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

You're looking at Flanigan's Enterprises, Inc. (BDL), a name often overlooked by the big funds, but the recent numbers defintely demand a closer look. The company is delivering on the top line, with Q2 2025 total revenue hitting $53.632 million, an impressive 11.57% jump year-over-year. That's solid growth, and it pushed their Net Income for the quarter up 32.57% to $3.346 million. Honestly, that kind of bottom-line acceleration in the restaurant and package liquor space is rare right now. Still, the trailing twelve months (TTM) revenue is sitting at $201.85 million, but the cost side of the ledger-payroll and food inflation-is a real headwind. We need to see if their pricing power can sustain that Q3 2025 Earnings Per Share (EPS) of $0.75 against those rising operating expenses, or if the market is under-pricing the risk of margin compression.

Revenue Analysis

You need to know where the money is coming from, and the story at Flanigan's Enterprises, Inc. (BDL) is a clear one: it's a dual-engine model built on casual dining and high-volume liquor retail. The good news is that both engines are pulling, driving year-to-date revenue for the 39 weeks ended June 28, 2025, to a strong $156.06 million. That's a solid top-line performance.

The company's growth isn't just a fluke; it's being fueled by a combination of new locations, like the one opened in Hollywood, FL, and strategic price increases. For the second quarter of fiscal year 2025, total revenues hit $53.632 million, an 11.57% increase from the same period last year. That kind of double-digit growth is defintely a signal that their model is resonating with consumers, even with inflation biting at operating costs.

Breaking Down the Dual Revenue Streams

Flanigan's Enterprises, Inc. operates two primary, distinct segments: the Flanigan's Seafood Bar and Grill restaurants and the Big Daddy's retail liquor stores. This structure is a great hedge, allowing them to capture both the dining and off-premise beverage spend. Honestly, it's a smart setup.

For the third quarter of 2025, the breakdown shows where the bulk of your investment's return originates. Here's the quick math on the segment contributions for the quarter ended June 28, 2025:

The restaurant segment, which includes both food and bar sales, is the clear revenue powerhouse, contributing over three-quarters of the total. But, you shouldn't overlook the package store side. It's a high-growth area.

Near-Term Revenue Trends and Actions

The most significant trend is the exceptional performance of the package stores. For Q2 2025, package store sales jumped 19.00% year-over-year to $12.051 million. That's a massive surge, and it suggests Big Daddy's is capturing market share, benefiting from increased consumer traffic. Still, the restaurant side is also strong, with food sales alone surging to $32.586 million in Q2 2025, up 10.32% year-over-year.

What this estimate hides is the impact of inflation. The company is facing continuous inflation in labor and food costs, which means they are relying on price increases and new store openings to maintain revenue growth. This is a delicate balance: raise prices too much, and you risk losing the casual dining customer. So far, they're managing it well, but it's a risk to monitor.

For a deeper dive into the company's strategic direction, you should check out their Mission Statement, Vision, & Core Values of Flanigan's Enterprises, Inc. (BDL).

• Monitor package store sales growth; it's an outperformer.
• Watch for signs of customer price sensitivity in restaurant sales.
• Track new store opening announcements for future revenue boosts.

Your next step should be to look at the cost of goods sold (COGS) to see if these strong revenue numbers are translating into healthy gross profit margins.

Profitability Metrics

You need to know if Flanigan's Enterprises, Inc. (BDL) is just growing revenue or if that growth is actually translating into profit you can take to the bank. The direct takeaway is that the company is demonstrating strong operational efficiency in its core restaurant business, but its overall net margin remains tight, which is typical for the full-service restaurant (FSR) sector in 2025.

For the 13 weeks ended March 29, 2025, which is Q2 of their fiscal year, Flanigan's Enterprises, Inc. reported total revenues of over $53.632 million. Here is the quick math on how much of that revenue they kept at each stage of the income statement, which is the real measure of financial health.

