Core Viewpoint - Flanigan's Enterprises, Inc. reported a mixed financial performance for the quarter ended December 28, 2024, with revenue growth driven by increased sales but a significant decline in net income due to rising costs [2][3][9]. Financial Performance - Total revenues reached $50.3 million, an 11.3% increase from $45.1 million in the same quarter last year, driven by higher restaurant and package store sales [2]. - Restaurant food and bar sales increased by 9.7% to $37.1 million, while package store sales surged 17.3% to $12.4 million [2]. Profitability Metrics - Net income attributable to shareholders fell 49.5% to $55,000 from $0.1 million a year ago, with EPS declining 50% to $0.03 from $0.06 [3]. - Gross profit for restaurant food and bar sales increased 9.4% to $24.1 million, while package store gross profit rose 8.5% to $2.9 million [4]. Cost Analysis - Payroll and related costs increased 9.5% to $15.7 million, primarily due to wage inflation and the opening of a new location [5]. - SG&A expenses climbed 25.2% to $1.5 million, driven by increased advertising expenditures [5]. Cash Flow and Debt - Cash and cash equivalents rose to $27.3 million from $21.4 million, with net cash from operating activities more than doubling to $7.7 million [6]. - Long-term debt decreased slightly to $21.6 million from $21.9 million [6]. Management Insights - Management attributed revenue growth to recent menu price increases, with targeted annual increases of 4.14% for food and 4.90% for bar prices [7]. - Despite revenue growth, management noted ongoing cost pressures from inflation in food, beverage, and labor [9]. Future Outlook - The company expects continued revenue growth supported by menu price increases and strong customer demand, but anticipates ongoing cost pressures [11]. - Flanigan's has entered a new Master Services Agreement to ensure stable product supply and committed to purchasing $7.8 million worth of baby back ribs at pre-negotiated prices [12]. Capital Expenditures - Capital expenditures for the quarter totaled $0.7 million, down 45.9% from $1.4 million, mainly for restaurant refurbishments [6][13].

Revenue Growth - Total revenue for the thirteen weeks ended December 28, 2024, increased by $5,122,000 or 11.35% to $50,262,000 compared to $45,140,000 for the same period in 2023, driven by increased package liquor store and restaurant sales[70]. - Restaurant food sales reached $29,126,000 for the thirteen weeks ended December 28, 2024, up from $26,355,000 in the prior year, reflecting a 10.66% increase attributed to recent price increases and the opening of a new restaurant[71]. - Package store sales totaled $12,435,000 for the thirteen weeks ended December 28, 2024, compared to $10,602,000 in the same period last year, marking an increase of $1,833,000 or 17.28% in same-store sales[73]. Costs and Expenses - Costs and expenses rose by $5,057,000 or 11.40% to $49,404,000 for the thirteen weeks ended December 28, 2024, primarily due to increased payroll and food costs[74]. - Payroll and related costs increased by $1,361,000 or 9.46% to $15,746,000, with payroll as a percentage of total revenue decreasing to 31.33% from 31.87%[78]. - Operating expenses rose by $641,000 or 10.84% to $6,554,000, driven by inflation and the opening of a new restaurant[79]. - Selling, general and administrative expenses increased by $301,000 or 25.23% to $1,494,000, representing 2.97% of total revenue for the thirteen weeks ended December 28, 2024, up from 2.64% in 2023[81]. - Depreciation and amortization expense rose by $165,000 or 16.82% to $1,146,000, accounting for 2.28% of revenue in the thirteen weeks ended December 28, 2024, compared to 2.17% in 2023[82]. - Occupancy costs decreased by $210,000 or 9.70% to $1,954,000 for the thirteen weeks ended December 28, 2024, compared to $2,164,000 for the same period in 2023[80]. Profitability - Gross profit for food and bar sales increased to $24,059,000, with a gross profit margin of 64.87%, slightly down from 65.02% in the previous year due to higher food costs[76]. - Net income increased by $38,000 or 6.40% to $632,000 for the thirteen weeks ended December 28, 2024, with a net income margin of 1.26%, down from 1.32% in 2023[84]. - Net income attributable to Flanigan's Enterprises, Inc. stockholders decreased by $54,000 or 49.54% to $55,000, representing 0.11% of revenue, compared to 0.24% in 2023[85]. Cash Flow and Financial Position - Cash and cash equivalents increased by $5,920,000 to approximately $27,322,000 as of December 28, 2024, from $21,402,000 as of September 28, 2024[88]. - Net cash provided by operating activities was $7,701,000 for the thirteen weeks ended December 28, 2024, compared to $3,450,000 in 2023[91]. - Capital expenditures for property and equipment amounted to $745,000 during the thirteen weeks ended December 28, 2024, down from $1,378,000 in 2023[92]. - Long-term debt decreased to $21,587,000 as of December 28, 2024, from $21,912,000 as of September 28, 2024[94]. Future Outlook - The company anticipates continued increases in restaurant food and bar sales due to recent price increases implemented in late 2024[71][72]. - The company expects package liquor store sales to continue increasing due to higher traffic in stores[73]. - The company operates a total of 32 units and franchises an additional 5 units as of December 28, 2024, maintaining the same number of units as in September 2024[63][64]. - The company entered into a purchase agreement for approximately $7.8 million of baby back ribs for calendar year 2025 to ensure supply and fix costs[96].

