Flanigan's Enterprises, Inc. (BDL) investors have been experiencing some short-term gains from the stock lately, despite its bumpy ride over recent months. Shares of the owners and operators of the "Flanigan's Seafood Bar and Grill" restaurants and "Big Daddy's" retail liquor stores, which is based in Fort Lauderdale, FL, have gained 37.7% in the past six months against the industry’s 8.1% decline. In the same time frame, the stock also outperformed the sector and the S&P 500’s 10.3% and 17.7% gains, respec ...

Core Viewpoint - Flanigan's Enterprises, Inc. reported a mixed performance in its latest earnings, with revenue growth but a decline in stock price compared to the S&P 500 Index, indicating potential challenges ahead for the company [1]. Financial Performance - For the quarter ended June 28, 2025, Flanigan's generated total revenues of $52.2 million, a 6.2% increase from $49.1 million in the prior-year quarter [2]. - Net income attributable to the company rose 24.2% to $1.4 million, or $0.75 per share, compared to $1.1 million, or $0.60 per share, in the same period last year [2]. - On a nine-month basis, revenues grew 9.7% to $156.1 million from $142.3 million, and net income attributable to shareholders advanced 30.4% to $4.1 million, or $2.23 per share [3]. Segment Performance - Restaurant food and bar sales increased 4.8% to $39.9 million from $38 million, while package store sales rose 11.9% to $11.5 million from $10.3 million [3][4]. - Comparable weekly restaurant food and bar sales rose 4.7% and 4.6%, driven by recent menu price increases [4]. Key Business Metrics - Gross profit margin on restaurant food and bar sales improved to 67.5% from 65.6% a year ago, while package store gross margins slipped to 23.8% from 25.2% [5]. - Payroll and related costs rose 5.3% to $16.1 million, reflecting minimum wage increases, and operating expenses climbed 12.1% amid inflationary pressures [5]. Management Commentary - Management noted that pricing actions taken over the past year helped offset higher food and liquor costs as well as rising labor expenses [8]. - The company expects food and bar sales to continue benefiting from these increases through the remainder of fiscal 2025, but cautioned that inflation remains a significant headwind [8]. Strategic Developments - Flanigan's acquired a vacant property in Cutler Bay, FL, for $2.2 million for a planned new restaurant and purchased interests in several partnerships to consolidate ownership [13]. - The board declared a $0.55 per share dividend, up from $0.50 per share in the same period last year [14].

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)](index=3&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Presents Flanigan's unaudited condensed consolidated financial statements, covering income, balance sheets, equity, cash flows, and accounting policies [UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME](index=4&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) | Metric (in thousands) | 13 Weeks Ended June 28, 2025 | 13 Weeks Ended June 29, 2024 | 39 Weeks Ended June 28, 2025 | 39 Weeks Ended June 29, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Revenues | $52,164 | $49,102 | $156,058 | $142,311 | | Income from Operations| $2,974 | $2,287 | $7,467 | $5,764 | | Net Income | $2,489 | $1,802 | $6,467 | $4,920 | | Net Income Attributable to Flanigan's Enterprises Inc. Stockholders | $1,392 | $1,121 | $4,137 | $3,172 | | Basic and Diluted EPS | $0.75 | $0.60 | $2.23 | $1.71 | [UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME](index=5&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) | Metric (in thousands) | 13 Weeks Ended June 28, 2025 | 13 Weeks Ended June 29, 2024 | 39 Weeks Ended June 28, 2025 | 39 Weeks Ended June 29, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income | $2,489 | $1,802 | $6,467 | $4,920 | | Total Comprehensive Income | $2,489 | $1,833 | $6,467 | $4,736 | [CONDENSED CONSOLIDATED BALANCE SHEETS](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS%20AS%20OF%20JUNE%2028%2C%202025%20(UNAUDITED)%20AND%20SEPTEMBER%2028%2C%202024) | Metric (in thousands) | June 28, 2025 | September 28, 2024 | | :-------------------- | :------------ | :----------------- | | Total current assets | $30,288 | $31,529 | | Total assets | $140,694 | $142,082 | | Total current liabilities | $18,291 | $19,924 | | Total liabilities | $62,428 | $66,672 | | Total stockholders' equity | $78,266 | $75,410 | [UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY](index=8&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY) - Total