Flanigan's Stock Gains Post Q3 Earnings, Revenues Up Y/Y

Shares of Flanigan's Enterprises, Inc. BDL have gained 18.9% since the company reported earnings for the quarter ended June 27, 2026, outperforming the S&P 500 Index’s 0.4% decline over the same period. Over the past month, BDL shares advanced 26.4% compared with a 2.9% increase for the S&P 500.

Flanigan's Earnings Snapshot

For the 13 weeks ended June 27, 2026 (third quarter of fiscal 2026), total revenues increased 8.3% to $56.2 million from $51.9 million a year earlier, while net income attributable to Flanigan’s stockholders climbed 48.1% to $2.1 million from $1.4 million. Basic and diluted earnings per share rose 48% to $1.11 from 75 cents.

Restaurant food sales increased 7.8% to $34.4 million, restaurant bar sales advanced 3.9% to $8.2 million and package-store sales grew 12.6% to $12.9 million. Franchise-related revenues increased 3.4 % to $457,000, while other revenues rose 34.8% to $89,000 from $66,000.

BDL’s Other Key Business Metrics

Comparable weekly restaurant food sales rose 7.90% to $2.6 million, including increases of 7.8% at company-owned restaurants and 7.9% at affiliated limited-partnership restaurants. Comparable weekly restaurant bar sales increased 3.9% to $634,000. Same-store package liquor sales averaged $998,000 per week, up 12.6% from $886,000, helped by higher traffic, including e-commerce sales.

Restaurant food and bar gross profit increased 7.8% to $28.9 million from $26.9 million, with the gross margin improving to 67.9% from 67.5 %. Package-store gross profit increased 14.1% to $3.1 million, while its gross margin expanded to 24.1% from 23.8%.

Flanigan’s operated 32 company-owned or operated units and franchised five units as of June 27.

Flanigan's Management Commentary

Management attributed the revenue increase primarily to higher menu prices and increased restaurant and package liquor-store traffic. Effective March 1, Flanigan’s raised bar menu prices to target an approximately 3.68% annual revenue increase and food prices to target an approximately 3.25% annual increase.

BDL expects restaurant food sales to increase through the remainder of fiscal 2026 because of recent price increases. Bar sales are also expected to rise, although management expects softer alcohol consumption to provide a partial offset. Package-store sales are expected to benefit from continued traffic growth, including e-commerce.

Factors Influencing BDL’s Headline Numbers

Total costs and expenses increased 6.4% to $52.2 million, slower than revenue growth, and declined to 92.9 % of revenues from 94.5%. Payroll and related costs increased 4.3% to $16.8 million, primarily reflecting Florida’s higher minimum wage. Operating expenses rose 2.7% to $7.2 million amid inflation and broad-based expense increases, while occupancy costs increased 5.6 % to $2.1 million. Selling, general and administrative expenses jumped 31.5 % to $1.4 million, primarily because of higher legal costs.

Interest expense increased 62% to $384,000 from $237,000 due to new mortgages and refinancing activity.

Flanigan's Outlook

Management expects overall costs and expenses to continue rising through the balance of fiscal 2026. It also anticipates package-store gross margin will decline because of higher overall costs and price reductions on certain merchandise intended to maintain competitiveness.

BDL said cash on hand, positive operating cash flow and borrowing proceeds should adequately fund operations, debt reduction and planned capital expenditures through fiscal 2026.

BDL’s Other Developments

During the quarter, Flanigan’s purchased the Stuart, FL, property housing its Store #75 restaurant for $8.5 million in cash. It plans to demolish two vacant hotel buildings while continuing to operate the restaurant as a freestanding location with outdoor seating and additional parking.

BDL also refinanced its Calusa Center mortgage to $11.1 million, withdrawing about $5.5 million of equity toward the Stuart purchase, and obtained a $3.4 million mortgage on its Hollywood property for the acquisition. A separate $3.2 million Stuart-property mortgage was secured for working capital.

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