What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-11 compared with 2026-05-12 · 153 added, 120 removed, 165 unchanged (62% 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 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.

As of June 27, 2026, the Company owned and operated 16 restaurants and bars, 12 fast food concepts and catering operations, exclusively in the United States.

The Company’s operating components have been aggregated into one reportable segment.

See Note 12 — Segment Information to the consolidated condensed financial statements.

Accounting Period

3 unchanged sentences

Under this method certain years will contain 53 weeks.

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

The periods ended June 27, 2026 and June 28, 2025 each included 13 and 39 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 Grill and the Bryant Park Café in New York and Sequoia in Washington, D.C.

(our largest restaurants) and our outdoor cafes.

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

However, even during summer months these facilities can be adversely affected by unusually cool or rainy weather conditions.

Our facilities in Las Vegas are indoors and generally operate on a more consistent basis throughout the year, although in recent years the summer months have seen lower traffic.

As discussed above under “Recent Developments” and in Note 8 to the consolidated condensed financial statements, the Company is currently operating the Bryant Park Grill , the Bryant Park Café and The Porch at Bryant Park pursuant to a court-ordered stay of an order of ejectment, which is currently expected to expire on or about October 16, 2026, a date that falls within the first quarter of our fiscal year 2027.

Because these locations have historically been among the most significant contributors to our peak warm-weather results, the loss of these operations would both reduce our overall revenues and increase the seasonality of our remaining business, as the seasonal strength these locations have historically provided would no longer be available to offset the weaker performance of our other locations during the winter months.

Recent Developments

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.

The Company’s lease agreements 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.

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

In the second quarter of 2025, the landlord publicly announced the selection of a new operator for both locations;

however, as of the date of this filing, the required approvals from the City of New York Department of Parks & Recreation and the New York Public Library have not been obtained, and no new lease has become effective.

The Company has initiated legal proceedings in New York State Supreme Court challenging the lease award process and asserting its contractual rights, including its right of first lease for the Bryant Park Café .

The litigation remains ongoing, with discovery continuing and motions pending, including a motion for summary judgment filed by the landlord.

While the court has required the Company to make use and occupancy payments during the pendency of the case, the Company continues to operate both restaurants and intends to do so unless it is ordered to vacate or is awarded lease extensions.

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

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.

In the second quarter of 2025, the landlord publicly announced the

selection of a new operator for these locations;

however, to the best of our knowledge, the required approvals from the City of New York Department of Parks & Recreation and the New York Public Library have not been obtained, and no new lease has become effective.

On March 28, 2025, the Company filed a complaint in New York State Supreme Court challenging the lease award process and asserting its contractual rights, including its right of first lease in connection with the Bryant Park Café .

On January 9, 2026, the landlord moved for summary judgment and the Company cross-moved for summary judgment on its causes of action for enforcement of its right of first lease and for age discrimination.

By decision and order dated June 18, 2026, and entered on June 22, 2026, the Court granted the landlord's motion for summary judgment, in part, and granted and denied the Company's cross-motion for summary judgment, in part.

The Court granted the Company's motion for summary judgment on its breach of contract claim, ruling that the Company is entitled to damages to the extent it was harmed by the landlord's breach of the Company's right of first lease.

A trial will be held to determine the Company's damages, with a pre-trial conference scheduled for September 22, 2026.

The Court granted judgment in favor of the landlord on its counterclaims for ejectment and use and occupancy and ruled that the Company be ejected from the Bryant Park Grill , the Bryant Park Café and The Porch at Bryant Park premises.

On June 26, 2026, the Court issued a judgment of ejectment with respect to those premises.

Also on June 26, 2026, the Company filed a notice of appeal to the Appellate Division of the Supreme Court of the State of New York, First Judicial Department, from the Court's June 22, 2026 decision and order.

On June 30, 2026, the Company moved, by order to show cause, to fix an undertaking pursuant to CPLR 5519(a)(6) arguing that it has an automatic right to stay enforcement of the order of ejectment pending appeal of the Court's decision on the motions for summary judgment.

