court .

Food and beverage costs as a percentage of total revenues for the 13 and 26 weeks ended March 28, 2026 decreased as compared with the same period of last year as a result of targeted menu engineering.

Payroll expenses as a percentage of total revenues for the 13 weeks ended March 28, 2026 increased as compared with the same period of last year as a result of minimum wage increases.

Payroll expenses as a percentage of total revenues for the 26 weeks ended March 28, 2026 decreased as compared with the same period of last year as a result of better shift management of related overtime hours and lower performance bonuses in the current year, partially offset by minimum wage increases.

Occupancy expenses as a percentage of total revenues for the 13 weeks ended March 28, 2026 increased as compared with the same period of last year primarily as a result of one-time, non-recurring prepaid rent write-off in the amount of $566,000 related to the Bryant Park Grill and the Bryant Park Café as discussed above.

Occupancy expenses as a percentage of total revenues for the 26 weeks ended March 28, 2026 increased as compared with the same period of last year primarily as a result of one-time, non-recurring prepaid rent write-off in the amount of $566,000 related to the Bryant Park Grill and the Bryant Park Café as discussed above partially offset by lower percentage rents as a result of the sales decreases discussed above.

Other operating costs and expenses as a percentage of total revenues for the 13 and 26 weeks ended March 28, 2026 stayed relatively consistent compared to the same period of last year primarily as a result of implementing a credit card surcharge partially offset by higher costs as a result of inflation.

General and administrative expenses (which relate solely to the corporate office in New York City and are relatively fixed) for the 13 and 26 weeks ended March 28, 2026 decreased as compared to the same periods of last year primarily as a result of lower commissions and bonus accruals and lower consulting fees related to the Bryant Park Grill and the Bryant Park Café litigation .

Depreciation and amortization expense for the 13 and 26 weeks ended March 28, 2026 decreased as compared to the same periods of last year primarily as a result of certain assets becoming fully depreciated and the removal of assets associated with the Tampa Food Court .

Loss on Closure of El Rio Grande

2 unchanged sentences

The property closed permanently on January 3, 2025 and was vacated and delivered to the landlord on April 30, 2025.

During the 13 weeks ended December 28, 2024, the Company incurred additional operating losses of $146,000.

During the 13 weeks ended March 29, 2025, the Company recognized a gain of $140,000 as a result of refinements of estimates related to final negotiations with the landlord.

During the 26 weeks ended March 29, 2025, the Company recognized a loss in the amount of $5,000 as a result of additional operating losses during the 13 weeks ended December 28, 2024 in the amount of $145,000 offset by the above refinements of estimates.

Gain on Termination of Tampa Food Court Lease

On November 26, 2024, the Company agreed to terminate its lease for the food court at The Hard Rock Hotel and Casino in Tampa, FL and, accordingly, vacated the premises on December 15, 2024.

In connection with this, Ark Hollywood/Tampa Investment LLC, a subsidiary of the Company, (in which we own a 65% interest) received a termination payment in the amount

of $5,500,000;

In connection with this, Ark Hollywood/Tampa Investment LLC, a subsidiary of the Company, (in which we own a 65% interest) received a termination payment in the amount of $5,500,000;

all obligations under the lease ceased and we recorded a gain, net of expenses, in the amount of $5,235,000 during the 13 weeks ended December 28, 2024.

During the 13 weeks ended March 29, 2025, Ark Hollywood/Tampa Investment LLC distributed approximately $1,710,000 of the net proceeds, after expenses, to the other equity holders of Ark Hollywood/Tampa Investment LLC.

Goodwill Impairment

Goodwill is the excess of cost over fair market value of tangible and intangible net assets acquired.

Goodwill is not presently amortized but tested for impairment annually or when the facts or circumstances indicate a possible impairment of goodwill as a result of a continual decline in performance or as a result of fundamental changes in a market.

During the three months ended March 29, 2025, the Company identified a triggering event in accordance with the Financial Accounting Standards Board (“FASB”), Accounting Standards Update ("ASU") 350-20, “Intangibles—Goodwill and Other,” primarily related to a decline in the Company's stock price in the second quarter of fiscal 2025 and the continued uncertainty related to the expiration of the Bryant Park Grill, the Bryant Park Café and The Porch at Bryant Park leases (see Note 8 - Commitments and Contingencies).

As a result, the Company performed an interim quantitative impairment test and based on the results of the assessment, the fair value of our equity was determined to be less than its carrying amount.

