CAUTIONARY NOTE REGARDING LOOKING FORWARD STATEMENTS





Reported financial results may not be indicative of the financial results of
future periods. All non-historical information contained in the following
discussion constitutes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Words such as "anticipates, appears, expects, trends, intends, hopes,
plans, believes, seeks, estimates, may, will," and variations of these words or
similar expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and involve a number of
risks and uncertainties, including but not limited to the effect of the novel
coronavirus pandemic and related "shelter-in-place" orders and other
governmental mandates ("COVID 19"), customer demand and competitive conditions.
Factors that could cause actual results to differ materially are included in,
but not limited to, those identified in the "Management's Discussion and
Analysis of Financial Condition and Results of Operations," in our periodic
reports, including our Annual Report on Form 10-K for the fiscal year ended
October 2, 2021. We undertake no obligation to publicly release the results of
any revisions to these forward-looking statements that may reflect events or
circumstances after the date of this report.



                                      17

  Index

OVERVIEW



As of July 2, 2022, Flanigan's Enterprises, Inc., a Florida corporation,
together with its subsidiaries ("we", "our", "ours" and "us" as the context
requires), (i) operates 30 units, consisting of restaurants, package liquor
stores and combination restaurants/package liquor stores that we either own or
have operational control over and partial ownership in; and franchises an
additional five units, consisting of two restaurants (one of which we operate)
and three combination restaurants/package liquor stores. The table below
provides information concerning the type (i.e. restaurant, package liquor store
or combination restaurant/package liquor store) and ownership of the units (i.e.
whether (i) we own 100% of the unit; (ii) the unit is owned by a limited
partnership of which we are the sole general partner and/or have invested in; or
(iii) the unit is franchised by us), as of July 2, 2022 and as compared to
October 2, 2021 and July 3, 2021. With the exception of "The Whale's Rib", a
restaurant we operate but do not own, and "Brendan's Sports Pub" a
restaurant/bar we own, all of the restaurants operate under our service marks
"Flanigan's Seafood Bar and Grill" or "Flanigan's" and all of the package liquor
stores operate under our service marks "Big Daddy's Liquors" or "Big Daddy's
Wine & Liquors".



Types of Units                          July 2, October 2, July 3, 2021
                                         2022      2021
Company Owned:

Combination package and restaurant         3        3           3       (1)
Restaurant only, including a sports bar    8        7           7       (2)
Package store only                         7        7           7

Company Operated Restaurants Only:
Limited Partnerships                      10        8           8       (3)
Franchise                                  1        1           1
Unrelated Third Party                      1        1           1

Total Company Owned/Operated Units        30        27          27
Franchised Units                           5        5           5       (4)


Notes:

(1) During the first quarter of our fiscal year 2019, our combination package liquor store and restaurant located at 2505 N. University Drive, Hollywood, Florida (Store #19), was damaged by a fire which has caused it to be closed since the first quarter of our fiscal year 2019. Store #19 remains closed through July 2, 2022.



                                      18

  Index

(2) During the third quarter of our fiscal year 2022, we entered into a new lease for the business premises and purchased the assets of a restaurant/bar known as "Brendan's Sports Pub" located at 868 S. Federal Highway, Pompano Beach, Florida and began operating the location under its current trade name.



(3) During the second quarter of our fiscal year 2022, our limited partnership
owned restaurant located at 14301 West Sunrise Boulevard, Sunrise, Florida
(Store #85) opened for business in March 2022 (the "2022 Sunrise Restaurant").
Our limited partnership owned restaurant located at 11225 Miramar Parkway #250,
Miramar, Florida (Store #25) is expected to open for business in January, 2023
(the "2022 Miramar Restaurant").

(4) We operate a restaurant for one (1) franchisee. This unit is included in the table both as a franchised restaurant, as well as a restaurant operated by us.





