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Shares of Flanigan's Enterprises, Inc. BDL have risen 2.6% since the earnings report for the quarter ended Sept. 28, 2024. Over the same period, the S&P 500 Index declined 2.6%. On a broader time frame, the stock has gained 3% in the past month, outperforming the S&P 500’s 2.3% decline. These movements highlight investor optimism toward the company's performance amid a challenging market environment.
Key Performance Metrics
Flanigan's reported total revenues of $188.3 million for the fiscal year ended Sept. 28, 2024, a 7.9% increase from $174.4 million in the prior year. Segmentally, restaurant food and bar sales grew 6.3% to $144.8 million from $136.2 million. Similarly, package store sales saw a significant rise of 15.1% to $40.5 million from $35.2 million.
Conversely, franchise-related revenues declined 8.8% to $1.7 million from $1.9 million, and rental income increased 16.2% to $1.1 million from $0.9 million. Net income attributable to Flanigan's decreased to $3.4 million from $3.9 million, representing a 16.1% decline. Basic and diluted earnings per share (EPS) followed suit, declining 15.8% to $1.81 from $2.15 in the previous year, reflecting pressures on profitability despite revenue growth.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Other Key Business Metrics
The performance of the restaurant and package store segments underscores sustained consumer demand and operational resilience. However, the decline in net income and EPS suggests rising costs, possibly due to inflationary pressures or higher operating expenses, weighing on margins. The reduction in franchise-related revenues points to potential challenges in expanding or maintaining franchise operations.
Flanigan's Enterprises, Inc. Price, Consensus and EPS Surprise
Flanigan's Enterprises, Inc. price-consensus-eps-surprise-chart | Flanigan's Enterprises, Inc. Quote
Management Commentary and Key Influencing Factors
Management emphasized strong performance in the company’s core restaurant and retail operations, with growth attributed to consumer loyalty and effective service strategies. However, they acknowledged margin pressures, which likely stemmed from rising labor and material costs. No detailed breakdown of these costs or their mitigation strategies was provided by management.
The franchise-related revenue decline was attributed to external factors, although specifics were not disclosed, leaving room for further scrutiny by investors. Management’s overall tone highlighted confidence in the brand’s appeal while recognizing challenges in sustaining profitability growth.