Accordingly, the Company recognized a non-cash impairment charge of the remaining balance of its goodwill in the amount of $3,440,000 in our consolidated condensed statements of operations for the 13 and 26 weeks ended March 29, 2025.

The Company did not record any impairment to its goodwill during the 13 and 26 weeks ended March 28, 2026.

Liquidity and Capital Resources

Our primary source of capital has been cash provided by operations and, in recent years, bank and other borrowings to finance specific transactions, acquisitions and large remodeling projects.

We utilize cash generated from operations to fund the cost of developing and opening new restaurants and smaller remodeling projects of existing restaurants we own.

We have utilized cash generated from operations to fund the cost of developing and opening new restaurants and smaller remodeling projects of existing restaurants we own.

Consistent with many other restaurant operators, we typically use operating lease arrangements for our restaurants.

1 unchanged sentence

We believe that our operating lease arrangements provide appropriate leverage of our capital structure in a financially efficient manner.

As of December 27, 2025, we had a cash and cash equivalents balance of $9,139,000, total debt of $2,987,000 and a working capital deficit of $4,954,000 as compared with a working capital deficit of $5,377,000 at September 27, 2025.

As of March 28, 2026, we had cash and cash equivalents of $11,487,000, total debt of $7,553,000 (including $5,000,000 outstanding under our revolving credit facility) and a working capital deficit of $2,483,000 as compared with a working capital deficit of $5,377,000 at September 27, 2025.

The Credit Agreement provides for maximum permitted obligations of $20,000,000, inclusive of all outstanding promissory notes.

As of March 28, 2026, total obligations outstanding under the Credit Agreement were $7,553,000, comprised of $5,000,000 in revolving borrowings and $2,553,000 in outstanding term notes.

Accordingly, as of March 28, 2026, we had approximately $12,400,000 of additional borrowing capacity available under the Credit Agreement, subject to continued compliance with the financial covenants thereunder.

We expect additional capital expenditures for fiscal 2026 to be approximately $4,000,000, primarily related to required leasehold improvements, maintenance capital expenditures at existing locations, and completion of renovation commitments in Las Vegas.

We anticipate funding these expenditures through a combination of cash on hand, including the recent borrowings under our revolving credit facility.

Our anticipated cash requirements over the next twelve months include, among other things, operating expenses, debt service obligations, lease payments, and planned capital expenditures.

We expect these obligations to be funded through cash generated from operations, existing cash balances, and available borrowings under our credit facility.

Based on our current operating plan and financial projections, we believe that our existing cash and cash equivalents, together with availability under our revolving credit facility, will be sufficient to meet our working capital requirements, capital expenditures, and debt service obligations for at least the next twelve months;

however, our liquidity could be adversely affected by, among other factors, the outcome of the Bryant Park Grill and the Bryant Park Café and The Porch at Bryant Park lease dispute, compliance with financial covenants under our credit facility, and general economic conditions impacting our operating results.

Our profitability is dependent on, among other things, our ability to anticipate and react to changes in the cost of food and other raw materials, labor, energy and other supplies and services.

6 unchanged sentences

There can be no assurance that all of our future cost increases can be offset by higher menu prices or that higher menu prices will be accepted by our restaurant customers without any resulting changes in their visit frequencies or purchasing patterns.

Cash Flows for 13 Weeks Ended December 27, 2025 and December 28, 2024

Net cash used in operating activities for the 13 weeks ended December 27, 2025 was $550,000 as compared to $1,346,000 in the same period of last year.

This decrease resulted primarily from a decrease in catered events.

Net cash used in investing activities for the 13 weeks ended December 27, 2025 was $858,000 as compared to net cash provided by investing activities of $4,895,000 in the same period as last year.

This decrease resulted primarily from the payment received in connection with the termination of our Tampa Food Court lease in the prior period.

Net cash used in financing activities for the 13 weeks ended December 27, 2025 and December 28, 2024 was $777,000 and $721,000, respectively, and resulted primarily from principal payments on notes payable and the payment of distributions to non-controlling interests.

Cash Flows for 26 Weeks Ended March 28, 2026 and March 29, 2025

Net cash used in operating activities increased by $783,000 period-over-period, from $734,000 for the 26 weeks ended March 29, 2025 to $1,517,000 for the 26 weeks ended March 28, 2026.