stockholders' equity increased from **$75,410 thousand** as of September 28, 2024, to **$78,266 thousand** as of June 28, 2025, driven by net income and other comprehensive income, partially offset by distributions to noncontrolling interests and dividends paid[25](index=25&type=chunk) [UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS](index=9&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) | Cash Flow Activity (in thousands) | 39 Weeks Ended June 28, 2025 | 39 Weeks Ended June 29, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $7,150 | $5,219 | | Net cash used in investing activities | $(5,677) | $(4,068) | | Net cash used in financing activities | $(4,665) | $(4,560) | | Net Decrease in Cash and Cash Equivalents | $(3,192) | $(3,409) | | Cash and Cash Equivalents - End of Period | $18,210 | $22,123 | [NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=11&type=section&id=NOTES%20TO%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) - The company early adopted ASU 2023-07, "Segment Reporting," in **Q3 FY2024**, which impacted the expense presentation in the income statements and business segments footnote[37](index=37&type=chunk) - During **Q3 FY2025**, the company purchased vacant real property for **$2.2 million** cash to construct a new "Flanigan's" restaurant, which will be leased to a limited partnership where the company is the sole general partner[41](index=41&type=chunk) - The company purchased **5.25%** limited partnership interests in seven limited partnerships for an aggregate of **$377,400** during **Q3 FY2025**[42](index=42&type=chunk) - Total annual insurance premiums for the policy year beginning December 30, 2024, amounted to approximately **$4,010,000**, covering general liability, auto, property, excess liability, and terrorism, including coverage for franchises[46](index=46&type=chunk)[47](index=47&type=chunk) - The company entered into a new **one-year** Master Services Agreement with its major vendor, committing to purchase no less than **80%** of overall product needs, and exercised the first **one-year** renewal option effective **January 1, 2026**[48](index=48&type=chunk)[123](index=123&type=chunk) - A **five-year** agreement with Oracle for NetSuite ERP solution was implemented as the company's general ledger effective June 29, 2025, with implementation services costing approximately **$237,000** paid in full by **Q3 FY2025**[49](index=49&type=chunk)[50](index=50&type=chunk) | Lease Metric | June 28, 2025 | September 28, 2024 | | :----------- | :------------ | :----------------- | | Operating lease assets | $25,106 (in thousands) | $26,828 (in thousands) | | Operating lease current liabilities | $2,594 (in thousands) | $2,467 (in thousands) | | Operating lease non-current liabilities | $24,157 (in thousands) | $25,847 (in thousands) | | Weighted Average Remaining Lease Term | 9.67 Years | 10.17 Years | | Weighted Average Discount Rate | 5.12% | 5.02% | - The company operates in **two reportable segments**: package stores (retail liquor sales) and restaurants (food and bar sales), with a Corporate entity functioning as a cost center[57](index=57&type=chunk) | Segment (in thousands) | Identifiable Assets (June 28, 2025) | Identifiable Assets (September 28, 2024) | | :--------------------- | :---------------------------------- | :--------------------------------------- | | Restaurants | $78,186 | $77,613 | | Package stores | $23,237 | $23,084 | | Corporate | $39,271 | $41,385 | | Consolidated Totals | $140,694 | $142,082 | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=27&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Analyzes Flanigan's financial condition and operational results, covering revenue, costs, liquidity, capital, and critical accounting policies [Overview](index=27&type=section&id=OVERVIEW) - As of June 28, 2025, Flanigan's operates **32 units** (restaurants, package liquor stores, combination units, sports bar) and franchises an additional **5 units**[74](index=74&type=chunk) | Unit Type | June 28, 2025 | September 28, 2024 | | :-------- | :------------ | :----------------- | | Company Owned: Combination package liquor store and restaurant | 2 | 2 | | Company Owned: Restaurant only, including sports bar | 9 | 9 | | Company Owned: Package liquor store only | 9 | 9 | | Company Managed Restaurants Only: Limited partnerships | 10 | 10 | | Company Managed Restaurants Only: Franchise | 1 | 1 | | Company Managed Restaurants Only: Unrelated Third Party | 1 | 1 | | Total Company Owned/Operated Units | 32 | 32 | | Franchised Units | 5 | 5 | - The company receives a