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What changed in FLANIGANS ENTERPRISES INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of FLANIGANS ENTERPRISES INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+232 added−216 removedSource: 10-K (2025-12-19) vs 10-K (2024-12-27)

Top changes in FLANIGANS ENTERPRISES INC's 2025 10-K

232 paragraphs added · 216 removed · 173 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

62 edited+4 added−5 removed72 unchanged
Biggest changeWe also collect and donate school supplies annually. ● Reclaimed Wood – All of our locations use reclaimed wood on interior walls. We also believe our sustainability programs and initiatives like restaurant-based recycling and replacing our off-premise packaging with materials that reduce the use of plastics and improve recyclability serve to foster pride in our staff.
Biggest changeWe also believe our sustainability programs and initiatives like restaurant-based recycling and replacing our off-premise packaging with materials that reduce the use of plastics and improve recyclability serve to foster pride in our staff. Executive Officers Name Positions and Offices Currently Held Age Office or Position Held Since James G.
While we anticipate purchasing all of our rib supply from this new vendor, we believe there are several other alternative vendors available, if needed. 6 Information Technology Our restaurant and package liquor store point-of-sale and back-office systems provide information regarding daily sales, cash receipts, inventory, food and beverage costs, labor costs and other controllable operating expenses.
While we anticipate purchasing all of our rib supply from this vendor, we believe there are several other alternative vendors available, if needed. 6 Information Technology Our restaurant and package liquor store point-of-sale and back-office systems provide information regarding daily sales, cash receipts, inventory, food and beverage costs, labor costs and other controllable operating expenses.
West Miami, Florida We are the sole general partner and a 27% limited partner in this limited partnership which has owned and operated a restaurant in West Miami, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since October 11, 2001. 32.7% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
West Miami, Florida We are the sole general partner and a 32% limited partner in this limited partnership which has owned and operated a restaurant in West Miami, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since October 11, 2001. 32.7% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
Pembroke Pines, Florida We are the sole general partner and a 24% limited partner in this limited partnership which has owned and operated a restaurant in Pembroke Pines, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since October 29, 2007. 23.0% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
Pembroke Pines, Florida We are the sole general partner and a 29% limited partner in this limited partnership which has owned and operated a restaurant in Pembroke Pines, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since October 29, 2007. 23.0% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
Davie, Florida We are the sole general partner and a 49% limited partner in this limited partnership which has owned and operated a restaurant in Davie, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since July 28, 2008. 12.0% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
Davie, Florida We are the sole general partner and a 54% limited partner in this limited partnership which has owned and operated a restaurant in Davie, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since July 28, 2008. 12.0% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
Miami, Florida We are the sole general partner and a 5% limited partner in this limited partnership which has owned and operated a restaurant in Miami, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since December 27, 2012. 26.3% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
Miami, Florida We are the sole general partner and a 11% limited partner in this limited partnership which has owned and operated a restaurant in Miami, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since December 27, 2012. 26.3% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
We are also subject to the Americans with Disability Act of 1990 (ADA), which, among other things, may require certain renovations to our restaurants to meet federally mandated requirements. The cost of any such renovations is not expected to materially affect us. A significant number of our hourly restaurant staff members receive income from gratuities.
We are also subject to the Americans with Disability Act of 1990 (“ADA”), which, among other things, may require certain renovations to our restaurants to meet federally mandated requirements. The cost of any such renovations is not expected to materially affect us. A significant number of our hourly restaurant staff members receive income from gratuities.
We believe that we have a competitive position in our market because of widespread consumer recognition of the “Flanigan’s Seafood Bar and Grill" and “Flanigan’s” names. We have many well-established competitors, both nationally and locally owned, with substantially greater financial resources than we do. Their resources and market presence may provide advantages in marketing, purchasing and negotiating leases.
We believe that we have a competitive position in our market because of widespread consumer recognition of the “Flanigan’s Seafood Bar and Grill” and “Flanigan’s” names. We have many well-established competitors, both nationally and locally owned, with substantially greater financial resources than we do. Their resources and market presence may provide advantages in marketing, purchasing and negotiating leases.
Many of our locations participate voluntarily in a Tip Reporting Alternative Commitment (“TRAC”) agreement with the Internal Revenue Service (“IRS”). By complying with the educational and other requirements of the TRAC agreement, we reduce the likelihood of potential employer-only Federal Insurance Contributions Act (FICA tax assessments for unreported or underreported tips.
Many of our locations participate voluntarily in a Tip Reporting Alternative Commitment (“TRAC”) agreement with the Internal Revenue Service (“IRS”). By complying with the educational and other requirements of the TRAC agreement, we reduce the likelihood of potential employer-only Federal Insurance Contributions Act (“FICA”) tax assessments for unreported or underreported tips.
During our fiscal years 2024 and 2023, no significant pending matters have been initiated concerning any of our licenses which might be expected to result in a revocation of a liquor license or other significant actions against us. We are subject to “dram-shop” statutes due to our restaurant operations.
During our fiscal years 2025 and 2024, no significant pending matters have been initiated concerning any of our licenses which might be expected to result in a revocation of a liquor license or other significant actions against us. We are subject to “dram-shop” statutes due to our restaurant operations.
Food is delivered by the supplier directly to each restaurant. Orders are placed several times a week to ensure product freshness. Food inventory is primarily paid for monthly. We purchase food and other commodities for use in our operations based on market prices established with our suppliers.
Food is delivered by the supplier directly to each restaurant. Orders are placed several times a week to ensure product freshness. Food inventory is primarily paid for weekly. We purchase food and other commodities for use in our operations based on market prices established with our suppliers.
Property Insurance; Windstorm Insurance For the policy year beginning December 30, 2023, our property insurance is a one (1) year policy with an unaffiliated third party insurance carrier, including coverage for properties leased by us and our consolidated limited partnerships, and provides for full insurance coverage for property losses, including those caused by windstorms, such as a hurricane.
Property Insurance; Windstorm Insurance For the policy year beginning December 30, 2024, our property insurance is a one (1) year policy with an unaffiliated third party insurance carrier, including coverage for properties leased by us and our consolidated limited partnerships, and provides for full insurance coverage for property losses, including those caused by windstorms, such as a hurricane.
We arrange for independent third parties, or "shoppers", to inspect each unit in order to evaluate the unit's operations, including the handling of cash transactions. Purchasing and Inventory The package liquor business requires a constant substantial capital investment in inventory at the stores.
We arrange for independent third parties, or “shoppers”, to inspect each unit in order to evaluate the unit’s operations, including the handling of cash transactions. Purchasing and Inventory The package liquor business requires a constant substantial capital investment in inventory at the stores.
Franchise royalties we receive are recognized as revenue when sales are made by franchisees. 3 Restaurants Owned by Affiliated Limited Partnerships We have invested along with others, (some of whom are or are affiliated with our officers and directors), in eleven limited partnerships which currently own and operate eleven South Florida based restaurants under our service mark “Flanigan’s Seafood Bar and Grill”.
Franchise royalties we receive are recognized as revenue when sales are made by franchisees. 3 Restaurants Owned by Affiliated Limited Partnerships We have invested along with others (some of whom are affiliated with our officers and directors) in eleven limited partnerships which currently own and operate eleven South Florida based restaurants under our service marks “Flanigan’s Seafood Bar and Grill” or “Flanigan’s”.
The federal court retained jurisdiction to enforce the consent decree. We have acquired registered Federal trademarks on the principal register for our “Big Daddy’s Liquors”, "Flanigan's" and “Flanigan’s Seafood Bar and Grill” service marks.
The federal court retained jurisdiction to enforce the consent decree. We have acquired registered Federal trademarks on the principal register for our “Big Daddy’s Liquors”, “Flanigan’s” and “Flanigan’s Seafood Bar and Grill” service marks.
The consent decree and the settlement agreement allow us to continue to use and to expand our use of the "Big Daddy's” service mark in connection with our package liquor sales in Florida, while restricting future liquor sales in Florida under the "Big Daddy's" name by the other party who has a federally registered service mark for "Big Daddy's" use in the restaurant business.
The consent decree and the settlement agreement allow us to continue to use and to expand our use of the “Big Daddy’s” service mark in connection with our package liquor sales in Florida, while restricting future liquor sales in Florida under the “Big Daddy’s” name by the other party who has a federally registered service mark for “Big Daddy’s” use in the restaurant business.
Alcoholic beverage control regulations require each of our restaurants and package liquor stores to obtain a license to sell alcoholic beverages from a state authority and in certain locations, county and municipal authorities. In Florida, where all of our restaurants and package liquor stores are located, most of our liquor licenses are issued on a "quota license" basis.
Alcoholic beverage control regulations require each of our restaurants and package liquor stores to obtain a license to sell alcoholic beverages from a state authority and in certain locations, county and municipal authorities. In Florida, where all of our restaurants and package liquor stores are located, most of our liquor licenses are issued on a “quota license” basis.
The table below provides information concerning the type (i.e. restaurant, sports bar, package liquor store or combination restaurant/package liquor store) and ownership of the units (i.e. whether (i) we own 100% of the unit; (ii) the unit is owned by a limited partnership of which we are the sole general partner and/or have invested in; or (iii) the unit is franchised by us), as of September 28, 2024 and as compared to September 30, 2023.
The table below provides information concerning the type (i.e. restaurant, sports bar, package liquor store or combination restaurant/package liquor store) and ownership of the units (i.e. whether (i) we own 100% of the unit; (ii) the unit is owned by a limited partnership of which we are the sole general partner and/or have invested in; or (iii) the unit is franchised by us), as of September 27, 2025 and as compared to September 28, 2024.
As of September 28, 2024, all limited partnerships, with the exception of the limited partnership which owns the restaurant in Sunrise, Florida (Store #85), which opened for business in March 2022 and the limited partnership which owns the restaurant in Miramar, Florida (Store #25), which opened for business in April 2023, have returned all cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by the limited partnership.
As of September 27, 2025, all limited partnerships, with the exception of the limited partnership which owns the restaurant in Sunrise, Florida (Store #85), which opened for business in March 2022 and the limited partnership which owns the restaurant in Miramar, Florida (Store #25), which opened for business in April 2023, have returned all cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by the limited partnership.
We provide sales training to our package liquor store personnel. The stores are open for business seven days a week from 9:00-10:00 a.m. to 10:00-11:00 p.m., depending upon demand and local law. Most of our units have "night windows" with extended evening hours. Company-Owned Package Liquor Stores .
We provide sales training to our package liquor store personnel. The stores are open for business seven days a week from 9:00-10:00 a.m. to 10:00-11:00 p.m., depending upon demand and local law. Most of our units have “night windows” with extended evening hours. Company-Owned Package Liquor Stores .
