FLANIGANS ENTERPRISES INC
For the period ended Sep 27, 2025. Filed Dec 19, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Dec 19, 2025
BDL$58.56-3.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-09-28; filed 2024-12-27.
0001174947-24-001397
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-09-27; filed 2025-12-19.
0001174947-25-001463
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 78 previous paragraphs and 83 current paragraphs.
44 unchanged; 26 reworded; 13 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Current report
RESULTS OF OPERATIONS
Current report
Rental Income/ Rental Expense Rental income was $1,077,000 and rental expense was $622,000 for our fiscal year 2025, while rental income was $1,105,000 and rental expense was $550,000 for our fiscal year 2024. Previously, Rental income was presented in Revenues and rental expense was presented in Occupancy costs, Operating expense and Selling, general and administrative expenses, however, both Rental income and Rental expense are now presented in Other Income.
Current report
As of September 27, 2025, we are in compliance with the financial covenants contained in our loans with our unrelated third-party institutional lender (the “Institutional Lender”) under which we owe in the aggregate, approximately $19,306,000 of our total loans of approximately $20,618,000. As of September 27, 2025, the year-end fair value of our debt approximates carrying value.
Current report
Commitments
Current report
Master Service Agreement
Current report
During the first quarter of our fiscal year 2025, we entered into a new Master Services Agreement with our current major vendor for a period of one (1) year effective January 1, 2025, with Company options for four (4) one (1) year renewal options to extend the term of the same. During the fourth quarter of our fiscal year 2025, we exercised the first (1st) one (1) year renewal option for a period of one (1) year effective January 1, 2026. In this new Master Service Agreement, as in our prior Master Service Agreements, we commit to purchase specific products through our current major vendor but are free to purchase other products through other vendors, provided no less than 80% of our overall product needs are purchased through our current major vendor. During the third quarter of our fiscal year 2025, we exercised the first one (1) year renewal option and extended the term of the Master Services Agreement for a period of one (1) year effective January 1, 2026.
Current report
ERP Contract
Current report
In the third quarter of our fiscal year 2024, we entered into an agreement with Oracle, an unrelated third-party vendor for the licensing and support of NetSuite, a cloud-based Oracle ERP solution to replace our general ledger. The agreement is for a period of five years at a fixed rate of approximately $40,000 annually, with a cap on the percentage increase to our fees for our options to extend the term of the agreement for years six and seven. The implementation of NetSuite was complete and functional at the start of the fourth quarter of our fiscal year 2025.
Current report
In November 2024, the FASB issued ASU 2024-03,* “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures” *which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis. In January 2025, the FASB issued ASU 2025-01 clarifying the effective date of ASU 2024-03, which will be effective for the Company for our fiscal year 2027 annual reporting period, with guidance applied either prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact that the adoption of this ASU will have on our interim and consolidated financial statements.
Current report
In September 2025, the FASB issued ASU 2025-06, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40)” which eliminates all references to project stages and requires capitalization of software costs when: (i) management authorizes and commits to funding the software project, and (ii) it is probable the software project will be completed and used as intended, known as the “probable-to-completion recognition threshold.” Entities must consider whether there is significant uncertainty associated with the development activities of the software in determining if the threshold is met. In addition, the amendments in the update specify that property, plant and equipment disclosure requirements are required for capitalized internal-use software costs, regardless of financial statement presentation and also incorporate the recognition requirements for website-specific development costs. This ASU will be effective for the Company for our fiscal year fiscal year 2029 annual reporting period with the guidance applied either prospectively, retrospectively, or via a modified prospective transition method. Early adoption is permitted. We are currently evaluating the impact that the adoption of this ASU will have on our interim and consolidated financial statements.
Current report
Valuation of Long-Lived Assets
Current report
We continually evaluate whether events and circumstances have occurred that may warrant revision of the estimated life of our intangible and other long-lived assets and/or whether the remaining balance of our intangible and other long-lived assets should be evaluated for possible impairment. If and when such factors, events or circumstances indicate that intangible and/or other long-lived assets should be evaluated for possible impairment, we will determine the fair value of the asset by making an estimate of expected future cash flows over the remaining lives of the respective assets and compare that fair value with the carrying value of the assets in measuring their recoverability. In determining the expected future cash flows, the assets will be grouped at the lowest level for which there are cash flows, at the individual store level.