• Gross Profit Margin: 57.43%
• Operating Profit Margin: 11.20%
• Net Profit Margin: 5.02%

Gross, Operating, and Net Margins

The Gross Profit Margin for Q2 2025 stood at about 57.43%. This is the money left after paying for the direct cost of goods sold (COGS)-the food, liquor, and package store merchandise. This figure is a blended rate, and it hides the fact that their restaurant and bar sales have a much higher gross margin of 67.23%, while the package store sales, a high-volume, lower-margin business, come in at 28.06%. To be fair, a 65% to 75% gross margin is considered healthy for the food service part of the business, so the restaurant segment is defintely performing well here.

Moving down, the Operating Profit Margin was a solid 11.20%. This is what's left after subtracting all the operating expenses like payroll, utilities, and rent. A double-digit operating margin in the casual dining space is a sign of good cost control, especially when inflation is hitting food and labor costs hard in 2025. This shows management is effectively turning revenue into profit before interest and taxes.

Finally, the Net Profit Margin was 5.02%. This is the bottom line-the percentage of revenue that becomes profit for shareholders after everything, including taxes, is paid. This is right in the sweet spot of the industry average for full-service restaurants, which typically see net margins between 3% and 6%.

Profitability Trends and Operational Efficiency

The trend over the last year is positive, indicating management's strategic pricing moves are working. For the 39 weeks ended June 28, 2025, the company's net income grew significantly to $4.14 million, up from $3.17 million in the same period last year. This is a crucial signal. It means the 11.6% revenue increase in Q2 2025 to $53.632 million is translating to the bottom line, not just getting eaten up by rising costs.

The margin expansion is a direct result of operational efficiency and strategic pricing, not just higher traffic. For example, the gross profit margin for restaurant and bar sales edged up to 67.23% in Q2 2025 from 67.09% in the prior year, and the package store margin jumped from 26.11% to 28.06%. They've been raising menu prices to offset food and labor inflation, and it's sticking. This is a sign of pricing power, which is a key competitive advantage in a high-cost environment.

Here is a snapshot of the Q2 2025 performance versus the industry average for a full-service restaurant:

The company is performing at the higher end of the FSR net margin range, which suggests effective cost management despite the inherent challenges of the business model. For a deeper look at the market's view, you should check out Exploring Flanigan's Enterprises, Inc. (BDL) Investor Profile: Who's Buying and Why?

The key action for you is to monitor the Q4 2025 report to see if this margin strength holds up as the company continues to expand and deal with persistent inflation. Finance: track the year-over-year change in the operating expense ratio for Q4 2025 to confirm sustained cost control.

Debt vs. Equity Structure

You're looking at Flanigan's Enterprises, Inc. (BDL) to understand how they fund their growth, and the quick takeaway is this: the company uses a conservative mix, relying far more on shareholder capital than on debt. This approach keeps their financial risk profile low, which is a big plus in the volatile restaurant and retail sectors.

As of the most recent quarter, Flanigan's Enterprises, Inc.'s total debt stands at approximately $47.68 million. This debt is manageable, especially when you look at the balance sheet, which shows total shareholder equity at around $78.3 million.

Here's the quick math on their capital structure, which shows a preference for equity (shareholder money) over debt (borrowed money):

• Total Debt (MRQ): $47.68 million
• Total Equity: $78.3 million
• Debt-to-Equity Ratio (MRQ): 60.92% (or 0.61)

Their Debt-to-Equity (D/E) ratio is the key metric here. A D/E ratio of 0.61 means the company has about 61 cents of debt for every dollar of equity. To be fair, that's a very healthy number, especially when you compare it to the industry median for U.S. 'Eating and Drinking Places,' which sat around 2.01 (or 201%) in 2024. Flanigan's Enterprises, Inc. is defintely less leveraged than most of its peers.

The company's debt profile is a mix of short-term and long-term obligations. While the total debt is $47.68 million, a significant portion of this is long-term, estimated at around $44.1 million in long-term liabilities, with short-term liabilities around $18.3 million. This capital structure is a clear sign that management prioritizes financial stability and operational flexibility over aggressive, debt-fueled expansion, which is a classic move for a seasoned operator in this space.

