Flanigan's Enterprises (BDL) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue rose 11.35% YoY to $50.262M; consolidated net income increased 6.4% to $632K, while income attributable to stockholders fell 49.54% to $55K.

• Growth reflected higher package-store traffic, recent menu pricing and the Hollywood restaurant opened in March 2024; rising food, labor and operating costs limited profitability.

Financial highlights

• Revenue was $50.262M vs. $45.140M YoY; operating income was $858K vs. $793K, and net income was $632K vs. $594K.

• Net income attributable to stockholders was $55K vs. $109K; diluted EPS was $0.03 vs. $0.06.

• Costs and expenses increased 11.40% to $49.404M; as a share of revenue, they were 98.29% vs. 98.24%.

Outlook and guidance

• Food and bar sales are expected to increase for the balance of FY25 following recent menu price increases; package-store sales are expected to benefit from continued traffic growth.

• Costs and expenses are expected to continue rising through FY25; package-store gross margin is expected to decline due to higher costs and competitive price reductions.

• Planned FY25 refurbishment costs are estimated at ~$550K, but could be significantly higher; cash and operating cash flow are expected to cover operations and planned capex for at least 12 months.