Removed paragraphs (8)
Previous report
In February 2023, we determined that as of December 31, 2022, we did not meet the required Post-Distribution Basic Fixed Charge Coverage Ratio (the “Post-Distribution/Fixed Charge Covenant”) contained in each of our six (6) loans (the “Institutional Loans”) with our unrelated third party institutional lender (the “Institutional Lender’). On February 23, 2023, we received from the Institutional Lender, a written waiver of the non-compliance with the Post-Distribution/Fixed Charge Covenant (the “Covenant Non-Compliance”), pursuant to which, among other things, the Institutional Lender waived (1) the non-compliance as of December 31, 2022 and (2) their right to exercise certain remedies under the Institutional Loans, including the right to accelerate the indebtedness owed by us thereunder, resulting in the indebtedness under the Institutional Loans to be immediately due and payable, which would have had a material adverse effect on the Company. The Post-Distribution/Fixed Charge Covenant requires we maintain a ratio of at least 1.15 to 1.00 and for the twelve (12) months ended September 28, 2024 our ratio was calculated to be 1.62 to 1.00. As a result, our classification of debt is appropriate as of September 28, 2024.
Previous report
Construction Contracts
Previous report
(a) 2505 N. University Drive, Hollywood, Florida (Store #19 – “Flanigan’s”)
Previous report
During the first quarter of our fiscal year 2022, we entered into an agreement with a third party unaffiliated general contractor to re-build our restaurant located at 2505 N. University Drive, Building B, Hollywood, Florida (Store #19R), which had been closed since October 2, 2018 due to damage caused by a fire and re-opened March 26, 2024. The contract totaled $2,515,000 and through our fiscal year 2024 we agreed to change orders increasing the total contract price by $1,512,000 to $4,027,000, of which $3,905,000 has been paid through September 28, 2024. Subsequent to the end of our fiscal year 2024, we agreed to final change orders increasing the total contract price by $3,000 to $4,030,000 and the balance of the contract price of $125,000 has been paid subsequent to the end of our fiscal year 2024.
Previous report
Consolidation of Limited Partnerships
Previous report
As of September 28, 2024, we operate ten (10) restaurants as general partner of the limited partnerships that own the operations of these restaurants. We expect that any expansion which takes place in opening new restaurants will also result in us operating the restaurants as general partner. In addition to the general partnership interest we also purchased limited partnership units ranging from 0% to 49% of the total units outstanding. As a result of these controlling interests, we consolidate the operations of these limited partnerships with ours despite the fact that we do not own in excess of 50% of the equity interests. All intercompany transactions are eliminated in consolidation. The non-controlling interests in the earnings of these limited partnerships are removed from net income and are not included in the calculation of earnings per share.
Previous report
Loyalty Programs
Previous report
We offer loyalty programs to customers of our restaurants and package liquor stores. The gift cards distributed as a part of our loyalty programs have expiration dates and we estimate breakage for such gift cards.
Reworded paragraphs (26)
Previous wording
Revenues. Total revenue for our fiscal year 2024 increased $13,925,000 or 7.98% to $188,321,000 from $174,396,000 for our fiscal year 2023 due primarily to increased package liquor store and restaurant sales, increased menu prices, revenue generated from the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) in March 2024, the operation of our limited partnership owned restaurant in Miramar, Florida (Store #25) and our package liquor stores in Miramar, Florida (Store #24) and Hollywood, Florida (Store #19P) for our entire fiscal year 2024 as opposed to a part of our fiscal year 2023. Effective August 25, 2024, we increased menu prices for our bar offerings to target an increase to our bar revenues of approximately 5.63% annually to offset higher food and liquor costs. Effective March 26, 2023 we increased menu prices for our food offerings to target an increase to our food revenues of approximately 2.06% and effective March 20, 2023 we increased menu prices for our bar offerings to target an increase to our bar revenues of approximately 5.65% annually, to offset higher food costs and higher overall expenses (collectively the “Recent Price Increases”). Prior to these increases, we previously raised menu prices in the first quarter of our fiscal year 2022.
Current wording
Revenues. Total revenue for our fiscal year 2025 increased $18,032,000 or 9.63% to $205,248,000 from $187,216,000 for our fiscal year 2024 due primarily to increased package liquor store and restaurant sales, increased menu prices and revenue generated from our Company-owned restaurant in Hollywood, Florida (Store #19R) for our entire fiscal year 2025 as opposed to a part of our fiscal year 2024. Effective February 23, 2025, we increased our menu prices for our bar offerings to target an increase to our bar revenues of approximately 0.84% annually. Effective December 4, 2024, we increased our menu prices for our bar offerings to target an increase to our bar revenues of approximately 4.90% annually and effective November 17, 2024 we increased our menu prices for our food offerings to target an increase to our food revenues of approximately 4.14% annually. Effective August 25, 2024, we increased menu prices for our bar offerings to target an increase to our bar revenues of approximately 5.63% annually to offset higher food and liquor costs and higher overall expenses (collectively the “Recent Price Increases”).
