BUSINESS SEGMENTS

12 Months Ended

Sep. 28, 2024

Business Segments [Abstract]

BUSINESS SEGMENTS

NOTE 15. BUSINESS SEGMENTS

We operate in two reportable segments – package stores and restaurants. The operation of package stores consists of retail liquor sales and related items. The operation of restaurants consists of restaurant food and bar sales. Operating income is total revenue less cost of merchandise sold and operating expenses relative to each segment. In order to evaluate each of these two operating segments we also break out our Corporate entity which functions as a cost center accumulating expenses that do not directly relate to the reportable segments operations. As such, our Chief Operating Decision Maker (CODM) (our Chief Financial Officer) ensures that these expenses are separated in order to properly evaluate the two main reportable segments as presented below. We have disclosed for each reportable segment the significant expense categories that are reviewed by CODM in the tables below and there are no additional significant expenses within the expense categories presented. The key areas of focus by CODM for allocation of resources are revenues from each reportable segment, as well as their cost of merchandise sold, payroll related costs, and operating expenses (these figures are presented both pre-elimination and post-elimination with a line clearly distinguishing the elimination amounts). While CODM analyzes these categories, the area of focus is period over period fluxes to determine that the right allocation of resources is attributed to each segment in order to ensure profitability is maximized. Gross profit is not shown on the Consolidated Statements of Income but is a metric that CODM uses to assess segment performance and as such is included in the tables below. In computing operating income, none of the following items have been included: interest expense, other non-operating income and expenses and income taxes. Identifiable assets by segment are those assets that are used in our operations in each segment. Corporate assets are principally cash and real property, improvements, furniture, equipment and vehicles used at our corporate headquarters. We do not have any operations outside of the United States and transactions between restaurants and package liquor stores are not material. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. CODM analyzes each segment’s income from operations for making decisions regarding resource allocation. Information concerning the revenues and operating income for the years ended September 28, 2024 and September 30, 2023, and identifiable assets for the two reportable segments in which we operate, are shown in the following tables.

	Restaurant			Package			Corporate			Eliminations			Total
REVENUES:
Restaurant food sales	$	114,795		$	—		$	—		$	—		$	114,795
Intersegment revenues		4,141			—			—			(4,141	)		—
Restaurant bar sales		30,010			—			—			—			30,010
Package goods sales		—			40,497			—			—			40,497
TOTAL REVENUE:		148,946			40,497			—			(4,141	)		185,302
COST OF MERCHANDISE SOLD:
Cost of merchandise sold:		49,862			30,128			—			—			79,990
Intersegment cost of merchandise sold		4,141			—			—			(4,141	)		—
TOTAL COST OF MERCHANDISE SOLD:		54,003			30,128			—			(4,141	)		79,990
GROSS PROFIT:		94,943			10,369			—			—			105,312
ADDITIONAL REVENUES:
Franchise-related revenues		—			—			1,693			—			1,693
Intersegment franchise-related revenues		—			—			5,845			(5,845	)		—
Rental income		—			—			1,105			—			1,105
Intersegment rental income		—			—			849			(849	)		—
Intersegment partnership income		—			—			1,156			(1,156	)		—
Other revenues		165			—			56			—			221
TOTAL ADDITIONAL REVENUES:		165			—			10,704			(7,850	)		3,019
ADDITIONAL EXPENSES:
Payroll and related costs		49,024			3,153			7,172			—			59,349
Intersegment payroll costs		—			(24	)		—			24			—
Operating expenses		20,517			2,704			1,671			—			24,892
Intersegment operating expenses		2,431			—			3,173			(5,604	)		—
Occupancy costs		6,534			980			572			—			8,086
Intersegment occupancy costs		665			184			—			(849	)		—
Selling, general and administrative expenses		1,232			170			3,938			—			5,340
Intersegment selling, general and administrative expenses		—			—			286			(286	)		—
Depreciation and amortization		3,216			499			553			—			4,268
TOTAL ADDITIONAL EXPENSES:		83,619			7,666			17,365			(6,715	)		101,935
Income from Operations		11,489			2,703			(6,661	)		(1,135	)		6,396
OTHER INCOME (EXPENSE):
Interest expense		—			—			(1,019	)		—			(1,019	)
Intersegment interest expense		—			—			(8	)		8			—
Interest and other income		22			82			103			—			207
Intersegment interest and other income		—			20			8			(28	)		—
Gain on sale of property and equipment		—			—			2			—			2
		22			102			(914	)		(20	)		(810	)
Income (loss) before provision for income taxes:		11,511			2,805			(7,575	)		(1,155	)		5,586
Provision for income taxes		—			—			(286	)		—			(286	)
Net Income		11,511			2,805			(7,861	)		(1,155	)		5,300
Less: Net Income attributable to noncontrolling interests		(1,944	)		—			—			—			(1,944	)
Net Income Attributable to Flanigan's Enterprises, Inc.	$	9,567		$	2,805		$	(7,861	)	$	(1,155	)	$	3,356

