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Flanigan's Stock Gains Post Q2 Earnings on Higher Sales Growth
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Shares of Flanigan's Enterprises, Inc. (BDL - Free Report) have gained 4.1% since the company reported earnings for the quarter ended March 28, 2026, outperforming the S&P 500 Index’s 0.3% rise over the same period. Over the past month, the stock advanced 5.8% compared with the S&P 500’s 4.9% increase.
Flanigan's Earnings Snapshot
Flanigan’s reported higher revenue and earnings for both the second quarter of fiscal 2026 and the first half of fiscal 2026, driven by menu price increases and stronger traffic at restaurants and package liquor stores. Total revenues for the 13 weeks ended March 28, 2026, rose 5.9% year over year to $56.5 million from $53.4 million, while net income attributable to Flanigan’s stockholders increased 6.9% to $2.9 million from $2.7 million. Diluted earnings per share (EPS) climbed 6.9% to $1.55 from $1.45 a year earlier.
Restaurant food and bar sales increased 5.4% to $42.9 million from $40.8 million, while package store sales rose 7.5% to $12.9 million from $12.1 million.
For the first six months of fiscal 2026, total revenues increased 5.5% to $109.1 million from $103.4 million, while net income attributable to stockholders jumped 34.1% to $3.7 million from $2.7 million. Six-month EPS rose 33.8% to $1.98 from $1.48 in the prior-year period.
BDL’s Restaurant and Package Store Trends
Management attributed revenue growth primarily to recent menu price increases and higher customer traffic across restaurant and package liquor store operations. Comparable weekly restaurant food sales for locations open throughout both comparison periods increased 6.2% in the quarter, while same-store package liquor store sales rose 7.6%. BDL said package store growth benefited from stronger traffic and e-commerce activity.
Restaurant food sales climbed 6.2% year over year during the quarter to $34.6 million from $32.6 million, while restaurant bar sales increased 2.4% to $8.4 million from $8.2 million. Management noted that bar sales growth was partly constrained by softer alcohol consumption trends at restaurants. Package store sales increased 7.5% to $12.9 million from $12.1 million, supported by customer traffic gains and online sales activity.
For the first half of fiscal 2026, comparable weekly restaurant food sales advanced 6.2%, while package liquor store sales increased 7.1%. Restaurant bar sales growth remained modest at 0.6%, reflecting ongoing softness in alcohol consumption trends.
Flanigan's Enterprises, Inc. Price, Consensus and EPS Surprise
Despite inflationary pressures, Flanigan’s improved profitability during the quarter. Total costs and expenses increased 5% to $52.3 million from $49.8 million, but declined as a percentage of revenue to 92.6% from 93.4% in the prior-year quarter.
Restaurant gross profit margin improved to 66.9% from 66.3%, aided by pricing actions. However, package store gross margin declined to 24.2% from 28.1% due to higher merchandise costs and competitive pricing strategies. Management expects package store margins to remain under pressure through the balance of fiscal 2026 because of elevated costs and pricing competition.
Payroll and related costs rose 3.9% to $16.8 million from $16.2 million during the quarter, primarily reflecting Florida minimum wage increases. Operating expenses increased 1.3% due to inflation across utilities, insurance, cleaning and other operating categories. Occupancy costs rose 4.2% year over year.
For the six-month period, net income increased 34.2% to $5.3 million from $3.9 million.
Flanigan’s implemented additional menu price increases effective March 1, 2026, targeting annualized increases of about 3.7% for bar offerings and 3.3% for food offerings. Management said these increases were intended to offset higher food, liquor and operating costs.
BDL’s Liquidity and Capital Position
Flanigan’s ended the quarter with cash and cash equivalents of $22.8 million, up from $20.1 million at the end of fiscal 2025. Net cash provided by operating activities increased to $7.1 million during the first half of fiscal 2026 from $5.7 million in the prior-year period.