Previous wording
Restaurant Food Sales*.* Restaurant revenue generated from the sale of food, including non-alcoholic beverages, at restaurants totaled $114,795,000 for our fiscal year 2024 as compared to $107,238,000 for our fiscal year 2023. The increase in restaurant food sales is attributable to the Recent Price Increases and food sales generated from the opening of corporate owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024 and the operation of our limited partnership owned restaurant in Miramar, Florida (Store #25) for our entire fiscal year 2024 as opposed to a part of our fiscal year 2023. Comparable weekly restaurant food sales for restaurants open for all of our fiscal years 2024 and 2023, which consists of ten restaurants owned by us (excluding our Hollywood, Florida location (Store #19R) which opened for business during the second quarter of our fiscal year 2024) and nine restaurants owned by affiliated limited partnerships, (excluding our Miramar, Florida location (Store #25) which opened for business during the third quarter of our fiscal year 2023) was $1,987,000 and $1,967,000 for our fiscal years 2024 and 2023 respectively, an increase of 1.02%. Comparable weekly restaurant food sales for Company-owned restaurants only (excluding our Hollywood, Florida location (Store #19R) which opened for business during the second quarter of our fiscal year 2024) was $938,000 and $923,000 for our fiscal years 2024 and 2023, respectively, an increase of 1.63%. Comparable weekly restaurant food sales for affiliated limited partnership owned restaurants only, (excluding our Miramar, Florida location (Store #25) which opened for business during the third quarter of our fiscal year 2023), was $1,049,000 and $1,044,000 for our fiscal years 2024 and 2023 respectively, an increase of 0.48%. We expect that restaurant food sales, including non-alcoholic beverages, for our fiscal year 2025 will increase due to increased restaurant traffic and the operation of our Company-owned Store #19R for our entire fiscal year 2025.
Current wording
Restaurant Food Sales*.* Restaurant revenue generated from the sale of food, including non-alcoholic beverages, at restaurants totaled $124,501,000 for our fiscal year 2025 as compared to $114,795,000 for our fiscal year 2024. The increase in restaurant food sales is attributable to the Recent Price Increases and food sales generated from our Company-owned restaurant in Hollywood, Florida (Store #19R) for our entire fiscal year 2025 as opposed to a part of our fiscal year 2024. Comparable weekly restaurant food sales for restaurants open for all of our fiscal years 2025 and 2024, which consists of ten restaurants owned by us (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) and ten restaurants owned by affiliated limited partnerships was $2,245,000 and $2,122,000 for our fiscal years 2025 and 2024 respectively, an increase of 5.80%. Comparable weekly restaurant food sales for Company-owned restaurants only (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) was $997,000 and $938,000 for our fiscal years 2025 and 2024, respectively, an increase of 6.29%. Comparable weekly restaurant food sales for affiliated limited partnership owned restaurants only was $1,248,000 and $1,184,000 for our fiscal years 2025 and 2024 respectively, an increase of 5.41%. We expect that restaurant food sales, including non-alcoholic beverages, for our fiscal year 2026 will increase due to increased restaurant traffic.
Previous wording
Restaurant Bar Sales*.*Restaurant revenue generated from the sale of alcoholic beverages at restaurants totaled $30,010,000 for our fiscal year 2024 as compared to $29,000,000 for our fiscal year 2023. The increase in restaurant bar sales is attributable to the Recent Price Increases and food sales generated from the opening of corporate owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024 and the operation of our limited partnership owned restaurant in Miramar, Florida (Store #25) for our entire fiscal year 2024 as opposed to a part of our fiscal year 2023. Comparable weekly restaurant bar sales for restaurants open for all of our fiscal years 2024 and 2023 respectively, which consists of ten restaurants owned by us (excluding our Hollywood, Florida location (Store #19R) which opened for business during the second quarter of our fiscal year 2024) and nine restaurants owned by affiliated limited partnerships, (excluding our Miramar, Florida location (Store #25), which opened for business during the third quarter of our fiscal year 2023) was $526,000 for our fiscal year 2024 and $539,000 for our fiscal year 2023, a decrease of 2.41%. Comparable weekly restaurant bar sales for Company-owned restaurants only (excluding our Hollywood, Florida location (Store #19R) which opened for business during the second quarter of our fiscal year 2024) was $234,000 and $231,000 for our fiscal years 2024 and 2023 respectively, an increase of 1.30%. Comparable weekly restaurant bar sales for affiliated limited partnership owned restaurants only (excluding our Miramar, Florida location (Store #25) which opened for business during the third quarter of our fiscal year 2023) was $292,000 and $307,000 for our fiscal years 2024 and 2023 respectively, a decrease of 4.89%. We expect that restaurant bar sales for our fiscal year 2025 will increase due to the operation of our Company-owned Store #19R for our entire fiscal year 2025.
Current wording
Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic beverages at restaurants totaled $31,764,000 for our fiscal year 2025 as compared to $30,010,000 for our fiscal year 2024. The increase in restaurant bar sales is attributable to the Recent Price Increases and bar sales generated from our Company-owned restaurant in Hollywood, Florida (Store #19R) for our entire fiscal year 2025 as opposed to a part of our fiscal year 2024. Comparable weekly restaurant bar sales for restaurants open for all of our fiscal years 2025 and 2024 respectively, which consists of ten restaurants owned by us (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) and ten restaurants owned by affiliated limited partnerships was $583,000 for our fiscal year 2025 and $562,000 for our fiscal year 2024, an increase of 3.74%. Comparable weekly restaurant bar sales for Company-owned restaurants only (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) was $244,000 and $234,000 for our fiscal years 2025 and 2024 respectively, an increase of 4.27%. Comparable weekly restaurant bar sales affiliated limited partnership owned restaurants only was $339,000 and $328,000 for our fiscal years 2025 and 2024 respectively, an increase of 3.35%. We expect that restaurant bar sales for our fiscal year 2026 will increase due to increased restaurant traffic.
Previous wording
Package Liquor Store Sales. Revenue generated from sales of liquor and related items at package liquor stores totaled $40,497,000 for our fiscal year 2024 as compared to $35,187,000 for our fiscal year 2023, an increase of $5,310,000. This increase was primarily due to increased package liquor store traffic and the package liquor sales generated from the operation of our package liquor stores in Hollywood, Florida (Store #19P) and Miramar, Florida (Store #24), for our entire fiscal year 2024 as opposed to a part of our fiscal year 2023. The weekly average of same store package liquor store sales, which includes nine (9) Company-owned package liquor stores, (excluding Store #19P which reopened during the first quarter of fiscal year 2023, and Store #24 which opened for business during the second quarter of our fiscal year 2023), was $674,000 and $631,000 for our fiscal years 2024 and 2023 respectively, an increase of 6.81%. We expect that package liquor store sales for our fiscal year 2025 will increase due to increased package liquor store traffic.
Current wording
Package Liquor Store Sales. Revenue generated from sales of liquor and related items at package liquor stores totaled $46,988,000 for our fiscal year 2025 as compared to $40,497,000 for our fiscal year 2024, an increase of $6,491,000. This increase was primarily due to increased package liquor store traffic. The weekly average of same store package liquor store sales, which includes eleven (11) Company-owned package liquor stores was $904,000 and $779,000 for our fiscal years 2025 and 2024 respectively, an increase of 16.05%. We expect that package liquor store sales for our fiscal year 2026 will increase due to increased package liquor store traffic.
Previous wording
Costs and Expenses. Costs and expenses (consisting of cost of merchandise sold, payroll and related costs, operating expenses, occupancy costs, selling, general and administrative expenses and depreciation and amortization), for our fiscal year 2024 increased $14,553,000 or 8.70% to $181,925,000 from $167,372,000 for our fiscal year 2023. The increase was primarily due to increased payroll, increased consultant fees to improve our accounting process, an expected general increase in food costs, costs and expenses incurred from the opening of our Company-owned restaurant in Hollywood Florida (Store #19R) in March 2024, the operation of our limited partnership owned restaurant in Miramar, Florida (Store #25), and our package liquor stores in Miramar, Florida (Store #24) and Hollywood, Florida (Store #19P), for our entire fiscal year 2024 as opposed to a part of our fiscal year 2023, partially offset by actions taken by management to reduce and/or control costs. We anticipate that our operating costs and expenses will continue to increase through our fiscal year 2025. Operating costs and expenses increased as a percentage of total revenue to approximately 96.60% in our fiscal year 2024 from 95.97% in our fiscal year 2023.
Current wording
Costs and Expenses. Costs and expenses (consisting of cost of merchandise sold, payroll and related costs, operating expenses, occupancy costs, selling, general and administrative expenses and depreciation and amortization) for our fiscal year 2025 increased $15,128,000 or 8.34% to $196,503,000 from $181,375,000 for our fiscal year 2024. The increase was primarily due to increased payroll, an expected general increase in food costs and overall expenses, as well as costs and expenses incurred from our Company-owned restaurant in Hollywood Florida (Store #19R) for our entire fiscal year 2025 as opposed to a part of our fiscal year 2024, partially offset by actions taken by management to reduce and/or control costs. We anticipate that our operating costs and expenses will continue to increase through our fiscal year 2026. Operating costs and expenses decreased as a percentage of total revenue to approximately 95.74% in our fiscal year 2025 from 96.88% in our fiscal year 2024.
Previous wording
Restaurant Food and Bar Sales. Gross profit for food and bar sales for our fiscal year 2024 increased to $94,943,000 from $90,750,000 for our fiscal year 2023. Gross profit margin for the restaurant food and bar sales decreased during our fiscal year 2024 when compared to our fiscal year 2023 due to higher food costs partially offset by, among other things, the Recent Price Increases. Our gross profit margin for restaurant food and bar sales (calculated as gross profit reflected as a percentage of restaurant food and bar sales), was 65.57% for our fiscal year 2024 and 66.61% for our fiscal year 2023.