In connection with that motion, the Court entered a temporary restraining order enjoining the landlord and its agents from ejecting or evicting the Company, or otherwise disturbing the Company's possession of the premises, pending argument of the motion.

On July 1, 2026, the landlord moved for leave to reargue that portion of the Court's decision granting the Company summary judgment on its breach of contract claim based on the right of first lease.

Following oral arguments held on July 16, 2026, the Court issued a decision and order dated July 16, 2026, and entered on July 17, 2026, granting the Company's motion in part and staying enforcement of the order of ejectment for three months (i.e., through on or about October 16, 2026), conditioned upon the Company:

(i) filing an undertaking in the amount of $125,000 on or before July 23, 2026 and (ii) continuing to make the monthly use and occupancy payments previously ordered by the Court until the termination of the stay.

Under the terms of the order, failure to timely file the undertaking would result in the stay being vacated, and if the Company fails to make the required use and occupancy payments, the Landlord may move on three days’ notice to vacate the stay.

On July 21, 2026, the Company filed the required undertaking and a notice of compliance with the Court.

The Company has continued to make the required use and occupancy payments.

The Company intends to move in the Appellate Division of the Supreme Court of the State of New York, First Judicial Department, to extend the current stay of enforcement of the order of ejectment beyond the three months through the pendency of the Company's appeal of the Court's June 22, 2026 summary judgment decision.

On August 3, 2026, the Court denied the Landlord's motion to reargue that portion of the Court’s decision granting the Company summary judgment on its breach of contract claim based on the right of first lease.

As of the date of this filing, we continue to operate the Bryant Park Grill , the Bryant Park Café and The Porch at Bryant Park pursuant to the stay described above and intend to do so while we pursue our appeal and all other available options to protect the Company’s interests.

However, unless the Court’s decisions are reversed on appeal or the stay is extended or further relief is obtained, the Company will be required to vacate these premises and cease operations at these locations upon the expiration of the stay, currently expected to occur on or about October 16, 2026.

Management, after consultation with legal counsel, is unable to predict the outcome of the appeal or related proceedings at this time.

The Bryant Park Grill , the Bryant Park Café and The Porch at Bryant Park represented a significant portion of the Company’s revenues, collectively accounting for $17.1 million and $19.7 million, or approximately 14.5% and 15.4%, of total revenues for the 39 weeks ended June 27, 2026 and June 28, 2025, 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 the loss of these operations upon expiration of the stay, or the Company’s inability to otherwise retain these locations on favorable terms, or at all, would have a material adverse impact on our business, financial condition, and results of operations.

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.

Based on the status of the legal proceedings, and in consultation with external legal counsel, management determined that the prepaid rent balance is not probable of recovery, and 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.

Were the Company to prevail on appeal, it is possible these amounts could be recovered.

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

Investment in and Receivable From New Meadowlands Racetrack LLC ("NMR")

NMR has been actively pursuing a full casino license (including slots and table games like blackjack and roulette) to supplement its existing horse racing and sports betting operations.

NMR has been actively pursuing a full casino license (including slots and table games such as blackjack and roulette) to supplement its existing horse racing and sports betting operations.

In January 2026, the New Jersey Senate Government, Wagering, Tourism & Historic Preservation Committee proposed a constitutional amendment to allow the legislature to authorize casino gambling at both the Monmouth Park and Meadowlands Racetracks.

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

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.

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.

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

No vote on this amendment had been taken by the state legislature as of the date of this filing, which is beyond the August 3, 2026 deadline for submission of proposed amendments to the State of New Jersey Constitution to be voted upon at the November 2026 general election.

As a result, the proposed amendment will not appear on the ballot, and no voter referendum on casino gaming at the Meadowlands will occur in 2026.

The proposed amendment, or a similar amendment, may be placed on the ballot at a future general election, which could occur as early as November 2027 or in a subsequent general election;

however, no assurance can be given as to whether or when the state legislature will approve such an amendment or a voter referendum will be held.

If a referendum were ultimately held and the voting results were favorable, NMR could possibly open a temporary gaming facility within approximately one year following voter approval and a permanent facility within approximately two years thereafter, subject to the issuance of a license by the New Jersey Casino Control Commission and completion of any required development.

