Flanigans Enterprises Inc (BDL) Stock Analysis and Metrics

Sector: Consumer Cyclical Industry: Restaurants CIK: 0000012040

Market Cap 54.10 Mn

P/B 0.83

P/E 10.75

P/S 0.26

ROIC (Qtr) 6.98

Div Yield % 1.89

Rev 1y % (Qtr) 9.54

Total Debt (Qtr) 47.12 Mn

Debt/Equity (Qtr) 0.72

About

Flanigan's Enterprises Inc., commonly known as BDL, operates in the hospitality industry with a focus on restaurants, package liquor stores, and sports bars. The company, which was incorporated in 1959, has its headquarters in Florida and has expanded its operations to various locations in South Florida. BDL's main business activities involve the operation of restaurants, package liquor stores, and sports bars. The company's restaurants, which operate under the brand name "Flanigan's Seafood Bar and Grill," offer a casual, nautical-themed dining...

Flanigan's Enterprises Inc., commonly known as BDL, operates in the hospitality industry with a focus on restaurants, package liquor stores, and sports bars. The company, which was incorporated in 1959, has its headquarters in Florida and has expanded its operations to various locations in South Florida.

BDL's main business activities involve the operation of restaurants, package liquor stores, and sports bars. The company's restaurants, which operate under the brand name "Flanigan's Seafood Bar and Grill," offer a casual, nautical-themed dining experience and a menu that includes seafood, steaks, and other American classics. BDL's package liquor stores, which operate under the brand names "Big Daddy's Liquors" and "Big Daddy's Wine & Liquors," provide a wide selection of liquor and wine products at competitive prices and offer sales training to their employees. The company's sports bar, which operates under the brand name "Brendan's Sports Pub," offers a variety of food and beverage options in a sports-themed atmosphere.

The company generates revenue through the sale of food and beverages at its restaurants, the sale of liquor and wine products at its package liquor stores, and the sale of food and beverages at its sports bar. BDL's primary products and services include a wide range of food and beverage items, such as seafood, steaks, and other American classics, as well as a variety of liquor and wine products.

One of BDL's key competitive advantages is its established brand recognition, which has been built over several decades of operation. The company's loyal customer base is another competitive advantage, as it has helped to drive repeat business and positive word-of-mouth referrals. BDL's diverse business segments also provide a competitive advantage, as they allow the company to tap into multiple revenue streams and cater to a wide range of customer needs.

BDL's key competitors in the restaurant and package liquor store industries include other casual dining chains and independent operators. Some of the company's key competitors include Outback Steakhouse, Red Lobster, and Total Wine & More.

BDL's customers are primarily individuals and families who are looking for a casual dining experience and a wide selection of liquor and wine products. The company's restaurants and package liquor stores are located in affluent communities in South Florida, which has helped to attract a loyal customer base.

The brand names and/or trade names of BDL's products and services include "Flanigan's Seafood Bar and Grill," "Big Daddy's Liquors," "Big Daddy's Wine & Liquors," and "Brendan's Sports Pub." These brands are well-established in the South Florida market and are recognized for their quality and value.

Price action

Investment thesis

Bull case

Healthy cash reserves of 20.09M provide 4.80x coverage of short-term debt 4.19M, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 139.35M provides 2.96x coverage of total debt 47.12M, indicating robust asset backing and low credit risk.
Operating cash flow of 10.51M provides exceptional 10.98x coverage of interest expenses 957000, showing strong debt service capability.
Tangible assets of 139.35M provide exceptional 54.03x coverage of deferred revenue 2.58M, showing strong service capability backing.
Robust tangible asset base of 139.35M provides 11.17x coverage of working capital 12.47M, indicating strong operational backing.

Bear case

Operating cash flow of 10.51M barely covers its investment activities of (6.12M), with a coverage ratio of -1.72, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Operating cash flow of 10.51M provides thin coverage of dividend payments of (1.02M) with a -10.28 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
Operating earnings of 6.61M show weak coverage of depreciation charges of 7.32M, with a 0.90 ratio indicating high capital intensity and potential reinvestment needs.
High depreciation of 7.32M relative to operating cash flow of 10.51M, which is 0.70x suggests significant maintenance capital requirements affecting free cash flow.
Free cash flow of 4.35M represents just -3.27x of debt issuance (1.33M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Restaurants

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MCD	Mcdonalds Corp	222.05 Bn	26.39	8.45	55.82 Bn
2	SBUX	Starbucks Corp	95.51 Bn	51.45	2.57	26.61 Bn
3	CMG	Chipotle Mexican Grill Inc	50.94 Bn	33.15	4.32	4.98 Bn
4	YUM	Yum Brands Inc	43.17 Bn	29.83	5.36	11.55 Bn
5	QSR	Restaurant Brands International Inc.	22.43 Bn	24.33	2.42	15.64 Bn
6	DRI	Darden Restaurants Inc	21.91 Bn	19.91	1.77	6.16 Bn
7	YUMC	Yum China Holdings, Inc.	18.12 Bn	20.05	1.57	1.84 Bn
8	DPZ	Dominos Pizza Inc	14.57 Bn	24.72	3.01	5.05 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	0.59	2.05
EV to Cash from Ops. EV/CFO	7.95	16.57
EV to Debt EV to Debt	1.77	4.75
EV to EBIT EV/EBIT	12.64	3.45
EV to EBITDA EV/EBITDA	5.41	9.76
EV to Free Cash Flow [EV/FCF] EV/FCF	19.22	29.06
EV to Market Cap EV to Market Cap	1.54	6.55
EV to Revenue EV/Rev	0.41	2.40
Price to Book Value [P/B] P/B	0.83	-1.40
Price to Earnings [P/E] P/E	10.75	13.35

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Div Coverage (Qtr)	4.92	-9.56
Dividend Payout Ratio % Div Payout % (Qtr)	20.30	18.72
Dividend per Basic Share Div per Share (Qtr)	0.55	0.84
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	23.51	30.41
Interest Coverage Int. cover (Qtr)	6.91	-86.85

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	-19.41	-24.56
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	-6.11	35.50
Dividend Growth (1y) % Div 1y % (Qtr)	10.00	-0.72
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	37.01	-564.81
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	27.55	25.78
EBIT Growth (1y) % EBIT 1y % (Qtr)	41.86	-507.68
EBT Growth (1y) % EBT 1y % (Qtr)	55.27	-41.98
EPS Growth (1y) % EPS 1y % (Qtr)	49.72	-126.51
FCF Growth (1y) % FCF 1y % (Qtr)	195.92	5,724.78
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	13.18	23.70

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	1.46	0.99
Cash Payout Ratio Cash Payout (Qtr)	0.06	0.07
Cash Ratio Cash Ratio (Qtr)	1.11	0.78
Current Ratio Curr Ratio (Qtr)	1.69	1.47
Debt to Equity Ratio Debt/Equity (Qtr)	0.72	0.05
Interest Cover Ratio Int Coverage (Qtr)	6.91	-86.85
Times Interest Earned Times Interest Earned (Qtr)	6.91	-86.85

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	6.80	7.71
EBIT Margin % EBIT Margin % (Qtr)	3.22	-2.27
EBT Margin % EBT Margin % (Qtr)	2.76	-1.97
Gross Margin % Gross Margin % (Qtr)	26.10	34.04
Net Profit Margin % Net Margin % (Qtr)	2.50	-3.69

Flanigans Enterprises Inc (NYSE: BDL)

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