This increase resulted primarily from two factors:

(i) a $341,000 increase in accounts receivable balances, reflecting the timing of collections from hotel operators and credit card processors at period end, and (ii) a $1,120,000 decrease in customer advance deposits on catered events, reflecting lower forward bookings compared to the prior year period.

These unfavorable changes were partially offset by reductions in payroll-related accruals and other operating expenses compared to the prior year period.

Net cash used in investing activities for the 26 weeks ended March 28, 2026 was $1,980,000 as compared to net cash provided by investing activities of $4,626,000 in the same period as last year.

This decrease resulted primarily from the payment received in connection with the termination of our Tampa Food Court lease in the prior period, partially offset by higher capital expenditures in connection with the renovation of our America property in Las Vegas.

Net cash provided by financing activities for the 26 weeks ended March 28, 2026 was $3,660,000 as compared to net cash used by financing activities of $3,041,000 in the same period as last year.

This increase resulted primarily from a $5,000,000 borrowing under our revolving facility and the lower distribution payments to non-controlling interests in the current period.

Recent Developments

Bryant Park Grill

As further described above in the “Overview” section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this Quarterly Report, the Company's agreements with the Bryant Park Corporation for the Bryant Park Grill & Café expired on April 30, 2025 and for The Porch at Bryant Park expired on March 31, 2025.

Bryant Park Litigation

As further described above in the “Overview” section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this Quarterly Report, the Company's agreements with the Bryant Park Corporation for the Bryant Park Grill and the Bryant Park Café expired on April 30, 2025 and for The Porch at Bryant Park expired on March 31, 2025.

As of the date of this filing, we continue to operate the above properties and intend to do so until we are either awarded the lease extensions or ordered to vacate the premises.

1 unchanged sentence

Management, after consultation with legal counsel, is unable to predict the outcome of this matter at this time.

While the outcome of these proceedings cannot be predicted with certainty, the Bryant Park Grill & Cafe and The Porch at Bryant Park , collectively, accounted for $7.9 million and $9.9 million of our total revenues for the 13 weeks ended December 27, 2025 and December 28, 2024, respectively, which represented approximately 19.5% and 22.3% of our total revenue for such periods, respectively.

The uncertainty related to this dispute has had a material adverse impact on our business, financial condition, and results of operations and will continue to do so while the dispute is litigated and if we are unable to prevail in the above actions and/or are unable to extend or renew these leases on favorable terms, if at all.

While the outcome of these proceedings cannot be predicted with certainty, the Bryant Park Grill, the Bryant Park Café and The Porch at Bryant Park , collectively, accounted for $10.3 million and $12.7 million of our total revenues for the 26 weeks ended March 28, 2026 and March 29, 2025, respectively, which represented approximately 13.3% and 15.0% of our total revenue for such periods, respectively.

The uncertainty related to this dispute has had, and is expected to continue to have, a material adverse impact on our business, financial condition, and results of operations and will continue to do so while the dispute is litigated and if we are unable to prevail in the above actions and/or are unable to extend or renew these leases on favorable terms, if at all.

Investment in and Receivable from New Meadowlands Racetrack LLC

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Such amendment will require a three-fifths vote in both legislative chambers followed by a voter referendum in a general election before becoming law.

It is possible that a referendum could be on the ballot in November 2026 and if it were to pass, NMR could open a temporary facility in 2027 and a permanent one by 2028.

In conjunction with such referendum, NMR will need to raise substantial capital to fund a marketing campaign to support the passage of the referendum.

To the extent the Company does not contribute to this effort, or if NMR raises outside capital, our interests will be diluted.

There can be no assurances that the above referendum will be included in the November 2026 election ballot or that it will pass if it is included.

If either of these do not occur, the Company’s investment in NMR will be evaluated based on the existing horse racing and sports betting operations and may be subject to substantial impairment.

To date, no vote on this amendment has been scheduled by the state legislature;

however, the deadline for submission of proposed amendments to the State of New Jersey Constitution to be voted upon at the November 2026 general election is August 3, 2026.

If this were to happen and the voting results were favorable, NMR could possibly open a temporary facility in early 2027 and a permanent one by 2028.

The Company’s investment in NMR is subject to a high degree of uncertainty.

Any potential future expansion of gaming operations at the Meadowlands, including the approval of casino gaming, would require legislative action, voter approval and regulatory approvals, none of which are within the Company’s control and none of which can be assured.

