SEGMENT INFORMATION

Operating segments are defined as components of a company that engage in business activities from which it may earn revenue and incur expenses, and for which separate financial information is available and is regularly reviewed by the chief operating decision maker ("CODM") to assess the performance of the individual segments and make decisions about company resources such as personnel and working capital to be allocated to the segments.

The Company determined that it has one operating segment and one reportable segment which is reflected in the Company’s current organizational and management structure. The accounting policies of the segment are the same as those described in Note 1 - Business and Summary of Significant Accounting Policies.

The Company’s CODM is the Chief Executive Officer who manages the Company’s operations on a reportable segment basis. The Company’s CODM reviews its operations and financial performance at a consolidated level by comparing actual results to expected and prior period results. This approach allows the CODM to assess whether the Company’s operating segment is meeting its financial goals, identify trends and make more informed decisions about resource allocation and performance targets.

When evaluating the Company’s financial performance, the CODM regularly reviews total revenues, expenses and consolidated net income (loss) as reported on the Consolidated Statements of Operations as well as non-GAAP measures such as Adjusted EBITDA to allocate Company resources and assess the performance of the Company. Segment asset information is not used by the CODM to assess performance and allocate resources.

The table below is a summary of the segment net income (loss), including significant segment expenses for the years ended September 27, 2025 and September 28, 2024:


	Year Ended
	September 27, 2025		September 28, 2024
	(in thousands)
REVENUES:
Food and beverage sales	$	163,312	$	179,110
Other revenue	2,439		4,435
Total revenues	165,751		183,545
COSTS AND EXPENSES:
Food and beverage cost of sales	46,427		49,519
Payroll expenses	60,346		65,844
Occupancy expenses	22,527		24,622
Other operating costs and expenses (1)	22,644		24,125
General and administrative expenses (2)	12,001		12,263
Depreciation and amortization	3,138		4,090
(Gain) loss on closure of El Rio Grande	(173)		876
Gain on termination of Tampa Food Court lease	(5,235)		—
Impairment losses on right-of-use and long-lived assets	4,700		2,500
Goodwill impairment	3,440		4,000
Interest expense, net	369		577
Other (income) expense, net (3)	(594)		(311)
Provision (benefit) for income taxes	5,324		(815)
Segment net loss	(9,163)		(3,745)
Reconciliation of profit or loss:
Adjustments and reconciling items	—		—
Consolidated net loss	$	(9,163)	$	(3,745)

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(1) Other operating costs and expenses are comprised of utilities, repairs and maintenance, advertising, credit card processing fees, restaurant supplies and other restaurant operating costs.

(2) General and administrative expenses relate solely to the corporate office in New York City and are comprised of salaries and benefits, professional and consulting fees and rent and related expenses. .

(3) Other (income) expense, net includes gains and losses on disposal of assets, dividends received and a gain on PPP loan forgiveness.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

ARK RESTAURANTS CORP Segments Disclosure

About Segments Disclosures

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