royalty of **1%** of gross package store sales and **3%** of gross restaurant sales from franchisees, plus advertising expenditures. For limited partnerships, the company receives a management fee (initially after investor return, then **50%** of available cash) and a **3%** gross sales fee for service mark use[76](index=76&type=chunk)[78](index=78&type=chunk) [Results of Operations](index=29&type=section&id=RESULTS%20OF%20OPERATIONS) | Revenue Category (in thousands) | 13 Weeks Ended June 28, 2025 | 13 Weeks Ended June 29, 2024 | 39 Weeks Ended June 28, 2025 | 39 Weeks Ended June 29, 2024 | | :------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Restaurant food sales | $31,933 | $30,471 | $93,645 | $86,182 | | Restaurant bar sales | $7,931 | $7,577 | $24,087 | $22,780 | | Package store sales | $11,522 | $10,292 | $36,008 | $31,034 | | Total Sales | $51,386 | $48,340 | $153,740 | $139,996 | | Total Revenue | $52,164 | $49,102 | $156,058 | $142,311 | [Thirteen Weeks Ended June 28, 2025 vs. June 29, 2024](index=29&type=section&id=Comparison%20of%20Thirteen%20Weeks%20Ended%20June%2028%2C%202025%20and%20June%2029%2C%202024) - Total revenue increased by **$3,062,000** (**6.24%**) to **$52,164,000**, primarily due to increased package liquor store and restaurant sales, and recent menu price increases[80](index=80&type=chunk) - Restaurant food sales increased by **4.69%** in comparable weekly sales, driven by price increases. Restaurant bar sales increased by **4.63%** in comparable weekly sales, also due to price increases. Package store sales increased by **11.87%** in weekly average same-store sales due to increased traffic[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - Costs and expenses increased by **$2,375,000** (**5.07%**) to **$49,190,000**, mainly due to higher payroll and operating expenses, but decreased as a percentage of total revenue from **95.34%** to **94.30%**[84](index=84&type=chunk) | Expense Category (in thousands) | 13 Weeks Ended June 28, 2025 | 13 Weeks Ended June 29, 2024 | Change ($) | Change (%) | | :------------------------------ | :--------------------------- | :--------------------------- | :--------- | :--------- | | Payroll and Related Costs | $16,106 | $15,301 | $805 | 5.26% | | Operating Expenses | $7,029 | $6,268 | $761 | 12.14% | | Occupancy Costs | $2,070 | $2,024 | $46 | 2.27% | | Selling, General & Administrative Expenses | $1,084 | $1,288 | $(204) | (15.84%) | | Depreciation and Amortization | $1,167 | $1,127 | $40 | 3.55% | - Net income increased by **38.12%** to **$2,489,000**, and net income attributable to stockholders increased by **24.17%** to **$1,392,000**, driven by price increases and lower food costs, partially offset by increased expenses[94](index=94&type=chunk)[95](index=95&type=chunk) [Thirty-Nine Weeks Ended June 28, 2025 vs. June 29, 2024](index=32&type=section&id=Comparison%20of%20Thirty-Nine%20Weeks%20Ended%20June%2028%2C%202025%20and%20June%2029%2C%202024) - Total revenue increased by **$13,747,000** (**9.66%**) to **$156,058,000**, primarily due to increased package liquor store and restaurant sales, recent menu price increases, and the opening of a new corporate-owned restaurant[96](index=96&type=chunk) - Restaurant food sales increased by **5.23%** in comparable weekly sales, and restaurant bar sales increased by **2.97%** in comparable weekly sales, both benefiting from price increases and the new restaurant. Package store sales increased by **15.95%** in weekly average same-store sales due to increased traffic[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - Costs and expenses increased by **$12,044,000** (**8.82%**) to **$148,591,000**, mainly due to higher payroll, food costs, and expenses from the new restaurant, but decreased as a percentage of total revenue from **95.95%** to **95.22%**[100](index=100&type=chunk) | Expense Category (in thousands) | 39 Weeks Ended June 28, 2025 | 39 Weeks Ended June 29, 2024 | Change ($) | Change (%) | | :------------------------------ | :--------------------------- | :--------------------------- | :--------- | :--------- | | Payroll and Related Costs | $48,036 | $44,658 | $3,378 | 7.56% | | Operating Expenses | $20,640 | $18,565 | $2,075 | 11.18% | | Occupancy Costs | $6,127 | $6,118 | $9 | 0.15% | | Selling, General & Administrative Expenses | $4,036 | $3,867 | $169 | 4.37% | | Depreciation and Amortization | $3,474 | $3,119 | $355 | 11.38% | - Net income increased by **31.44%** to **$6,467,000**, and net income attributable to stockholders increased by **30.42%** to **$4,137,000**, driven by price increases and