Franchise Financial Arrangement: In exchange for our providing management and
related services to our franchisees and granting them the right to use our
service marks "Flanigan's Seafood Bar and Grill" or "Flanigan's" and "Big
Daddy's Liquors" or "Big Daddy's Wine & Liquors", our franchisees (four of which
are franchised to members of the family of our Chairman of the Board, officers
and/or directors), are required to (i) pay to us a royalty equal to 1% of gross
package store sales and 3% of gross restaurant sales; and (ii) make advertising
expenditures equal to between 1.5% to 3% of all gross sales, as defined, based
upon our actual advertising costs allocated between stores, pro-rata, based

upon
gross sales.



Limited Partnership Financial Arrangement: We manage and control the operations
of all restaurants owned by limited partnerships, except the Fort Lauderdale,
Florida restaurant which is owned by a related franchisee. Accordingly, the
results of operations of all limited partnership owned restaurants, except the
Fort Lauderdale, Florida restaurant are consolidated into our operations for
accounting purposes. The results of operations of the Fort Lauderdale, Florida
restaurant are accounted for by us utilizing the equity method of accounting. In
general, until the investors' cash investment in a limited partnership
(including any cash invested by us and our affiliates) is returned in full, the
limited partnership distributes to the investors annually out of available cash
from the operation of the restaurant up to 25% of the cash invested in the
limited partnership, with no management fee paid to us. Any available cash in
excess of the 25% of the cash invested in the limited partnership distributed to
the investors annually, is paid one-half (½) to us as a management fee, with the
balance distributed to the investors. Once the investors in the limited
partnership have received, in full, amounts equal to their cash invested, an
annual management fee is payable to us equal to one-half (½) of cash available
to the limited partnership, with the other one half (½) of available cash
distributed to the investors (including us and our affiliates). As of July 2,
2022, all limited partnerships, with the exception of the 2022 Sunrise
Restaurant, which opened for business in March, 2022 and the 2022 Miramar
Restaurant, which we anticipate will open for business in January, 2023, have
returned all cash invested and we receive an annual management fee equal to
one-half (½) of the cash available for distribution by the limited partnership.
In addition to receipt of distributable amounts from the limited partnerships,
we receive a fee equal to 3% of gross sales for use of the service mark
"Flanigan's Seafood Bar and Grill" or "Flanigan's".



RESULTS OF OPERATIONS

-----------------------Thirteen Weeks Ended-----------------------


                                                           July 2, 2022                                July 3, 2021
                                                   Amount                                      Amount
                                               (In thousands)            Percent           (In thousands)            Percent

Restaurant food sales                          $        25,574                 64.01       $        23,484                 63.16
Restaurant bar sales                                     6,755                 16.91                 5,617                 15.10
Package store sales                                      7,626                 19.08                 8,082                 21.74

Total Sales                                    $        39,955                100.00       $        37,183                100.00


Franchise related revenues                                 460             

                           444
Rental income                                              213                                         250
Other operating income                                      47                                          58

Total Revenue                                  $        40,675                             $        37,935




                                      19

  Index

-----------------------Thirty-Nine Weeks Ended-----------------------


                                                               July 2, 2022                                  July 3, 2021
                                                       Amount                                        Amount
                                                   (In thousands)             Percent            (In thousands)             Percent

Restaurant food sales                             $          72,554                 62.40       $          62,501                 61.56
Restaurant bar sales                                         19,431                 16.71                  15,110                 14.88
Package store sales                                          24,285                 20.89                  23,923                 23.56

Total Sales                                       $         116,270                100.00       $         101,534                100.00

Franchise related revenues                                    1,384                                         1,252
Rental income                                                   611                                           663
Other operating income                                          143                                           223

Total Revenue                                     $         118,408                             $         103,672

Comparison of Thirteen Weeks Ended July 2, 2022 and July 3, 2021.


