Core Viewpoint - Flanigan's Enterprises, Inc. reported strong financial performance for fiscal 2025, with significant increases in sales and net income, despite facing inflationary pressures and rising operating costs [2][3][11]. Financial Performance - For the fourth quarter of fiscal 2025, sales rose to $49.2 million from $46 million, and net income increased to $0.9 million from $0.2 million, resulting in diluted EPS of $0.48 compared to $0.11 a year ago [2]. - Total revenues for fiscal 2025 increased by 9.6% to $205.2 million from $187.2 million, while net income attributable to stockholders surged by 49.9% to $5 million ($2.71 per share) from $3.4 million ($1.81 per share) in fiscal 2024 [3]. Segment Performance - Restaurant food sales grew by 8.5% to $124.5 million, and restaurant bar sales increased by 5.8% to $31.8 million. Package store sales advanced by 16% to $46.9 million, driven by higher customer traffic [4]. - Restaurant gross margin improved to 66.6% from 65.6%, while package store gross margin fell to 25.1% from 26.6%, indicating differing profitability trends across segments [7]. Cost Management - Total costs and expenses rose by 8.3% to $196.5 million, which was slower than revenue growth, leading to a 49.7% increase in income from operations to $8.7 million from $5.8 million [5]. - Payroll and related costs increased by 7.3% to $63.7 million, but payroll as a percentage of revenue improved to 31.04% from 31.70%, suggesting effective cost management [6]. Liquidity and Cash Flow - Cash and cash equivalents at the end of fiscal 2025 were $20.1 million, down from $21.4 million, primarily due to a land acquisition. Operating cash flow improved to $10.5 million from $6.6 million [8]. Management Insights - Management highlighted that revenue growth was driven by higher menu prices and increased sales, particularly from the Hollywood, FL location operating for the full year [9]. - To maintain margins amid inflation, the company implemented multiple price increases throughout fiscal 2025 [10]. Future Outlook - While Flanigan's did not provide formal numeric guidance for fiscal 2026, management expects continued growth in restaurant and package store sales, but also anticipates rising operating costs and a potential decline in package liquor store gross margin [12]. - The company plans to construct a new restaurant in Cutler Bay, FL, and has committed to purchasing $9.2 million of baby back ribs for calendar year 2026, reflecting increased market pricing [13][14].