During our fiscal years ended September 28, 2024 and September 30, 2023, the Board of Directors approved discretionary matching contributions totaling $74,000 and $70,000, respectively. 9 General Liability Insurance For the policy year beginning December 30, 2023, we have general liability insurance which incorporates a $50,000 self-insured retention per occurrence for us and a $10,000 self-insured retention per occurrence for the limited partnerships.
During our fiscal years ended September 27, 2025 and September 28, 2024, the Board of Directors approved discretionary matching contributions totaling $87,000 and $74,000, respectively. 9 General Liability Insurance For the policy year beginning December 30, 2024, we have general liability insurance which incorporates a $50,000 self-insured retention per occurrence for us and a $10,000 self-insured retention per occurrence for the limited partnerships.
As of our fiscal year ended September 28, 2024, we own and operate eleven package liquor stores in the South Florida area under the name “Big Daddy’s Liquors” or “Big Daddy’s Wine & Liquors”, two of which are jointly operated with restaurants we own. Franchised Package Liquor Stores .
As of our fiscal year ended September 27, 2025, we own and operate eleven package liquor stores in the South Florida area under the name “Big Daddy’s Liquors” or “Big Daddy’s Wine & Liquors”, two of which are jointly operated with restaurants we own. Franchised Package Liquor Stores .
Fort Lauderdale, Florida A corporation owned by one of our board members acts as sole general partner of a limited partnership which has owned and operated a restaurant in Fort Lauderdale, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since April 1, 1997.
Fort Lauderdale, Florida A corporation, owned by a member of our Board of Directors, acts as sole general partner of a limited partnership which has owned and operated a restaurant in Fort Lauderdale, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since April 1, 1997.
Our accruals are included in the accompanying consolidated balance sheets in the caption "Accounts payable and accrued expenses". A significant unfavorable judgment or settlement against us in excess of our liability insurance coverage could have a materially adverse effect on the Company.
Our accruals are included in the accompanying consolidated balance sheets in the caption “Accounts payable and accrued expenses”. A significant unfavorable judgment or settlement against us in excess of our liability insurance coverage could have a materially adverse effect on the Company.
Money is used for disaster and hunger relief all over the world, youth outreach, and community building. ● Achievement Awards – We provide schools in Miami-Dade, Broward, and Palm Beach County with free meal coins and achievement awards throughout the year.
Money is used for disaster and hunger relief all over the world, youth outreach, and community building. ● Achievement Awards – We provide schools in Miami-Dade, Broward, and Palm Beach County with free kids’ meals and achievement awards throughout the year.
As of our fiscal year ended September 28, 2024, we own and operate eleven restaurants all under our service mark “Flanigan’s Seafood Bar and Grill” two of which are jointly operated with package liquor stores we own. Franchised Restaurants .
As of our fiscal year ended September 27, 2025, we own and operate eleven restaurants all under our service mark “Flanigan’s Seafood Bar and Grill” two of which are jointly operated with package liquor stores we own. Franchised Restaurants .
During our fiscal year 1987, we began renovating our lounges to provide full restaurant food service, and subsequently renovated and added food service to most of our lounges. Food sales currently represent approximately 79.28% and bar sales approximately 20.72% of our total restaurant sales.
During our fiscal year 1987, we began renovating our lounges to provide full restaurant food service, and subsequently renovated and added food service to most of our lounges. Food sales currently represent approximately 79.67% and bar sales approximately 20.33% of our total restaurant sales.
Kastner Chief Financial Officer, General Counsel and Secretary 71 (2) Christopher O’Neil Vice President of Package Operations 59 2016 (1) Chairman of the Board of Directors, Chief Executive Officer since 2005; President since 2002. (2) Chief Financial Officer since 2004; Secretary since 1995; and General Counsel since 1982.
Kastner Chief Financial Officer, General Counsel and Secretary 72 (2) Christopher O’Neil Vice President of Package Operations 60 2016 (1) Chairman of the Board of Directors, Chief Executive Officer since 2005; President since 2002. (2) Chief Financial Officer since 2004; Secretary since 1995; and General Counsel since 1982.
Pinecrest, Florida We are the sole general partner and 45% limited partner in this limited partnership which has owned and operated a restaurant in Pinecrest, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since August 14, 2006. 19.4% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
This entity is consolidated in the accompanying consolidated financial statements. 4 Pinecrest, Florida We are the sole general partner and 50% limited partner in this limited partnership which has owned and operated a restaurant in Pinecrest, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since August 14, 2006. 19.4% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
Trade Names We operate our package liquor stores and restaurants under the service marks: "Big Daddy's Liquors", “Big Daddy’s Wine & Liquors”, “Flanigan’s Seafood Bar and Grill", and “Flanigan’s”. We operate our sports bar under the service mark: “Brendan’s Sports Pub”.
Trade Names We operate our package liquor stores and restaurants under the service marks: “Big Daddy’s Liquors”, “Big Daddy’s Wine & Liquors”, “Flanigan’s Seafood Bar and Grill”, and “Flanigan’s”. We operate our sports bar under the service mark: “Brendan’s Sports Pub”.
Our right to the use of the "Big Daddy's" service mark is set forth under a consent decree of a federal court entered into by us in settlement of federal trademark litigation.
Our right to the use of the “Big Daddy’s” service mark is set forth under a consent decree of a federal court entered into by us in settlement of federal trademark litigation.
Florida 100 CIC Investors #13, Limited Partnership Florida 45 CIC Investors #25, Limited Partnership Florida — CIC Investors #50, Limited Partnership Florida 24 CIC Investors #55, Limited Partnership Florida 49 CIC Investors #60, Limited Partnership Florida 46 CIC Investors #65, Limited Partnership Florida 28 CIC Investors #70, Limited Partnership Florida 41 CIC Investors #80, Limited Partnership Florida 27 CIC Investors #85, Limited Partnership Florida 7 CIC Investors #90, Limited Partnership Florida 5 Josar Investments, LLC Florida 100 Flanigan’s Calusa Center, LLC Florida 100 Flanigan’s Fish Company, LLC Florida 51 2 Package Liquor Store Operations Our package liquor stores emphasize high volume business by providing customers with a wide selection of brand name and private label liquors, beers and wines while offering competitive pricing by meeting the published sales prices of our competitors.
Florida 100 CIC Investors #13, Limited Partnership Florida 50 CIC Investors #25, Limited Partnership Florida — CIC Investors #50, Limited Partnership Florida 29 CIC Investors #55, Limited Partnership Florida 54 CIC Investors #60, Limited Partnership Florida 46 CIC Investors #65, Limited Partnership Florida 33 CIC Investors #70, Limited Partnership Florida 41 CIC Investors #80, Limited Partnership Florida 32 CIC Investors #85, Limited Partnership Florida 7 CIC Investors #90, Limited Partnership Florida 11 Josar Investments, LLC Florida 100 Flanigan’s Calusa Center, LLC Florida 100 Flanigan’s Fish Company, LLC Florida 51 2 Package Liquor Store Operations Our package liquor stores emphasize high volume business by providing customers with a wide selection of brand name and private label liquors, beers and wines while offering competitive pricing by meeting the published sales prices of our competitors.
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.
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.
BUSINESS General As of September 28, 2024, Flanigan’s Enterprises, Inc., a Florida corporation, together with its subsidiaries (“we”, “our”, “ours” and “us” as the context requires), (i) operates 32 units, consisting of restaurants, package liquor stores, combination restaurant/package liquor stores and a sports bar that we either own or have operational control over and partial ownership in; and (ii) franchises an additional five units, consisting of two restaurants (one of which we operate) and three combination restaurant/package liquor stores.
BUSINESS General As of September 27, 2025, Flanigan’s Enterprises, Inc., a Florida corporation, together with its subsidiaries (“we”, “our”, “ours” and “us” as the context requires), (i) operates 32 units, consisting of restaurants, package liquor stores, combination restaurant/package liquor stores and a sports bar that we either own or have operational control over and partial ownership in; and (ii) franchises an additional 5 units, consisting of 2 restaurants (one of which we operate) and 3 combination restaurant/package liquor stores.
For the policy year commencing December 30, 2024, we will pay the premiums for property, general liability, excess liability and terrorism policies in full again due to continuing higher interest rates. (See Item 2.
For the policy year commencing December 30, 2025, we will pay the premiums for general liability, auto, property, excess liability and terrorism policies in full again due to continuing higher interest rates.
The standard symbolic trademark associated with our facilities and operations is the bearded face and head of "Big Daddy" which is predominantly displayed at all "Flanigan's" facilities and all "Big Daddy's" facilities throughout the country. The face comprising this trademark is that of the Company’s founder, Joseph "Big Daddy" Flanigan, and is a federally registered trademark owned by us.
The standard symbolic trademark associated with our facilities and operations is the bearded face and head of “Big Daddy” which is predominantly displayed at all “Flanigan’s” facilities and all “Big Daddy’s” facilities throughout the country. The face comprising this trademark is that of the Company’s founder, Joseph “Big Daddy” Flanigan, and is a federally registered trademark owned by us.
For our fiscal years ended September 28, 2024 and September 30, 2023, we generated $200,000 and $400,000 respectively of revenue each fiscal year from providing these management services. Operations and Management We emphasize systematic operations and control of all package liquor stores and restaurants regardless of whether we own, franchise or manage the unit.
For the fiscal years ended September 27, 2025 and September 28, 2024, we generated $200,000 of revenue in each respective fiscal year from providing these management services. Operations and Management We emphasize systematic operations and control of all package liquor stores and restaurants regardless of whether we own, franchise or manage the unit.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership. This entity is consolidated in the accompanying consolidated financial statements.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership. This entity is consolidated in the accompanying consolidated financial statements.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership. This entity is consolidated in the accompanying consolidated financial statements.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership. This entity is consolidated in the accompanying consolidated financial statements.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership. This entity is consolidated in the accompanying consolidated financial statements.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership. This entity is consolidated in the accompanying consolidated financial statements.
By 1970, we had established a chain of "Big Daddy's" lounges and package liquor stores between Vero Beach and Homestead, Florida. From 1970 to 1979, we expanded our package liquor store and lounge operations throughout Florida and opened clubs in five other "Sun Belt" states.
By 1970, we had established a chain of “Big Daddy’s” lounges and package liquor stores between Vero Beach and Homestead, Florida. From 1970 to 1979, we expanded our package liquor store and lounge operations throughout Florida and opened clubs in five other “Sun Belt” states.
Employee Engagement Listening to our staff members is an essential part of building an engaged workforce, and we provide avenues for staff to share their ideas and concerns. As of our fiscal year end 2024, we employed 1,990 persons, of which 669 were full-time and 1,321 were part-time.
Employee Engagement Listening to our staff members is an essential part of building an engaged workforce, and we provide avenues for staff to share their ideas and concerns. As of our fiscal year end 2025, we employed 2,033 persons, of which 773 were full-time and 1,260 were part-time.
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.
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.
Of these, 57 were employed at our corporate offices in administrative capacities and 12 were employed in maintenance. Of the remaining employees, 74 were employed in our package liquor stores and 1,847 in our restaurants. None of our employees are represented by collective bargaining organizations.
Of these, 58 were employed at our corporate offices in administrative capacities and 13 were employed in maintenance. Of the remaining employees, 76 were employed in our package liquor stores and 1,886 in our restaurants. None of our employees are represented by collective bargaining organizations.
Subsequent Events for a discussion of property insurance for the period commencing December 30, 2024.) Insurance Premiums Due to continuing higher interest rates, for the policy year commencing December 30, 2023 we paid the premiums for property, general liability, excess liability and terrorism policies in full with premiums totaling approximately $3.92 million which includes coverage for our franchises (of approximately $850,000), which are not included in our consolidated financial statements.
Insurance Premiums Due to continuing higher interest rates, for the policy year commencing December 30, 2024 we paid the premiums for general liability, auto, property, excess liability and terrorism policies totaling approximately $4.01 million, which includes coverage for our franchises (of approximately $911,000), which are not included in our consolidated financial statements.
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.
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.
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership. 4 Wellington, Florida We are the sole general partner and a 28% limited partner in this limited partnership which has owned and operated a restaurant in Wellington, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since May 27, 2005. 21.9% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
Wellington, Florida We are the sole general partner and a 33% limited partner in this limited partnership which has owned and operated a restaurant in Wellington, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since May 27, 2005. 21.9% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
For property losses caused by windstorm, the property insurance has a fixed deductible of $100,000, plus 5% of all insured losses, per occurrence. For all other property losses, the property insurance has deductibles of $10,000 per location, per occurrence. We secured property insurance, including windstorm coverage, to be effective as of December 30, 2024. (See Item 2.
For property losses caused by windstorm, the property insurance has a fixed deductible of $100,000, plus 5% of all insured losses, per occurrence. For all other property losses, the property insurance has deductibles of $10,000 per location, per occurrence.
We give out approximately 85,000 awards every year. ● Fishing Tournaments/Marine Conservation – We donate to fishing tournaments and beach cleanup projects. ● Supporting the local community – We donate funds to boy scouts, baseball teams, schools, etc. ● Sheridan House – We donated 500 backpacks to underprivileged children.
We give out approximately 85,000 awards every year. ● Fishing Tournaments/Marine Conservation – We donate to fishing tournaments and beach cleanup projects. ● Supporting the local community – We donate funds to boy scouts, baseball teams, schools, etc. ● Reclaimed Wood – All of our locations use reclaimed wood on interior walls.
Subsequent Events for a discussion of property, general liability, excess liability, and terrorism insurance policies for the period commencing December 30, 2024.) Competition and the Company's Market The liquor and hospitality industries are highly competitive and are often affected by changes in taste and entertainment trends among the public, by local, national and economic conditions affecting spending habits, and by population and traffic patterns.
Competition and the Company’s Market The liquor and hospitality industries are highly competitive and are often affected by changes in taste and entertainment trends among the public, by local, national and economic conditions affecting spending habits, and by population and traffic patterns.
As of the end of our fiscal year 2024, this limited partnership has returned to its investors approximately 19.0% of their initial cash invested. Miramar, Florida We are the sole general partner in this limited partnership which has owned and operated a restaurant in Miramar, Florida under our “Flanigan’s” service mark since April 18, 2023.
Miramar, Florida We are the sole general partner in this limited partnership which has owned and operated a restaurant in Miramar, Florida under our “Flanigan’s” service mark since April 18, 2023.
No units of limited partnership interest were purchased by the Company. 25.5% of the limited partnership interest is owned by persons who are either our officers, directors or their family members. As of the end of our fiscal year 2024, this limited partnership has returned to its investors approximately 25.0% of their initial cash invested.
No units of limited partnership interest were purchased by the Company. 25.5% of the limited partnership interest is owned by persons who are either our officers, directors or their family members.
We periodically donate to philanthropic organizations through campaigns designed to engage our staff company-wide service programs, as follows: ● Breast Cancer Awareness – We donate $10,000 annually to local Breast Cancer Support organizations. ● Donated over $100,000 in total to HOPE mission.
We periodically donate to philanthropic organizations through campaigns designed to engage our staff, as follows: ● Breast Cancer Awareness – We donate $10,000 annually to local Breast Cancer Support organizations. ● Flanigan’s Rockin’ Rib run 10k – We donate over $40,000 to Mami HOPE mission through our annual 10k event.
September 28, 2024 September 30, 2023 TYPES OF UNITS Company Owned: Combination package liquor store and restaurant 2 3 (1) Restaurant only, including sports bar 9 8 (1) Package liquor store only 9 8 (1) Company Managed Restaurants Only : Limited partnerships 10 10 Franchise 1 1 Unrelated Third Party 1 1 Total Company Owned/Operated Units 32 31 Franchised Units 5 5 (2) Notes: (1) During the first quarter of our fiscal year 2019, our combination package liquor store and restaurant located at 2505 N.
TYPES OF UNITS September 27, 2025 September 28, 2024 Company Owned: Combination package liquor store and restaurant 2 2 Restaurant only, including sports bar 9 9 Package liquor store only 9 9 Company Managed Restaurants Only: Limited partnerships 10 10 Franchise 1 1 Unrelated Third Party 1 1 Total Company Owned/Operated Units 32 32 Franchised Units 5 5 (1) Notes: (1) We operate a restaurant for one (1) franchisee.
Subsequent Events for a discussion of general liability and excess liability insurance for the period commencing December 30, 2024.) Our general policy is to settle only those legitimate and reasonable claims asserted and to aggressively defend and go to trial, if necessary, on frivolous and unreasonable claims.
We are uninsured against liability claims in excess of $11,000,000 per occurrence and in the aggregate. Our general policy is to settle only those legitimate and reasonable claims asserted and to aggressively defend and go to trial, if necessary, on frivolous and unreasonable claims.
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.
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.
Executive Officers Name Positions and Offices Currently Held Age Office or Position Held Since James G. Flanigan Chairman of the Board of Directors, Chief Executive Officer and President 60 (1) August Bucci Chief Operating Officer and Executive Vice President 80 2002 Jeffrey D.
Flanigan Chairman of the Board of Directors, Chief Executive Officer and President 61 (1) August Bucci Chief Operating Officer and Executive Vice President 81 2002 Jeffrey D.
Effective March 26, 2023, we increased menu prices for our food offerings to target an increase to our food revenues of approximately 2.06% annually and on 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 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.
Due to the competitive nature of the liquor industry in South Florida, we have had to adjust our pricing to stay competitive, including meeting all competitors’ advertisements subject to certain limitations. Such practices will continue in the package liquor business.
Due to the competitive nature of the liquor industry in South Florida, we have had to adjust our pricing to stay competitive. Such practices will continue in the package liquor business. We believe that we have a competitive position in our market because of widespread consumer recognition of the “Big Daddy’s Liquors” and “Big Daddy’s Wine & Liquors” names.
Removed
University Drive, Hollywood, Florida (Store #19), was damaged by a fire which caused it to be closed since the first quarter of our fiscal year 2019. During the first quarter of our fiscal year 2023, we opened our newly built stand-alone package liquor store on this site (2505 N.
Added
This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by this limited partnership. This entity is consolidated in the accompanying consolidated financial statements.
Removed
University Drive, Building A, Hollywood, Florida) (Store #19P), replacing our package liquor store destroyed by fire and previously operating here. Store #19P is now reflected in the above chart as a stand-alone liquor store, rather than as a combination unit. Store #19R, a stand-alone restaurant building on this site, (2505 N.
Added
As of the end of our fiscal year 2025, this limited partnership has returned to its investors approximately 26.5% of their initial cash invested and as a result, we are currently not entitled to receive any management fees from this limited partnership. This entity is consolidated in the accompanying consolidated financial statements.
Removed
University Drive, Building B, Hollywood, Florida) opened on March 26, 2024 (adjacent to the package liquor store), and replaced our restaurant destroyed by fire and previously operating here. Store #19R is now reflected in the above chart as a stand-alone restaurant, rather than as a combination unit. (2) We operate a restaurant for one (1) franchisee.
Added
As of the end of our fiscal year 2025, this limited partnership has returned to its investors approximately 45% of their initial cash invested and as a result, we are currently not entitled to receive any management fee from this limited partnership. This entity is consolidated in the accompanying consolidated financial statements.
Removed
We are uninsured against liability claims in excess of $11,000,000 per occurrence and in the aggregate. We secured general liability insurance and excess liability insurance to be effective as of December 30, 2024. (See Item 2.
Added
Our restaurants compete directly or indirectly with many well-established competitors, both nationally and locally owned. 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.
Removed
We believe that we have a competitive position in our market because of widespread consumer recognition of the "Big Daddy's Liquors" and “Big Daddy’s Wine & Liquors” names. Our restaurants compete directly or indirectly with many well-established competitors, both nationally and locally owned.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

21 edited+20 added−4 removed152 unchanged
Biggest changeAs a means of managing our interest rate risk on the debt instrument, we entered into an interest rate swap agreement with our unrelated third party lender to convert this variable rate debt obligation to fixed rate.
Biggest changeEffective November 15, 2024, the publication of BSBY was terminated and as of such date, the variable rate of interest under our debt instrument is equal to the lender’s 1 Month CME Term Secured Overnight Financing Rate (“SOFR”), plus 10 basis points, as an equivalent alternative approved by the lender. 20 As a means of managing our interest rate risk on this debt instrument, we entered into an interest rate swap agreement with an unrelated third-party lender to convert this variable rate debt obligation to a fixed rate.
Any inability to compete successfully with the other restaurants and/or stores in our markets will prevent us from increasing or sustaining our revenues and profitability and will result in a material adverse effect on our business, financial condition, results of operations or cash flows.
Any inability to compete successfully with the other restaurants and/or stores in our markets will prevent us from increasing or sustaining our revenues and profitability and will result in a material adverse effect on our business, financial condition, results of operations and cash flows.
Our ability to manage efficiently and effectively our business depends significantly on the reliability and capacity of these and other systems and our operations depend substantially on the availability of our point-of-sale system and related networks and applications.
Our ability to efficiently and effectively manage our business depends significantly on the reliability and capacity of these and other systems and our operations depend substantially on the availability of our point-of-sale system and related networks and applications.
We could suffer losses from and we incur legal costs to defend these and similar cases and the amount of such losses or costs could be significant.
We could suffer losses from and incur legal costs to defend these and similar cases and the amount of such losses or costs could be significant.
We could be party to litigation that could adversely affect us by distracting management, increasing our expenses or subjecting us to material money damages and other remedies. We could be party to litigation that could adversely affect us by distracting management, increasing our expenses or subjecting us to material money damages and other remedies.
We could be party to litigation that could adversely affect us by distracting management, increasing our expenses or subjecting us to material money damages and other remedies.
