Flanigan's Enterprises(BDL) - 2024 Q2 - Quarterly Report

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].