Breaking Down Flanigan's Enterprises, Inc. (BDL) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for an in-depth analysis of a unique player in the restaurant and retail liquor industry? Have you considered how shifting consumer preferences and rising operational costs might impact a company's bottom line? Let's dive into the financial health of Flanigan's Enterprises, Inc. (BDL), a company operating 32 units, consisting of restaurants, package liquor stores as of September 28, 2024. Despite an impressive revenue increase of 7.96% to $188.10 million in 2024, net earnings experienced a downturn of -16.08% to $3.36 million. With a modest market capitalization of $45.8 million and a P/E ratio of approximately 13.6x, is this a hidden gem or a value trap? Read on to uncover key insights into BDL's performance and strategic positioning.

Flanigan's Enterprises, Inc. (BDL) Revenue Analysis

Flanigan's Enterprises, Inc. (BDL) generates revenue primarily through the operation of its full-service restaurants and package liquor stores. These restaurants, known for the Flanigan's Seafood Bar and Grill concept, are the core of the company's business model.

Analyzing Flanigan's Enterprises, Inc.'s revenue streams involves looking at several key factors:

• Breakdown of primary revenue sources (e.g., products, services, regions)
• Year-over-year revenue growth rate (historical trends, percentage increase/decrease)
• Contribution of different business segments to overall revenue
• Analysis of any significant changes in revenue streams

As of the fiscal year 2024, Flanigan's Enterprises, Inc. reported total revenue of $131.42 million. A detailed look into the revenue streams reveals:

• Restaurant sales accounted for $122.70 million.
• Package store sales contributed $8.72 million.

Here's a table summarizing the revenue breakdown for Flanigan's Enterprises, Inc. in 2024:

Year-over-year revenue growth provides insights into the company's performance trends. In 2024, Flanigan's Enterprises, Inc. experienced a revenue increase of 7.40% compared to the previous year's $122.36 million. This growth is primarily attributed to increased customer traffic and higher average spending per customer in the restaurants.

Historically, Flanigan's has demonstrated steady growth in its revenue. The company's consistent performance is due to its established brand, loyal customer base, and strategic locations. However, fluctuations in consumer spending, economic conditions, and competition within the restaurant industry can impact these trends.

The contribution of different business segments highlights the dominance of restaurant sales in Flanigan's revenue mix. While package store sales provide a supplementary income stream, the restaurants remain the primary driver of revenue growth and overall financial health.

Changes in revenue streams are continuously monitored to adapt to market dynamics and consumer preferences. Strategic initiatives, such as menu enhancements, promotional campaigns, and facility upgrades, are implemented to sustain revenue growth and maintain a competitive edge.

To gain further insights into the investors and their rationale behind investing in Flanigan's Enterprises, Inc., explore Exploring Flanigan's Enterprises, Inc. (BDL) Investor Profile: Who’s Buying and Why?

Flanigan's Enterprises, Inc. (BDL) Profitability Metrics

Analyzing Flanigan's Enterprises, Inc. (BDL) profitability involves examining gross profit, operating profit, and net profit margins, as well as trends in these metrics over time. It also includes comparing these ratios with industry averages and evaluating operational efficiency through cost management and gross margin trends. Here's a breakdown:

Gross Profit: In fiscal year 2024, Flanigan's Enterprises, Inc. reported a gross profit of $100.245 million, compared to $95.532 million in 2023. This indicates an increase in revenue exceeding the increase in the cost of goods sold.

Operating Income: The operating income for 2024 was $6.396 million, slightly lower than the $7.024 million reported in 2023. Operating income is calculated by deducting operating expenses from the gross profit.

Net Income: The net income for 2024 stood at $3.356 million, a decrease from the $3.999 million in 2023. Net income is derived after accounting for all expenses, including interest and taxes.

The financial results reveal mixed performance for Flanigan's Enterprises. Total revenues increased by 8% to $188.3 million, primarily driven by strong growth in both restaurant and package store segments. Restaurant food and bar sales grew 6.3% to $144.8 million, while package store sales showed impressive growth of 15.1% to $40.5 million. However, net income declined by 16.1% to $3.36 million, with earnings per share dropping from $2.15 to $1.81. This suggests margin pressure, likely from increased operational costs and inflationary pressures affecting the restaurant industry.

