Flanigan's Enterprises, Inc.

What they do

As of June 27, 2026, the company operates 32 units (restaurants, package liquor stores, combination units, and a sports bar) and franchises 5 additional units. It operates primarily in two segments: restaurant food and bar sales, and package liquor store sales. The company also earns franchise royalties and manages restaurants for affiliated limited partnerships.

Revenue drivers

• Restaurant food sales — Largest segment, $124.5M in FY2025 (61.25% of total sales). Driven by menu price increases and the Hollywood, FL store operating full year.
• Package store sales — $47.0M in FY2025 (23.12% of total sales), up from $40.5M in FY2024.
• Restaurant bar sales — $31.8M in FY2025 (15.63% of total sales), up from $30.0M in FY2024.
• Franchise related revenues — $1.8M in FY2025, up from $1.7M in FY2024, from royalties of 1% of package store sales and 3% of restaurant sales.

Recent performance

For fiscal year 2025 (ended September 27, 2025), total revenue increased 9.63% to $205.2M, with net income of $5.0M and diluted EPS of $2.71. In the first three quarters of fiscal 2026, quarterly revenue grew from $50.0M (Sept 2025) to $56.2M (June 2026). As of June 27, 2026, total assets were $157.5M, cash $28.8M, and long-term debt $29.4M.

Strategy

Management has implemented selective menu price increases (e.g., effective February 2025, bar prices targeting a 0.84% annual revenue increase) to offset higher food and liquor costs. They are focused on expanding restaurant and package store sales, and generating incremental revenue from the Hollywood, FL store. They continue to manage and consolidate most limited partnership-owned restaurants, and franchise operations, with related-party franchisees. No major new store openings or large capital projects are detailed in the provided filings.

Risks

• Labor shortage — The company may be unable to staff and retain qualified restaurant and package liquor store management and personnel in a competitive market, affecting operations and growth.
• Cost pressures — Higher food and liquor costs can pressure margins, as evidenced by recent price increases intended to offset these costs.
• Related-party transactions — Four of five franchisees are family members of the Chairman and other officers/directors, which could create conflicts of interest.
• Limited geographic diversification — Operations are concentrated in South Florida (Miami-Dade, Broward, Palm Beach, Monroe counties), making the company vulnerable to regional economic downturns or disruptions.

Outlook

Management expects to continue benefiting from recent price increases and full-year contribution from the Hollywood store. Comparable weekly restaurant food sales for restaurants open for both FY2025 and FY2024 increased 5.80%, indicating continued momentum. The company remains focused on managing costs and expanding revenues within its existing footprint and franchise model.