Flanigan's Enterprises(US:BDL)2025-12-19 21:57Business Operations - As of September 27, 2025, Flanigan's Enterprises operates a total of 32 units, including 11 restaurants and 11 package liquor stores, all under the service marks "Flanigan's Seafood Bar and Grill" and "Big Daddy's Liquors"[19][31][26]. - The company owns and operates 11 package liquor stores, with two of them jointly operated with restaurants[26]. - Flanigan's has 5 franchised units, including 4 restaurants and 3 package liquor stores, with no new franchise arrangements anticipated in the foreseeable future[19][32][27]. - The company has invested in 11 limited partnerships that own and operate restaurants, with management fees based on cash available for distribution[35][37]. - The company has maintained operational control over its units through a combination of ownership and management agreements with limited partnerships[23][24]. Sales and Revenue - Food sales account for approximately 79.67% of total restaurant sales, while bar sales represent about 20.33%[21]. - The company reported a franchise revenue of approximately $4.5 million for the quarter, reflecting a growth of 20% year-over-year[184]. - Total revenue for fiscal year 2025 increased by $18,032,000 or 9.63% to $205,248,000 from $187,216,000 in fiscal year 2024, primarily due to increased package liquor store and restaurant sales[208]. - Restaurant food sales reached $124,501,000, accounting for 61.25% of total sales in fiscal year 2025, compared to $114,795,000 or 61.95% in fiscal year 2024[207]. - Package store sales increased to $46,988,000, representing 23.12% of total sales in fiscal year 2025, up from $40,497,000 or 21.85% in fiscal year 2024[207]. Costs and Expenses - The company paid approximately $4.01 million in premiums for various insurance policies for the policy year commencing December 30, 2024, which includes coverage for franchises totaling approximately $911,000[87]. - Total costs and expenses for fiscal year 2025 rose to $196,503,000, an increase of 8.34% from $181,375,000 in fiscal year 2024[212]. - Payroll and related costs for fiscal year 2025 were $63,701,000, reflecting a 7.33% increase from $59,349,000 in fiscal year 2024[216]. - Operating expenses for fiscal year 2025 increased to $27,438,000, an 11.08% rise from $24,701,000 in fiscal year 2024[217]. Labor and Employment - The company employs 2,033 persons as of the fiscal year end 2025, with 773 full-time and 1,260 part-time employees[77]. - The company has a favorable labor relations environment with no employees represented by collective bargaining organizations[77]. - The minimum wage in Florida is currently $14.00 per hour, increasing by $1.00 per hour annually until it reaches $15.00 per hour in 2026, which will significantly impact the company's labor costs[102]. - The company faces significant labor cost inflation, which could materially adversely affect its financial performance if not offset by price increases or other measures[100]. - The company has experienced challenges in hiring and retaining qualified personnel, which could adversely affect its ability to operate and grow[99]. Market Competition - The company competes with well-established competitors that have greater financial resources, which may provide advantages in marketing and purchasing[91]. - The restaurant and package liquor store industry is highly competitive, impacting revenue and profitability due to established competitors with greater resources[111]. - Comparable restaurant sales growth is critical for profit growth, and any decline could significantly impact profitability due to the loss of positive profit margins[106]. Technology and Cybersecurity - The company maintains cybersecurity measures, including encryption and tokenization for credit card transactions, to protect sensitive information[61]. - The company has a comprehensive cybersecurity risk management program to safeguard its information systems and mitigate risks[173]. - Significant failures or interruptions in key information technology systems could adversely impact business operations and customer experience[143]. - The company is exposed to interest rate fluctuations on its borrowings and uses interest rate swap agreements to manage these risks[167]. Strategic Initiatives - The company is exploring potential acquisitions to enhance its product offerings and expand its geographic footprint[184]. - A new marketing strategy has been implemented, aiming for a 25% increase in brand awareness over the next six months[184]. - The company is investing in new technology development, allocating $C million towards R&D to enhance product offerings and improve user experience[5]. - The company plans to implement a new loyalty program, projected to increase repeat customer visits by 15%[185]. Future Outlook - The company provided an optimistic outlook for the next quarter, projecting revenue growth of A% and an increase in user engagement metrics[3]. - The company anticipates an increase in restaurant food and bar sales for fiscal year 2026 due to increased restaurant traffic[209][210]. - The company provided guidance for the next quarter, expecting revenue to be between $220 million and $240 million, indicating a potential growth of 10% to 20%[186]. - Overall, the company remains optimistic about maintaining a strong growth trajectory in the upcoming fiscal year[185].