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

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

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

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

PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section presents the unaudited condensed consolidated financial statements for the thirteen weeks ended December 30, 2023, including the income statement, balance sheet, statement of cash flows, and accompanying notes [Unaudited Condensed Consolidated Statements of Income](index=3&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Thirteen Weeks Ended Dec 30, 2023 | Thirteen Weeks Ended Dec 31, 2022 | | :--- | :--- | :--- | | **Total Revenues** | $45,140 | $41,861 | | Income from Operations | $793 | $1,197 | | Net Income | $594 | $874 | | Net Income Attributable to Stockholders | $109 | $624 | | Basic and Diluted EPS | $0.06 | $0.34 | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Comprehensive Income (in thousands) | Metric | Thirteen Weeks Ended Dec 30, 2023 | Thirteen Weeks Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net Income | $594 | $874 | | Change in fair value of interest rate swap, net of tax | ($338) | $0 | | **Total Comprehensive Income** | **$256** | **$874** | [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Consolidated Balance Sheet Highlights (in thousands) | Metric | December 30, 2023 (Unaudited) | September 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $26,897 | $25,532 | | Total Current Assets | $36,246 | $35,294 | | **Total Assets** | **$145,942** | **$145,769** | | Total Current Liabilities | $24,330 | $22,371 | | **Total Liabilities** | **$71,762** | **$70,855** | | **Total Stockholders' Equity** | **$74,180** | **$74,914** | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY) - Total stockholders' equity decreased from **$74.91 million** at September 30, 2023, to **$74.18 million** at December 30, 2023, primarily driven by distributions to noncontrolling interests and an other comprehensive loss[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Summary of Cash Flows (in thousands) | Cash Flow Activity | Thirteen Weeks Ended Dec 30, 2023 | Thirteen Weeks Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,450 | $5,879 | | Net cash used in investing activities | ($774) | ($2,680) | | Net cash used in financing activities | ($1,311) | ($2,194) | | **Net Increase in Cash** | **$1,365** | **$1,005** | | **Cash at End of Period** | **$26,897** | **$43,143** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=NOTES%20TO%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) - The company successfully met its Post-Distribution/Fixed Charge Covenant for the twelve months ended December 30, 2023, with a ratio of **1.55 to 1.00**, after receiving a waiver for non-compliance in the prior year[25](index=25&type=chunk) - The company has a significant construction commitment to rebuild its restaurant in Hollywood, Florida, with a total contract price of **$3,767,000**, of which **$2,625,000** has been paid as of the quarter-end[30](index=30&type=chunk) Segment Operating Income (in thousands) | Segment | Thirteen Weeks Ended Dec 30, 2023 | Thirteen Weeks Ended Dec 31, 2022 | | :--- | :--- | :--- | | Restaurants | $1,171 | $779 | | Package stores | $632 | $799 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the quarterly revenue increase driven by new stores and price hikes, alongside a significant net income decline due to rising operating costs and inflation - Total revenue increased by **7.83% to $45.1 million**, primarily due to sales from new stores and menu price increases implemented in March 2023[51](index=51&type=chunk) - Despite revenue growth, net income decreased by **32.04% to $594,000**, and net income attributable to stockholders fell **82.53% to $109,000**, driven by a 9.06% increase in operating costs[56](index=56&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - The company entered into a purchase agreement to secure its supply of baby back ribs for 2024, committing to purchase approximately **$7.0 million** worth from its current supplier[77](index=77&type=chunk) Cash Flow and Liquidity Summary (in thousands) | Metric | As of/For the Thirteen Weeks Ended Dec 30, 2023 | | :--- | :--- | | Cash and Cash Equivalents | $26,897 | | Net cash provided by operating activities | $3,450 | | Capital Expenditures | $1,378 | | Working Capital | $11,916 | [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk from variable-rate debt is actively managed through an interest rate swap agreement, converting a major loan to a fixed rate - The company utilizes an interest rate swap agreement to manage risk on its $8.90M Loan, effectively converting the variable rate obligation to a fixed rate of **4.90%** for a fifteen-year period[88](index=88&type=chunk) - In Q1 fiscal 2024, the company rolled over **$900,000** into new 90-day, fully government-guaranteed certificates of deposit, earning an average fixed annual interest rate of **5.34%**[89](index=89&type=chunk) [Controls and Procedures](index=25&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls were not effective due to a material weakness in internal control over financial reporting, with remediation efforts now in progress - Management concluded that disclosure controls and procedures were **not effective** as of December 30, 2023[91](index=91&type=chunk) - A **material weakness** was identified due to an insufficient complement of trained and knowledgeable accounting personnel, which could allow a material misstatement to go undetected[93](index=93&type=chunk)[94](index=94&type=chunk) - Remediation efforts are underway, including engaging qualified accounting consultants and staffing a new Financial Reporting Division with a qualified CPA to enhance internal controls[95](index=95&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=27&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company faces potential 'dram shop' litigation risk but has no current claims, and other legal matters are not expected to have a material adverse effect - The company is subject to "dram shop" statutes but currently has **no active claims** of this nature[33](index=33&type=chunk)[99](index=99&type=chunk) - Management believes that other various claims and legal actions arising in the ordinary course of business will **not have a material adverse effect** on financial results[34](index=34&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company did not repurchase any common stock during the quarter but retains authorization from a 2007 plan to purchase additional shares - **No shares** of the company's common stock were purchased during the thirteen weeks ended December 30, 2023[100](index=100&type=chunk) - The company retains the authority to purchase **65,414 shares** of its common stock under a discretionary plan approved by the Board in 2007[100](index=100&type=chunk) [Exhibits](index=27&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the report, including key certifications by the CEO and CFO and the Interactive Data Files (XBRL) - The report includes required certifications from the CEO and CFO pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act[101](index=101&type=chunk) - Interactive Data Files (XBRL documents) are filed as exhibits with this report[101](index=101&type=chunk)

FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-06836 FLANIGAN'S ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Florida 59-0877638 (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Ide ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 1, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-6836 FLANIGAN'S ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Florida 59-0877638 (State or other jurisdiction of inc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 1, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-6836 FLANIGAN'S ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Florida 59-0877638 (State or other jurisdiction of in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-6836 FLANIGAN'S ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Florida 59-0877638 (State or other jurisdiction o ...

Operations and Expansion - As of October 1, 2022, Flanigan's operates 30 units, an increase from 27 units in 2021, including 8 restaurants, 7 package liquor stores, and 10 limited partnership managed restaurants[11]. - The company opened a new stand-alone package liquor store in Hollywood, Florida, replacing one that was destroyed by fire[21]. - Flanigan's has expanded its limited partnership owned restaurants, with 10 units managed as of 2022, up from 8 in 2021[12]. - The company plans to construct a new stand-alone restaurant in Hollywood, Florida, to replace a restaurant destroyed by fire, but it is not expected to be operational during fiscal year 2023[26]. - The company opened a new limited partnership owned restaurant in Sunrise, Florida during fiscal year 2022 and is developing another in Miramar, expected to open in February 2023[106]. - The limited partnership owned restaurant at 14301 West Sunrise Boulevard opened in March 2022, and another is expected to open in February 2023[13]. Sales and Revenue - Food sales account for approximately 78.8% of total restaurant sales, while bar sales represent about 21.2%[17]. - The company has entered into purchase agreements for approximately $10.4 million and $6.8 million of baby back ribs for 2022 and 2023, respectively, with a decrease in cost anticipated for 2023[46]. - Menu price increases were implemented to target a 2.38% and 3.34% annual increase in food revenues and a 7.80% increase in bar revenues, respectively[79]. - The company manages "The Whale's Rib" restaurant and generated $400,000 in revenue from management services for both fiscal years ended October 1, 2022, and October 2, 2021[41]. Franchise and Licensing - Flanigan's has not entered into any new franchise arrangements since 1986 and does not anticipate doing so in the foreseeable future[22]. - The company operates five franchised restaurants, all under the "Flanigan's Seafood Bar and Grill" service mark[27]. - Franchisees of package liquor stores pay a royalty of approximately 1% of gross sales, plus an advertising fee of 1.5% to 3% of gross sales[23]. - Franchisees pay a royalty of approximately 3% of gross sales and an advertising fee of 1.5% to 3% of gross sales depending on actual advertising costs[28]. Financial Performance and Compliance - The company is in compliance with financial covenants on loans totaling approximately $23.27 million as of October 1, 2022[72]. - The company has received approximately $3.98 million in loans under the Paycheck Protection Program, which were fully forgiven in fiscal year 2022[69]. - The company anticipates continuing to form limited partnerships to raise funds for new restaurant operations under its service marks[29]. - The company is subject to various federal, state, and local regulations, including licensing for the sale of alcoholic beverages[52]. Labor and Employment - As of fiscal year-end 2022, the company employed 1,766 persons, with 1,627 working in restaurants, and none represented by collective bargaining organizations[62]. - The minimum wage in Florida is currently $11.00 per hour, increasing by $1.00 annually until it reaches $15.00 per hour in 2027, impacting labor costs significantly[90]. - The company has invested in staff training and career advancement opportunities to retain qualified personnel in a competitive labor market[59]. - Labor shortages and increased labor costs could negatively impact the company's ability to deliver a satisfactory dining experience[112]. Risk Management and Cybersecurity - The company maintains a high-speed connection for data transfer and has a backup system to mitigate business interruptions[49]. - Cybersecurity measures include encryption and tokenization for credit card transactions, ensuring no credit card data is stored internally[51]. - The company requires cybersecurity awareness training for all staff members with access to cyber systems[51]. - Cyber risk insurance coverage is maintained to reduce the company's risk profile[51]. Market Challenges - The COVID-19 pandemic has caused significant disruptions to operations and may continue to adversely affect restaurant operations and financial results[85]. - The company faces intense competition in the restaurant and package liquor store industry, which could hinder revenue and profitability growth[96]. - Rising healthcare costs and unpredictable medical claims trends could materially affect financial performance[92]. - The company is unable to contract for extended periods for certain commodities, leading to potential supply and cost fluctuations due to inflation[104]. Regulatory Environment - The company is subject to various governmental regulations that could impact operations and financial performance if not complied with[120]. - The implementation of the Affordable Care Act may significantly increase labor costs and impose additional administrative expenses on the company[133]. - Compliance with various employment and immigration regulations could lead to substantial expenses and potential liabilities from non-compliance claims[135]. - Increased regulatory focus on nutrition and food practices may lead to higher expenses and changes in customer buying habits, adversely affecting sales[141].