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].