Long-term debt, including current maturities, stood at $19.9 million as of March 28, 2026, compared with $20.6 million as of Sept. 27, 2025. BDL said it remains in compliance with all loan covenants.
Capital expenditures totaled $1.7 million during the first half of fiscal 2026, including renovations at several company-owned and limited partnership-owned locations. Flanigan’s said it expects refurbishment spending during fiscal 2026 to approximate $750,000, though total spending could be higher.
Management stated that cash on hand, operating cash flow and planned mortgage financing should adequately fund operations and planned capital expenditures over the next 12 months.
Flanigan's Management Outlook and Guidance
Management expects restaurant food sales and package liquor store sales to continue increasing through the remainder of fiscal 2026 due to recent menu price increases and higher traffic levels. BDL also anticipates continued inflationary pressure across food, beverage, labor and fuel costs.
Flanigan’s said it expects package liquor store gross margins to decline further because of higher merchandise costs and efforts to remain competitive on pricing. The company also anticipates that overall costs and expenses will continue rising during the remainder of fiscal 2026.
BDL disclosed that inflation and supply-chain pressures continue to materially affect operating results.
BDL’s Other Developments
During the quarter, Flanigan’s refinanced a mortgage tied to its Miami Calusa Center property at a variable interest rate of 6.03%. Subsequent to quarter-end, the company purchased the Stuart, FL, property where one of its restaurants operates for $8.5 million in cash. The acquisition includes plans to demolish adjacent vacant hotel buildings and expand parking and outdoor seating for the restaurant.
The company also refinanced the mortgage on its Flanigan’s Calusa Center property in Miami, increasing the principal amount to $11.1 million, and secured an additional $3.4 million mortgage on its Hollywood, FL, property to help fund the Stuart property acquisition. In addition, Flanigan’s previously purchased undeveloped land in Cutler Bay, FL, for a future restaurant site and said site planning activities are underway.
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Flanigan's Stock Gains Post Q2 Earnings on Higher Sales Growth
Shares of Flanigan's Enterprises, Inc. (BDL - Free Report) have gained 4.1% since the company reported earnings for the quarter ended March 28, 2026, outperforming the S&P 500 Index’s 0.3% rise over the same period. Over the past month, the stock advanced 5.8% compared with the S&P 500’s 4.9% increase.
Flanigan's Earnings Snapshot
Flanigan’s reported higher revenue and earnings for both the second quarter of fiscal 2026 and the first half of fiscal 2026, driven by menu price increases and stronger traffic at restaurants and package liquor stores. Total revenues for the 13 weeks ended March 28, 2026, rose 5.9% year over year to $56.5 million from $53.4 million, while net income attributable to Flanigan’s stockholders increased 6.9% to $2.9 million from $2.7 million. Diluted earnings per share (EPS) climbed 6.9% to $1.55 from $1.45 a year earlier.
Restaurant food and bar sales increased 5.4% to $42.9 million from $40.8 million, while package store sales rose 7.5% to $12.9 million from $12.1 million.
For the first six months of fiscal 2026, total revenues increased 5.5% to $109.1 million from $103.4 million, while net income attributable to stockholders jumped 34.1% to $3.7 million from $2.7 million. Six-month EPS rose 33.8% to $1.98 from $1.48 in the prior-year period.
BDL’s Restaurant and Package Store Trends
Management attributed revenue growth primarily to recent menu price increases and higher customer traffic across restaurant and package liquor store operations. Comparable weekly restaurant food sales for locations open throughout both comparison periods increased 6.2% in the quarter, while same-store package liquor store sales rose 7.6%. BDL said package store growth benefited from stronger traffic and e-commerce activity.
Restaurant food sales climbed 6.2% year over year during the quarter to $34.6 million from $32.6 million, while restaurant bar sales increased 2.4% to $8.4 million from $8.2 million. Management noted that bar sales growth was partly constrained by softer alcohol consumption trends at restaurants. Package store sales increased 7.5% to $12.9 million from $12.1 million, supported by customer traffic gains and online sales activity.