the new restaurant, offset by higher food costs and overall increased expenses[110](index=110&type=chunk)[111](index=111&type=chunk) [Menu Price Increases and Trends](index=34&type=section&id=Menu%20Price%20Increases%20and%20Trends) - The company implemented several menu price increases for bar offerings (**0.84%** annually effective Feb 23, 2025; **4.90%** annually effective Dec 4, 2024; **5.63%** annually effective Aug 25, 2024) and food offerings (**4.14%** annually effective Nov 17, 2024) to offset rising costs[112](index=112&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash and cash equivalents decreased by **$3,192,000** to **$18,210,000** as of June 28, 2025, primarily due to a **$2.2 million** expenditure for undeveloped land for a future restaurant[113](index=113&type=chunk) - The company believes current cash and positive cash flow from operations will be sufficient to fund operations and planned capital expenditures for at least the **next twelve months**, despite inflationary pressures[114](index=114&type=chunk)[125](index=125&type=chunk) [Cash Flows](index=35&type=section&id=Cash%20Flows) | Cash Flow Activity (in thousands) | 39 Weeks Ended June 28, 2025 | 39 Weeks Ended June 29, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $7,150 | $5,219 | | Net cash used in investing activities | $(5,677) | $(4,068) | | Net cash used in financing activities | $(4,665) | $(4,560) | | Net Decrease in Cash and Cash Equivalents | $(3,192) | $(3,409) | - A cash dividend of **$0.55 per share** was declared for shareholders of record on June 12, 2025, compared to **$0.50 per share** in the prior year[116](index=116&type=chunk) [Capital Expenditures](index=35&type=section&id=Capital%20Expenditures) - Capital expenditures for property and equipment totaled **$4,956,000** for the thirty-nine weeks ended June 28, 2025, including **$2.2 million** for the Cutler Bay Property and **$285,000** for renovations to company-owned locations[117](index=117&type=chunk) - Anticipated refurbishment costs for fiscal year 2025 are approximately **$550,000**, with potential for significantly higher capital expenditures[118](index=118&type=chunk) [Long-Term Debt](index=36&type=section&id=Long-Term%20Debt) - Long-term debt (including current portion) decreased to **$20,926,000** as of June 28, 2025, from **$21,912,000** as of September 28, 2024. The company is in compliance with all loan covenants[119](index=119&type=chunk)[120](index=120&type=chunk) [Purchase Commitments](index=36&type=section&id=Purchase%20Commitments) - The company committed to purchase approximately **$7.8 million** of "2.5 & Down Baby Back Ribs" for calendar year 2025 from a new supplier at a competitive fixed cost[121](index=121&type=chunk) - The Master Services Agreement with the major vendor was renewed for one year, effective January 1, 2026, requiring the purchase of no less than **80%** of overall product needs[123](index=123&type=chunk) [Working Capital](index=36&type=section&id=Working%20Capital) | Item (in thousands) | June 28, 2025 | September 28, 2024 | | :------------------ | :------------ | :----------------- | | Current Assets | $30,288 | $31,529 | | Current Liabilities | $18,291 | $19,924 | | Working Capital | $11,997 | $11,605 | [Off-Balance Sheet Arrangements](index=36&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company does not have any off-balance sheet arrangements[126](index=126&type=chunk) [Critical Accounting Policies and Estimates](index=37&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - Key estimates include useful lives of tangible assets, deferred tax assets/liabilities, incremental borrowing rates for leases, lease terms, and estimates for loyalty reward programs and gift card breakage[34](index=34&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - The company consolidates operations of **ten limited partnerships** where it acts as general partner, even without owning over **50%** equity, due to controlling interests[33](index=33&type=chunk)[133](index=133&type=chunk) - Inflation, particularly in food, beverage, fuel, and labor costs (due to minimum wage increases), is materially impacting operations, which the company attempts to offset through menu price increases[114](index=114&type=chunk)[135](index=135&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=38&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Outlines Flanigan's market risk exposure, covering economic, legislative, regulatory, and interest rate fluctuations, and management strategies [Economic Risk](index=38&type=section&id=Economic%20Risk) - The