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.

The Company evaluated its investment in NMR for impairment, including consideration that no voter referendum on casino gaming at the Meadowlands will occur in 2026, and concluded that its fair value exceeds the carrying value.

Accordingly, the Company did not record any impairment during the 13 and 39 weeks ended June 27, 2026.

If a referendum is ultimately held and the amendment is rejected by voters, or if the Company otherwise concludes that the approval of casino gaming at the Meadowlands is no longer reasonably possible, the value of the investment would be based solely on NMR’s existing horse racing and sports betting operations, which may not support the current carrying value of the investment, and the Company would expect to record an impairment charge at that time, which could be material.

The Company will continue to monitor legislative and other developments concerning gaming at the Meadowlands and will continue to evaluate the investment for impairment each reporting period.

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

Further discussion related to these matters is included in Note 4 of the consolidated condensed financial statements.

Sequoia Lease Amendment

Subsequent to the end of the quarter, on July 15, 2026, the Company entered into an amendment to the lease for its Sequoia restaurant located in Washington, D.C., one of the Company’s largest restaurants.

The amendment provides for a two-year lease restructure period commencing April 1, 2026 and ending March 31, 2028 (the “Lease Restructure Term”), during which the Company will pay annual base rent of $1,350,000, payable in monthly installments of $112,500, in lieu of its obligations to pay base rent, percentage rent, its share of real estate taxes, and certain utility and miscellaneous billback charges otherwise required under the lease, together with percentage rent equal to 10% of gross sales in excess of an annual breakpoint of $10,000,000.

Upon expiration of the Lease Restructure Term, the contractual rent provisions of the existing lease will resume through the lease expiration date of November 30, 2034.

The amendment also provides the landlord a termination right if the Company fails to achieve specified gross sales thresholds following the Lease Restructure Term, exercisable upon not less than six months’ prior written notice.

Further discussion related to this matter is included in Note 6 of the consolidated condensed financial statements.

Results of Operations

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.

The Company's operating loss of $141,000 for the 13 weeks ended June 27, 2026 decreased 95.9% as compared to an operating loss of $3,415,000 in the same period of the prior year (which includes a gain on the closure of El Rio Grande in the amount of $178,000 and impairment charges of $2,940,000 and $1,760,000 related to Sequoia's ROU and long-lived assets, respectively).

Excluding these items, operating results declined by $1,248,000, from adjusted operating income of $1,107,000 for the 13 weeks ended June 28, 2025 to an adjusted operating loss of $141,000 for the 13 weeks ended June 27, 2026.

The Company's operating loss of $704,000 for the 39 weeks ended June 27, 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 69.9% as compared to an operating loss of $2,342,000 in the same period of the prior year (which includes:

(i) a gain on the closure of El Rio Grande of $173,000, (ii) a gain on the termination of our Tampa Food Court lease of $5,235,000, (iii) impairment charges of $2,940,000 and $1,760,000 related to Sequoia's ROU and long-lived assets, respectively, and (iv) a

goodwill impairment charge of $3,440,000).

Excluding these items, operating results declined by $528,000, from adjusted operating income of $390,000 for the 39 weeks ended June 28, 2025 to an adjusted operating loss of $138,000 for the 39 weeks ended June 27, 2026.

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.

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 39 Weeks Ended

2026 March 29,

2025 March 28,

2026 March 29,

2026 June 28,

2025 June 27,

2026 June 28,

(in thousands) (in thousands)

1 unchanged sentence

Prepaid rent write-off (a) — — 566 —

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

Gain on closure of El Rio Grande (b) — (178) — (173)

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

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

Impairment losses on right-of-use and long-lived assets (d) — 4,700 — 4,700

Goodwill impairment (e) — — — 3,440

Adjusted operating income (loss) $ (141) $ 1,107 $ (138) $ 390

2 unchanged sentences

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.

(b) Represents the gain recognized during the 13 weeks ended June 28, 2025 as a result of refinements of estimates related to final lease negotiations with the El Rio Grande landlord, partially offset by operating losses prior to closure incurred during the 39-week period.

