Shares of Flanigan’s Enterprises, Inc. BDL have gained 1.2% for the reason that firm reported its earnings for the quarter ended Dec. 28, 2024. This compares to the S&P 500 Index’s 0.7% acquire over the identical time-frame. Over the previous month, the inventory gained 1.4% in contrast with the S&P 500’s 1.8% rise.
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Monetary Efficiency
Flanigan’s reported whole revenues of $50.3 million for the quarter ended Dec. 28, 2024, reflecting an 11.3% enhance from $45.1 million within the prior-year quarter. The income progress was pushed by greater restaurant and package deal retailer gross sales, aided by menu value will increase and improved buyer visitors. Restaurant meals and bar gross sales rose 9.7% to $37.1 million from $33.8 million, whereas package deal retailer gross sales surged 17.3% to $12.4 million from $10.6 million.
Internet earnings attributable to Flanigan’s shareholders declined 49.5% to $55,000 from $0.1 million a yr in the past. Fundamental and diluted earnings per share (EPS) got here in at $0.03, down 50% from $0.06 within the prior-year quarter. The decline in profitability was attributed to rising meals and labor prices, in addition to greater promoting, normal, and administrative (SG&A) bills.
Flanigan’s Enterprises, Inc. Value, Consensus and EPS Shock
Flanigan’s Enterprises, Inc. price-consensus-eps-surprise-chart | Flanigan’s Enterprises, Inc. Quote
Different Key Enterprise Metrics
Gross revenue for restaurant meals and bar gross sales elevated 9.4% to $24.1 million from $21.9 million, whereas package deal retailer gross revenue rose 8.5% to $2.9 million from $2.7 million. Nevertheless, the gross revenue margin for restaurant gross sales barely contracted to 64.87% from 65.02% as a result of elevated meals prices. In the meantime, package deal retailer gross margin declined extra notably to 23.76% from 25.67%, reflecting aggressive pricing pressures.
Payroll and associated prices jumped 9.5% to $15.7 million from $14.4 million within the prior-year quarter, largely as a result of wage inflation and the opening of the Hollywood, FL, location in early 2024. Working bills elevated 10.8% to $6.6 million from $5.9 million within the prior-year quarter, pushed by inflationary pressures and better prices throughout utilities, insurance coverage, and safety. SG&A bills climbed 25.2% to $1.5 million from $1.2 million within the prior-year quarter, primarily as a result of elevated promoting expenditures.
BDL ended the quarter with money and money equivalents of $27.3 million, up from $21.4 million as of Sept. 28, 2024. Internet money supplied by working actions greater than doubled to $7.7 million from $3.5 million, pushed by the timing of accrued expense funds. Capital expenditures for the quarter totaled $0.7 million, down 45.9% from $ 1.4 million, primarily for restaurant refurbishments. Lengthy-term debt (together with the present portion) stood at $21.6 million, down barely from $21.9 million as of Sept. 28, 2024.
Administration Commentary and Components Influencing Outcomes
Administration cited current menu value will increase as an element supporting income progress. In November 2024, the corporate raised meals costs, focusing on a 4.14% annual enhance, and in December 2024, bar costs have been elevated to attain an estimated 4.90% annual income uplift. One other spherical of bar value will increase was applied in August 2024, geared toward a 5.63% income increase. Whereas these changes helped offset value pressures, inflationary elements, notably in meals, beverage, and labor, proceed to weigh on margins.
Occupancy prices decreased 9.7% to $1.9 million from $2.2 million within the prior-year quarter, benefiting from decrease property tax changes. Nevertheless, depreciation and amortization bills rose 16.8% to $1.1 million from $0.9 million within the prior-year quarter, reflecting greater capital investments.
The corporate cited greater meals prices, labor bills, and advertising spend as key headwinds impacting internet earnings. Regardless of these challenges, administration stays optimistic about additional income progress, supported by sustained buyer visitors at each restaurant and package deal retailer areas.
Steerage and Outlook
Flanigan’s expects income progress to proceed within the coming quarters, aided by the current menu value will increase and robust buyer demand. Nevertheless, administration anticipates ongoing value pressures, notably in labor and meals procurement, which may weigh on profitability. The corporate can be monitoring broader inflationary traits and provide chain constraints.
Different Developments
Flanigan’s entered into a brand new one-year Grasp Providers Settlement with its main vendor efficient Jan. 1, 2025, making certain secure product provide whereas permitting flexibility to supply as much as 20% of its stock from different suppliers. Moreover, the corporate dedicated to buying roughly $7.8 million price of child again ribs in 2025 at pre-negotiated costs.
When it comes to capital expenditures, the corporate allotted $745,000 within the quarter for renovations and property enhancements, together with $87,000 for upgrades at one package deal retailer. BDL additionally continues to spend money on its ERP system improve, anticipated to be absolutely applied by the third quarter of fiscal 2025.
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