Revenue and Sales Performance - Total revenue for fiscal year 2024 increased by $13,925,000 or 7.98% to $188,321,000 from $174,396,000 in fiscal year 2023, driven by increased package liquor store and restaurant sales[26]. - Restaurant bar sales totaled $30,010,000 in fiscal year 2024, up from $29,000,000 in fiscal year 2023, attributed to recent price increases and new restaurant openings[27]. Profitability - Gross profit for package store sales increased to $10,369,000 in fiscal year 2024 from $9,377,000 in fiscal year 2023, with a gross profit margin of 25.60%[29]. - Net income for fiscal year 2024 decreased by $116,000 or 2.14% to $5,300,000, with net income as a percentage of total revenue at 2.81%[33]. - Net income attributable to stockholders decreased by $643,000 or 16.08% to $3,356,000 in fiscal year 2024, representing 1.78% of revenue[34]. Costs and Expenses - Payroll and related costs rose by $2,742,000 or 4.84% to $59,349,000 in fiscal year 2024, with payroll costs as a percentage of total revenue decreasing to 31.51%[30]. - Menu prices for bar offerings were increased effective August 25, 2024, targeting a 5.63% annual increase in bar revenues to offset higher costs[36]. Cash Position - Cash and cash equivalents as of September 28, 2024, were approximately $21,402,000, a decrease of $4,130,000 from $25,532,000 as of September 30, 2023[37]. Future Outlook - The company anticipates a decrease in gross profit margin for package liquor store merchandise in fiscal year 2025 due to higher costs and competitive pricing[29]. - The company did not open any new limited partnership restaurants in fiscal year 2024, nor did it have any in the development stage[35].

Core Viewpoint - Flanigan's Enterprises, Inc. reported a decline in earnings per share and net income for the third quarter of fiscal 2024, despite an increase in revenues driven by restaurant food and package store sales [1][12]. Revenue Performance - Flanigan's registered revenues of $49.1 million in the fiscal third quarter, reflecting an 8.2% year-over-year increase [2]. - Restaurant food sales generated revenues of $30.5 million, up 8.3% year over year, attributed to new restaurant openings [4]. - Package store sales were $10.3 million, marking a 17.1% increase year over year, driven by higher store traffic [8]. - Franchise-related revenues were $0.4 million, down 8.2% from the previous year [9]. Sales Breakdown - Comparable weekly restaurant food sales for the 13 weeks ended June 29, 2024, were $2.1 million, up 1.8% year over year [5]. - Restaurant bar sales totaled $7.6 million, down 1.4% year over year, impacted by increased competition [6]. - Comparable weekly restaurant bar sales for company-owned restaurants were $0.2 million, a decrease of 2.1% year over year [6]. Profitability Metrics - Gross profit increased 4.4% year over year to $27.5 million, but gross margin contracted by 217 basis points to 56.9% [10]. - Operating profit totaled $2.3 million, down 15.3% from the prior-year quarter [12]. - Net income was $1.8 million, down 25.3% year over year, with net income attributable to stockholders at $1.1 million, down 30.2% [12]. Expense Analysis - Selling, general and administrative expenses rose 29.9% year over year to $1.3 million [11]. - Total operating expenses increased 4.3% year over year to $6.3 million [11]. - Occupancy costs increased 5.8% year over year to $2 million [11]. Liquidity and Debt Management - Flanigan's ended the third quarter with cash and cash equivalents of $22.1 million, slightly up from $22 million in the previous quarter [13]. - Total debt decreased to $22.2 million from $22.5 million at the end of the second quarter [13]. - Cumulative net cash provided by operating activities was $5.2 million, down from $7.2 million a year ago [13]. Overall Assessment - The company showed solid top-line results with robust restaurant food and package store sales, alongside increases in rental and other operating income [14]. - However, the decline in bottom-line results, lower restaurant bar sales, and a contraction in gross margin were concerning [14].