company acknowledges potential impacts from changes in government trade policy (tariffs), immigration policies, and international relations, but cannot predict the timing or extent of such effects[137](index=137&type=chunk) [Legislative and Regulatory Risk](index=38&type=section&id=Legislative%20and%20Regulatory%20Risk) - The company is evaluating the potential impact of the "One Big Beautiful Bill Act" (signed **July 4, 2025**), which includes tax incentives and regulatory changes for the food service and hospitality industries[138](index=138&type=chunk) [Interest Rate Risk](index=38&type=section&id=Interest%20Rate%20Risk) - The company uses interest rate swap agreements to convert variable rate debt obligations to fixed rates, specifically for an **$8.90 million** loan, which was refinanced and swapped to a fixed rate of **4.90%** in **November 2024**[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - The company holds approximately **$733,000** in **90-day** government guaranteed CDs (**4.20%-4.25%** fixed) and **$732,000** in **180-day** government guaranteed CDs (**4.05%-4.25%** fixed) as short-term investments[144](index=144&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=40&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Reports ineffective disclosure controls and procedures due to material weaknesses in IT general controls and deferred revenue, with no material misstatements [Evaluation of Disclosure Controls and Procedures](index=40&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management concluded that the company's disclosure controls and procedures were **not effective** as of June 28, 2025[147](index=147&type=chunk) [Material Weaknesses in Internal Control Over Financial Reporting](index=40&type=section&id=Material%20Weaknesses%20in%20Internal%20Control%20Over%20Financial%20Reporting) - Identified material weaknesses include **ineffective IT general controls** (access restrictions, logging of database changes) and **inadequate controls** for timely and accurate recognition of deferred revenues from promotional gift cards[149](index=149&type=chunk)[150](index=150&type=chunk) - Despite the material weaknesses, **no material misstatements** occurred in financial statements or disclosures, and no changes to previously released financial results were necessary. Remediation efforts are ongoing[151](index=151&type=chunk) [Changes in Internal Control Over Financial Reporting](index=40&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - **No additional material changes** to internal controls over financial reporting were made during the fiscal quarter ended June 28, 2025[152](index=152&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=41&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Refers to Note 9 and prior 10-K for legal proceedings, including 'dram shop' statutes and other ordinary course claims - The company is subject to "dram shop" statutes and other claims (e.g., "slip and fall," employment-related), but management believes current matters are without merit or involve amounts **not materially adverse** to financial position, often covered by insurance[55](index=55&type=chunk)[56](index=56&type=chunk) [ITEM 1A. RISK FACTORS](index=29&type=section&id=ITEM%201A.%20RISK%20FACTORS) Marked 'Not Applicable,' indicating no new material risk factors are disclosed beyond those previously reported [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=41&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No common stock shares purchased in the period; 65,414 shares remain authorized for purchase under discretionary plan - **No shares of common stock were purchased** during the thirty-nine weeks ended June 28, 2025, or June 29, 2024[155](index=155&type=chunk) - As of June 28, 2025, the company has remaining authority to purchase **65,414 shares** of common stock under a plan approved in May 2007[155](index=155&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=29&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) Marked 'Not Applicable,' indicating no senior securities defaults occurred in the current period [ITEM 4. MINE SAFETY DISCLOSURES](index=29&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Marked 'Not Applicable,' indicating no mine safety disclosures are required [ITEM 5. OTHER INFORMATION](index=41&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements adopted or terminated by directors or officers in the period - **No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements** were adopted or terminated by directors or officers during the thirty-nine weeks ended June 28, 2025[156](index=156&type=chunk) [ITEM 6. EXHIBITS](index=41&type=section&id=ITEM%206.