Flanigan's Enterprises, Inc. (BDL Quick QuoteBDL - Free Report) investors have been experiencing some short-term gains from the stock lately, despite its bumpy ride over recent months. Shares of the owners and operators of the "Flanigan's Seafood Bar and Grill" restaurants and "Big Daddy's" retail liquor stores, which is based in Fort Lauderdale, FL, have gained 39% in the past six months against the industry’s 3.6% decline. In the same time frame, the stock also outperformed the sector and the S&P 500’s 11.8% and 23.9% gains, respectively.

A key recent development for BDL was the release of its strong results for the 13 weeks ended June 28, 2025, announced in August. The company reported solid growth in both revenue and earnings during the period, driven by increased restaurant food and bar sales, package store sales, and franchise-related income. However, rental income and other revenue streams remained largely unchanged.

Flanigan’s management noted that pricing adjustments implemented over the past year helped counter rising food, liquor, and labor costs. The company anticipates continued benefits to its food and bar sales from these pricing actions through the rest of fiscal 2025. Nonetheless, executives warned that inflation remains a major challenge, affecting costs for utilities, insurance, cleaning and other restaurant-related operations.

BDL’s Six Months Price Comparison

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Over the past six months, the stock’s performance has remained strong, outperforming its peers like Ark Restaurants Corp. (ARKR Quick QuoteARKR - Free Report) and Nathan's Famous, Inc. (NATH Quick QuoteNATH - Free Report) . Ark Restaurants’ and Nathan's Famous’ shares have lost 14.1% and gained 14.5%, respectively, in the same time frame.

Despite several challenges within the restaurant industry, including rising food and labor costs, the favorable share price movement indicates that the company might be able to maintain the positive market momentum at present.

Flanigan's operates a network of 32 establishments comprising restaurants, package liquor stores, combination restaurant/package liquor stores and a sports bar. Additionally, it franchises five units, including two restaurants and three combination restaurant/package liquor stores, all located in South Florida. These multiple store footprints reflect robust growth potential.

Flanigan's Strong Fundamentals Weigh In

BDL continues to benefit from the resilience of its dual business model — combining restaurant and retail liquor operations. The company’s established “Flanigan’s Seafood Bar and Grill” restaurants and “Big Daddy’s” liquor stores remain its growth anchors, with both segments showing steady momentum. The brand’s regional dominance and loyal customer base in South Florida underpin consistent sales performance and help buffer macroeconomic headwinds. The reports emphasize that both restaurant and package store sales contributed meaningfully to revenue gains, suggesting that operational strength and local brand equity are key stock drivers.

Flanigan’s strategic pricing initiatives over the past year have successfully mitigated the impact of rising input costs — particularly for food, liquor and labor. Management has demonstrated strong operational discipline by maintaining margins despite persistent inflationary pressures. This highlights BDL’s ability to manage costs and sustain profitability through proactive adjustments, reflecting effective execution and pricing power that support long-term financial stability.

Flanigan’s is steadily building a franchise-driven revenue base, supported by consistent growth in franchise-related income and operational stability across its network. The company’s focus on maintaining brand standards and performance across franchise units indicates a disciplined and scalable approach to expansion. This strategy enhances long-term growth visibility and provides an asset-light path to increasing market presence while keeping overhead costs in check.

Challenges Ahead for BDL

Flanigan’s continues to face margin pressure from higher wages, staffing shortages and inflation-driven increases in utilities, insurance and restaurant-related expenses, which strain profitability. In addition, persistent inflation and supply chain disruptions in food and liquor procurement pose risks to cost stability, potentially impacting pricing flexibility and overall operating efficiency.

Flanigan's Stock’s Valuation

Flanigan’s trailing 12-month EV/Sales of 0.30X is lower than the industry’s average of 4.50X but higher than its five-year median of 0.26X.

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Ark Restaurants and Nathan’s Famous’ trailing 12-month EV/Sales currently stand at 0.09X and 3.14X, respectively, in the same time frame.

Our Final Take on BDL

There is no denying that Flanigan’s sits favorably in terms of core business strength, earnings prowess, robust financial footing and opportunities. The stock’s strong core growth prospects present a good reason for existing investors to retain shares for potential future gains. New investors are also likely to be motivated to add the stock following the current uptrend in share prices.

For those exploring to make new additions to their portfolios, the valuation indicates superior performance expectations compared with its industry peers. It is still valued lower than the industry, which suggests potential room for growth if it can align more closely with overall market performance. However, if investors are already holding the stock, it would be prudent to hold on to it at present.