In addition, these threats are constantly evolving, which increases the difficulty of accurately and timely predicting, planning for and protecting against the threat. As a result, our disaster recovery procedures and business continuity plans security may not adequately address all threats we face or protect us from loss. Inability to attract and retain customers could affect results of operations.
In addition, these threats are constantly evolving, which increases the difficulty of accurately and timely predicting, planning for and protecting against the threat. As a result, our disaster recovery procedures and business continuity plans may not adequately address all threats we face or protect us from loss. Inability to attract and retain customers could affect results of operations.
Risks Related to Our Business If we are unable to staff and retain qualified restaurant and package liquor store management and operating personnel in an increasingly competitive market, we may be unable to effectively operate and grow our business and revenues, which could materially adversely affect our financial performance.
Risks Related to Our Business and Industry If we are unable to staff and retain qualified restaurant and package liquor store management and operating personnel in an increasingly competitive market, we may be unable to effectively operate and grow our business and revenues, which could materially adversely affect our financial performance.
Our management team, including the CEO, CFO, COO, Director of Information Technology, and Director of Accounting, as appropriate, supervises efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the information technology environment. 21
Our management team, including the CEO, CFO, COO, Senior Director of Information Technology, Director of Information Technology, and Director of Accounting, as appropriate, supervises efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the information technology environment.
Employment and immigration regulations We are subject to various federal and state laws governing our relationship with and other matters pertaining to our employees, including wage and hour laws, requirements to provide meal and rest periods or other benefits, healthcare, family leave mandates, requirements regarding working conditions and accommodations to certain employees, citizenship or work authorization and related requirements, insurance and workers’ compensation rules and anti-discrimination laws.
Employment and immigration regulations We are subject to various federal and state laws governing our relationship with our employees, including wage and hour laws, requirements to provide meal and rest periods or other benefits, healthcare, family leave mandates, requirements regarding working conditions and accommodations to certain employees, citizenship or work authorization and related requirements, insurance and workers’ compensation rules and anti-discrimination laws.
The State of Florida has already enacted a minimum wage and tip credit, with the minimum wage currently at $13.00 per hour and a tip credit of $3.02 per hour. The minimum wage increases $1.00 per hour annually until it reaches $15.00 per hour in 2026. The tip credit does not increase.
The State of Florida has already enacted a minimum wage and tip credit, with the minimum wage currently at $14.00 per hour and a tip credit of $3.02 per hour. The minimum wage increases $1.00 per hour annually until it reaches $15.00 per hour in 2026. The tip credit does not increase.
There is no assurance that comparable restaurant sales will increase in fiscal year 2024 due to, among other things, ongoing consumer and economic uncertainty.
There is no assurance that comparable restaurant sales will increase in fiscal year 2026 due to, among other things, ongoing consumer and economic uncertainty.
If the third-party delivery services that we utilize cease or curtail operations, increase their fees, or give greater priority or promotions on their platforms to our competitors, our delivery business and our sales may be negatively impacted. 20 Changes in interest rates.
If the third-party delivery services that we utilize cease or curtail operations, increase their fees, or give greater priority or promotions on their platforms to our competitors, our delivery business and our sales may be negatively impacted. Changes in interest rates. As part of our ongoing operations, we are exposed to interest rate fluctuations on our borrowings.
If we are unable to manage these risks successfully, we will face increased costs and lower than anticipated revenues which will materially adversely affect our business, financial condition, operating results and cash flow. Changes in customer preferences for casual dining styles could adversely affect financial performance.
If we are unable to manage these risks successfully, we will face increased costs and lower than anticipated revenues which will materially adversely affect our business, financial condition, operating results and cash flow. Changes in customer tastes and preferences, spending patterns and demographic trends could cause sales to decline and adversely affect financial performance.
Changing customer preferences, tastes and dietary habits can adversely impact our business and financial performance. We offer a large variety of entrees, side dishes and desserts and our continued success depends, in part, on the popularity of our cuisine and casual style of dining. A change from this dining style may have an adverse effect on our business.
We offer a large variety of entrees, side dishes and desserts and our continued success depends, in part, on the popularity of our cuisine and casual style of dining. A change from this dining style may have an adverse effect on our business.
We are not currently aware of risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition.
We are not currently aware of risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. 21 Cybersecurity Governance Our Board of Directors has oversight responsibility for the Company’s cybersecurity risk management, including technology and cybersecurity risks facing the Company.
Our success depends substantially on the value of our brands and our reputation for offering guests a satisfactory experience. We believe we have built a reasonably strong reputation for the predictability of our menu items, as part of the experience that guests enjoy in our restaurants.
We believe we have built a reasonably strong reputation for the predictability of our menu items, as part of the experience that guests enjoy in our restaurants. We believe we must protect and grow the value of our brands to continue to be successful in the future.
If our advertising campaign and new media strategies do not resonate with customers in the manner we hope, they may not result in increased sales, but would still increase our expenses. We will continue to invest in marketing and advertising strategies that we believe will attract customers or increase their connection with our brand.
Our marketing and advertising strategies may not be successful, which could adversely impact our business. From time to time, we introduce new advertising campaigns and media strategies. If our advertising campaign and new media strategies do not resonate with customers in the manner we hope, they may not result in increased sales, but would still increase our expenses.
As of September 28, 2024, we had one variable rate instrument outstanding that is impacted by changes in interest rates. The variable rate debt instrument is equal to the lender’s BSBY Screen Rate plus one and one-half percent (1.50%) per annum.
The interest rate of our variable rate debt instrument was equal to the lender’s BSBY Screen Rate plus one and one-half percent (1.50%) per annum.
Cybersecurity Governance Our Board of Directors has oversight responsibility for the Company’s cybersecurity risk management, including technology and cybersecurity risks facing the Company. Management updates the Board, as necessary, regarding cybersecurity risk management matters, including reporting any material cybersecurity incidents.
Management updates the Board, as necessary, regarding cybersecurity risk management matters, including reporting any material cybersecurity incidents.
Our reputation as a brand or as an employer could also be adversely affected from these types of security breaches or regulatory violations, which could impair our sales or ability to attract and keep qualified employees. 18 Local licensure, zoning and other regulation Each of our restaurants is also subject to state and local licensing and regulation by health, alcoholic beverage, sanitation, food and workplace safety and other agencies.
Our reputation as a brand or as an employer could also be adversely affected from these types of security breaches or regulatory violations, which could impair our sales or ability to attract and keep qualified employees. Complex local, state and federal laws and regulations apply to the collection, use, retention, protection, disclosure, transfer and other processing of personal data.
If consumers perceive or experience a reduction in food quality, service or ambiance, or in any way believe we failed to deliver a consistently positive experience, our brand value could suffer. Our marketing and advertising strategies may not be successful, which could adversely impact our business. From time to time, we introduce new advertising campaigns and media strategies.
Any incident that erodes consumer trust in or affinity for our brands could be harmful to us. If consumers perceive or experience a reduction in food quality, service or ambiance, or in any way believe we failed to deliver a consistently positive experience, our brand value could suffer.
Removed
Similar to the broader economy, we are experiencing labor shortfalls relative to our sales levels in certain parts of our workforce.
Added
The market for qualified talent continues to be competitive and we must continue to offer competitive wages, benefits and workplace conditions to retain qualified employees.
Removed
We believe we must protect and grow the value of our brands to continue to be successful in the future. Any incident that erodes consumer trust in or affinity for our brands could be harmful to us.
Added
We have experienced and may in the future experience challenges in hiring and retaining restaurant and store employees and in maintaining full restaurant staffing in various locations, which could result in decreased employee and customer satisfaction.
Removed
Our business can be adversely affected by negative publicity resulting from, among other things, complaints or litigation alleging poor food quality, food-borne illness or other health concerns or operating issues stemming from one or a limited number of restaurants. Unfavorable publicity could negatively impact public perception of our brands.
Added
A shortage of qualified candidates who meet legal work authorization requirements, failure to hire, train and retain new employees in a timely manner or higher than expected turnover levels could affect our ability to open new restaurants, grow sales at existing restaurants or meet our labor cost objectives.
Removed
The Bloomberg Index Services Limited announced the permanent cessation of all tenors of BSBY, effective immediately following the last publication of BSBY on November 15, 2024. As of that date, our lender has determined that a commercially reasonable and good faith alternative to BSBY is the 1 Month CME Term Secured Overnight Financing Rate (“SOFR”), plus 10 Basis Points.
Added
Anticipated changes in immigration laws and regulations could decrease the pool of candidates with legal work authorization, cause disruption in the workforce for all companies that rely on hourly workers and increase the costs, time and requirements to hire new employees.
Added
In addition, failure to adequately monitor and proactively respond to employee dissatisfaction could lead to poor customer satisfaction, higher turnover and litigation, which could negatively impact our financial results.
Added
Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants affect the restaurant industry. Our success depends to a significant extent on consumer confidence, which is influenced by general economic conditions and discretionary income levels.
Added
Our sales may decline during economic downturns, which can be caused by various economic factors such as high gasoline prices, or during periods of uncertainty. Any material decline in consumer confidence or a decline in spending on casual dining away from home could cause our sales, operating results, business or financial condition to decline.
Added
If we fail to adapt to changes in customer preferences and trends, we may lose customers and our sales may deteriorate. Our success depends substantially on the value of our brands and our reputation for offering guests a satisfactory experience.
Added
We will continue to invest in marketing and advertising strategies that we believe will attract customers or increase their connection with our brand.
Added
These privacy and data protection laws and regulations are quickly evolving, with new or modified laws and regulations proposed and implemented frequently and existing laws and regulations subject to new or different interpretations and enforcement. Complying with these laws and regulations can be costly.
Added
If we fail or are perceived to have failed to comply with applicable privacy and data protection laws, or fail to properly respond to or honor consumer requests under any of the foregoing privacy laws, we could be subject to enforcement actions and regulatory investigations, or claims for damages by guests and other affected individuals or parties, or incur fines and damage to our brand reputation, any of which could have a material adverse effect on our operations, financial performance, and business.
Added
The amount and scope of insurance we maintain may not cover all types of claims that may arise. 18 Local licensure, zoning and other regulation Each of our restaurants is also subject to state and local licensing and regulation by health, alcoholic beverage, sanitation, food and workplace safety and other agencies.
Added
We use interest rate swap agreements to manage these risks. These instruments are not used for speculative purposes but are used to modify variable rate obligations into fixed rate obligations. As of September 27, 2025, we had one variable rate instrument outstanding that is impacted by changes in interest rates.
Added
In September 2022, we refinanced the mortgage loan encumbering the property where our combination package liquor store and restaurant located at 4 N. Federal Highway, Hallandale Beach, Florida, (Store #31) operates, which mortgage loan is held by an unaffiliated third-party lender (the “$8.90M Loan”).
Added
We entered into an interest rate swap agreement in September 2022 relating to the $8.90M Loan (the “$8.90M Term Loan Swap”).
Added
The $8.90M Term Loan Swap required us to pay interest for a fifteen (15) year period at a fixed rate of 4.90% on an initial amortizing notional principal amount of $8,900,000, while receiving interest for the same period at BSBY Screen Rate – 1 Month, plus 1.50%, on the same amortizing notional principal amount.
Added
We had previously determined that this interest rate swap agreement was an effective hedging agreement and we recorded changes in fair value to accumulated other comprehensive income each quarter from the fourth quarter of our fiscal year 2023 through the first quarter of our fiscal year 2025.
Added
On November 22, 2024, we terminated the $8.90M Term Loan Swap and simultaneously entered into a new interest rate swap agreement for $8,015,601, the balance due on the $8.90M Loan, which requires us to pay interest for twelve (12) years, ten (10) months, which is the balance of the original fifteen (15) year period at a fixed rate of 4.90% on an initial amortizing notional principal amount of $8,015,601, while receiving interest for the same period at the lender’s 1 Month CME Term Secured Overnight Financing Rate (“SOFR”), plus 10 basis points, at the same amortizing notional principal amount.
Added
During the second quarter of our fiscal year 2025, we recognized the $290,000 of non-cash gains, net of tax, related to the above interest rate swap agreement as interest and other income.
Added
We determined that the new interest rate swap agreement is an economic hedge and beginning in the second quarter of our fiscal year 2025, we recognize the changes in fair value on our interest rate swap in interest and other income on our consolidated statements of income.

Item 2. Properties

Properties — owned and leased real estate

20 edited+10 added−15 removed18 unchanged
Biggest changeIn August 2018 we purchased the real property and quadraplex adjacent thereto to insure adequate parking for the franchised restaurant in the future, if needed; (ix) a 6,000 square foot stand-alone building in Fort Lauderdale, Florida and the vacant real property diagonally adjacent that we purchased in October 2015, which we use as office and warehouse space, covered parking for our food truck and as a storage yard; 22 (x) a 6,900 square foot stand-alone building in Sunrise, Florida, which we purchased in March 2021 and houses our limited partnership owned Sunrise, Florida based restaurant, (Store #85), which opened for business in March 2022; (xi) a 6,000 square foot commercial space in Miami, Florida, which we purchased in April 2023 and in which we operate our package liquor store and warehouse (Store #47), through a sublease agreement from a sale-leaseback arrangement in January 1974; and (xii) a 5,450 square foot three building shopping center in Hallandale Beach, Florida (adjacent to our combination package store and restaurant in Hallandale Beach, Florida (Store #31)), that we purchased in April 2023: (A) one stand-alone building, approximately 1,450 square feet, of which 950 square feet is leased to one unaffiliated third party retailer and 500 square feet which is occupied by us; (B) the second stand-alone building, approximately 1,500 square feet, which is leased to one unaffiliated third party retailer and (C) the third stand-alone building, approximately 2,500 square feet, which is leased to one unaffiliated third party retailer, (collectively Store #38).
Biggest changeIn August 2018 we purchased the real property and quadraplex adjacent thereto to insure adequate parking for the franchised restaurant in the future, if needed; (ix) a 6,000 square foot stand-alone building in Fort Lauderdale, Florida and the vacant real property diagonally adjacent that we purchased in October 2015, which we use as office and warehouse space, covered parking for our food truck and as a storage yard; (x) a 6,900 square foot stand-alone building in Sunrise, Florida, which we purchased in March 2021 and houses our limited partnership owned Sunrise, Florida based restaurant, (Store #85), which opened for business in March 2022; 22 (xi) a 6,000 square foot commercial space in Miami, Florida, which we purchased in April 2023 and in which we operate our package liquor store and warehouse (Store #47), through a sublease agreement from a sale-leaseback arrangement in January 1974; (xii) a 5,450 square foot three building shopping center in Hallandale Beach, Florida (adjacent to our combination package store and restaurant in Hallandale Beach, Florida (Store #31)), that we purchased in April 2023: (A) one stand-alone building, approximately 1,450 square feet, of which 950 square feet is leased to one unaffiliated third party retailer and 500 square feet which is occupied by us; (B) the second stand-alone building, approximately 1,500 square feet, which is leased to one unaffiliated third party retailer and (C) the third stand-alone building, approximately 2,500 square feet, which is leased to one unaffiliated third party retailer, (collectively Store #38); and (xiii) we are developing a 6,400 square foot stand-alone building in Cutler Bay, Florida, which vacant property we purchased in May 2025 and will house our limited partnership owned Cutler Bay, Florida based restaurant, (Store #3), which we anticipate will open for business during our fiscal year 2027.
Subsequent to the fire, (i) we constructed a 3,000 square foot stand-alone building on the vacant parcel of real property for the operation of our Company-owned package liquor store (Store #19P), which opened for business during the first quarter of our fiscal year 2023; and (ii) we constructed a 4,500 square foot stand-alone building here for the operation of the Company-owned restaurant, (Store #19R), which opened for business during the second quarter of our fiscal year 2024; (v) a 4,600 square foot stand-alone building located in Fort Lauderdale, Florida that we purchased in August 2010 and which since December 1968 has housed our Fort Lauderdale, Florida Company-owned restaurant (Store #22); (vi) a 5,100 square foot stand-alone building in North Miami, Florida that we purchased in November 2010; the two parcels of real property adjacent thereto which we purchased in December 2012, one of which is contiguous to the real property and which we previously leased for non-exclusive parking and the vacant parcel of real property adjacent to the two parcels of real property which we purchased in March 2017.
Subsequent to the fire, (i) we constructed a 3,000 square foot stand-alone building on the vacant parcel of real property for the operation of our Company-owned package liquor store (Store #19P), which opened for business during the first quarter of our fiscal year 2024; and (ii) we constructed a 4,500 square foot stand-alone building here for the operation of the Company-owned restaurant, (Store #19R), which opened for business during the second quarter of our fiscal year 2024; (v) a 4,600 square foot stand-alone building located in Fort Lauderdale, Florida that we purchased in August 2010 and which since December 1968 has housed our Fort Lauderdale, Florida Company-owned restaurant (Store #22); (vi) a 5,100 square foot stand-alone building in North Miami, Florida that we purchased in November 2010; the two parcels of real property adjacent thereto which we purchased in December 2012, one of which is contiguous to the real property and which we previously leased for non-exclusive parking and the vacant parcel of real property adjacent to the two parcels of real property which we purchased in March 2017.
Miami, Florida 6,000 N/A Company 12/21/68 to 1/1/30 Options to 1/1/50 (Sublease) Company- Owned Flanigan’s Seafood Bar and Grill #13 CIC Investors #13, Ltd. 11415 S. Dixie Highway Pinecrest, Florida 8,000 200 Limited Partnership 6/01/91 to 1/31/31 Option to 1/31/36 25 Name and Location Approx. Square Footage Seats Franchised/ Owned by Lease Terms Flanigan’s #25 CIC Investors #25, Ltd.
Miami, Florida 6,000 N/A Company 12/21/68 to 1/1/30 Options to 1/1/50 (Sublease) Company-Owned Flanigan’s Seafood Bar and Grill #13 CIC Investors #13, Ltd. 11415 S. Dixie Highway Pinecrest, Florida 8,000 200 Limited Partnership 6/01/91 to 1/31/31 Options to 1/31/36 25 Name and Location Approx. Square Footage Seats Franchised/ Owned by Lease Terms Flanigan’s #25 CIC Investors #25, Ltd.
Federal Highway Stuart, Florida 7,000 200 Company 5/1/10 to 4/30/26 Option to 4/30/31 Flanigan’s Seafood Bar and Grill #80 CIC Investors #80 Ltd. 8695 N.W. 12 th St Miami, Florida 5,000 165 Limited Partnership 6/15/01 to 12/14/29 Options to 12/14/39 Flanigan's Seafood Bar and Grill #85 CIC Investors #85 Ltd. 14301 W. Sunrise Blvd.
Federal Highway Stuart, Florida 7,000 200 Company 5/1/10 to 4/30/26 Options to 4/30/31 Flanigan’s Seafood Bar and Grill #80 CIC Investors #80 Ltd. 8695 N.W. 12 th St Miami, Florida 5,000 165 Limited Partnership 6/15/01 to 12/14/29 Options to 12/14/39 Flanigan’s Seafood Bar and Grill #85 CIC Investors #85 Ltd. 14301 W. Sunrise Blvd.
During the second quarter of our fiscal year 2024, we re-opened our restaurant in a stand-alone building on the same site in Hollywood, Florida adjacent to Store #19P. (9) During the fourth quarter of our fiscal year 2019, we entered into a lease for this location, which lease was subsequently assigned to a limited partnership.
During the second quarter of our fiscal year 2024, we re-opened our restaurant in a stand-alone building on the same site in Hollywood, Florida adjacent to Store #19P. 27 (9) During the fourth quarter of our fiscal year 2019, we entered into a lease for this location, which lease was subsequently assigned to a limited partnership.
(9) 11225 Miramar Parkway, #250 Miramar, Florida 6,000 200 Limited Partnership 3/5/22 to 3/5/32 Options to 3/5/47 Flanigan’s Seafood Bar and Grill #50 CIC Investors #50, Ltd. 17185 Pines Boulevard Pembroke Pines, Florida 4,000 200 Limited Partnership 10/24/06 to 10/23/26 Option to 10/23/31 Flanigan’s Seafood Bar and Grill #55 CIC Investors #55, Ltd. 2190 S.
(9) 11225 Miramar Parkway, #250 Miramar, Florida 6,000 200 Limited Partnership 3/5/22 to 3/5/32 Options to 3/5/47 Flanigan’s Seafood Bar and Grill #50 CIC Investors #50, Ltd. 17185 Pines Boulevard Pembroke Pines, Florida 4,000 200 Limited Partnership 10/24/06 to 10/23/26 Options to 10/23/31 Flanigan’s Seafood Bar and Grill #55 CIC Investors #55, Ltd. 2190 S.
University Drive Davie, Florida 5,900 200 Limited Partnership 1/5/07 to 12/31/26 Option to 12/31/31 Flanigan’s Seafood Bar and Grill #60 CIC Investors #60 Ltd. 9516 Harding Avenue Surfside, Florida 6,800 200 Limited Partnership 8/1/97 to 12/31/26 Flanigan’s Seafood Bar and Grill #65 CIC Investors #65, Ltd. 2335 State Road 7, Suite 100 Wellington, Florida 6,128 200 Limited Partnership 5/01/05 to 6/30/35 Option to 6/30/40 Flanigan’s Seafood Bar and Grill #70 CIC Investors #70 Ltd. 12790 SW 88 St.
