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Is Flanigan’s Enterprises, Inc. (NYSEMKT:BDL) Excessively Paying Its CEO?

Lawrence Carr

James Flanigan has been the CEO of Flanigan’s Enterprises, Inc. (NYSEMKT:BDL) since 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Flanigan’s Enterprises

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How Does James Flanigan’s Compensation Compare With Similar Sized Companies?

According to our data, Flanigan’s Enterprises, Inc. has a market capitalization of US$45m, and pays its CEO total annual compensation worth US$1.3m. (This figure is for the year to 2018). That’s below the compensation, last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$151k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$300k.

It would therefore appear that Flanigan’s Enterprises, Inc. pays James Flanigan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Flanigan’s Enterprises has changed over time.

AMEX:BDL CEO Compensation January 29th 19

Is Flanigan’s Enterprises, Inc. Growing?

Earnings per share at Flanigan’s Enterprises, Inc. are much the same as they were three years ago, albeit slightly higher. Its revenue is up 6.3% over last year.

I’d prefer higher revenue growth, but the modest improvement in EPS is good. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.

We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Flanigan’s Enterprises, Inc. Been A Good Investment?

With a total shareholder return of 19% over three years, Flanigan’s Enterprises, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

We examined the amount Flanigan’s Enterprises, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

We generally prefer to see stronger EPS growth, and we’re not particularly impressed with the total shareholder return, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Flanigan’s Enterprises (free visualization of insider trades).

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.