The realization of any potential benefit from this investment is dependent on factors that are inherently uncertain and may not occur within a predictable timeframe, if at all.

In addition, NMR may require significant additional capital in connection with any future development efforts, including funding for potential referendum-related activities.

To the extent the Company does not participate in such funding, or if NMR raises capital from third parties, the Company’s ownership interest may be diluted.

If the contemplated expansion of gaming operations is not approved or is delayed, the value of the investment will continue to be based solely on NMR’s existing operations, which may not support the current carrying value of the investment.

In such circumstances, the Company may be required to evaluate the investment for impairment, and any resulting charge could be material.

The Company does not rely on NMR to fund its operations, meet its liquidity needs or drive its near-term financial performance.

Credit Facility

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On May 29, 2025, the Company entered into an Omnibus Amendment to the Credit Agreement which:

(i) extended the maturity date of the Credit Agreement to June 1, 2028, (ii) amended the terms of the outstanding promissory notes, (iii) reduced the maximum permitted obligations outstanding under the Credit Agreement from $30,000,000 to $20,000,000 (including the outstanding promissory notes), (iv) increased the minimum tangible net worth covenant from $22,000,000 to $28,000,000, and (v) removed the annual net income covenant.

Advances and loans under the Credit Agreement bear interest, at the Company's election at the time of the advance, at either BHBM's prime rate of interest plus a 0.45% spread or SOFR plus a 3.65% spread.

In addition, there is a 0.30% per annum fee for any unused portion of the facility.

As of December 27, 2025, no advances were outstanding under the Credit Agreement.

As of December 27, 2025, the weighted average interest on the outstanding BHBM indebtedness was approximately 7.5%.

As of March 28, 2026, borrowings of $5,000,000 were outstanding under our revolving facility under our Credit Agreement.

As of March 28, 2026, the weighted average interest on the outstanding BHBM indebtedness was approximately 7.3%.

Borrowings and all other obligations under the Credit Agreement, which include the promissory notes as discussed in Note 7 of the consolidated condensed financial statements, are secured by all tangible and intangible personal property (including accounts receivable, inventory, equipment, general intangibles, documents, chattel paper, instruments, letter-of-credit rights, investment property, intellectual property and deposit accounts) and fixtures of the Company.

The Credit Agreement also requires, among other things, that the Company meet minimum quarterly tangible net worth amounts and maintain a minimum fixed charge coverage ratio.

The Credit Agreement also requires, among other things, that the Company meet minimum quarterly tangible net worth amounts and maintain a minimum fixed charge

coverage ratio.

The Credit Agreement contains customary representations, warranties and affirmative covenants as well as customary negative covenants, subject to negotiated exceptions on liens, relating to other indebtedness, capital expenditures, liens, affiliate transactions, disposal of assets and certain changes in ownership.

The Company was in compliance with all of its financial covenants under the Credit Agreement as of March 28, 2026.

Cash Flow Outlook

Other than the status of the Bryant Park Grill & Cafe and The Porch at Bryant Park , we are not aware of any other trends or events that would materially affect our capital requirements or liquidity.

Other than the status of the Bryant Park Grill and the Bryant Park Café and The Porch at Bryant Park , we are not aware of any other trends or events that would materially affect our capital requirements or liquidity.

We believe that our existing cash balances, internal cash-generating capabilities and current banking facilities are sufficient to finance our capital expenditures, debt maturities and other operating activities for at least the next 12 months.

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In the process of preparing its consolidated condensed financial statements, the Company estimates the appropriate carrying value of certain assets and liabilities, which are not readily apparent from other sources.

The critical accounting estimates underlying the Company’s consolidated condensed financial statements include projected cash flows for fixed asset impairments, allowances for

potential bad debts on accounts and notes receivable, assumptions regarding discount rates related to lease accounting, the useful lives and recoverability of its long-lived assets, such as property and intangibles, fair values of financial instruments, the realizable value of its tax assets and other matters.

The critical accounting estimates underlying the Company’s consolidated condensed financial statements include projected cash flows for fixed asset impairments, allowances for potential bad debts on accounts and notes receivable, assumptions regarding discount rates related to lease accounting, the useful lives and recoverability of its long-lived assets, such as property and intangibles, fair values of financial instruments, the realizable value of its tax assets and other matters.

Management bases its estimates on certain assumptions, which it believes are reasonable in the circumstances, and actual results could differ from those estimates.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis