10-Q · May 12, 2026
Flanigan’s Enterprises, Inc. reported strong revenue growth in Q2 FY2026, with total revenue increasing by $3.16M or 5.91% year-over-year, driven primarily by price increases across its restaurant and liquor store…
Earnings analysis · 10-Q
BDL earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
Flanigan’s delivered strong third-quarter results, with revenue up 8.30% year over year to $56.203 million, operating margin expanding to approximately 7.12% from 5.50%, and diluted EPS increasing to $1.11 from $0.75.…
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Flanigan’s delivered strong third-quarter results, with revenue up 8.30% year over year to $56.203 million, operating margin expanding to approximately 7.12% from 5.50%, and diluted EPS increasing to $1.11 from $0.75. Growth was broad-based across restaurants and package stores, supported by price increases and higher traffic, while operating cash flow improved to $12.825 million. The main offsets are higher leverage, elevated labor and operating costs, expected package-store margin pressure, substantial expansion capex, and an uninsured FLSA collective action involving approximately 50 claimants.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.11
What stood out
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Revenue growth accelerated to 8.30%
Third-quarter revenue increased $4.309 million, or 8.30%, to $56.203 million from $51.894 million year over year. Restaurant food sales rose to $34.436 million from $31.933 million, while package-store sales increased to $12.979 million from $11.522 million.
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Margins expanded meaningfully
Gross margin, calculated as revenue less merchandise costs divided by revenue, was approximately 58.12% ($32.664 million of gross profit on $56.203 million of revenue), versus approximately 55.69% in the prior-year quarter. Restaurant food and bar gross margin improved to 67.92% from 67.48%.
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Operating leverage lifted EPS
Operating income increased $1.148 million, or 40.25%, to $4.000 million from $2.852 million, lifting calculated operating margin to 7.12% from 5.50%. Net income increased 39.01% to $3.460 million, and diluted EPS rose to $1.11 from $0.75.
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Restaurant and package segments grew
Both reportable segments grew: restaurant operating income increased to $5.515 million from $4.274 million, while package-store operating income increased to $0.900 million from $0.622 million. Same-store package liquor sales increased 12.64% to a weekly average of $998,000.
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Operating cash flow strengthened
Operating cash flow increased to $12.825 million from $7.150 million for the first 39 weeks. Capital expenditures were $11.105 million versus $4.956 million, including $8.45 million for the Stuart Property, implying cash generation was substantially absorbed by expansion spending.
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Liquidity improved despite expansion
Cash increased $8.749 million to $28.843 million from $20.094 million at September 27, 2025, and working capital increased to $20.509 million from $12.475 million. Management stated that cash on hand, operating cash flow and borrowings should fund operations and planned capital expenditures for at least the next twelve months.
What to watch
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Debt and interest expense increased
Long-term debt including the current portion increased to $31.434 million from $20.618 million, while third-quarter interest expense rose to $384,000 from $237,000. The new mortgage loans carry rates of 5.975% or 5.995%, increasing financing exposure.
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Labor and operating costs remain elevated
Management anticipates costs and expenses will continue to increase through the balance of fiscal 2026. Third-quarter costs and expenses were $52.203 million, up 6.45% from $49.042 million, with payroll costs rising 4.30% to $16.798 million due primarily to the Florida minimum-wage increase.
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Package-store margin expected to decline
Management expects package-store gross margin to decrease during the balance of fiscal 2026 because of higher costs and lower pricing to remain competitive. The 39-week package-store margin was already 24.44%, down from 25.21% year over year.
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Uninsured FLSA litigation exposure
A conditional FLSA collective action includes approximately 50 current and former servers and bartenders, and the filing states there is no insurance coverage. A full evidentiary hearing to determine whether the action will continue as a collective action has not yet occurred.
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Expansion is consuming cash
Capital spending materially increased to $11.105 million from $4.956 million in the first 39 weeks, including the $8.45 million Stuart Property purchase. Management estimates fiscal 2026 refurbishment costs at approximately $750,000 but cautions that spending may be significantly higher.
Management's outlook
No explicit consolidated revenue or EPS guidance was provided. Management expects restaurant food sales, restaurant bar sales and package store sales to increase through the balance of fiscal 2026; price increases effective March 1, 2026 targeted approximately 3.25% annual food-revenue growth and 3.68% annual bar-revenue growth. Management also anticipates costs and expenses will continue to increase and expects package-store gross margin to decrease during the balance of fiscal 2026.
Earlier filings 4
10-Q · August 12, 2025
Flanigan’s reported Q3 revenue of $52,164,000 (up from $49,102,000 a year ago) with operating income of $2,974,000 and diluted EPS of $0.75 (versus $0.60 in the prior-year quarter). Balance sheet liquidity declined…
10-Q · February 11, 2025
Flanigan’s reported quarterly revenue of $50,262,000 (thirteen weeks ended December 28, 2024), up from $45,140,000 a year ago, with income from operations of $858,000 and GAAP EPS of $0.03. Operating cash flow…
10-Q · August 13, 2024
Flanigan’s reported quarterly revenue of $49,102,000 (up from $45,372,000 a year ago) but saw operating income decline to $2,287,000 and diluted EPS fall to $0.60 from $0.86 in the prior year quarter. Both reportable…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.