In terms of recent financing activity, the company has been quiet on the debt front in 2025. Their early 2025 filings indicated they expect to fund operations and capital expenditures primarily with cash on hand and positive cash flow from operations. This reliance on internal funding-equity's cousin-reinforces the low-leverage strategy. They did mention having interest rate swap agreements, which are financial instruments used to manage interest rate risk on their existing debt, but there have been no announcements of new debt issuances, credit ratings, or major refinancing deals, suggesting a focus on organic growth and cash flow management.

The balance of debt and equity is a strategic choice. Flanigan's Enterprises, Inc. uses debt judiciously to finance assets and expansion, but their low D/E ratio shows they are not maximizing the financial leverage (the use of borrowed capital to increase potential returns) that many competitors use. This conservative stance protects them during economic downturns but might limit the pace of major capital projects. You can see how this strategy aligns with their broader philosophy in their Mission Statement, Vision, & Core Values of Flanigan's Enterprises, Inc. (BDL).

The company maintains a strong interest coverage ratio of 13.8x, meaning its operating income easily covers its interest expense, which is a major comfort for any debt holder or investor worried about solvency.

Liquidity and Solvency

You need to know if Flanigan's Enterprises, Inc. (BDL) has enough cash on hand to cover its near-term bills-that's the essence of liquidity. The good news is the company's short-term financial health looks defintely solid, anchored by strong working capital and a healthy cash position as of the most recent data close to November 2025. This isn't a business scrambling for cash.

The key indicators, the Current Ratio and Quick Ratio, show that Flanigan's Enterprises, Inc. can comfortably meet its obligations. A Current Ratio of 1.66 (Current Assets / Current Liabilities) means the company has $1.66 in current assets for every dollar of current liabilities. This is well above the common 1.0 benchmark. Even better, the Quick Ratio (or acid-test ratio), which strips out inventory-a less liquid asset-sits at a strong 1.09. This tells us the company's cash and receivables alone are enough to cover all short-term debt, a sign of excellent immediate liquidity.

Here's the quick math on their core liquidity position:

Working Capital and Cash Flow Trends

The working capital-the difference between current assets and current liabilities-is approximately $11.99 million based on the Q3 2025 figures, confirming a significant buffer. This positive trend indicates the company isn't relying on short-term borrowing to fund day-to-day operations. This is crucial for a restaurant and retail operator like Flanigan's Enterprises, Inc., which manages substantial inventory (around $7.13 million as of Q3 2025).

Looking at the cash flow statement (CFS), the company's ability to generate cash from its core business is clear. Over the last twelve months (TTM), Cash Flow from Operating Activities (CFO) was a healthy $8.56 million. This is the lifeblood of the business, showing cash generated from selling food, drinks, and package store items.

The cash flow trends break down like this:

• Operating Cash Flow (CFO): Positive $8.56 million (TTM). This cash covers capital expenditures and debt service.
• Investing Cash Flow (CFI): Negative $6.12 million (TTM). This is primarily due to capital expenditures (CapEx), which means the company is investing in property, plant, and equipment-likely restaurant and store upgrades or new locations. This spending is a positive sign of growth reinvestment.
• Financing Cash Flow (CFF): While the exact TTM figure isn't a single line item, we know the company has been managing its debt and paying dividends, including a cash dividend declared in May 2025. The debt-to-equity ratio has also been reduced to 26.7% over the past five years, showing a healthy deleveraging trend.

The resulting Free Cash Flow (FCF) for the TTM period is approximately $2.44 million ($8.56M CFO - $6.12M CapEx), which is the cash left over after all necessary business investments. This surplus cash provides flexibility for dividends, debt reduction, or further growth.

What this estimate hides is the seasonality of the restaurant business, but the TTM figures smooth that out. Still, the overall picture is one of liquidity strength, not concern. You can dig deeper into the company's ownership structure and market perception by Exploring Flanigan's Enterprises, Inc. (BDL) Investor Profile: Who's Buying and Why?