Here's a table summarizing Flanigan's Enterprises, Inc.'s profitability metrics:

Several factors can affect these trends:

• Revenue Growth: Flanigan's has demonstrated consistent revenue growth, driven by increases in both restaurant and package store sales.
• Cost Management: Monitoring the cost of revenue is crucial. While gross profit increased in 2024, maintaining healthy margins requires efficient cost management.
• Operational Efficiency: Operating expenses, including sales, general, and administrative costs, impact operating income. Controlling these expenses is vital for boosting profitability.
• External Factors: The broader economic environment, including inflationary pressures and consumer spending habits, can significantly influence profitability.

For further insights into Flanigan's Enterprises, Inc.'s mission, vision, and core values, you can explore Mission Statement, Vision, & Core Values of Flanigan's Enterprises, Inc. (BDL).

Flanigan's Enterprises, Inc. (BDL) Debt vs. Equity Structure

Flanigan's Enterprises, Inc. (BDL) employs a mix of debt and equity to fund its operations and growth. Understanding the company's debt levels, its debt-to-equity ratio, and recent financing activities provides insight into its financial strategy and risk profile. Let's delve into these key aspects based on the latest available data.

As of September 28, 2024, Flanigan's Enterprises, Inc. reported total debt of $14.46 million. This figure is comprised of both short-term and long-term obligations:

• Short-term debt: $2.38 million, representing obligations due within the next 12 months.
• Long-term debt: $12.08 million, covering liabilities extending beyond one year.

The debt-to-equity ratio is a critical metric for assessing a company's financial leverage. As of September 28, 2024, Flanigan's debt-to-equity ratio stands at 1.17. This ratio indicates that Flanigan's has $1.17 of debt for every $1 of equity. While this indicates a reliance on debt financing, it's essential to compare this ratio against industry averages to gauge whether it's within a reasonable range.

To provide context, let's consider industry averages. The restaurant industry, in general, can have varying debt-to-equity ratios depending on the specific segment and business model. Quick-service restaurants may operate with lower ratios, while full-service establishments might carry higher debt loads due to capital-intensive operations. Without pinpointing an exact industry average, it's vital for investors to benchmark Flanigan's against its direct competitors and similar business models.

Recent financial activities, such as debt issuances or refinancing, can significantly impact a company's capital structure. Flanigan's Enterprises, Inc. has not had any recent debt issuances, credit ratings, or refinancing activity.

The company's strategy involves balancing debt financing with equity funding. While debt can provide capital for expansion and operational needs, excessive reliance on debt can increase financial risk. Equity, on the other hand, represents ownership and doesn't require fixed payments, but it can dilute existing shareholders' ownership. Flanigan's current debt-to-equity ratio suggests a moderate reliance on debt, and monitoring this balance is crucial for assessing the company's long-term financial stability.

Further insights into Flanigan's Enterprises, Inc. (BDL) financial health can be found here: Breaking Down Flanigan's Enterprises, Inc. (BDL) Financial Health: Key Insights for Investors

Flanigan's Enterprises, Inc. (BDL) Liquidity and Solvency

Flanigan's Enterprises, Inc. (BDL) must maintain healthy liquidity levels to meet its short-term obligations and ensure smooth business operations. Key indicators such as current and quick ratios, working capital trends, and cash flow statements provide insights into the company's ability to manage its finances.

Current and Quick Ratios:

The current and quick ratios are essential metrics for evaluating a company’s liquidity position. The current ratio measures a company's ability to pay off its short-term liabilities with its current assets. The quick ratio, also known as the acid-test ratio, excludes inventory from current assets to provide a more conservative view of liquidity, as inventory may not be easily convertible to cash.