University Drive Davie, Florida 5,900 200 Limited Partnership 1/5/07 to 12/31/26 Options to 12/31/31 Flanigan’s Seafood Bar and Grill #60 CIC Investors #60 Ltd. 9516 Harding Avenue Surfside, Florida 6,800 200 Limited Partnership 8/1/97 to 12/31/26 Flanigan’s Seafood Bar and Grill #65 CIC Investors #65, Ltd. 2335 State Road 7, Suite 100 Wellington, Florida 6,128 200 Limited Partnership 5/01/05 to 6/30/35 Options to 6/30/40 Flanigan’s Seafood Bar and Grill #70 CIC Investors #70 Ltd. 12790 SW 88 St.
(1) 330 Southern Blvd. W. Palm Beach, Florida 5,000 150 Franchise 1/4/00 to 1/3/25 Flanigan's Seafood Bar and Grill #12 Flanigan’s Enterprises, Inc. 2405 Tenth Ave. North Lake Worth, Florida 5,000 180 Company 11/16/92 to 11/15/28 Options to 11/15/38 Flanigan's Seafood Bar and Grill #14 Big Daddy's #14, Inc. (1) (4) 2041 NE Second St.
(1) 330 Southern Blvd. W. Palm Beach, Florida 5,000 150 Franchise 1/4/00 to 1/3/30 Flanigan’s Seafood Bar and Grill #12 Flanigan’s Enterprises, Inc. 2405 Tenth Ave. North Lake Worth, Florida 5,000 180 Company 11/16/92 to 11/15/28 Options to 11/15/38 Flanigan’s Seafood Bar and Grill #14 Big Daddy’s #14, Inc. (1) (4) 2041 NE Second St.
Pompano Beach, Florida 4,500 90 Franchise 12/1/72 to 11/30/27 Big Daddy’s Liquors #45 Flanigan’s Enterprises, Inc. 12776 S.W. 88th Street Miami, Florida 3,250 N/A Company 7/1/19 to 6/30/29 Option to 6/30/34 Big Daddy's Liquors #47 Flanigan's Enterprises, Inc. (3) 8600 Biscayne Blvd.
Pompano Beach, Florida 4,500 90 Franchise 12/1/72 to 11/30/27 Big Daddy’s Liquors #45 Flanigan’s Enterprises, Inc. 12776 S.W. 88th Street Miami, Florida 3,250 N/A Company 7/1/19 to 6/30/29 Options to 6/30/34 Big Daddy’s Liquors #47 Flanigan’s Enterprises, Inc. (3) 8600 Biscayne Blvd.
(5) 7003 Taft Street Hollywood, Florida 1,978 N/A Company 3/1/02 to 2/28/27 Options to 2/28/47 Big Daddy's Liquors #7 Flanigan's Enterprises, Inc. 1550 W. 84th Street Hialeah, Florida 1,450 N/A Company 11/1/00 to 10/31/25 Big Daddy's Liquors #8 Flanigan's Enterprises, Inc. 959 State Road 84 Fort Lauderdale, Florida 4,084 N/A Company 5/1/99 to 4/30/29 Flanigan’s Seafood Bar and Grill #9 Flanigan’s Enterprises, Inc. 1550 W. 84th Street Hialeah, Florida 4,700 130 Company 1/1/10 to 12/31/29 Options to 12/31/49 Flanigan's Legends Seafood Bar and Grill #11 11 Corporation, Inc.
(5) 7003 Taft Street Hollywood, Florida 1,978 N/A Company 3/1/02 to 2/28/27 Options to 2/28/47 Big Daddy’s Liquors #7 Flanigan’s Enterprises, Inc. 1550 W. 84th Street Hialeah, Florida 1,450 N/A Company 11/1/00 to 10/31/2030 Options to 10/31/2035 Big Daddy’s Liquors #8 Flanigan’s Enterprises, Inc. 959 State Road 84 Fort Lauderdale, Florida 4,084 N/A Company 5/1/99 to 4/30/29 Flanigan’s Seafood Bar and Grill #9 Flanigan’s Enterprises, Inc. 1550 W. 84th Street Hialeah, Florida 4,700 130 Company 1/1/10 to 12/31/29 Options to 12/31/49 Flanigan’s Legends Seafood Bar and Grill #11 11 Corporation, Inc.
Square Footage Seats Franchised/ Owned by Lease Terms Flanigan's Seafood Bar and Grill #90 CIC Investors #90 Ltd. 9857 S.W. 40 th Street Miami, Florida 6,400 200 Limited Partnership 4/1/11 to 3/31/31 Option to 3/31/36 Flanigan's Seafood Bar and Grill #95 Flanigan’s Enterprises, Inc. 2460 Weston Road Weston, Florida 5,700 235 Company 10/1/17 to 9/30/27 Option to 9/30/32 Flanigan’s Calusa Center, LLC (6) 12750 – 12790 S.W. 88 th Street Miami, Florida 23,700 Company Company-owned shopping center Flanigan’s Enterprises, Inc.
Square Footage Seats Franchised/ Owned by Lease Terms Flanigan’s Seafood Bar and Grill #90 CIC Investors #90 Ltd. 9857 S.W. 40 th Street Miami, Florida 6,400 200 Limited Partnership 4/1/11 to 3/31/31 Options to 3/31/36 Flanigan’s Seafood Bar and Grill #95 Flanigan’s Enterprises, Inc. 2460 Weston Road Weston, Florida 5,700 235 Company 10/1/17 to 9/30/27 Options to 9/30/32 Flanigan’s Calusa Center, LLC (6) 12750 – 12790 S.W. 88 th Street Miami, Florida 23,700 N/A Company Company-owned shopping center Flanigan’s Enterprises, Inc.
The package liquor store re-opened for business during the first quarter of our fiscal year 2023 in a newly constructed stand-alone building. The restaurant re-opened for business during the second quarter of our fiscal year 2024 in a newly constructed stand-alone building where our combination package liquor store and restaurant was previously located.
The restaurant re-opened for business during the second quarter of our fiscal year 2024 in a newly constructed stand-alone building where our combination package liquor store and restaurant was previously located.
The following table summarizes information related to the properties upon which our operations are conducted. For all locations that include lease options, the lessor must extend the term of the lease for a location if we exercise the lease option.
The following table summarizes information related to the properties upon which our operations are conducted and/or will be conducted. For all locations that include lease options, the lessor must extend the term of the lease for a location if we exercise the lease option.
Miami, Florida 4,850 200 Limited Partnership 4/1/00 to 3/31/25 Option to 3/31/30 Flanigan’s Seafood Bar and Grill #75 Flanigan’s Enterprises, Inc. 950 S.
Miami, Florida 4,850 200 Limited Partnership 4/1/00 to 3/31/30 Options to 3/31/35 Flanigan’s Seafood Bar and Grill #75 Flanigan’s Enterprises, Inc. 950 S.
All of our units require periodic refurbishing in order to remain competitive. We have budgeted $550,000 for our refurbishing program for fiscal year 2025, although capital expenditures of our refurbishing program for our fiscal year 2025 may be significantly higher. See Item 7, "Liquidity and Capital Resources" for discussion of the amounts spent in fiscal year 2024.
All of our units require periodic refurbishing in order to remain competitive. We have budgeted $750,000 for our refurbishing program for fiscal year 2026, although capital expenditures of our refurbishing program for our fiscal year 2026 may be significantly higher. See Item 7, “Liquidity and Capital Resources” for discussion of the amounts spent in fiscal year 2025.
We constructed a 4,120 square foot building, of which 1,978 square feet is used by us for the operation of a package liquor store and the other 2,142 square feet is subleased to an unaffiliated third party as retail space. The package liquor store opened for business on November 17, 2003.
(5) Ground lease executed by us on September 25, 2001. We constructed a 4,120 square foot building, of which 1,978 square feet is used by us for the operation of a package liquor store and the other 2,142 square feet is subleased to an unaffiliated third party as retail space.
This new location opened for business as a “Big Daddy’s Wine & Liquors” retail package liquor store in March 2023. 27 (11) During the third quarter of our fiscal year 2023, we closed on the purchase of a three building shopping center in Hallandale Beach, Florida adjacent to our combination package store and restaurant in Hallandale Beach, Florida (Store #31), which consists of: (A) one stand-alone building which is leased to two unaffiliated third party retailers; (B) the second stand-alone building which is leased to one unaffiliated third party retailer; and (C) the third stand-alone building which is leased to one unaffiliated third party retailer.
(11) During the third quarter of our fiscal year 2023, we closed on the purchase of a three building shopping center in Hallandale Beach, Florida adjacent to our combination package store and restaurant in Hallandale Beach, Florida (Store #31), which consists of: (A) one stand-alone building which is leased to two unaffiliated third party retailers; (B) the second stand-alone building which is leased to one unaffiliated third party retailer; and (C) the third stand-alone building which is leased to one unaffiliated third party retailer.
As a result, we pay 44% of the rent due under the ground lease and the sublease agreement. (4) Effective December 1, 1998, we purchased the Management Agreement to operate the franchised restaurant for the franchisee. (5) Ground lease executed by us on September 25, 2001.
In April 2023 we purchased the real property, subject to the ground lease and sublease agreement through which we continue to occupy the premises. As a result, we pay 44% of the rent due under the ground lease and the sublease agreement. (4) Effective December 1, 1998, we purchased the Management Agreement to operate the franchised restaurant for the franchisee.
Re-construction Following Casualty Loss During the first quarter of our fiscal year 2019, our combination package liquor store and restaurant located at 2505 N. University Drive, Hollywood, Florida (Store #19) was damaged by a fire and was forced to close.
University Drive, Hollywood, Florida (Store #19) was damaged by a fire and was forced to close. The package liquor store re-opened for business during the first quarter of our fiscal year 2023 in a newly constructed stand-alone building.
We have re-purchased from the unaffiliated third parties and currently own 56% of the underlying ground lease, as well as the sublease agreement. In April, 2023 we purchased the real property, subject to the ground lease and sublease agreement through which we continue to occupy the premises.
We are no longer contingently liable on the lease. (3) In 1974, we sold and assigned the underlying ground lease to unaffiliated third parties and simultaneously subleased it back. We have re-purchased from the unaffiliated third parties and currently own 56% of the underlying ground lease, as well as the sublease agreement.
Removed
(11) 615 – 715 E. Hallandale Beach Blvd. Hallandale Beach, Florida 5,450 Company Company-owned shopping center (1) Franchised by Company. (2) Lease assigned to franchisee. We are no longer contingently liable on the lease. (3) In 1974, we sold and assigned the underlying ground lease to unaffiliated third parties and simultaneously subleased it back.
Added
(11) 615 – 715 E. Hallandale Beach Blvd. Hallandale Beach, Florida 5,450 N/A Company Company-owned shopping center Flanigan’s Enterprises, Inc. (12) 5055 NE 13 th Avenue Oakland Park, FL 33334 3,600 N/A Company 7/1/2025-6/30/2027 Flanigan’s #3 (13) 6,400 240 Limited Partnership TBD Company-Owned (1) Franchised by Company. (2) Lease assigned to franchisee.