Valuation Analysis

Is Flanigan's Enterprises, Inc. (BDL) overvalued or undervalued? Looking at the core metrics as of November 2025, the stock appears to be undervalued on a relative basis, particularly when you consider its Price-to-Book ratio and its sustainable dividend. The market is defintely not pricing in much future growth, but it is also not pricing in much risk.

The valuation multiples tell a compelling story of a company trading at a discount to its peers in the US Hospitality industry. For instance, the trailing Price-to-Earnings (P/E) ratio for Flanigan's Enterprises, Inc. is a modest 13.38. This is a significant discount compared to the broader US Hospitality industry average, which often sits around 21.3x. A lower P/E suggests you are paying less for each dollar of current earnings.

Even more striking is the Price-to-Book (P/B) ratio, which is currently at 0.90. A P/B below 1.0 means the stock is trading for less than the value of its net tangible assets (what the company would theoretically be worth if liquidated), offering a clear margin of safety. The Enterprise Value-to-EBITDA (EV/EBITDA) ratio, a crucial metric for comparing capital-intensive businesses like restaurants, is also attractive at 6.79. This is a very clean one-liner: the company is trading below book value.

• P/E Ratio: 13.38 (Undervalued vs. industry average of 21.3x)
• P/B Ratio: 0.90 (Trading below net asset value)
• EV/EBITDA: 6.79 (A solid, low multiple for the sector)

Stock Price Trends and Dividend Stability

The stock price has shown a healthy upward trend over the last twelve months, moving from approximately $27.04 in September 2024 to a recent price of around $32.30 as of November 2025. This roughly 19.45% appreciation suggests the market is slowly recognizing the value, even without a high-profile analyst following. Still, the current price remains well below some model-based fair value estimates, which have pegged the intrinsic value closer to $58.08 as of November 2025, implying an upside of over 84%.

On the income front, Flanigan's Enterprises, Inc. offers a sustainable dividend. The annual dividend per share is $0.55, resulting in a dividend yield of approximately 1.74% as of October 31, 2025. More importantly, the dividend payout ratio is very low and safe, sitting at about 23.6% of earnings. This means the company uses less than a quarter of its profits to pay shareholders, leaving plenty of cash for reinvestment or to weather an economic downturn.

The Analyst View: A Blind Spot

Here's the quick math on the risk: there is effectively no formal analyst consensus on Flanigan's Enterprises, Inc. because the stock is covered by 0 analysts. This lack of coverage is common for smaller, illiquid stocks, but it creates a potential opportunity for investors who do their own homework. The absence of a Buy, Hold, or Sell rating means the stock is flying under the radar, and its valuation is driven purely by fundamentals and retail investor interest, not institutional herd behavior. You can dive deeper into the fundamentals by reviewing Breaking Down Flanigan's Enterprises, Inc. (BDL) Financial Health: Key Insights for Investors.

Next Step: Review the company's recent 10-Q filing (for the period ended June 28, 2025) to confirm the trend in operating cash flow, as that is the ultimate source of dividend security and growth capital.

Risk Factors

You're looking at Flanigan's Enterprises, Inc. (BDL) and seeing solid revenue growth-Q2 2025 revenue hit a strong $53.632 million-but you need to know where the cracks are. My experience tells me that even a well-loved brand operating in a regional stronghold like Florida has clear, near-term risks. The biggest concerns right now map to inflation, internal controls, and the competitive fight for share.

The core external risk is relentless inflation, which is squeezing margins across the restaurant and retail sectors. Flanigan's Enterprises, Inc. is battling continuous increases in food, fuel, and labor costs. For the quarter ended March 29, 2025 (Q2 2025), operating expenses jumped 10.16% to nearly $50 million, primarily due to heightened payroll and expenses from new restaurant openings. This is a simple math problem: if your input costs rise faster than you can raise menu prices, your profitability erodes. It's defintely a tightrope walk.