Current wording
Restaurant Food and Bar Sales. Gross profit for food and bar sales for our fiscal year 2025 increased to $104,091,000 from $94,943,000 for our fiscal year 2024. Gross profit margin for the restaurant food and bar sales increased during our fiscal year 2025 when compared to our fiscal year 2024 due to the Recent Price Increases, partially offset by higher food costs. Our gross profit margin for restaurant food and bar sales (calculated as gross profit reflected as a percentage of restaurant food and bar sales), was 66.61% for our fiscal year 2025 and 65.57% for our fiscal year 2024.
Previous wording
Package Store Sales. Gross profit for package store sales for our fiscal year 2024 increased to $10,369,000 from $9,377,000 for our fiscal year 2023. Our gross profit margin, (calculated as gross profit reflected as a percentage of package liquor store sales), for package store sales was 25.60% for our fiscal year 2024 and 26.65% for our fiscal year 2023. We anticipate that the gross profit margin for package liquor store merchandise will decrease for our fiscal year 2025 due to higher costs and a reduction in pricing of certain package store merchandise to be more competitive.
Current wording
Package Store Sales. Gross profit for package store sales for our fiscal year 2025 increased to $11,803,000 from $10,369,000 for our fiscal year 2024. Our gross profit margin, (calculated as gross profit reflected as a percentage of package liquor store sales), for package store sales was 25.12% for our fiscal year 2025 and 26.60% for our fiscal year 2024. We anticipate that the gross profit margin for package liquor store merchandise will decrease for our fiscal year 2026 due to higher costs and a reduction in pricing of certain package store merchandise to remain competitive.
Previous wording
Payroll and Related Costs. Payroll and related costs for our fiscal year 2024 increased $2,742,000 or 4.84% to $59,349,000 from $56,607,000 for our fiscal year 2023. Payroll and related costs for our fiscal year 2024 were higher due primarily to the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) in March 2024, the operation of our limited partnership owned restaurant in Miramar, Florida (Store #25) and our package liquor stores in Miramar, Florida (Store #24) and Hollywood, Florida (Store #19P) for our entire fiscal year 2024 as opposed to a part of our fiscal year 2023 and the increase to the Florida minimum wage. Payroll and related costs as a percentage of total revenue was 31.51% for our fiscal year 2024 and 32.46% of total revenue for our fiscal year 2023.
Current wording
Payroll and Related Costs. Payroll and related costs for our fiscal year 2025 increased $4,352,000 or 7.33% to $63,701,000 from $59,349,000 for our fiscal year 2024. Payroll and related costs for our fiscal year 2025 are higher due primarily to the operation of our Company-owned restaurant in Hollywood, Florida (Store #19R) for our full fiscal year 2025 as opposed to part of our fiscal year 2024 and the increase to the Florida minimum wage. Payroll and related costs as a percentage of total revenue was 31.04% for our fiscal year 2025 and 31.70% of total revenue for our fiscal year 2024.
Previous wording
Operating Expenses. Operating expenses (including but not limited to utilities, insurance, cleaning, credit card fees, supplies, security, and other costs closely related to running restaurant and package operations) for our fiscal year 2024 increased $1,234,000 or 5.22% to $24,892,000 from $23,658,000 for our fiscal year 2023 due primarily to the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) in March 2024, the operation of our limited partnership owned restaurant in Miramar, Florida (Store #25) and our package liquor stores in Miramar, Florida (Store #24) and Hollywood, Florida (Store #19P) for our entire fiscal year 2024 as opposed to a part of our fiscal year 2023, inflation and otherwise due to increases in expenses across all categories.
Current wording
Operating Expenses. Operating expenses (including but not limited to utilities, insurance, cleaning, credit card fees, supplies, security, and other costs closely related to running restaurant and package operations) for our fiscal year 2025 increased $2,737,000 or 11.08% to $27,438,000 from $24,701,000 for our fiscal year 2024 due primarily to the operation of our Company-owned restaurant in Hollywood, Florida (Store #19R) for our full fiscal year 2025 as opposed to part of our fiscal year 2024, inflation and otherwise due to increases in expenses across all categories.
Previous wording
Occupancy Costs. Occupancy costs (consisting of percentage rent, common area maintenance, repairs, real property taxes, amortization of leasehold purchases and rent expense associated with operating lease liabilities under ASC 842) for our fiscal year 2024 increased $520,000 or 6.87% to $8,086,000 from $7,566,000 for our fiscal year 2023. The increase in occupancy costs was primarily due to an increase in real property taxes.
Current wording
Occupancy Costs. Occupancy costs (consisting of percentage rent, common area maintenance, repairs, real property taxes, amortization of leasehold purchases and rent expense associated with operating lease liabilities under ASC 842) for our fiscal year 2025 increased $116,000 or 1.50% to $7,870,000 from $7,754,000 for our fiscal year 2024.
