Flanigan's Enterprises Reports $205.2M Revenue for FY 2025

• Significant Earnings Growth: Flanigan's Enterprises reported earnings of $5.03 million, translating to $2.71 per share, a substantial increase from last year's $3.36 million and $1.81 per share, indicating a marked improvement in the company's profitability.
• Revenue Continues to Rise: The company's total revenue grew by 9.6% year-over-year, increasing from $187.22 million to $205.25 million, reflecting strong market demand and successful business expansion, which further solidifies its position in the industry.
• Robust Financial Performance: Through effective cost control and market strategies, Flanigan's Enterprises not only enhanced its profitability but also strengthened its financial health, laying a solid foundation for future investments and expansion.
• Optimistic Market Outlook: With both revenue and earnings growth, the company is likely to continue attracting investor interest, driving stock price appreciation and enhancing its competitive edge in the market.

• Significant Revenue Growth: Flanigan's Enterprises reported total revenues of $205.2 million for the 52 weeks ended September 27, 2025, reflecting a 9.1% increase from $187.2 million in 2024, indicating strong performance in both dining and retail sectors.
• Restaurant Sales Surge: Restaurant food and bar sales reached $156.3 million, an 8.0% increase from the previous year, demonstrating the company's success in attracting customers and enhancing spending, which further solidifies its market position.
• Retail Business Expansion: Package store sales rose to $46.99 million, up 15.9% from $40.5 million in 2024, reflecting increased consumer demand for retail liquor products, thereby enhancing the company's overall profitability.
• Net Income Growth: The company achieved a net income of $5.0 million, a 49.9% increase from last year, with earnings per share rising from $1.81 to $2.71, showcasing significant improvements in cost control and operational efficiency.

• Revenue Growth: Flanigan's Enterprises reported total revenues of $205.25 million for the 52 weeks ended September 27, 2025, reflecting a 9.1% increase from $187.22 million in 2024, indicating a robust recovery and heightened market demand in the restaurant and retail sectors.
• Restaurant Sales Increase: Restaurant food and bar sales reached $156.27 million, up 8.0% from $144.81 million in 2024, demonstrating sustained consumer preference for the Flanigan's brand and an expansion in market share.
• Retail Business Growth: Package store sales surged by 15.9%, increasing from $40.50 million to $46.99 million, highlighting the company's strengthened competitiveness in the retail liquor market, which further propelled overall revenue growth.
• Net Income Rise: Net income rose significantly from $3.36 million to $5.03 million, a 49.9% increase, which not only boosted earnings per share to $2.71 but also showcased a marked improvement in the company's profitability, enhancing investor confidence.

• Stock Performance: Ark Restaurants Corp. (ARKR) has seen a significant decline of 31.8% in its stock over the past six months, underperforming both the industry and broader market indices, with ongoing legal issues and mixed performance across its restaurant portfolio contributing to this downturn.

• Financial Results: The company reported weaker fiscal fourth-quarter results, citing lower traffic at key locations and disruptions from litigation at Bryant Park, which have negatively impacted revenue and event bookings, despite some operational improvements in Las Vegas and select New York restaurants.

• Operational Challenges: Elevated legal costs and inflation in labor and operating expenses continue to pressure Ark Restaurants' profitability, with management acknowledging the need for improved efficiency and pricing strategies to offset these challenges.

• Future Outlook: While there is potential for long-term growth tied to the Meadowlands Racetrack investment, the current mixed operating environment and ongoing legal uncertainties suggest that the stock may be more suitable for risk-tolerant investors, with existing shareholders advised to monitor developments closely.

• Zacks Research Daily Highlights: The latest Zacks Research Daily features reports on 16 major stocks, including Alibaba, Bank of America, and Verizon, along with unique insights on micro-cap stock Flanigan’s Enterprises.

• Market Insights and Economic Data: The 'Ahead of Wall Street' article provides investors with insights on economic releases and their potential impact on market action, while recent economic data shows surprisingly positive trends in jobless claims and GDP.

Nathan's Famous, Inc. Stock Performance

• Recent Stock Gains: Nathan's Famous, Inc. (NATH) has seen a modest increase of 0.4% in its stock price over the past three months, contrasting with a 2.8% decline in the industry. However, it lagged behind the S&P 500 and sector gains of 6.5% and 9.6%, respectively.
• Quarterly Results: The company reported strong revenue growth in its first-quarter fiscal 2026 results, driven by its Branded Product Program, although bottom-line results were disappointing.

Business Segments and Growth Drivers

• Branded Product Program: This segment showed significant sales growth due to higher average selling prices and volumes, despite rising beef costs. It highlights Nathan's ability to expand its brand beyond company-owned restaurants.
• Franchise Development: The company opened eight new franchised locations, contributing to increased sales and royalties. This expansion diversifies revenue streams and reduces reliance on company-owned stores, which are more susceptible to local market fluctuations.

Financial Stability and Challenges

• Operating Structure: Nathan's Famous maintains a stable operating structure with consistent EBITDA performance, allowing it to manage cost pressures effectively while investing in growth areas.
• Concentration Risks: The company faces risks due to its reliance on Smithfield Foods for supply and licensing revenues, as well as ongoing inflationary pressures and rising labor costs that could impact margins.

Valuation and Investment Outlook

• Valuation Metrics: Nathan's trailing 12-month EV/Sales ratio stands at 2.9X, lower than the industry average of 4.6X but higher than its five-year median of 2.7X. This suggests potential for growth if it aligns more closely with market performance.
• Investor Recommendations: Current investors are advised to hold their shares, while new investors may find the stock appealing due to its growth potential and favorable valuation compared to peers.

Market Context

• Peer Comparison: Nathan's stock has outperformed Ark Restaurants Corp. (down 35.1%) but underperformed Flanigan's Enterprises, which gained 3.3% in the same period. This context highlights Nathan's relative strength in a challenging restaurant industry.