Revenues. Total revenue for the thirteen weeks ended July 2, 2022 increased
$2,740,000 or 7.22% to $40,675,000 from $37,935,000 for the thirteen weeks ended
July 3, 2021 due primarily to increased package liquor store and restaurant
sales, increased menu prices, revenue generated from the opening of our limited
partnership owned restaurant in Sunrise, Florida, (Store #85) in March 2022 and
the comparatively less adverse effects of COVID-19 on our operations during the
thirteen weeks ended July 2, 2022 as compared with the thirteen weeks ended July
3, 2021. Effective October 3, 2021 and then effective December 19, 2021 we
increased menu prices for our food offerings to target an increase to our food
revenues of approximately 2.38% and 3.34% annually, respectively, to offset
higher food costs and higher overall expenses and effective December 12, 2021 we
increased menu prices for our bar offerings to target an increase to our bar
revenues of approximately 7.80% annually, (collectively the "Recent Price
Increases"). Prior to these increases, we previously raised menu prices in the
third quarter of our fiscal year 2021. We expect that the new package liquor
store located at 7990 Davie Road Extension, Hollywood, Florida will open for
business during our fiscal year 2022 and we expect to generate revenue from it.
We do not anticipate that the restaurant located at 2505 N. University Drive,
Hollywood, Florida, which has been closed since October, 2018 due to a fire (the
"Hollywood restaurant") or the Miramar Restaurant will open for business during
our fiscal year 2022 and accordingly we do not expect to generate any revenue
from them.




Restaurant Food Sales. Restaurant revenue generated from the sale of food,
including non-alcoholic beverages, at restaurants totaled $25,574,000 for the
thirteen weeks ended July 2, 2022 as compared to $23,484,000 for the thirteen
weeks ended July 3, 2021. The increase in restaurant food sales for the thirteen
weeks ended July 2, 2022 as compared to restaurant food sales during the
thirteen weeks ended July 3, 2021 is attributable to menu price increases,
restaurant food sales generated from the opening of our limited partnership
owned restaurant in Sunrise, Florida, (Store #85) in March 2022 and the
comparatively greater adverse effects of COVID-19 on our operations during the
thirteen weeks ended July 3, 2021 as compared with the thirteen weeks ended July
2, 2022. Comparable weekly restaurant food sales (for restaurants open for all
of the thirteen weeks ended July 2, 2022 and July 3, 2021 respectively, which
consists of nine restaurants owned by us, (excluding Store #19 which was closed
for the thirteen weeks ended July 2, 2022 and July 3, 2021 due to a fire on
October 2, 2018) and eight restaurants owned by affiliated limited partnerships,
(excluding Store #85 which opened for business during the second quarter of our
fiscal year 2022) was $1,860,000 and $1,789,000 for the thirteen weeks ended
July 2, 2022 and July 3, 2021, respectively, an increase of 3.97%. Comparable
weekly restaurant food sales for Company owned restaurants only was $931,000 and
$893,000 for the thirteen weeks ended July 2, 2022 and July 3, 2021,
respectively, an increase of 4.26%. Comparable weekly restaurant food sales for
affiliated limited partnership owned restaurants only, (excluding Store #85
which opened for business during the second quarter of our fiscal year 2022),
was $930,000 and $896,000 for the thirteen weeks ended July 2, 2022 and July 3,
2021 respectively, an increase of 3.79%.



                                      20

  Index

Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic
beverages at restaurants totaled $6,755,000 for the thirteen weeks ended July 2,
2022 as compared to $5,617,000 for the thirteen weeks ended July 3, 2021. The
increase in restaurant bar sales during the thirteen weeks ended July 2, 2022 is
primarily due to the Recent Price Increases, restaurant bar sales generated from
the opening of our limited partnership owned restaurant in Sunrise, Florida,
(Store #85) in March 2022 and the comparatively more adverse effects of COVID-19
on our operations during the thirteen weeks ended July 3, 2021 as compared with
the thirteen weeks ended July 2, 2022. Comparable weekly restaurant bar sales
(for restaurants open for all of the thirteen weeks ended July 2, 2022 and July
3. 2021 respectively, which consists of nine restaurants owned by us, (excluding
Store #19 which was closed for the thirteen weeks ended July 2. 2022 and July 3,
2021 due to a fire on October 2, 2018), and eight restaurants owned by
affiliated limited partnerships, (excluding Store #85 which opened for business
during the second quarter of our fiscal year 2022)) was $492,000 for the
thirteen weeks ended July 2, 2022 and $432,000 for the thirteen weeks ended July
3, 2021, an increase of 13.89%. Comparable weekly restaurant bar sales for
Company owned restaurants only was $212,000 and $188,000 for the thirteen weeks
ended July 2, 2022 and July 3, 2021, respectively, an increase of 12.77%.
Comparable weekly restaurant bar sales for affiliated limited partnership owned
restaurants only was $280,000 and $244,000 for the thirteen weeks ended July 2,
2022 and July 3, 2021 respectively, an increase of 14.75%.