Previous wording
Selling, General and Administrative Expenses. Selling, general and administrative expenses (consisting of general corporate expenses, including but not limited to advertising, professional costs, clerical and administrative overhead) for our fiscal year 2024 increased $658,000 or 14.05% to $5,340,000 from $4,682,000 for our fiscal year 2023 due primarily to increased consultant fees to improve our accounting process and otherwise to increases in expenses across all categories. Selling, general and administrative expenses increased as a percentage of total revenue for our fiscal year 2024 to 2.84% as compared to 2.68% for our fiscal year 2023.
Current wording
Selling, General and Administrative Expenses. Selling, general and administrative expenses (consisting of general corporate expenses, including but not limited to advertising, professional costs, clerical and administrative overhead) for our fiscal year 2025 increased $150,000 or 2.82% to $5,463,000 from $5,313,000 for our fiscal year 2024 due primarily to increased television and radio advertising costs. Selling, general and administrative expenses decreased as a percentage of total revenue for our fiscal year 2025 to 2.66% as compared to 2.84% for our fiscal year 2024.
Previous wording
***Depreciation and Amortization.***Depreciation and amortization expense for our fiscal year 2024 increased $707,000 or 19.85% to $4,268,000 from $3,561,000 for our fiscal year 2023. This increase is driven by the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) in March 2024, the operation of our limited partnership owned restaurant in Miramar, Florida (Store #25) and our package liquor stores in Miramar, Florida (Store #24) and Hollywood, Florida (Store #19P) for our entire fiscal year 2024 as opposed to a part of our fiscal year 2023. Depreciation and amortization expense increased as a percentage of total revenue for our fiscal year 2024 to 2.27% as compared to 2.04% for our fiscal year 2023.
Current wording
***Depreciation and Amortization.***Depreciation and amortization expense for our fiscal year 2025 increased $404,000 or 9.47% to $4,672,000 from $4,268,000 for our fiscal year 2024. This increase is driven by the operation of our Company-owned restaurant in Hollywood, Florida (Store #19R) for the full fiscal year 2025 as opposed to part of the fiscal year 2024. Depreciation and amortization remained flat as a percentage of total revenue at 2.28% for each of our fiscal years 2025 and 2024.
Previous wording
Interest Expense, Net. Interest expense, net, for our fiscal year 2024 decreased $48,000 to $1,019,000 from $1,067,000 for our fiscal year 2023.
Current wording
Interest Expense, Net. Interest expense, net, for our fiscal year 2025 decreased $62,000 to $957,000 from $1,019,000 for our fiscal year 2024.
Previous wording
***Income Taxes.***Income tax for our fiscal year 2024 was an expense of $286,000, as compared to an expense of $649,000 for our fiscal year 2023. Income taxes as a percentage of income before provision for our fiscal year 2024 is 5.12% as compared to 10.70% in our fiscal year 2023.
Current wording
***Income Taxes.***Income tax for our fiscal year 2025 was an expense of $622,000, as compared to an expense of $286,000 for our fiscal year 2024. Income taxes as a percentage of income before provision for income taxes for our fiscal year 2025 is 7.2% as compared to 5.12% in our fiscal year 2024.
Previous wording
***Net Income.***Net income for our fiscal year 2024 decreased $116,000 or 2.14% to $5,300,000 from $5,416,000 for our fiscal year 2023 due primarily to higher food costs and overall increased expenses, including but not limited to, increased consultant fees to improve our accounting process. As a percentage of total revenue, net income for our fiscal year 2024 is 2.81%, as compared to 3.11% for our fiscal year 2023.
Current wording
***Net Income.***Net income for our fiscal year 2025 increased $2,717,000 or 51.26% to $8,017,000 from $5,300,000 for our fiscal year 2024 due primarily to the Recent Price Increases and the operation of our Company-owned restaurant in Hollywood, Florida (Store #19R) for our full fiscal year 2025 as opposed to part of our fiscal year 2024. As a percentage of total revenue, net income for our fiscal year 2025 is 3.91%, as compared to 2.83% for our fiscal year 2024.
Previous wording
***Net Income Attributable to Flanigan’s Enterprise, Inc.’s Stockholders.***Net income attributable to stockholders for our fiscal year 2024 decreased $643,000 or 16.08% to $3,356,000 from $3,999,000 for our fiscal year 2023 due primarily to higher food costs and overall increased expenses, including but not limited to, increased consultant fees to improve our accounting process and a higher portion of our net income attributable to noncontrolling interests (specifically the operation of our Miramar location for our entire fiscal year 2024 as opposed to a part of our fiscal year 2023). As a percentage of revenue, net income attributable to stockholders for our fiscal year 2024 is 1.78%, as compared to 2.29% for our fiscal year 2023.