As of September 28, 2024, Flanigan's Enterprises, Inc. (BDL) reported:

• Current Ratio: 1.13
• Quick Ratio: 0.21

These ratios indicate the company's capacity to cover its short-term liabilities with its current and liquid assets. A current ratio above 1.0 generally suggests good liquidity, while the quick ratio offers a more stringent assessment by excluding inventories.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a crucial measure of a company's operational efficiency and short-term financial health. Monitoring trends in working capital can reveal whether a company is effectively managing its resources.

As of September 28, 2024, Flanigan's Enterprises, Inc. (BDL) reported working capital of approximately $1,589,000.

Cash Flow Statements Overview:

The cash flow statement provides a detailed look at all the cash inflows and outflows a company experiences during a reporting period, categorized into operating, investing, and financing activities.

For the fiscal year 2024, Flanigan's Enterprises, Inc. (BDL) reported the following:

• Net cash provided by operating activities: $4,977,000
• Net cash used in investing activities: $1,486,000
• Net cash used in financing activities: $2,283,000

These figures demonstrate that the company generated positive cash flow from its core operations, while investing activities and financing activities resulted in cash outflows.

Potential Liquidity Concerns or Strengths:

Based on the available data, Flanigan's Enterprises, Inc. (BDL) exhibits several liquidity strengths:

• Positive net cash flow from operating activities indicates a solid ability to generate cash from its core business.
• A current ratio of 1.13 suggests the company can cover its short-term liabilities with its current assets.

However, there are also potential concerns:

• The quick ratio of 0.21 is relatively low, indicating that the company's immediate liquidity, excluding inventory, is limited.
• Net cash outflows from investing and financing activities could strain overall liquidity if not managed carefully.

A balanced assessment of these factors is crucial for investors to understand the company's financial health. Understanding a company's mission, vision, and core values can also provide context for its financial decisions and long-term strategy: Mission Statement, Vision, & Core Values of Flanigan's Enterprises, Inc. (BDL).

Flanigan's Enterprises, Inc. (BDL) Valuation Analysis

Determining whether Flanigan's Enterprises, Inc. (BDL) is overvalued or undervalued requires a multifaceted approach, considering various financial ratios, stock performance, and analyst opinions.

Several key metrics can help assess Flanigan's Enterprises, Inc.'s (BDL) valuation:

• Price-to-Earnings (P/E) Ratio: The trailing P/E ratio is around 13.23 to 15.15.
• Price-to-Book (P/B) Ratio: The P/B ratio is approximately 0.71 to 0.75.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio stands at about 5.02 to 6.01.

These ratios provide a snapshot of how the company's market value relates to its earnings, book value, and operational cash flow. For example, Flanigan's Enterprises, Inc.'s (BDL) P/E ratio suggests how much investors are willing to pay for each dollar of earnings.

Analyzing the stock price trends over the past year offers insight into investor sentiment and market dynamics:

• 52-Week High: $29.72
• 52-Week Low: $23.44
• As of March 24, 2025, the stock price was $24.80.
• The stock has shown a -5.47% decrease over the last year.

These figures indicate the range within which the stock has traded, reflecting its volatility and potential investment risk.

For investors seeking income, dividend metrics are essential:

• Dividend Yield: Approximately 2.02% to 2.11%.
• Annual Dividend: $0.50 per share.
• Payout Ratio: Around 28.2%, suggesting a sustainable dividend payout.

The dividend yield illustrates the return on investment based on the dividend payout, while the payout ratio indicates the proportion of earnings distributed as dividends.

Analyst consensus can offer an external perspective on the stock's valuation. However, analyst ratings for Flanigan's Enterprises, Inc. (BDL) may vary, and it's important to consider a range of opinions.

Here's a summary of Flanigan's Enterprises Inc. (BDL) valuation metrics:

For a deeper dive into who's investing in Flanigan's Enterprises, Inc. (BDL) and why, check out: Exploring Flanigan's Enterprises, Inc. (BDL) Investor Profile: Who’s Buying and Why?

Flanigan's Enterprises, Inc. (BDL) Risk Factors

Flanigan's Enterprises, Inc. (BDL) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and broader market conditions.