For the first half of fiscal 2026, comparable weekly restaurant food sales advanced 6.2%, while package liquor store sales increased 7.1%. Restaurant bar sales growth remained modest at 0.6%, reflecting ongoing softness in alcohol consumption trends.
Flanigan's Enterprises, Inc. Price, Consensus and EPS Surprise
Flanigan's Enterprises, Inc. price-consensus-eps-surprise-chart | Flanigan's Enterprises, Inc. Quote
Flanigan's Margin Performance and Cost Pressures
Despite inflationary pressures, Flanigan’s improved profitability during the quarter. Total costs and expenses increased 5% to $52.3 million from $49.8 million, but declined as a percentage of revenue to 92.6% from 93.4% in the prior-year quarter.
Restaurant gross profit margin improved to 66.9% from 66.3%, aided by pricing actions. However, package store gross margin declined to 24.2% from 28.1% due to higher merchandise costs and competitive pricing strategies. Management expects package store margins to remain under pressure through the balance of fiscal 2026 because of elevated costs and pricing competition.
Payroll and related costs rose 3.9% to $16.8 million from $16.2 million during the quarter, primarily reflecting Florida minimum wage increases. Operating expenses increased 1.3% due to inflation across utilities, insurance, cleaning and other operating categories. Occupancy costs rose 4.2% year over year.
For the six-month period, net income increased 34.2% to $5.3 million from $3.9 million.
Flanigan’s implemented additional menu price increases effective March 1, 2026, targeting annualized increases of about 3.7% for bar offerings and 3.3% for food offerings. Management said these increases were intended to offset higher food, liquor and operating costs.
BDL’s Liquidity and Capital Position
Flanigan’s ended the quarter with cash and cash equivalents of $22.8 million, up from $20.1 million at the end of fiscal 2025. Net cash provided by operating activities increased to $7.1 million during the first half of fiscal 2026 from $5.7 million in the prior-year period.
Long-term debt, including current maturities, stood at $19.9 million as of March 28, 2026, compared with $20.6 million as of Sept. 27, 2025. BDL said it remains in compliance with all loan covenants.
Capital expenditures totaled $1.7 million during the first half of fiscal 2026, including renovations at several company-owned and limited partnership-owned locations. Flanigan’s said it expects refurbishment spending during fiscal 2026 to approximate $750,000, though total spending could be higher.
Management stated that cash on hand, operating cash flow and planned mortgage financing should adequately fund operations and planned capital expenditures over the next 12 months.
Flanigan's Management Outlook and Guidance
Management expects restaurant food sales and package liquor store sales to continue increasing through the remainder of fiscal 2026 due to recent menu price increases and higher traffic levels. BDL also anticipates continued inflationary pressure across food, beverage, labor and fuel costs.
Flanigan’s said it expects package liquor store gross margins to decline further because of higher merchandise costs and efforts to remain competitive on pricing. The company also anticipates that overall costs and expenses will continue rising during the remainder of fiscal 2026.
BDL disclosed that inflation and supply-chain pressures continue to materially affect operating results.
BDL’s Other Developments
During the quarter, Flanigan’s refinanced a mortgage tied to its Miami Calusa Center property at a variable interest rate of 6.03%. Subsequent to quarter-end, the company purchased the Stuart, FL, property where one of its restaurants operates for $8.5 million in cash. The acquisition includes plans to demolish adjacent vacant hotel buildings and expand parking and outdoor seating for the restaurant.
The company also refinanced the mortgage on its Flanigan’s Calusa Center property in Miami, increasing the principal amount to $11.1 million, and secured an additional $3.4 million mortgage on its Hollywood, FL, property to help fund the Stuart property acquisition. In addition, Flanigan’s previously purchased undeveloped land in Cutler Bay, FL, for a future restaurant site and said site planning activities are underway.