(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:

(d) Represents losses recognized as a result of lower than expected operating results and related recoverability testing and discounted cash flow analysis.

(e) 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 June 27, 2026 and June 28, 2025:

13 Weeks Ended Variance 39 Weeks Ended Variance

2026 March 29,

2025 $ % March 28,

2026 March 29,

2026 June 28,

2025 $ % June 27,

2026 June 28,

(in thousands) (in thousands)

11 unchanged sentences

Depreciation and amortization 601 964 (363) -37.7 % 1,794 2,443 (649) -26.6 %

(Gain) loss on closure of El Rio

Gain on closure of El Rio

Grande — (178) 178 N/A — (173) 173 N/A

1 unchanged sentence

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

Impairment losses on right-of-

use and long-lived assets — 4,700 (4,700) N/A — 4,700 (4,700) N/A

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

Total costs and expenses 41,022 47,130 (6,108) -13.0 % 118,918 130,770 (11,852) -9.1 %

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 .

OPERATING LOSS $ (141) $ (3,415) $ 3,274 95.9 % $ (704) $ (2,342) $ 1,638 69.9 %

During the 13- and 39-week periods ended June 27, 2026, revenues decreased 6.5% and 8.0%, respectively, as compared to revenues for the 13- and 39-week periods ended June 28, 2025.

We attribute these decreases primarily to the decreases in same-store sales discussed below and, in the 39-week periods, 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 7.6% during the 13 weeks ended March 28, 2026 as compared to the same period of last year as follows:

On a Company-wide basis, same-store sales decreased 6.6% during the 13 weeks ended June 27, 2026 as compared to the same period of last year as follows:

13 Weeks Ended Variance

2026 March 29,

2026 June 28,

(in thousands)

7 unchanged sentences

Same-store sales 39,919 42,742 $ (2,823) -6.6 %

Other 390 195

Food and beverage sales $ 40,309 $ 42,937

Same-store sales in Las Vegas decreased 11.4%, 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 New York decreased 2.5%, which we attribute primarily to decreases

in our 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.

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.

increased 4.6%, which we attribute primarily to our event business.

Same-store sales in Atlantic City, NJ increased 1.8%, which we attribute primarily to better than expected customer traffic at the property where we are located.

Same-store sales in Alabama increased 1.5%, which we attribute primarily to better-than-expected customer traffic.

Same-store sales in Florida decreased 10.2%, 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:

On a Company-wide basis, same-store sales decreased 7.2% during the 39 weeks ended June 27, 2026 as compared to the same period of last year as follows:

39 Weeks Ended Variance

2026 March 29,

2026 June 28,

(in thousands)

12 unchanged sentences

Same-store sales in Washington, D.C.

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 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.

decreased 0.7%, which we attribute primarily to lower headcounts as a result of decreased customer traffic at the complex where we are located partially offset by a strong event business in the current quarter.

Same-store sales in Atlantic City, NJ decreased 7.9%, which we attribute primarily to lower than expected customer traffic in the first two quarters at the property where we are located.

Same-store sales in Alabama were essentially flat, with first quarter weakness offset by better-than-expected traffic in the second and third quarters.

Same-store sales in Florida decreased 7.7%, which we attribute primarily to lower headcounts from increased competition.

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

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

Costs and Expenses

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

Costs and expenses for the 13 and 39 weeks ended June 27, 2026 and June 28, 2025 were as follows (in thousands):

13 Weeks Ended

14 unchanged sentences

amortization 601 1.5 % 964 2.2 % (363) -37.7 % 1,794 1.5 % 2,443 1.9 % (649) -26.6 %

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

Gain on closure of El Rio Grande — — % (178) -0.4 % 178 N/A — — % (173) (0.1) % 173 N/A

Gain on termination of Tampa Food Court lease — — % — — % — N/A — — % (5,235) -4.1 % 5,235 N/A

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

Impairment losses on right-

of-use and long-lived

assets — — % 4,700 10.8 % (4,700) N/A — — % 4,700 3.7 % (4,700) N/A

Goodwill impairment — — % — — % — N/A — — % 3,440 2.7 % (3,440) N/A

Total costs and expenses $ 41,022 $ 47,130 $ (6,108) $ 118,918 $ 130,770 $ (11,852)

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

Food and beverage costs as a percentage of total revenues for the 13 and 39 weeks ended June 27, 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 June 27, 2026 increased as compared with the same period of last year as a result of lower revenues.