Here's a breakdown of key risk areas:

• Industry Competition: The restaurant industry is highly competitive. Flanigan's faces competition from national and regional chains, as well as independent restaurants. Increased competition could lead to lower sales and reduced profitability.
• Regulatory Changes: Changes in regulations, such as minimum wage laws, health codes, and alcohol beverage control regulations, could increase operating costs and affect profitability.
• Market Conditions: Economic downturns, changes in consumer spending habits, and fluctuations in the cost of food and beverages can all impact Flanigan's financial performance.
• Operational Risks: These include risks related to food safety, employee training, and customer service. Any failures in these areas could damage the company's reputation and lead to decreased sales.

Recent filings and earnings reports may highlight specific financial and strategic risks. Investors should pay close attention to these disclosures to understand potential challenges and mitigation strategies. Flanigan's ability to manage these risks will be crucial for maintaining and improving its financial health.

Mitigation strategies, if available, could include:

• Cost Control Measures: Implementing strategies to reduce operating costs, such as negotiating better prices with suppliers and improving energy efficiency.
• Menu Innovation: Introducing new menu items and promotions to attract customers and increase sales.
• Employee Training Programs: Enhancing training programs to improve food safety and customer service.
• Compliance Programs: Maintaining robust compliance programs to ensure adherence to all applicable regulations.

Understanding these risks and mitigation strategies is essential for investors assessing Flanigan's Enterprises, Inc. (BDL) as a potential investment. Investors are encouraged to review the company's filings with the Securities and Exchange Commission (SEC) for a comprehensive discussion of risk factors.

For further insights into the company's investor profile, consider reading: Exploring Flanigan's Enterprises, Inc. (BDL) Investor Profile: Who’s Buying and Why?

Flanigan's Enterprises, Inc. (BDL) Growth Opportunities

Flanigan's Enterprises, Inc. (BDL) faces a dynamic landscape of growth prospects driven by strategic initiatives and market positioning. An analysis of key growth drivers, revenue projections, and competitive advantages provides insights into the company's potential trajectory.

Key growth drivers for Flanigan's Enterprises, Inc. (BDL) include:

• Product Innovations: Introduction of new menu items or unique dining experiences to attract a broader customer base.
• Market Expansions: Strategic expansion into new geographic locations or markets to increase brand presence and revenue streams.
• Acquisitions: Potential acquisitions of complementary businesses to expand market share and diversify offerings.

Future revenue growth projections and earnings estimates for Flanigan's Enterprises, Inc. (BDL) are contingent upon several factors, including market conditions, consumer preferences, and the successful execution of strategic initiatives. While specific revenue growth projections may vary depending on the source and methodology, understanding these factors is crucial for assessing the company's growth potential.

Strategic initiatives and partnerships that may drive future growth for Flanigan's Enterprises, Inc. (BDL) include:

• Technology Integration: Implementing technology solutions to enhance operational efficiency, improve customer experience, and optimize marketing efforts.
• Partnerships: Collaborating with complementary businesses or organizations to expand reach, offer bundled services, or create synergistic opportunities.
• Brand Enhancement: Investing in brand building activities to strengthen brand recognition, loyalty, and reputation.

Flanigan's Enterprises, Inc. (BDL) possesses several competitive advantages that position the company for growth:

• Established Brand: A well-established brand with a loyal customer base provides a solid foundation for growth.
• Operational Expertise: Proven operational expertise and efficient management practices contribute to profitability and scalability.
• Market Knowledge: Deep understanding of the local market and customer preferences enables targeted marketing and tailored offerings.

To provide a clearer picture of Flanigan's Enterprises, Inc.'s (BDL) financial performance, here's a summary of key financial data based on the 2024 fiscal year:

These figures provide a snapshot of the company's financial health and can be useful for investors when evaluating its growth opportunities.

For more detailed insights into Flanigan's Enterprises, Inc. (BDL) financial health, you can refer to this comprehensive analysis: Breaking Down Flanigan's Enterprises, Inc. (BDL) Financial Health: Key Insights for Investors