Package Store Sales. Revenue generated from sales of liquor and related items at
package liquor stores totaled $7,626,000 for the thirteen weeks ended July 2,
2022 as compared to $8,082,000 for the thirteen weeks ended July 3, 2021, a
decrease of $456,000. The weekly average of same store package liquor store
sales, which includes nine (9) Company-owned package liquor stores, (excluding
Store #19, which was closed for the thirteen weeks ended July 2, 2022 and July
3, 2021 due to a fire on October 2, 2018), was $587,000 and $622,000 for the
thirteen weeks ended July 2, 2022 and July 3, 2021 respectively, a decrease

of
5.63%.




Operating Costs and Expenses. Operating costs and expenses, (consisting of cost
of merchandise sold, payroll and related costs, occupancy costs and selling,
general and administrative expenses), for the thirteen weeks ended July 2, 2022
increased $3,266,000 or 9.25% to $38,592,000 from $35,326,000 for the thirteen
weeks ended July 3, 2021. The increase was primarily due to payroll and an
expected general increase in food costs, costs and expenses incurred from the
opening of our limited partnership owned restaurant in Sunrise, Florida, (Store
#85) in March 2022, partially offset by actions taken by management to reduce
and/or control costs. We anticipate that our operating costs and expenses will
continue to increase through our fiscal year 2022. Operating costs and expenses
increased as a percentage of total revenue to approximately 94.88% in the third
quarter of our fiscal year 2022 from 93.12% in the third quarter of our fiscal
year 2021.

Gross Profit. Gross profit is calculated by subtracting the cost of merchandise sold from sales.





Restaurant Food Sales and Bar Sales. Gross profit for food and bar sales for the
thirteen weeks ended July 2, 2022 increased to $20,459,000 from $19,137,000 for
the thirteen weeks ended July 3, 2021. Our gross profit margin for restaurant
food and bar sales (calculated as gross profit reflected as a percentage of
restaurant food and bar sales), was 63.28% for the thirteen weeks ended July 2,
2022 and 65.76% for the thirteen weeks ended July 3, 2021. Gross profit margin
for restaurant food and bar sales decreased during the third quarter of our
fiscal year 2022 when compared to the third quarter of our fiscal year 2021 due
to higher food costs, partially offset by, among other things, the Recent Price
Increases.

                                      21

  Index


Package Store Sales. Gross profit for package store sales for the thirteen weeks
ended July 2, 2022 decreased to $1,996,000 from $2,171,000 for the thirteen
weeks ended July 3, 2021. Our gross profit margin, (calculated as gross profit
reflected as a percentage of package liquor store sales), for package store
sales was 26.17% for the thirteen weeks ended July 2, 2022 and 26.86% for the
thirteen weeks ended July 3, 2021.



Payroll and Related Costs. Payroll and related costs for the thirteen weeks
ended July 2, 2022 increased $250,000 or 1.99% to $12,798,000 from $12,548,000
for the thirteen weeks ended July 3, 2021. Payroll and related costs for the
thirteen weeks ended July 2, 2022 were higher due primarily to the opening of
our limited partnership owned restaurant in Sunrise, Florida, (Store #85) in
March 2022 and higher costs for employees such as cooks. Payroll and related
costs as a percentage of total revenue was 31.46% in the thirteen weeks ended
July 2, 2022 and 33.08% of total revenue in the thirteen weeks ended July 3,
2021.