%20EXHIBITS) Lists Form 10-Q exhibits, including CEO/CFO certifications and Inline XBRL documents - The report includes **certifications** from the Chief Executive Officer and Chief Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2) and **Inline XBRL documents** (Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[157](index=157&type=chunk) [SIGNATURES](index=42&type=section&id=SIGNATURES) Report signed August 12, 2025, by James G. Flanigan (CEO/President) and Jeffrey D. Kastner (CFO/Secretary) - Report signed **August 12, 2025**, by James G. Flanigan (CEO and President) and Jeffrey D. Kastner (CFO and Secretary)[160](index=160&type=chunk)[161](index=161&type=chunk)

Core Viewpoint - Flanigan's Enterprises, Inc. has experienced significant stock appreciation following its latest quarterly results, outperforming the S&P 500 Index during the same period [1] Financial Performance - For the quarter ended March 29, 2025, Flanigan's reported total revenues of $53.6 million, an 11.6% increase from $48.1 million a year ago [2] - Net income attributable to BDL stockholders rose 38.5% to $2.7 million from $1.9 million, translating to earnings of $1.45 per diluted share, up 39.4% from $1.04 in the prior-year quarter [2] - Restaurant food and bar sales increased to $40.8 million, a 9.9% rise from $37.1 million, while package store sales surged 18.8% to $12.1 million from $10.1 million [2] Profitability and Margins - Gross profit from restaurant and bar operations increased 10.2% to $27.4 million, while package store gross profit rose 27.7% to $3.4 million [3] - The gross profit margin for restaurant food and bar sales increased to 67.23% from 67.09% year over year, and for package store sales, it rose to 28.06% from 26.11% [3] Pricing Strategy - Flanigan's implemented targeted menu price increases in late 2024 and early 2025 to counter inflationary pressures, with bar prices raised by approximately 5.63% in August 2024 and food prices by 4.14% in November 2024 [4] Operational Insights - The restaurant operations generated $4.7 million in operating income, up 18.6% from $4 million a year earlier, while the package store segment posted $1.3 million, up 67.1% from $0.8 million [5] - A new company-owned restaurant opened in Hollywood, FL in March 2024 contributed to revenue growth [6] Comparable Sales Growth - Comparable weekly restaurant food sales rose 5.9%, with company-owned restaurants seeing an 8.1% increase [7] - Weekly average same-store package liquor store sales increased 18.9% year over year [7] Future Outlook - Flanigan's anticipates continued revenue growth throughout fiscal 2025, driven by the full-year impact of price adjustments and stable demand [8] Cost Management - Payroll costs increased 8.1% to $16.2 million, but as a percentage of revenue, they declined to 30.2% from 31.1% year over year, indicating improved labor efficiency [10] - Overall costs as a percentage of total revenues decreased from 94.4% to 93.2% due to cost containment strategies [11] Capital Expenditures and Liquidity - Flanigan's invested $1.73 million in capital expenditures during the 26 weeks ended March 29, 2025, and entered a purchase agreement for baby back ribs valued at approximately $7.8 million for 2025 [13] - The company reported a healthy liquidity position with $22.9 million in cash as of March 29, 2025, up from $21.4 million as of September 28, 2024 [14]

Revenue Growth - Total revenue for the thirteen weeks ended March 29, 2025, increased by $5,563,000 or 11.57% to $53,632,000 compared to $48,069,000 for the same period in 2024[74]. - Total revenue for the twenty-six weeks ended March 29, 2025, increased by $10,685,000 or 11.46% to $103,894,000, driven by increased package liquor store and restaurant sales[90]. Sales Performance - Restaurant food sales reached $32,586,000 for the thirteen weeks ended March 29, 2025, up from $29,356,000 in the prior year, driven by recent price increases and new restaurant openings[75]. - Restaurant food sales totaled $61,712,000 for the twenty-six weeks ended March 29, 2025, compared to $55,711,000 for the same period in 2024, reflecting an increase due to recent price increases[91]. - Restaurant bar sales increased to $8,194,000 for the thirteen weeks ended March 29, 2025, compared to $7,740,000 for the same period in 2024, attributed to recent price increases[76]. - Package store sales totaled $12,051,000 for the thirteen weeks ended March 29, 2025, an increase of $1,911,000 from $10,140,000 in the prior