Current wording
***Net Income Attributable to Flanigan’s Enterprise, Inc.’s Stockholders.***Net income attributable to stockholders for our fiscal year 2025 increased $1,677,000 or 49.97% to $5,033,000 from $3,356,000 for our fiscal year 2024 due primarily to the Recent Price Increases and the operation of our Company-owned restaurant in Hollywood, Florida (Store #19R) for our full fiscal year 2025 as opposed to part of our fiscal year 2024. As a percentage of revenue, net income attributable to stockholders for our fiscal year 2025 is 2.45%, as compared to 1.79% for our fiscal year 2024.
Previous wording
As new limited partnership restaurants open, our income from operations will be adversely affected due to our obligation to advance pre-opening costs, including but not limited to pre-opening rent for the new limited partnership locations. During our fiscal year 2024 we did not open any new limited partnership restaurants, nor did we have any in the development stage. During our fiscal year 2023, we opened one new limited partnership restaurant location in Miramar, Florida as a “Flanigan’s”.
Current wording
As new limited partnership restaurants open, our income from operations will be adversely affected due to our obligation to advance pre-opening costs, including but not limited to pre-opening rent for the new limited partnership locations. During our fiscal year 2025 we did not open any new limited partnership restaurants, however, we do have one in the development stage in Cutler Bay, Florida.
Previous wording
During our fiscal year 2024, we increased menu prices for our bar offerings (effective August 25, 2024) to target an increase to our bar revenues of approximately 5.63% annually to offset higher food and liquor costs and higher overall expenses. During our fiscal year 2023, we increased menu prices for our food offerings (effective March 26, 2023) to target an aggregate increase to our food revenues of approximately 2.06% annually and we increased menu prices for our bar offerings (effective March 20, 2023) to target an increase to our bar revenues of approximately 5.65% annually to offset higher food and liquor costs and higher overall expenses. Prior to these increases, we previously raised menu prices in the first quarter of our fiscal year 2022. Subsequent to the end of our fiscal year 2024, we increased our menu prices for our bar offerings (effective December 4, 2024) to target an increase to our bar revenues of approximately 4.90% annually and we increased our menu prices for our food offerings (effective November 17, 2024) to target an increase to our food revenues of approximately 4.14% annually to offset higher food and liquor costs and higher overall expenses.
Current wording
During the second quarter of our fiscal year, 2025, we increased our menu prices for our bar offerings (effective February 23, 2025) to target an increase to our bar revenues of approximately 0.84% annually to offset higher food and liquor costs and higher overall expenses. During the first quarter of our fiscal year 2025, we increased our menu prices for our bar offerings (effective December 4, 2024) to target an increase to our bar revenues of approximately 4.90% annually and we increased our menu prices for our food offerings (effective November 17, 2024) to target an increase to our food revenues of approximately 4.14% annually to offset higher food and liquor costs and higher overall expenses. During our fiscal year 2024, we increased menu prices for our bar offerings (effective August 25, 2024) to target an increase to our bar revenues of approximately 5.63% annually to offset higher food and liquor costs and higher overall expenses. Prior to these increases we previously raised menu prices in the second quarter of our fiscal year 2023.
Previous wording
We fund our operations through cash from operations and borrowings from third parties. As of September 28, 2024, we had cash and cash equivalents of approximately $21,402,000, a decrease of $4,130,000 from our cash balance of $25,532,000 as of September 30, 2023. The decrease is primarily due to the completion of the construction of our Store #19R ($2,106,000).
Current wording
We fund our operations through cash from operations and borrowings from third parties. As of September 27, 2025, we had cash and cash equivalents of approximately $20,094,000, a decrease of $1,308,000 from our cash balance of $21,402,000 as of September 28, 2024. The decrease is primarily due to our purchase of the Cutler Bay property ($2,200,000).
Previous wording
We believe that our current cash availability from our cash on hand, positive cash flow from operations and borrowed funds will be sufficient to fund our operations and planned capital expenditures for at least the next twelve months.
Current wording
We believe that our current cash availability from our cash on hand and positive cash flow from operations will be sufficient to fund our operations and planned capital expenditures for at least the next twelve months.
Previous wording
In addition to using cash for our operating expenses, we use cash generated from operations and borrowings to fund the development and construction of new restaurants and to fund capitalized property improvements for our existing restaurants. During the fiscal year 2024, we acquired property and equipment and construction in progress of $6,047,000, (of which $289,000 was purchase deposits transferred to property and equipment, $715,000 was purchase deposits transferred to CIP, and $4,000 was property and equipment in accounts payable), including $528,000 for renovations to three (3) Company-owned restaurants and $135,000 for one (1) limited partnership owned restaurant. During the fiscal year 2023, we acquired property and equipment and construction in progress of $20,574,000, (including non-cash items which include $2,390,000 of purchase deposits transferred to property and equipment and $545,000 of purchase deposits transferred to construction in progress and $931,000 of construction in progress in accounts payable) including $367,000 for renovations to three (3) existing limited partnership owned restaurants and $378,000 for renovations to three (3) Company-owned restaurants.
