[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]

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]