Flanigan's Enterprises (BDL) Q4 2025 earnings summary

Executive summary

• FY2025 revenue rose 9.63% to $205.248M; net income increased 51.26% to $8.017M, supported by price increases, higher traffic and a full year of Hollywood restaurant operations.

• Operations comprised 32 owned or managed units and five franchised units at fiscal year-end; no new limited partnership restaurant opened in FY2025.

Financial highlights

• Revenue was $205.248M vs. $187.216M; costs and expenses were $196.503M vs. $181.375M, with expense growth slower than revenue growth.

• Operating income increased to $8.745M from $5.841M; net income was $8.017M vs. $5.300M, and net income attributable to shareholders was $5.033M vs. $3.356M.

• Basic and diluted EPS rose to $2.71 from $1.81; net income margin was 3.91% vs. 2.83%.

• Restaurant food and bar gross profit reached $104.091M, with a 66.61% margin vs. $94.943M and 65.57%; package store gross profit was $11.803M, with a 25.12% margin vs. 26.60%.

• FY2025 included a $290,000 non-cash, net-of-tax gain from the interest-rate swap, recognized in interest and other income in Q2.

Outlook and guidance

• FY2026 restaurant food, bar and package store sales are expected to increase, driven by anticipated higher traffic; operating costs and expenses are also expected to rise.

• Package store gross margin is expected to decline in FY2026 due to higher costs and lower prices on selected merchandise to remain competitive.

• Cash on hand and positive operating cash flow are expected to fund operations, debt reduction and planned capital expenditures through FY2026; management also expects adequate funding for at least the next 12 months.

• FY2026 refurbishing budget is $750,000, with actual spending potentially higher; the Cutler Bay restaurant is anticipated to open in FY2027.