year, primarily due to increased store traffic[77]. - Package store sales revenue increased to $24,486,000 for the twenty-six weeks ended March 29, 2025, up from $20,742,000, with same-store sales increasing by 18.05%[93]. - The average weekly sales for same-store package liquor stores increased by 18.85%, from $780,000 to $927,000 for the thirteen weeks ended March 29, 2025[77]. Costs and Expenses - Costs and expenses rose by $4,613,000 or 10.16% to $49,997,000 for the thirteen weeks ended March 29, 2025, influenced by higher payroll and food costs[78]. - Costs and expenses for the twenty-six weeks ended March 29, 2025, increased by $9,669,000 or 10.78% to $99,401,000, but decreased as a percentage of total revenue to approximately 95.68%[94]. - Operating expenses increased by $674,000 or 10.56% to $7,057,000 for the thirteen weeks ended March 29, 2025, primarily due to inflation and the opening of a new restaurant[83]. - Selling, general and administrative expenses increased by $373,000 or 14.46% to $2,952,000 for the twenty-six weeks ended March 29, 2025, with expenses as a percentage of total revenue rising to 2.84%[101]. - Depreciation and amortization expense increased by $315,000 or 15.81% to $2,307,000 for the twenty-six weeks ended March 29, 2025, representing 2.22% of total revenue[102]. Profitability - Gross profit for food and bar sales increased to $27,415,000 for the thirteen weeks ended March 29, 2025, compared to $24,886,000 in the prior year, with a gross profit margin of 67.23%[80]. - Gross profit for package store sales increased to $3,382,000 for the thirteen weeks ended March 29, 2025, up from $2,648,000 for the same period in 2024, with a gross profit margin of 28.06%[81]. - Net income for the thirteen weeks ended March 29, 2025, increased by $822,000 or 32.57% to $3,346,000, with net income as a percentage of revenue at 6.24%[88]. - Net income for the twenty-six weeks ended March 29, 2025 increased by $860,000 or 27.58% to $3,978,000 from $3,118,000 for the same period in 2024, with a net income margin of 3.83% compared to 3.35% in 2024[104]. - Net income attributable to Flanigan's Enterprises, Inc. stockholders rose by $694,000 or 33.84% to $2,745,000 from $2,051,000 for the same period in 2024, with a margin of 2.64% compared to 2.20% in 2024[105]. Cash and Assets - Cash and cash equivalents as of March 29, 2025 were approximately $22,973,000, an increase of $1,571,000 from $21,402,000 as of September 28, 2024[107]. - Current assets increased to $34,192,000 as of March 29, 2025, from $31,529,000 as of September 28, 2024, resulting in working capital of $13,926,000[119]. - Net cash provided by operating activities for the twenty-six weeks ended March 29, 2025 was $5,729,000, compared to $2,133,000 for the same period in 2024[110]. Debt and Financing - Long-term debt as of March 29, 2025 was $21,247,000, a decrease from $21,912,000 as of September 28, 2024[113]. - The company terminated an $8.90M Term Loan Swap and entered into a new interest rate swap agreement for $8,015,601 at a fixed rate of 4.90% for 12 years and 10 months[134]. - For the twenty-six weeks ended March 29, 2025, the company recognized $290,000 of non-cash gains related to the interest rate swap agreement as interest and other income[134]. Future Outlook - The company anticipates continued increases in restaurant food and bar sales due to recent price adjustments[75][76]. - The company anticipates capital expenditures for refurbishment in fiscal year 2025 will be approximately $550,000, which may be significantly higher[112]. - Menu price increases targeted an annual revenue increase of approximately 0.84% for bar offerings effective February 23, 2025, and 4.90% for bar offerings effective December 4, 2024[106]. - Inflation is materially impacting operating results, particularly in food, beverage, and labor costs, prompting the company to increase menu prices[128]. Investments and Interest - The company held approximately $1,296,000 in 90-day government guaranteed certificates of deposit with fixed annual interest rates between 4.1% and 4.35%[135]. - The company also had approximately $244,000 in 180-day government guaranteed certificates of deposit at a fixed annual interest rate of 4.2%[135]. - Cash resources at March 29, 2025, offset bank charges, and excess cash earned interest at variable rates, affecting the return on these funds[135]. - There is no assurance that interest rates will increase or decrease over the next fiscal year, which could materially affect operations[136].

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]