Payroll expenses as a percentage of total revenues for the 39 weeks ended June 27, 2026 increased as compared with the same period of last year as a result of lower revenues, partially offset by better shift management of overtime hours and lower performance bonuses in the current year.

Occupancy expenses as a percentage of total revenues for the 13 weeks ended June 27, 2026 were consistent with the same period of last year.

Occupancy expenses as a percentage of total revenues for the 39 weeks ended June 27, 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 39 weeks ended June 27, 2026 increased as compared to the same period of last year primarily as a result of higher costs attributable to inflation partially offset by implementing a credit card surcharge.

General and administrative expenses (which relate solely to the corporate office in New York City and are relatively fixed) for the 13 and 39 weeks ended June 27, 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 39 weeks ended June 27, 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 .

Gain on Closure of El Rio Grande

In October 2024, the Company advised the landlord of El Rio Grande we would be terminating the lease and closing the property permanently.

In connection with this notification, the Company recorded a loss of $876,000 during the year ended September 28, 2024.

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 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.

During the 13 weeks ended June 28, 2025, the Company recognized a gain of $178,000 as a result of refinements of estimates.

During the 39 weeks ended June 28, 2025, the Company recognized a gain in the amount of $173,000 as a result of additional operating losses offset by the above refinements of estimates.

Gain on Termination of Tampa Food Court Lease

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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.

Impairment Losses on Right-of-Use and Long-lived Assets

During the 13 weeks ended June 28, 2025, impairment indicators were identified at our Sequoia property located in Washington, D.C.

due to lower than expected operating results.

Accordingly, the Company tested the recoverability of Sequoia's ROU and long-lived assets and concluded they were not recoverable.

Based on a discounted cash flow analysis, the Company recognized 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.

No impairment charges related to ROU and long-lived assets were recognized during the 13 and 39 weeks ended June 27, 2026.

See Note 1 for a discussion of the Company’s triggering-event assessment as of June 27, 2026 and of the amendment to the Sequoia lease entered into subsequent to the end of the quarter.

Given the inherent uncertainty in projecting results of operations, the Company will continue to monitor the recoverability of the carrying value of the assets of Sequoia and several other restaurants on an ongoing basis.

If expected performance is not realized, further impairment charges may be recognized in future periods, and such charges could be material.

Goodwill Impairment

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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).

During the 13 weeks ended March 29, 2025, the Company identified a triggering event in accordance with the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification ("ASC") Topic 350, “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.

The Company did not record any impairment to its goodwill during the 13 and 39 weeks ended June 27, 2026.

Liquidity and Capital Resources

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

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.

As of June 27, 2026, we had cash and cash equivalents of $9,492,000, total debt of $7,117,000 (excluding a $324,000 stand-by letter of credit in favor of the landlord for our corporate headquarters) and a working capital deficit of $4,411,000 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.

As of June 27, 2026, total obligations outstanding under the Credit Agreement were $7,441,000, comprised of $5,000,000 in revolving borrowings, a $2,117,000 outstanding note and a $324,000 stand-by letter of credit.

Accordingly, as of June 27, 2026, we had approximately $12,559,000 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 $1,000,000, primarily related to required leasehold improvements, maintenance capital expenditures at existing locations, and completion of renovation commitments in Las Vegas.

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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.

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

Based on our current operating plan and financial projections, we believe that our existing cash balances, internal cash-generating capabilities and availability under our revolving credit facility are sufficient to finance our capital expenditures, debt maturities and other operating activities for at least the next twelve months, including under scenarios in which we are required to cease operations at the Bryant Park locations upon the expiration of the stay;

however, in such scenarios we may rely more heavily on borrowings under our revolving credit facility, and our liquidity could be adversely affected by, among other factors, the timing and outcome of the appeal, compliance with the financial covenants under our Credit Agreement, 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.

