1. Imagine a regional Chili's or Applebee's, but many restaurants are directly attached to their own package liquor stores.

2. Like a Florida-based Outback Steakhouse that also owns a chain of liquor stores.

Major Products/Services of Flanigan's Enterprises (BDL)

• Package Liquor Stores: Operates under the Big Daddy's Liquors name, selling private label liquors, beer, and wines.
• Restaurants: Operates as Flanigan's Seafood Bar and Grill, providing full food services and alcoholic beverages.

Flanigan's Enterprises (BDL) primarily sells its products and services directly to individual consumers.

Its major customer categories are:

• Restaurant Patrons: Individuals who frequent Flanigan's Seafood Bar and Grill locations for full-service dining, including food and alcoholic beverages.
• Liquor Store Consumers: Individuals who purchase private label liquors, beer, and wines from Big Daddy's Liquors stores for off-premise consumption.

James G. Flanigan II has been the Chief Executive Officer of Flanigan's Enterprises since 2005, having previously served as President from 2002 and a Director since 1991. He stepped down as President and Chairman of the Board on January 8, 2026, but remains Chief Executive Officer and a director. He is the son of the company's founder, Joseph "Big Daddy" Flanigan, who established the initial business focusing on lounges and package liquor stores in 1959. Mr. Flanigan has also served as a Vice President and shareholder of Twenty Seven Birds Corporation, a franchisee of Flanigan's, since 1985. He is the sole Manager of Flanigan Family Stock Holdings, LLC (FFSH), which controls significant voting and investment power over the company's shares, contributing to Flanigan's Enterprises being considered a "controlled company."

Allison Govoni was appointed Chief Financial Officer of Flanigan's Enterprises effective January 8, 2026, succeeding Jeffrey D. Kastner. She joined the company in 2007 and has held various positions within the accounting department, including Director of Accounting and Corporate Controller from 2017 to 2024.

Christopher O'Neil was named President of Flanigan's Enterprises effective January 8, 2026, taking over from James G. Flanigan II in that role. Prior to this appointment, he served as the Vice President of Package Operations. Mr. O'Neil also continues to serve as a director of the company.

Peter Bruce was appointed Chief Operating Officer of Flanigan's Enterprises effective January 8, 2026, succeeding August H. Bucci. He joined the company in 2016 and has held several management roles within the restaurant division, including Director of Operations from 2022 to 2026 and Supervisor of Operations from 2018 to 2022.

Jeffrey D. Kastner transitioned from his role as Chief Financial Officer to Chief Legal Officer and Chairman of the Board effective January 8, 2026. He also maintains his positions as General Counsel, Secretary, and a director of the company. Mr. Kastner has a long history with Flanigan's, having joined the Board of Directors in 1985, serving as a corporate attorney for the company from 1979 to 1982, and as general counsel since 1982. He was also President of his law firm, Jeffrey D. Kastner, P.A., from 1983 through 2004.

Flanigan's Enterprises, Inc. (symbol: BDL) faces several key risks inherent to its business model of operating full-service restaurants and package liquor stores, particularly given its geographic concentration.

1. Geographical Concentration and Exposure to Natural Disasters: A primary risk for Flanigan's Enterprises is its heavy concentration in South Florida. This geographical focus makes the company highly vulnerable to regional economic downturns and, significantly, to natural disasters such as hurricanes. Such events can cause extensive property damage, disrupt operations, deter tourism, and negatively impact the local economy, thereby affecting the company's revenue and profitability.
2. Highly Competitive Industry and Rising Operating Costs: The company operates in the intensely competitive restaurant and package liquor store industries. A continuous challenge is managing rising operating costs, including increases in food, fuel, and labor expenses due to inflation. These escalating costs can put significant pressure on profit margins, requiring the company to implement strategic price increases and cost control measures to maintain profitability.
3. Regulatory Compliance and Liquor Liability: Flanigan's Enterprises is subject to extensive federal, state, and local regulations pertaining to labor, health, safety, and particularly, alcohol sales. Non-compliance with these regulations can lead to fines, penalties, or even loss of licenses. Furthermore, the company faces significant liquor liability risks, including potential legal ramifications under "dram shop" statutes for serving intoxicated individuals or liability for serving underage patrons, which could result in substantial legal and financial costs.

The rise of online alcohol delivery platforms poses an emerging threat to Flanigan's Enterprises' Package Stores segment. These platforms offer consumers direct-to-door delivery of beer, wine, and spirits, challenging the traditional brick-and-mortar retail model of Big Daddy's Liquors by providing a convenient alternative for purchasing alcoholic beverages.

The addressable markets for Flanigan's Enterprises (symbol: BDL) main products and services in Florida are as follows:

For its full-service restaurants, operating under the Flanigan's Seafood Bar and Grill service mark, the addressable market size is approximately $66.1 billion in annual sales for full-service restaurants in Florida (as of 2023).

For its package liquor stores, operating under the Big Daddy's Liquors name, the addressable market for spirits is over $9 billion in annual sales in Florida (as of 2022). In Florida, spirits are exclusively available from package stores.

• Strategic Price Increases: Flanigan's Enterprises has been implementing targeted menu and bar price increases to preserve margins amidst inflation and drive revenue growth. This strategy has contributed to expanding gross profit margins in its restaurant and bar segment.
• Increased Customer Traffic and Sales Volume: The company anticipates continued growth in both restaurant food and bar sales, as well as package liquor store sales, driven by an expected increase in customer traffic. Recent results have shown higher sales in both operating segments, indicating ongoing consumer demand.
• New Location Openings: Expansion through new restaurant and package liquor store locations is a driver of revenue growth. The opening of new units, such as the Hollywood, FL location, has demonstrably contributed to top-line performance.

Capital Expenditures

• Capital expenditures for the quarter ended December 27, 2025, totaled $595,000, which included renovation spending at several company-owned locations.
• In the fourth quarter of fiscal 2025, Flanigan's Enterprises acquired undeveloped land in Cutler Bay, Florida, for $2.2 million in cash, intended for a future restaurant site.
• The company anticipates that its current cash on hand and positive operating cash flow will be sufficient to cover operations and planned capital expenditures for at least the next 12 months.