Flanigan's Enterprises (BDL) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose 8.22% YoY to $49,102K, driven by package-store traffic and new restaurant openings; net income fell 25.26% to $1,802K as costs outpaced sales growth.

• For the 39 weeks, revenue increased 8.60% to $142,311K, while net income declined 9.94% to $4,920K; higher food costs and operating expenses pressured profitability.

Financial highlights

• Q3 operating income was $2,287K vs. $2,700K YoY; net income attributable to stockholders was $1,121K vs. $1,605K.

• Q3 diluted EPS was $0.60 vs. $0.86; 39-week diluted EPS was $1.71 vs. $2.22.

• 39-week operating income was $5,764K vs. $6,608K; stockholder-attributable net income was $3,172K vs. $4,126K.

• Cash from operations was $5,219K for 39 weeks vs. $7,200K; cash ended at $22,123K, down $3,409K from September 30, 2023.

Outlook and guidance

• Management expects restaurant food and bar sales to increase for the balance of FY2024 following the March reopening of the rebuilt Hollywood restaurant.

• Package-store sales are expected to rise on increased traffic, while package-store gross margin is expected to decline due to higher costs and competitive price reductions.

• Operating costs and expenses are expected to continue increasing through FY2024; refurbishment costs are estimated at ~$450K, excluding the rebuilt restaurant, with spending potentially higher.

• Cash on hand and positive operating cash flow are expected to fund operations and planned capex for at least 12 months; management also expects funding for FY2024 operations, debt reduction, and capex.