Core Insights - Flanigan's Enterprises, Inc. reported financial results for the 13 weeks and 39 weeks ended June 29, 2024, showing an increase in total revenues compared to the same periods in the previous year [1] Financial Performance Summary 13 Weeks Ended June 29, 2024 vs. July 1, 2023 - Restaurant food and bar sales increased to $38,048,000 from $35,813,000, representing a growth of approximately 6.2% [2] - Package store sales rose to $10,292,000 from $8,791,000, marking an increase of about 16.9% [2] - Total revenues for the 13 weeks reached $49,102,000, up from $45,372,000, reflecting a growth of approximately 6.0% [2] - Net income attributable to Flanigan's Enterprises, Inc. decreased to $1,121,000 from $1,605,000, a decline of about 30.0% [2] - Net income per common share decreased to $0.60 from $0.86 [2] 39 Weeks Ended June 29, 2024 vs. July 1, 2023 - Restaurant food and bar sales increased to $108,962,000 from $101,962,000, showing a growth of approximately 6.9% [3] - Package store sales increased to $31,034,000 from $26,853,000, representing a growth of about 15.9% [3] - Total revenues for the 39 weeks reached $142,311,000, up from $131,036,000, indicating a growth of approximately 8.6% [3] - Net income attributable to Flanigan's Enterprises, Inc. decreased to $3,172,000 from $4,126,000, a decline of about 23.2% [3] - Net income per common share decreased to $1.71 from $2.22 [3]

Revenue Growth - Total revenue for the thirteen weeks ended June 29, 2024, increased by $3,730,000 or 8.22% to $49,102,000 from $45,372,000 for the same period in 2023[65] - Total revenue for the thirty-nine weeks ended June 29, 2024 increased by $11,275,000 or 8.60% to $142,311,000, driven by increased package liquor store and restaurant sales[79] - Total revenue for the thirteen weeks ended June 29, 2024 increased by $4,143,000 or 9.71% to $46,815,000 from $42,672,000 for the same period in 2023[69] Sales Performance - Restaurant food sales totaled $30,471,000 for the thirteen weeks ended June 29, 2024, compared to $28,126,000 for the same period in 2023, reflecting an increase of $2,345,000[66] - Package store sales increased by $1,501,000 to $10,292,000 for the thirteen weeks ended June 29, 2024, compared to $8,791,000 for the same period in 2023, driven by increased traffic[68] - Revenue from package liquor store sales totaled $31,034,000 for the thirty-nine weeks ended June 29, 2024, an increase of $4,181,000 from the previous year[82] Profitability - Gross profit for food and bar sales increased to $24,944,000 from $24,078,000, with a gross profit margin of 65.56% compared to 67.23% in the prior year[70] - Gross profit for food and bar sales for the thirty-nine weeks ended June 29, 2024 increased to $71,817,000 from $68,211,000, with a gross profit margin of 65.91% compared to 66.90% in the previous year[84] - Net income for the thirteen weeks ended June 29, 2024 decreased by $609,000 or 25.26% to $1,802,000, with a net income margin of 3.67% compared to 5.31% in the prior year[77] Costs and Expenses - Payroll and related costs increased by $703,000 or 4.82% to $15,301,000, representing 31.16% of total revenue, down from 32.17% in the previous year[72] - Operating expenses rose by $260,000 or 4.33% to $6,268,000, primarily due to inflation and the opening of a new restaurant[73] - Costs and expenses for the thirty-nine weeks ended June 29, 2024 increased by $12,119,000 or 9.74% to $136,547,000, with costs as a percentage of total revenue rising to approximately 95.95%[83] Cash and Debt Management - Cash and cash equivalents decreased to approximately $22,123,000 as of June 29, 2024, down from $25,532,000 as of September 30, 2023[94] - Long-term debt decreased to $22,221,000 as of June 29, 2024, compared to $23,128,000 as of September 30, 2023[101] - Current assets were $33,302,000 and current liabilities were $21,264,000, resulting in working capital of $12,038,000 as of June 29, 2024[108] Interest Rate and Financial Instruments - The company is exposed to interest rate fluctuations on borrowings, utilizing interest rate swap agreements to manage these risks[113] - The outstanding variable rate debt instrument has an interest rate equal to the lender's BSBY Screen Rate plus 1.50% per annum[114] - The $8.90M Term Loan Swap requires the company to pay a fixed interest rate of 4.90% for 15 years on an initial notional principal amount of $8.9 million[115] Future Outlook - The company anticipates continued increases in costs and expenses throughout fiscal year 2024 due to various factors including higher food costs and inflation[69] - There is no assurance that interest rates will increase or decrease over the next fiscal year, which could materially affect operations[116]