Removed
Purchase of Real Property; Leasehold / Sub-leasehold Interests El Portal, Florida (“Big Daddy’s Liquors”/Warehouse) During the third quarter of our fiscal year 2023, we closed with a non-affiliated third party on the purchase of the real property it owns located at 8600 Biscayne Boulevard, El Portal, Florida consisting of approximately 6,000 square feet of commercial space which we sublease and where our “Big Daddy’s Liquors” package liquor store and our warehouse (Store #47) operate for $3,200,000.
Added
The package liquor store opened for business on November 17, 2003.
Removed
We paid all cash at closing. Despite the purchase of this property, the sublease arrangement remains in place with all investors.
Added
This new location opened for business as a “Big Daddy’s Wine & Liquors” retail package liquor store in March 2023.
Removed
Hallandale Beach, Florida During the third quarter of our fiscal year 2023, we closed with a non-affiliated third party on the purchase of a three building shopping center in Hallandale Beach, Florida, which consists of one stand-alone building a portion of which is leased to one unaffiliated third party (approximately 950 square feet) and a portion of which is occupied by us (approximately 500 square feet); a second stand-alone building which is leased to one unaffiliated third party (approximately 1,500 square feet); and a third stand-alone building which is leased to one unaffiliated third party (approximately 2,500 square feet) for $8,500,000.
Added
(12) During the second quarter of our fiscal year 2025, we entered into a two-year lease for this storage unit. Previously this storage unit had been a one year lease. (13) During the third quarter of our fiscal year 2025, we purchased vacant real property located in Cutler Bay, Florida.
Removed
The rental income generated by these three lease arrangements is not material. The real property is located adjacent to our real property located at 4 N. Federal Highway, Hallandale Beach, Florida, where our combination package store and restaurant (Store #31) operates. We paid all cash at closing and accounted for this transaction as an asset acquisition.
Added
We plan to construct a 6,400 square foot building to lease to a limited partnership to be formed of which we will be the sole general partner to construct and operate a “Flanigan’s” restaurant. Re-construction Following Casualty Loss During the first quarter of our fiscal year 2019, our combination package liquor store and restaurant located at 2505 N.
Removed
Subsequent Events Subsequent to the end of our fiscal year 2024, we entered into a new Master Services Agreement with our current vendor for a period of one (1) year effective January 1, 2025, with Company options of four (4) one (1) year renewal options to extend the term of the same.
Added
Purchase of Real Property; Leasehold / Sub-leasehold Interests Purchase of Real Property During the third quarter of our fiscal year 2025, we purchased the vacant real property located at 20971 Old Cutler Road, Cutler Bay, Florida 33189 (the “Cutler Bay Property”) for a purchase price of $2,200,000. We paid all cash at closing.
Removed
Subsequent to the end of our fiscal year 2024, for the policy year commencing December 30, 2024, we bound coverage on the following property, general liability, auto, excess liability, and terrorism policies with premiums totaling approximately $4,014,000 of which property, general liability, excess liability and terrorism insurance includes coverage for our franchises and our managed restaurant (of approximately $867,000), which are not included in our consolidated financial statements: (i) For the policy year beginning December 30, 2024, our general liability insurance, excluding limited partnerships, is a one (1) year policy with our insurance carriers.
Added
We plan to construct a 6,400 square foot building on the Cutler Bay Property to lease to a limited partnership of which we will be the sole general partner pursuant to our limited partnership financial arrangement to develop and operate a “Flanigan’s” restaurant.
Removed
For the policy commencing December 30, 2024, the self-insured retention per occurrence is $50,000.
Added
Subsequent Events Subsequent to the end of our fiscal year 2025, we re-financed with our institutional lender, our mortgage loan encumbering the real property and improvements located at 12750 – 12790 S.W. 88 th Street, Miami, Florida where our Flanigan’s Calusa Center and our limited partnership owned Flanigan’s Seafood Bar and Grill restaurant operate (Store #70), without increasing the principal amount borrowed at this time ($5,676,856).
Removed
The one (1) year general liability insurance premium is in the amount of $479,000; (ii) For the policy year beginning December 30, 2024, the general liability insurance for our limited partnerships, including franchisees and the managed restaurant is a one (1) year policy with our insurance carriers.
Added
The re-financed mortgage loan earns interest at a fluctuating rate per year equal to the sum of (i) the greater of the Term SOFR Daily Floating Rate or the Index Floor (which for purposes hereof is 0.00%) and (ii) 2.25%, with the first payment of principal and interest due January 31, 2026 and monthly thereafter on the last day of each month until November 30, 2030 when the entire principal payment and all accrued interest is due in full.
Removed
For the policy commencing December 30, 2024, the self-insured retention per occurrence is $10,000. The one (1) year general liability insurance premium is in the amount of $1,099,000; 28 (iii) For the policy year beginning December 30, 2024, our automobile insurance is a one (1) year policy.
Added
We received no excess funds from the re-financing of this mortgage loan.
Removed
The one (1) year automobile insurance premium is in the amount of $234,000; (iv) For the policy year beginning December 30, 2024, our property insurance is a one (1) year policy.
Removed
The one (1) year property insurance premium is in the amount of $1,317,000; (v) For the policy year beginning December 30, 2024, our excess liability insurance is a one (1) year policy.
Removed
The one (1) year excess liability insurance premium is in the amount of $866,000; and (vi) For the policy year beginning December 30, 2024, our terrorism insurance is a one (1) year policy. The one (1) year terrorism insurance premium is in the amount of $19,000.
Removed
Of the $4,014,000 annual premium amounts, which includes coverage for our franchises and our managed restaurant which are not included in our consolidated financial statements, we will pay the annual premium amounts in full with no financing due to high interest rates.
Removed
Subsequent events have been evaluated through the date these consolidated financial statements were issued and except as provided above, no events required disclosure. 29

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+0 added−0 removed2 unchanged
Biggest changeDuring our fiscal year 2023, our Board of Directors declared a cash dividend of $0.45 per share to shareholders of record on June 12, 2023 and was made payable on June 26, 2023.
Biggest changeDividend Policy During our fiscal year 2025, our Board of Directors declared a cash dividend of $0.55 per share to shareholders of record on June 12, 2025 and was made payable on June 27, 2025.
Dividend Policy During our fiscal year 2024, our Board of Directors declared a cash dividend of $0.50 per share to shareholders of record on June 14, 2024 and was made payable on June 28, 2024.
During our fiscal year 2024, our Board of Directors declared a cash dividend of $0.50 per share to shareholders of record on June 14, 2024 and was made payable on June 28, 2024.
Since the Board’s 2007 authorization, we have purchased an aggregate of 34,586 shares, none of which were purchased by us in our fiscal year 2024. As of September 28, 2024, we still have authority to purchase 65,414 shares of our common stock under the discretionary plan approved by the Board of Directors.
Since the Board’s 2007 authorization, we have purchased an aggregate of 34,586 shares, none of which were purchased by us in our fiscal year 2025. As of September 27, 2025, we still have authority to purchase 65,414 shares of our common stock under the discretionary plan approved by the Board of Directors.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is traded on the NYSE AMERICAN under the symbol “BDL”. Holders As of the close of business on December 24 , 2024, there were approximately 155 holders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is traded on the NYSE AMERICAN under the symbol “BDL”. Holders As of the close of business on December 17, 2025, there were approximately 149 holders of record of our common stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

63 edited+22 added−18 removed20 unchanged
Biggest changeThe 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.
Biggest changeThe 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.
There are no other recently issued accounting pronouncements that we have not yet adopted that we believe will have a material effect on our financial statements. 36 Critical Accounting Policies Our significant accounting policies are more fully described in Note 1 to our consolidated financial statements located in Item 8 of this Annual Report on Form 10-K.
There are no other recently issued accounting pronouncements that we have not yet adopted that we believe will have a material effect on our financial statements. Critical Accounting Policies Our significant accounting policies are more fully described in Note 1 to our consolidated financial statements located in Item 8 of this Annual Report on Form 10-K.
In addition, the 49% of FFC owned by the unrelated third party is recognized as a noncontrolling interest in our consolidated financial statements. Working Capital The table below summarizes the current assets, current liabilities, and working capital as of the end of our fiscal years 2024 and 2023.
In addition, the 49% of FFC owned by the unrelated third party is recognized as a noncontrolling interest in our consolidated financial statements. Working Capital The table below summarizes the current assets, current liabilities, and working capital as of the end of our fiscal years 2025 and 2024.
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. Package Store Sales .
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. Package Store Sales .
In addition, the following discussion and analysis should be read in conjunction with the 2024 and 2023 Consolidated Financial Statements and the related Notes to Consolidated Financial Statements included elsewhere in this report. 30 OVERVIEW Financial Information Concerning Industry Segments Our business is conducted principally in two segments: the restaurant segment and the package liquor store segment.
In addition, the following discussion and analysis should be read in conjunction with the 2025 and 2024 Consolidated Financial Statements and the related Notes to Consolidated Financial Statements included elsewhere in this report. 29 OVERVIEW Financial Information Concerning Industry Segments Our business is conducted principally in two segments: the restaurant segment and the package liquor store segment.
General As of September 28, 2024, we (i) operated 32 units, consisting of restaurants, sports bar, package liquor stores and combination restaurants/package liquor stores that we either own or have operational control over and partial ownership in; and (ii) franchises an additional five units, consisting of two restaurants (one of which we operate) and three combination restaurants/package liquor stores.
General As of September 27, 2025, we (i) operated 32 units, consisting of restaurants, sports bar, package liquor stores and combination restaurants/package liquor stores that we either own or have operational control over and partial ownership in; and (ii) franchises an additional five units, consisting of two restaurants (one of which we operate) and three combination restaurants/package liquor stores.
In exchange for our providing management and related services to our franchisees and granting them the right to use our service marks "Flanigan's Seafood Bar and Grill" and "Big Daddy's Liquors", our franchisees (four of which are franchised to members of the family of our Chairman of the Board, officers and/or directors), are required to (i) pay to us a royalty equal to 1% of gross package liquor sales and 3% of gross restaurant sales; and (ii) make advertising expenditures equal to between 1.5% to 3% of all gross sales based upon our actual advertising costs allocated between stores, pro-rata, based upon gross sales.
In exchange for our providing management and related services to our franchisees and granting them the right to use our service marks “Flanigan’s Seafood Bar and Grill” and “Big Daddy’s Liquors”, our franchisees (four of which are franchised to members of the family of our Chairman of the Board, officers and/or directors), are required to (i) pay to us a royalty equal to 1% of gross package liquor sales and 3% of gross restaurant sales; and (ii) make advertising expenditures equal to between 1.5% to 3% of all gross sales based upon our actual advertising costs allocated between stores, pro-rata, based upon gross sales.
