BDL earnings analysis
What we found in BDL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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%.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.11
- Gross margin
- 58.12%
- Operating margin
- 7.12%
- Segment
- Restaurants: revenue of $44.036 million, including $34.436 million of food sales and $8.242 million of bar sales; segment operating income was $5.515 million versus $4.274 million year over year.
- Segment
- Package stores: revenue of $12.979 million versus $11.522 million year over year; segment operating income was $0.900 million versus $0.622 million.
- Segment
- Corporate/eliminations: operating loss of $2.415 million, comprising corporate loss of $2.007 million and eliminations of $0.408 million, versus a $2.044 million loss in the prior-year quarter.
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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