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Flanigan's Stock Falls Following Earnings Decline in Fiscal 2024

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Shares of Flanigan's Enterprises, Inc. (BDL - Free Report) have risen 2.6% since the earnings report for the quarter ended Sept. 28, 2024. Over the same period, the S&P 500 Index declined 2.6%. On a broader time frame, the stock has gained 3% in the past month, outperforming the S&P 500’s 2.3% decline. These movements highlight investor optimism toward the company's performance amid a challenging market environment.

Key Performance Metrics

Flanigan's reported total revenues of $188.3 million for the fiscal year ended Sept. 28, 2024, a 7.9% increase from $174.4 million in the prior year. Segmentally, restaurant food and bar sales grew 6.3% to $144.8 million from $136.2 million. Similarly, package store sales saw a significant rise of 15.1% to $40.5 million from $35.2 million.

Conversely, franchise-related revenues declined 8.8% to $1.7 million from $1.9 million, and rental income increased 16.2% to $1.1 million from $0.9 million. Net income attributable to Flanigan's decreased to $3.4 million from $3.9 million, representing a 16.1% decline. Basic and diluted earnings per share (EPS) followed suit, declining 15.8% to $1.81 from $2.15 in the previous year, reflecting pressures on profitability despite revenue growth.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Other Key Business Metrics

The performance of the restaurant and package store segments underscores sustained consumer demand and operational resilience. However, the decline in net income and EPS suggests rising costs, possibly due to inflationary pressures or higher operating expenses, weighing on margins. The reduction in franchise-related revenues points to potential challenges in expanding or maintaining franchise operations.

Management Commentary and Key Influencing Factors

Management emphasized strong performance in the company’s core restaurant and retail operations, with growth attributed to consumer loyalty and effective service strategies. However, they acknowledged margin pressures, which likely stemmed from rising labor and material costs. No detailed breakdown of these costs or their mitigation strategies was provided by management.

The franchise-related revenue decline was attributed to external factors, although specifics were not disclosed, leaving room for further scrutiny by investors. Management’s overall tone highlighted confidence in the brand’s appeal while recognizing challenges in sustaining profitability growth.

Guidance

The company did not provide explicit forward-looking guidance in its earnings release. Investors may need to wait for additional commentary or future reports for a clearer outlook.

Other Developments

No significant acquisitions, divestitures, or restructuring activities were reported during the fiscal year or quarter. This indicates a stable operational framework with no major shifts in strategic focus during the reporting period.


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