Core Viewpoint - Zacks Investment Research has initiated coverage of Flanigan's Enterprises, Inc. with a "Neutral" recommendation, reflecting a mixed outlook for the company amid industry challenges [1] Financial Performance - Flanigan's reported a 9.7% increase in revenues for Q1 2024, reaching $48.1 million, up from $43.8 million in the same quarter last year, driven by a 7.9% rise in restaurant food and bar sales and a 17.1% increase in package store sales [2] - For the 26-week period ending March 30, 2024, revenues rose 8.8% to $93.2 million [2] - The company generated $2.1 million in positive cash flow from operations for the same 26-week period [6] Growth Drivers - Future growth is expected to be driven by new locations, including the Miramar restaurant and package liquor store opened in 2023, and the reopening of the Hollywood store in Florida [3] - Implementation of Oracle's NetSuite for improved financial management is anticipated to enhance operational efficiency [3] Market Positioning - Flanigan's stock has underperformed compared to industry peers and the broader market over the past year, currently trading at low valuation multiples relative to industry standards [4] - The company maintains a robust balance sheet with $22 million in cash and cash equivalents [6] Challenges - Despite revenue growth, net income declined 18.6% in Q1 2024 due to rising costs and potential inefficiencies [7] - The company faces significant long-term debt, rising expenses, intense competition, and economic sensitivity, which could impact profitability [7]

Core Points - Flanigan's Enterprises, Inc. announced a cash dividend of 50 cents per share for shareholders of record on June 14, 2024, payable on June 28, 2024 [1] Company Summary - Flanigan's Enterprises, Inc. operates "Flanigan's Seafood Bar and Grill" restaurants and "Big Daddy's" retail liquor stores [1]