Financial information broken into these two principal industry segments for the two fiscal years ended September 28, 2024 and September 30, 2023 is set forth in the Consolidated Financial Statements which are attached hereto.
Financial information broken into these two principal industry segments for the two fiscal years ended September 27, 2025 and September 28, 2024 is set forth in the Consolidated Financial Statements which are attached hereto.
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. Payroll and Related Costs .
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. Payroll and Related Costs .
While we anticipate purchasing all of our rib supply from this vendor, we believe there are several other alternative vendors available, if needed. 35 Flanigan’s Fish Company, LLC As of September 28, 2024, Flanigan’s Fish Company, LLC, a Florida limited liability company (“FFC”), supplies certain fish to all of our restaurants.
While we anticipate purchasing all of our rib supply from this vendor, we believe there are several other alternative vendors available, if needed. 34 Flanigan’s Fish Company, LLC As of September 27, 2025, Flanigan’s Fish Company, LLC, a Florida limited liability company (“FFC”), supplies certain fish to all of our restaurants.
Purchase Commitments/Supply 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.
Purchase Commitments/Supply 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.
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.
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.
Item September 28, 2024 September 30, 2023 (in Thousands) Current Assets $ 31,529 $ 35,294 Current Liabilities 19,924 22,371 Working Capital $ 11,605 $ 12,923 While there can be no assurance due to, among other things, unanticipated expenses or unanticipated decline in revenues, or both, we believe that our cash on hand and positive cash flow from operations will adequately fund operations, debt reductions and planned capital expenditures throughout our fiscal year 2025.
Item September 27, 2025 September 28, 2024 (in thousands) Current Assets $ 30,593 $ 31,529 Current Liabilities 18,118 19,924 Working Capital $ 12,475 $ 11,605 While there can be no assurance due to, among other things, unanticipated expenses or unanticipated decline in revenues, or both, we believe that our cash on hand and positive cash flow from operations will adequately fund operations, debt reductions and planned capital expenditures throughout our fiscal year 2026.
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.
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.
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.
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.
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 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 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 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%.
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. Gross Profit . Gross profit is calculated by subtracting the cost of merchandise sold from sales.
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. 31 Gross Profit . Gross profit is calculated by subtracting the cost of merchandise sold from sales.
Income Taxes We account for our income taxes using FASB ASC Topic 740, “ Income Taxes ”, which requires among other things, recognition of future tax benefits measured at enacted rates attributable to deductible temporary differences between financial statement and income tax basis of assets and liabilities and tax credits to the extent that realization of said tax benefits is more likely than not.
If the IBR was changed, our operating lease right-of-use assets and lease liabilities could differ materially. 36 Income Taxes We account for our income taxes using FASB ASC Topic 740, “ Income Taxes ”, which requires among other things, recognition of future tax benefits measured at enacted rates attributable to deductible temporary differences between financial statement and income tax basis of assets and liabilities and tax credits to the extent that realization of said tax benefits is more likely than not.
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. Net Income Attributable to Flanigan’s Enterprise, Inc.’s Stockholders.
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. Net Income Attributable to Flanigan’s Enterprise, Inc.’s Stockholders.
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.
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.
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.
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.
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.
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.
Menu Price Increases 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 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.
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.
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.
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 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”). Restaurant Food Sales .
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.
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.
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 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%.
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. Operating Expenses .
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. Operating Expenses .
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. 33 Net Income.
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. 32 Net Income.
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.
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.
Debt 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.
Debt 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.
The decrease is primarily due to the completion of the construction of our Store #19R ($2,106,000). Inflation is affecting all aspects of our operations, including but not limited to food, beverage, fuel and labor costs. Inflation is having a material impact on our operating results.
Inflation is affecting all aspects of our operations, including but not limited to food, beverage, fuel and labor costs. Inflation is having a material impact on our operating results.
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.
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. CASH FLOWS The following table is a summary of our cash flows for our fiscal years 2025 and 2024.
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 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%.
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.
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.
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. Construction Contracts (a) 2505 N.
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.
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.
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. Selling, General and Administrative 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.
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.
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. 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.
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. 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.
CASH FLOWS The following table is a summary of our cash flows for our fiscal years 2024 and 2023. ---------Fiscal Years-------- 2024 2023 (in thousands) Net cash provided by operating activities $ 6,630 $ 8,489 Net cash used in investing activities (5,141 ) (18,559 ) Net cash used in financing activities (5,619 ) (6,536 ) Net (Decrease) Increase in Cash and Cash Equivalents (4,130 ) (16,606 ) Cash and Cash Equivalents, Beginning 25,532 42,138 Cash and Cash Equivalents, Ending $ 21,402 $ 25,532 34 Capital Expenditures 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.
Fiscal Years 2025 2024 (in thousands) Net cash provided by operating activities $ 10,510 $ 6,630 Net cash used in investing activities (6,117 ) (5,141 ) Net cash used in financing activities (5,701 ) (5,619 ) Net Decrease in Cash and Cash Equivalents (1,308 ) (4,130 ) Cash and Cash Equivalents, Beginning 21,402 25,532 Cash and Cash Equivalents, Ending $ 20,094 $ 21,402 33 Capital Expenditures 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.
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.
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.
For discussion regarding our carryforwards refer to Note 10 to the consolidated financial statements for our fiscal year 2024. Leases 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.
Leases 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.
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.
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.
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.
Menu Price Increases 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.
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 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 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 2025 increased $4,352,000 or 7.33% to $63,701,000 from $59,349,000 for our fiscal year 2024.
Prior to these increases, we previously raised menu prices in the first quarter of our fiscal year 2022. 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.
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.
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”.
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.
RESULTS OF OPERATIONS REVENUES (in thousands): -----------------------For the Fiscal Year Ended----------------------- September 28, 2024 September 30, 2023 Amount Amount (In thousands) Percent (In thousands) Percent Restaurant food sales $ 114,795 61.95 $ 107,238 62.56 Restaurant bar sales 30,010 16.20 29,000 16.92 Package store sales 40,497 21.85 35,187 20.52 Total Sales $ 185,302 100.00 $ 171,425 100.00 Franchise related revenues 1,693 1,857 Rental income 1,105 951 Other revenues 221 163 Total Revenue $ 188,321 $ 174,396 31 Comparison of Fiscal Years Ended September 28, 2024 and September 30, 2023 Revenues.
RESULTS OF OPERATIONS REVENUES (in thousands): For the Fiscal Year Ended September 27, 2025 September 28, 2024 Amount Percent Amount Percent (In thousands) (In thousands) Restaurant food sales $ 124,501 61.25 $ 114,795 61.95 Restaurant bar sales 31,764 15.63 30,010 16.20 Package store sales 46,988 23.12 40,497 21.85 Total Sales $ 203,253 100.00 $ 185,302 100.00 Franchise related revenues 1,754 1,693 Other revenues 241 221 Total Revenue $ 205,248 $ 187,216 30 Comparison of Fiscal Years Ended September 27, 2025 and September 28, 2024 Revenues.
LIQUIDITY AND CAPITAL RESOURCES 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.
LIQUIDITY AND CAPITAL RESOURCES 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).
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.
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.
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 (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.
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.
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.
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. Restaurant Bar Sales .
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. Restaurant Bar Sales.
We expect that package liquor store sales for our fiscal year 2025 will increase due to increased package liquor store traffic. 32 Costs and Expenses .
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. Costs and Expenses .
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.
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. Interest Expense, Net .
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. Package Liquor Store Sales .
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. Package Liquor Store Sales .
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”).
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.
The gift cards distributed as a part of our loyalty programs have expiration dates and we estimate breakage for such gift cards. Other Matters Impact of Inflation The primary inflationary factors affecting our operations are food, beverage and labor costs.
For discussion regarding our carryforwards refer to Note 10 to the consolidated financial statements for our fiscal year 2025. Other Matters Impact of Inflation The primary inflationary factors affecting our operations are food, beverage and labor costs.
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.
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.
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. 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. Income Taxes.
Interest expense, net, for our fiscal year 2025 decreased $62,000 to $957,000 from $1,019,000 for our fiscal year 2024. 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.
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.
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.
Removed
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%.
Added
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.
Removed
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%.
Added
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. Income Taxes.
Removed
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%.
Added
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.
Removed
The increase in occupancy costs was primarily due to an increase in real property taxes. Selling, General and Administrative Expenses .
Added
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.
Removed
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.
Added
Commitments Master Service Agreement 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.
Removed
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).
Added
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.
Removed
Prior to these increases, we previously raised menu prices in the first quarter of our fiscal year 2022.
Added
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.
Removed
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’).
Added
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.
Removed
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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeFinancial Statements and Supplementary Data” of this Annual Report on Form 10-K for our fiscal year ended September 28, 2024, we use interest rate swap agreements to manage these risks.
Biggest changeAs described in Note 13 “Fair Value Measurements of Financial Instruments” to the Consolidated Financial Statements included in “Item 8. Financial Statements and Supplementary Data” of this Annual Report on Form 10-K for our fiscal year ended September 27, 2025, we use interest rate swap agreements to manage these risks.
Otherwise, as of September 28, 2024, our cash resources offset our bank charges and any excess cash resources earn interest at variable rates. Accordingly, our return on these funds is affected by fluctuations in interest rates.
Otherwise, as of September 27, 2025, our cash resources offset our bank charges and any excess cash resources earn interest at variable rates. Accordingly, our return on these funds is affected by fluctuations in interest rates.
These instruments are not used for speculative purposes but are used to modify variable rate obligations into fixed rate obligations. 37 At the end of our fiscal year 2024, we had approximately $1,449,000 in 90-day certificates of deposit, government guaranteed and at fixed annual interest rates between 4.65%-5.45%.
These instruments are not used for speculative purposes but are used to modify variable rate obligations into fixed rate obligations. At the end of our fiscal year 2025, we had approximately an aggregate principal amount $1,414,000 of 90-day government guaranteed certificates of deposit at fixed annual interest rates between 4.05% and 5.15%.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK As part of our ongoing operations, we are exposed to interest rate fluctuations on our borrowings. As described in Note 13 “Fair Value Measurements of Financial Instruments” to the Consolidated Financial Statements included in “Item 8.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Economic Risk The current government administration has imposed changes in trade policy, including an increase in the use of tariffs which has resulted in retaliatory tariffs by other countries, shifts in immigration policies and international relations and changes to the overall regulation and enforcement by government agencies.
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We cannot predict the timing or impact, if any, of such actions. Legislative and Regulatory Risk On July 4, 2025, the One Big Beautiful Bill Act (Public Law No. 119-21) was signed into law. Among other provisions, the legislation includes certain tax incentives and regulatory changes applicable to businesses in the food service and hospitality industries.
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The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. We continue to review the legislation to determine its potential impact. Interest Rate Risk As part of our ongoing operations, we are exposed to interest rate fluctuations on our borrowings.

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