Flanigan's Enterprises (BDL) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 ended September 28, 2024, with 32 owned or controlled units and five franchised units; total revenue increased 7.98% to $188.321 million, while net income declined 2.14% to $5.300 million.

• Growth reflected higher menu prices, stronger package-store sales, and a full or longer operating period for recently opened locations, including the Hollywood restaurant reopened in March 2024.

Financial highlights

• Total revenue rose to $188.321 million from $174.396 million; total sales were $185.302 million, up from $171.425 million.

• Operating income fell to $6.396 million from $7.024 million; net income was $5.300 million versus $5.416 million, and net income attributable to stockholders was $3.356 million versus $3.999 million.

• Basic and diluted EPS declined to $1.81 from $2.15; operating costs and expenses increased 8.70% to $181.925 million.

• Cash provided by operations was $6.630 million; year-end cash and cash equivalents were $21.402 million, down $4.130 million YoY, primarily due to the Store #19R construction completion.

Outlook and guidance

• Fiscal 2025 restaurant food sales are expected to rise with increased traffic and a full-year contribution from Store #19R; restaurant bar sales are expected to benefit from Store #19R operating all year.

• Fiscal 2025 package-store sales are expected to increase with traffic; package-store gross margin is expected to decrease due to higher costs and more competitive pricing.

• Operating costs and expenses are expected to continue increasing through fiscal 2025; management expects cash availability and operating cash flow to fund operations and planned capital expenditures for at least 12 months.

• Fiscal 2025 refurbishing budget is $550,000, with actual capital spending potentially higher; food and bar menu prices were raised after year-end by targeted 4.14% and 4.90%, respectively.