Revenue Growth - Total revenue for the thirteen weeks ended March 30, 2024, increased by $4,266,000 or 9.74% to $48,069,000 from $43,803,000 for the same period in 2023[58]. - Total revenue for the twenty-six weeks ended March 30, 2024 increased by $7,545,000 or 8.81% to $93,209,000 from $85,664,000 for the same period in 2023[72]. Restaurant Sales - Restaurant food sales totaled $29,356,000 for the thirteen weeks ended March 30, 2024, compared to $27,113,000 for the same period in 2023, reflecting an increase due to higher menu prices and new restaurant openings[59]. - Comparable weekly restaurant food sales for Company-owned restaurants increased by 2.08% to $1,029,000 for the thirteen weeks ended March 30, 2024, compared to $1,008,000 for the same period in 2023[59]. - Restaurant food sales totaled $55,711,000 for the twenty-six weeks ended March 30, 2024, compared to $51,880,000 for the same period in 2023, driven by increased menu prices and new restaurant openings[74]. Bar Sales - Restaurant bar sales reached $7,740,000 for the thirteen weeks ended March 30, 2024, up from $7,281,000 in the same period in 2023, primarily driven by increased menu prices[61]. - The company expects continued growth in restaurant food and bar sales for the remainder of fiscal year 2024 due to increased traffic and new store operations[60]. Package Store Sales - Package store sales increased to $10,140,000 for the thirteen weeks ended March 30, 2024, compared to $8,659,000 for the same period in 2023, marking a significant growth[56]. - Revenue from package liquor store sales increased to $10,140,000 for the thirteen weeks ended March 30, 2024, up from $8,659,000 for the same period in 2023, representing an increase of 17.09%[62]. - Revenue from package liquor store sales for the twenty-six weeks ended March 30, 2024 was $20,742,000, an increase of $2,680,000 from $18,062,000 for the same period in 2023[76]. Operating Costs and Expenses - Operating costs and expenses rose by $4,292,000 or 10.44% to $45,384,000 for the thirteen weeks ended March 30, 2024, compared to $41,092,000 for the same period in 2023[63]. - Operating costs and expenses for the twenty-six weeks ended March 30, 2024 increased by $7,976,000 or 9.76% to $89,732,000 from $81,756,000 for the same period in 2023[77]. Gross Profit - Gross profit for restaurant food and bar sales increased to $24,886,000 for the thirteen weeks ended March 30, 2024, up from $23,184,000, although the gross profit margin decreased to 67.09% from 67.41%[64]. - Gross profit for package store sales increased to $2,648,000 for the thirteen weeks ended March 30, 2024, up from $2,447,000, with a gross profit margin of 26.11%, down from 28.26%[65]. - Gross profit for restaurant food and bar sales increased to $46,873,000, with a gross profit margin of 66.10%, down from 66.72% in the previous year[78]. - Gross profit for package store sales rose to $5,370,000, with a gross profit margin of 25.89%, down from 26.94% in the previous year[78]. Net Income - Net income for the thirteen weeks ended March 30, 2024 increased by $346,000 or 15.89% to $2,524,000, with net income as a percentage of revenue rising to 5.25% from 4.97%[70]. - Net income increased by $66,000 or 2.16% to $3,118,000, with a net income margin of 3.35%, down from 3.56%[83]. - Net income attributable to stockholders decreased by $470,000 or 18.64% to $2,051,000, with a margin of 2.20%, down from 2.94%[84]. Payroll and Related Costs - Payroll and related costs increased by $798,000 or 5.63% to $14,972,000 for the thirteen weeks ended March 30, 2024, with payroll as a percentage of total revenue decreasing to 31.15% from 32.36%[66]. - Payroll and related costs increased by $1,547,000 or 5.56% to $29,357,000, representing 31.50% of total revenue, down from 32.46%[79]. Expenses - Selling, general and administrative expenses rose by $1,860,000 or 12.39% to $16,868,000, accounting for 18.10% of total revenue, up from 17.52%[81]. Cash and Debt - Cash and cash equivalents decreased by $3,530,000 to $22,002,000 as of March 30, 2024[87]. - Long-term debt decreased to $22,501,000 from $23,128,000 as of September 30, 2023[94]. Capital Expenditures and Investments - The company anticipates capital expenditures for refurbishment in fiscal year 2024 to be approximately $450,000[93]. - The company entered into a purchase agreement for approximately $7.0 million of baby back ribs for calendar year 2024[98]. - The company invested $900,000 in 90-day certificates of deposit during fiscal year 2023, with an average fixed annual interest rate of 4.87%[109]. - The average fixed annual interest rate for new 90-day certificates of deposit rolled over in 2024 increased to 5.27%[109]. Interest Rates and Financial Instruments - The company has one variable rate debt instrument with an interest rate equal to the lender's BSBY Screen Rate plus 1.50% per annum, specifically a $8.90M Loan[108]. - An interest rate swap agreement was entered into to convert the $8.90M Loan from variable to fixed rate, with a fixed rate of 4.90% for a fifteen-year period[108]. - The company’s cash resources are affected by fluctuations in interest rates, with no assurance of future rate changes impacting operations[109]. Inflation Impact - Inflation has significantly impacted operating results, particularly due to rising food, fuel, and labor costs, prompting the company to increase menu prices[104]. Accounting Policies - During the twenty-six weeks ended March 30, 2024, the company has not made any changes to its critical accounting policies[103]. Securities and Market Risk - As of March 30, 2024, the company held no equity securities and does not ordinarily hold market risk sensitive instruments for trading purposes[106].

FORT LAUDERDALE, Fla., Feb. 14, 2024 /PRNewswire/ -- FLANIGAN'S ENTERPRISES, INC., (NYSE AMERICAN: BDL) owners and operators of the "Flanigan's Seafood Bar and Grill" restaurants and "Big Daddy's" retail liquor stores announced results for the 13 weeks ended December 30, 2023. The table below sets forth the results on a comparative basis with the 13 weeks ended December 31, 2022. (in thousands, except per share amounts) 13 Weeks Ended 13 Weeks Ended December 30, 2023 December 31, ...