Flanigan's Enterprises Reports $50.3M Revenue, 11.35% Increase in Latest Quarter

Flanigan's Enterprises, Inc. reported a total revenue of $50.3 million for the thirteen weeks ended December 28, 2024, marking an increase of 11.35% from $45.1 million in the same period last year. The growth was primarily driven by higher sales in both the restaurant and package liquor store segments, alongside recent price increases implemented to offset rising food and liquor costs. Net income for the period rose to $632,000, a 6.40% increase from $594,000 in the prior year, although net income attributable to Flanigan's stockholders decreased by nearly 50% to $55,000, reflecting higher costs and increased income attributable to noncontrolling interests.

The company's operational performance showed significant changes compared to the previous fiscal period. Restaurant food sales increased to $29.1 million from $26.4 million, while package store sales rose to $12.4 million from $10.6 million. The increase in restaurant sales was attributed to both price adjustments and the opening of a new corporate-owned restaurant in Hollywood, Florida, in March 2024. The company also reported a 4.58% increase in comparable weekly restaurant food sales for locations open during both periods.

Flanigan's has made strategic moves to enhance its operational efficiency, including entering into a new Master Services Agreement with a major vendor and implementing a cloud-based ERP solution with Oracle to streamline its financial processes. The company continues to operate 32 units, including restaurants and package liquor stores, and franchises an additional five units. As of the end of the reporting period, Flanigan's had a total of 1,858,647 shares of common stock outstanding.

Operationally, the company reported a 17.28% increase in the weekly average of same-store package liquor sales, indicating strong customer engagement and traffic. However, costs and expenses also rose, totaling $49.4 million, an increase of 11.40% from the previous year, primarily due to higher payroll and food costs associated with the new restaurant. The gross profit margin for restaurant food and bar sales slightly decreased to 64.87%, while the package store gross profit margin fell to 23.76%.

Looking ahead, Flanigan's Enterprises anticipates continued revenue growth driven by the recent price increases and increased customer traffic. However, the company also expects ongoing inflationary pressures to impact its operating costs. Management believes that the current cash reserves and positive cash flow will be sufficient to support operations and planned capital expenditures for at least the next twelve months. The company is also addressing identified weaknesses in its internal controls to ensure accurate financial reporting moving forward.