On the internal front, two strategic risks stand out from the recent filings:

• Operational Control Weaknesses: The Q1 2025 filing highlighted material weaknesses in internal controls over financial reporting, specifically related to IT general controls and deferred revenue recognition. This isn't a cash flow issue yet, but it signals a need for a more robust financial infrastructure as the company expands.
• Key Personnel Transition: The announced resignation of the Chief Operating Officer and Executive Vice President, effective at the end of 2025, introduces a strategic leadership gap that needs to be filled smoothly. A sudden executive departure can stall expansion plans or operational efficiency improvements.

The company's mitigation strategies are clear and action-oriented, which is what you want to see. To fight inflation, they've been proactive with strategic pricing, implementing targeted menu price increases in late 2024 and early 2025. Plus, they're locking in supply; a new purchase agreement for baby back ribs, valued at approximately $7.8 million for calendar year 2025, helps manage a critical commodity cost.

Here's a quick look at the financial risks and how the company is positioned to handle them:

While the business is performing well-their debt is well covered by operating cash flow at 40.9%-the real work for management is turning those internal control weaknesses into strengths. That's the kind of operational risk that can trip up an otherwise healthy growth story. If you want to dig deeper into the company's financial structure, you can find a comprehensive breakdown here: Breaking Down Flanigan's Enterprises, Inc. (BDL) Financial Health: Key Insights for Investors.

Growth Opportunities

Flanigan's Enterprises, Inc. (BDL) is defintely positioned for continued near-term growth, driven primarily by its strategic pricing power and its proven, localized expansion model. The company's dual-segment structure-restaurants and package stores-provides a resilient foundation, evidenced by its trailing twelve-month (TTM) revenue reaching approximately $202.07 million as of November 2025. That's a solid top-line number for a regional player.

Key Growth Drivers and Revenue Trajectory

The core of Flanigan's growth isn't a complex, new technology; it's operational excellence and pricing strategy. For the second quarter of fiscal year 2025 (ended March 29, 2025), total revenue climbed to $53.6 million, an 11.6% jump year-over-year. This growth wasn't just volume; it was margin-accretive.

• Strategic Pricing: Targeted menu price increases in late 2024 and early 2025 helped expand gross profit margins. The restaurant and bar gross margin hit 67.23% in Q2 2025, up from the prior year.
• Customer Traffic: Higher customer traffic contributed to the sales gains, showing the brand's enduring local popularity.
• Segment Strength: Package store sales surged 18.8% to $12.1 million in Q2 2025, outpacing the 9.9% rise in restaurant food and bar sales, which totaled $40.8 million. The two-pronged business works.

Expansion and Strategic Initiatives

Near-term future growth is mapped out through geographic expansion, which the company funds through a mix of capital and partnerships. Flanigan's plans to continue its expansion strategy by opening new locations and forming limited partnerships to raise capital for new restaurants. This capital-light approach to expansion is smart, as it lowers the immediate financial risk on the balance sheet.

Here's the quick math on profitability: TTM earnings, which is a good proxy for annual performance, stood at approximately $4.3 million as of June 2025, demonstrating a 42.9% growth year-over-year. Plus, management is proactively managing supply chain risks, like the new purchase agreement for baby back ribs, valued at about $7.8 million for calendar year 2025, to lock in competitive pricing. That's a clear move to protect future margins.

Competitive Advantages and Financial Health

The company's competitive edge lies in its unique operating model and financial discipline. The combination of a neighborhood restaurant and a 'Big Daddy's' package liquor store under one roof creates a cross-selling ecosystem and a strong local brand loyalty-especially in South Florida.

What this financial stability hides is the low debt-to-equity ratio of 0.25 and a healthy liquidity position, ending Q2 2025 with $22.9 million in cash. That cash hoard provides the flexibility to execute on new location openings without undue stress. If you want to dive deeper into the balance sheet, you should check out our full report on Breaking Down Flanigan's Enterprises, Inc. (BDL) Financial Health: Key Insights for Investors.

The lack of formal analyst consensus estimates for 2025 revenue growth is a limitation, but the recent quarterly performance and clear expansion strategy point to continued organic growth in the low double-digits for the near term.