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Flanigan's Enterprises Inc. Message Board

  • networthdev networthdev May 20, 2013 3:27 PM Flag

    BDL growth plan?

    Have seen the places, but have never gone in. Is the food and service good? Also, can't find much info on their website regarding company growth strategy. Do they have a plan? Been around a long time, numbers look interesting, but can they grow the TOP line?

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    • net... The food is excellent, the portions large, the decor interesting (deep sea fishing in the Gulfstream), and the value is great. I believe that BDL has the best value for money of any sit down restaurant chain operating in South Florida.

      The growth under current management has been slow and conservative. Look at how much cash they are holding at little or no current return. The liquor stores will probably never be expanded. Profitability is modest, and competition such as Total Wine, Inc. has been taking market share. If Total Wine ever goes public, it could be an interesting IPO opportunity.

      The restaurants have been added (utilizing the limited partnership model) slowly and very successfully (for the most part). The limited partnership model has a positive upside; once the limited partners receive the full amount of their investments (in cash distributions), then BDL gets 1/2 of the unit's net profit going forward. So, once these pay out, profitability is significantly expanded.

      I have believed for some time that if BDL were taken over by a large franchisor/operator of chains (such as Bloom' Brands, Inc.), the new owner could rapidly expand the units nationwide. I believe that this result would maximize the value to current shareholders with a large premium for an all-cash deal.

      Sentiment: Buy

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