Workflow
Flanigan's (BDL) Q3 Earnings Decline Y/Y, Revenues Improve
BDLFlanigan's Enterprises(BDL) ZACKS·2024-08-16 18:46

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 49.1millioninthefiscalthirdquarter,reflectingan8.249.1 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 10.3million,markinga17.110.3 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 2.1million,up1.82.1 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 0.2million,adecreaseof2.10.2 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 2.3million,down15.32.3 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 1.1million,down30.21.1 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 6.3million[11].Occupancycostsincreased5.86.3 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 22.1million,slightlyupfrom22.1 million, slightly up from 22 million in the previous quarter [13]. - Total debt decreased to 22.2millionfrom22.2 million from 22.5 million at the end of the second quarter [13]. - Cumulative net cash provided by operating activities was 5.2million,downfrom5.2 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].