	Restaurant			Package			Corporate			Eliminations			Total
REVENUES:
Restaurant food sales	$	107,238		$	—		$	—		$	—		$	107,238
Intersegment revenues		3,919			—			—			(3,919	)		—
Restaurant bar sales		29,000			—			—			—			29,000
Package goods sales		—			35,187			—			—			35,187
TOTAL REVENUE:		140,157			35,187			—			(3,919	)		171,425
COST OF MERCHANDISE SOLD:
Cost of merchandise sold:		45,488			25,810			—			—			71,298
Intersegment cost of merchandise sold		3,919			—			—			(3,919	)		—
TOTAL COST OF MERCHANDISE SOLD:		49,407			25,810			—			(3,919	)		71,298
GROSS PROFIT:		90,750			9,377			—			—			100,127
ADDITIONAL REVENUES:
Franchise-related revenues		—			—			1,857			—			1,857
Intersegment franchise-related revenues		—			—			6,600			(6,600	)		—
Rental income		—			—			951			—			951
Intersegment rental income		—			—			825			(825	)		—
Intersegment partnership income		—			—			1,312			(1,312	)		—
Other revenues		160			—			3			—			163
TOTAL ADDITIONAL REVENUES:		160			—			11,548			(8,737	)		2,971
ADDITIONAL EXPENSES:
Payroll and related costs		46,561			2,944			7,102			—			56,607
Intersegment payroll costs		—			(25	)		—			25			—
Operating expenses		19,525			2,663			1,470			—			23,658
Intersegment operating expenses		2,312			—			4,060			(6,372	)		—
Occupancy costs		6,233			853			480			—			7,566
Intersegment occupancy costs		661			164			—			(825	)		—
Selling, general and administrative expenses		1,116			177			3,389			—			4,682
Intersegment selling, general and administrative expenses		—			—			273			(273	)		—
Depreciation and amortization		2,646			468			447			—			3,561
TOTAL ADDITIONAL EXPENSES:		79,054			7,244			17,221			(7,445	)		96,074
Income from Operations		11,856			2,133			(5,673	)		(1,292	)		7,024
OTHER INCOME (EXPENSE):
Interest expense		—			—			(1,067	)		—			(1,067	)
Intersegment interest expense		—			—			(8	)		8			—
Interest and other income		6			58			44			—			108
Intersegment interest and other income		—			20			8			(28	)		—
		6			78			(1,023	)		(20	)		(959	)
Income (loss) before provision for income taxes:		11,862			2,211			(6,696	)		(1,312	)		6,065
Provision for income taxes		—			—			(649	)		—			(649	)
Net Income		11,862			2,211			(7,345	)		(1,312	)		5,416
Less: Net Income attributable to noncontrolling interests		(1,417	)		—			—			—			(1,417	)
Net Income Attributable to Flanigan's Enterprises, Inc.	$	10,445		$	2,211		$	(7,345	)	$	(1,312	)	$	3,999

	(in thousands)
	For the Fiscal Year Ended
	September 28,		September 30,
	2024		2023
Capital Expenditures:
Restaurants	$	4,986	$	7,440
Package stores		197		3,855
Corporate		864		9,279
Consolidated Totals	$	6,047	$	20,574

	(in thousands)
	September 28,		September 30,
	2024		2023
Identifiable Assets:
Restaurants	$	77,613	$	76,575
Package stores		23,084		23,714
Corporate		41,385		45,480
Consolidated Totals	$	142,082	$	145,769