BUSINESS SEGMENTS

12 Months Ended

Sep. 27, 2025

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 27, 2025 and September 28, 2024, 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	$	124,501		$	—	$	—		$	—		$	124,501
Intersegment revenues		4,529			—		—			(4,529	)		—
Restaurant bar sales		31,764			—		—			—			31,764
Package goods sales		—			46,988		—			—			46,988
TOTAL REVENUE:		160,794			46,988		—			(4,529	)		203,253
COST OF MERCHANDISE SOLD:
Cost of merchandise sold:		52,174			35,185		—			—			87,359
Intersegment cost of merchandise sold		4,529			—		—			(4,529	)		—
TOTAL COST OF MERCHANDISE SOLD:		56,703			35,185		—			(4,529	)		87,359
GROSS PROFIT:		104,091			11,803		—			—			115,894
ADDITIONAL REVENUES:
Franchise-related revenues		—			—		1,754			—			1,754
Intersegment franchise-related revenues		—			—		5,664			(5,664	)		—
Intersegment partnership income		—			—		1,651			(1,651	)		—
Other revenues		162			—		79			—			241
TOTAL ADDITIONAL REVENUES:		162			—		9,148			(7,315	)		1,995
ADDITIONAL EXPENSES:
Payroll and related costs		52,272			3,479		7,950			—			63,701
Operating expenses		22,795			3,063		1,580			—			27,438
Intersegment operating expenses		2,507			—		2,871			(5,378	)		—
Occupancy costs		6,719			784		367			—			7,870
Intersegment occupancy costs		666			194		—			(860	)		—
Selling, general and administrative expenses		1,578			166		3,719			—			5,463
Intersegment selling, general and administrative expenses		—			—		286			(286	)		—
Depreciation and amortization		3,443			632		597			—			4,672
TOTAL ADDITIONAL EXPENSES:		89,980			8,318		17,370			(6,524	)		109,144
Income (Loss) from Operations		14,273			3,485		(8,222	)		(791	)		8,745
OTHER INCOME (EXPENSE):
Interest expense		—			—		(957	)		—			(957	)
Intersegment interest expense		—			—		(8	)		8			—
Interest and other income		10			90		296			—			396
Intersegment interest and other income		—			—		8			(8	)		—
Rental income		—			—		1,077			—			1,077
Intersegment rental income		—			—		860			(860	)		—
Rental expense		—			—		(622	)		—			(622	)
		10			90		654			(860	)		(106	)
Income (loss) before provision for income taxes:		14,283			3,575		(7,568	)		(1,651	)		8,639
Provision for income taxes		—			—		(622	)		—			(622	)
Net Income (Loss)		14,283			3,575		(8,190	)		(1,651	)		8,017
Less: Net Income attributable to noncontrolling interests		(2,984	)		—		—			—			(2,984	)
Net Income (Loss) Attributable to Flanigan’s Enterprises, Inc.	$	11,299		$	3,575	$	(8,190	)	$	(1,651	)	$	5,033

	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	)		—
Intersegment partnership income		—			—			1,156			(1,156	)		—
Other revenues		165			—			56			—			221
TOTAL ADDITIONAL REVENUES:		165			—			8,750			(7,001	)		1,914
ADDITIONAL EXPENSES:
Payroll and related costs		49,024			3,153			7,172			—			59,349
Intersegment payroll costs		—			(24	)		—			24			—
Operating expenses		20,517			2,640			1,544			—			24,701
Intersegment operating expenses		2,431			—			3,173			(5,604	)		—
Occupancy costs		6,534			862			358			—			7,754
Intersegment occupancy costs		665			184			—			(849	)		—
Selling, general and administrative expenses		1,232			167			3,914			—			5,313
Intersegment selling, general and administrative expenses		—			—			286			(286	)		—
Depreciation and amortization		3,216			499			553			—			4,268
TOTAL ADDITIONAL EXPENSES:		83,619			7,481			17,000			(6,715	)		101,385
Income (Loss) from Operations		11,489			2,888			(8,250	)		(286	)		5,841
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	)		—
Rental income		—			—			1,105			—			1,105
Intersegment rental income		—			—			849			(849	)		—
Rental expense		—			—			(550	)		—			(550	)
Gain on sale of property and equipment		—			—			2			—			2
		22			102			490			(869	)		(255	)
Income (loss) before provision for income taxes:		11,511			2,990			(7,760	)		(1,155	)		5,586
Provision for income taxes		—			—			(286	)		—			(286	)
Net Income (Loss)		11,511			2,990			(8,046	)		(1,155	)		5,300
Less: Net Income attributable to noncontrolling interests		(1,944	)		—			—			—			(1,944	)
Net Income (Loss) Attributable to Flanigan’s Enterprises, Inc.	$	9,567		$	2,990		$	(8,046	)	$	(1,155	)	$	3,356

	(in thousands)
	For the Fiscal Year Ended
	September 27,		September 28,
	2025		2024
Capital Expenditures:
Restaurants	$	4,815	$	4,986
Package stores		289		197
Corporate		740		864
Consolidated Totals	$	5,844	$	6,047

	(in thousands)
	September 27,		September 28,
	2025		2024
Identifiable Assets:
Restaurants	$	76,500	$	77,613
Package stores		24,053		23,084
Corporate		40,070		41,385
Consolidated Totals	$	140,623	$	142,082