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Flanigan's Gains 11.8% in Three Months: How to Play the Stock?

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Flanigan's Enterprises, Inc. (BDL - 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 11.8% in the past three months against the industry’s 2.8% decline. In the same time frame, the stock also outperformed the sector and the S&P 500’s 3.2% decline and 6.9% gain, 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 posted healthy gains in revenue and profits for the period, supported by stronger restaurant food and bar sales, higher package store sales and a modest lift in franchise-related revenue. In contrast, rental income and other miscellaneous revenues were essentially flat.

Flanigan’s management noted that menu price increases put in place over the last year have helped offset climbing food, liquor and wage expenses, and they expect these pricing moves to keep boosting food and bar sales through the remainder of fiscal 2025. At the same time, they cautioned that inflation is still a significant headwind, continuing to push up utility, insurance, cleaning and other operating costs tied to running restaurants and stores.

BDL’s Three Months Price Comparison

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Over the past three months, the stock’s performance has remained strong, outperforming its peers like Ark Restaurants Corp. (ARKR - Free Report) and Nathan's Famous, Inc. (NATH - Free Report) . Ark Restaurants’ and Nathan's Famous’ shares have lost 2% and 13.3%, 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 stock is benefiting from sustained same-store sales momentum supported by pricing actions that are countering inflation without undermining demand. Management says menu and bar price increases over the past year have lifted comparable restaurant food and bar sales, with continued benefit expected through the rest of fiscal 2025, while package-store results have been aided by improved customer traffic.

The company’s diversified operating base across two complementary segments — Flanigan’s Seafood Bar & Grill restaurants and Big Daddy’s Liquors package stores — adds resilience and multiple demand drivers. This dual-engine model spreads revenue sources between dining and retail liquor, helping stabilize performance across consumer cycles.

BDL also generates durable cash flows through partnership and franchise economics backed by real estate ownership. With most limited partnerships having repaid investor capital, Flanigan’s earns recurring management fees and royalties, while franchise agreements provide steady royalty income. Selective purchases of key properties and leasehold interests reduce rent exposure and support long-term asset value.

Challenges Ahead for BDL

BDL faces two notable headwinds. Inflation and wage pressure continue to raise food, beverage, labor and broader operating expenses across restaurants and package stores, limiting how much pricing can protect margins. At the same time, competition in its South Florida markets is intense, with larger or more aggressive rivals pressuring prices and promotions, which can squeeze package-store profitability and complicate hiring and retaining staff.

Flanigan's Stock’s Valuation

Flanigan’s trailing 12-month EV/Sales of 0.28X is lower than the industry’s average of 4.11X 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 2.47X, 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.


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