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There has also been a general shortage in the availability of restaurant staff and hourly workers in certain geographic areas in which we operate which has caused increases in the costs of recruiting and compensating such employees.

In addition, certain operating and other costs, including health benefits, taxes, insurance, and other outside services, continue to increase with the general level of inflation and may also be subject to other cost and supply fluctuations outside of our control.

In addition, certain operating and other costs, including health benefits,

taxes, insurance, and other outside services, continue to increase with the general level of inflation and may also be subject to other cost and supply fluctuations outside of our control.

While we have been able to offset inflation and other changes in the costs of key operating resources by targeted increases in menu prices, coupled with more efficient purchasing practices, there can be no assurance that we will be able to continue to do so in the future.

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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 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.

Cash Flows for 39 Weeks Ended June 27, 2026 and June 28, 2025

Net cash used in operating activities for the 39 weeks ended June 27, 2026 was $872,000 as compared to net cash provided by operating activities of $1,119,000 in the same period as last year.

This decrease resulted primarily from a decrease in adjusted operating income and an increase in accounts receivable balances, reflecting the timing of collections from hotel operators and credit card processors at period end.

Net cash used in investing activities for the 39 weeks ended June 27, 2026 was $4,046,000 as compared to net cash provided by investing activities of $4,662,000 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 as well as higher capital expenditures in connection with the renovation of our America property in Las Vegas.

Net cash provided by financing activities for the 39 weeks ended June 27, 2026 was $3,086,000 as compared to net cash used in financing activities of $3,729,000 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 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.

The underlying lawsuit filed by the Company to protect its rights continues, and we will pursue all available options to protect the Company's interests.

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, 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

As further described above in in the “Overview” section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this Quarterly Report, since March 2013, the Company has made investments in New Meadowlands Racetrack LLC (“NMR”) through its purchase of membership interests in Meadowlands Newmark, LLC, an existing member of NMR.

As of the date of this report, the Company has made a total investment of $5,256,000.

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

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

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%.

As of June 27, 2026, borrowings of $5,000,000 were outstanding under our revolving facility under our Credit Agreement.

As of June 27, 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.

The Company was in compliance with all of its financial covenants under the Credit Agreement as of June 27, 2026.

Cash Flow Outlook

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.

As discussed above and in Note 8 to the consolidated condensed financial statements, the Company is currently operating the B ryant Park Grill , the Bryant Park Café and The Porch at Bryant Park pursuant to a court-ordered stay of an order of ejectment, which is currently expected to expire on or about October 16, 2026, a date that falls within the first quarter of our fiscal year 2027.

These locations collectively accounted for $17.1 million, or approximately 14.5%, of our total revenues for the 39 weeks ended June 27, 2026.

Unless the Court’s decisions are reversed on appeal or the stay is extended or further relief is obtained, the Company will be required to vacate these premises and cease operations at these locations upon the expiration of the stay, and the resulting loss of revenues and associated operating cash flows, beginning in the first quarter of fiscal 2027, would materially and adversely affect our results of operations, cash flows and liquidity.

In that event, the Company would also expect to incur costs in

connection with vacating the premises and could experience reduced customer advance deposits on future catered events, and the loss of these operations could adversely affect our ability to remain in compliance with the financial covenants under our Credit Agreement, including the minimum tangible net worth and fixed charge coverage ratio requirements, in future periods.

The long-lived assets and right-of-use assets at these locations were fully depreciated and amortized upon the expiration of the related agreements in fiscal 2025, and accordingly the Company does not expect to record an impairment or write-off of such assets in connection with vacating the premises.

In the interim, the Company is required to continue to make the monthly use and occupancy payments previously ordered by the Court as a condition of the stay.

In addition, as discussed above, the amendment to the Sequoia lease is expected to reduce the Company’s cash rent obligations at that location during the Lease Restructure Term.

Critical Accounting 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