Current wording
In addition to using cash for our operating expenses, we use cash generated from operations and borrowings to fund the development and construction of new restaurants and to fund capitalized property improvements for our existing restaurants. During the fiscal year 2025, we acquired property and equipment of $5,844,000, (of which $2.2 million was for the purchase of the Cutler Bay Property and $11,000 was purchase deposits transferred to property and equipment), including $566,000 for renovations to four (4) Company-owned location and $137,000 for renovations to one (1) limited partnership owned restaurant. During the fiscal year 2024, we acquired property and equipment and construction in progress of $6,047,000, (of which $289,000 was purchase deposits transferred to property and equipment, $715,000 was purchase deposits transferred to CIP, and $4,000 was property and equipment in accounts payable), including $528,000 for renovations to three (3) Company-owned restaurants and $135,000 for one (1) limited partnership owned restaurant.
Previous wording
As of September 28, 2024, we had long term debt (including the current portion) of $21,912,000, as compared to $23,128,000 as of September 30, 2023.
Current wording
As of September 27, 2025, we had long term debt (including the current portion) of $20,618,000, as compared to $21,912,000 as of September 28, 2024.
Previous wording
We repaid long term debt, including auto loans and mortgages in the amount of $1,251,000 and $2,299,000 in our fiscal years 2024 and 2023, respectively.
Current wording
We repaid long term debt, including auto loans and mortgages in the amount of $1,330,000 and $1,251,000 in our fiscal years 2025 and 2024, respectively.
Previous wording
In order to fix the cost and ensure adequate supply of baby back ribs for our restaurants for calendar year 2025, we entered into a purchase agreement with a new rib supplier, whereby we agreed to purchase approximately $7.8 million of “2.5 & Down Baby Back Ribs” (weight range in which baby back ribs are sold) during calendar year 2025, at a prescribed cost, which we believe is competitive. For calendar year 2024, we entered into a purchase agreement with our current rib supplier, whereby we agreed to purchase approximately $7.0 million of “2.25 & Down Baby Back Ribs” during calendar year 2024, at a prescribed cost, which we also believe is competitive. The increase in our cost of baby back ribs for calendar year 2025 compared to calendar year 2024 is due to our purchase of larger sized baby back ribs and the purchase of baby back ribs for Store #19R, Hollywood, Florida for the entire calendar year, offset by a decrease in market price.
Current wording
In order to fix the cost and ensure adequate supply of baby back ribs for our restaurants for calendar year 2026, we entered into a purchase agreement with our existing rib supplier, whereby we agreed to purchase approximately $9.2 million of “2.5 & Down Baby Back Ribs” (weight range in which baby back ribs are sold) during calendar year 2026, at a prescribed cost, which we believe is competitive. For calendar year 2025, we entered into a purchase agreement with a new rib supplier, whereby we agreed to purchase approximately $7.8 million of “2.5 & Down Baby Back Ribs” during calendar year 2025, at a prescribed cost, which we also believe is competitive. The increase in our cost of baby back ribs for calendar year 2026 compared to calendar year 2025 is due to an increase in market price and quantity ordered.
Previous wording
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU will be effective for the Company in our fiscal year 2026, with the guidance applied either prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact the adoption of the new accounting guidance will have on our tax disclosures.
Current wording
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU will be effective for the Company for our fiscal year 2026 annual reporting period, with the guidance applied either prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact that the adoption of this ASU will have on our tax disclosures.
Previous wording
Under Accounting Standards Codification Topic 842, Leases (“ASC 842”), lease arrangements must be presented on the lessee’s balance sheet by recording a right-of-use asset and a lease liability equal to the present value of the related future minimum lease payments. We adopted the standard in the first quarter of our fiscal 2020, using the modified retrospective approach. Estimates associated with leases include lease classification, discount rate and lease term.
Current wording
Under Accounting Standards Codification Topic 842, Leases (“ASC 842”), lease arrangements must be presented on the lessee’s balance sheet by recording a right-of-use asset and a lease liability equal to the present value of the related future minimum lease payments. We currently lease a portion of our restaurant and package locations under various lease agreements. Determining the probable term for each lease requires judgment by management and can impact the classification and accounting for a lease as financing or operating, as well as the period for straight-lined rent expense and the depreciation period for lease hold improvements. Generally, the lease term is a minimum of the noncancelable period of the lease or the lease term inclusive of reasonably certain renewal periods up to a term of 15 years. If the estimate of our reasonably certain lease term was changed, our depreciation and rent expense could differ materially. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates (IBR) corresponding to the reasonably certain lease term. The IBR is an estimate based on several factors, including financial market conditions, comparable company and credit analysis as well as management judgment. If the IBR was changed, our operating lease right-of-use assets and lease liabilities could differ materially.