Occupancy Costs. Occupancy costs (consisting of percentage rent, common area
maintenance, repairs, real property taxes, amortization of leasehold purchases
and rent expense associated with operating lease liabilities under ASC 842) for
the thirteen weeks ended July 2, 2022 increased $126,000 or 7.63% to $1,777,000
from $1,651,000 for the thirteen weeks ended July 3, 2021. The increase in
occupancy costs was primarily due to the commencement of rent for our retail
package liquor store which we are developing located at 11225 Miramar Parkway,
#245, Miramar, Florida (Store #24) and our restaurant location which we are
developing located at 11225 Miramar parkway, #250, Miramar, Florida (Store #25)
during the second quarter of our fiscal year 2022.



Selling, General and Administrative Expenses. Selling, general and
administrative expenses (consisting of general corporate expenses, including but
not limited to advertising, insurance, professional costs, clerical and
administrative overhead) for the thirteen weeks ended July 2, 2022 increased
$1,265,000 or 24.09% to $6,517,000 from $5,252,000 for the thirteen weeks ended
July 3, 2021. Selling, general and administrative expenses increased as a
percentage of total revenue in the thirteen weeks ended July 2, 2022 to 16.02%
as compared to 13.84% in the thirteen weeks ended July 3, 2021, due primarily to
increases in expenses across all categories. We anticipate that our selling,
general and administrative expenses as a percentage of total revenue will
increase throughout the balance of our fiscal year 2022 due primarily to
increases across all categories.



Depreciation and Amortization. Depreciation and amortization expense for the
thirteen weeks ended July 2, 2022 increased $18,000 or 2.34% to $788,000 from
$770,000 from the thirteen weeks ended July 3, 2021. As a percentage of total
revenue, depreciation and amortization expense was 1.94% of revenue in the
thirteen weeks ended July 2, 2022 and 2.03% of revenue in the thirteen weeks
ended July 3, 2021.




Interest Expense, Net. Interest expense, net, for the thirteen weeks ended July
2, 2022 decreased $33,000 to $177,000 from $210,000 for the thirteen weeks ended
July 3. 2021. Interest expense, net, decreased for the thirteen weeks ended July
2, 2022 due to the forgiveness of principal and all accrued interest on the
borrowing by certain of our limited partnerships of an additional $3.35 million
of 2nd PPP Loans during the first quarter of our fiscal year 2022, partially
offset by interest on our borrowing of $4,300,000 during the third quarter of
our fiscal year 2021 from an unrelated third party lender to re-finance our
mortgage loan of our property located at 13105 - 13205 Biscayne Boulevard, North
Miami, Florida (Store #20).

Income Taxes. Income tax for the thirteen weeks ended July 2, 2022 was an expense of $22,000, as compared to an expense of $475,000 for the thirteen weeks ended July 3, 2021.



                                      22

  Index

Net Income. Net income for the thirteen weeks ended July 2, 2022 decreased
$6,457,000 or 76.68% to $1,964,000 from $8,421,000 for the thirteen weeks ended
July 3, 2021 due primarily to the income attributable to the forgiveness of debt
of certain of our PPP Loans during the thirteen weeks ended July 3, 2021 and
higher food costs and overall increased expenses during the thirteen weeks ended
July 2, 2022, partially offset by increased revenue at our restaurants during
the thirteen weeks ended July 2, 2022 and the Recent Price Increases. As a
percentage of revenue, net income for the thirteen weeks ended July 2, 2022 is
4.83%, as compared to 22.20% in the thirteen weeks ended July 3, 2021.



Net Income Attributable to Flanigan's Enterprises, Inc. Stockholders. Net income
attributable to stockholders for the thirteen weeks ended July 2, 2022 decreased
$5,364,000 or 74.51% to $1,835,000 from $7,199,000 for the thirteen weeks ended
July 3, 2021 due primarily to the income attributable to the forgiveness of debt
of certain of our PPP Loans during the thirteen weeks ended July 3, 2021 and
higher food costs and overall increased expenses during the thirteen weeks ended
July 2, 2022, partially offset by increased revenue at our restaurants during
the thirteen weeks ended July 2, 2022 and the Recent Price Increases. As a
percentage of revenue, net income attributable to stockholders for the thirteen
weeks ended July 2, 2022 is 4.51%, as compared to 18.98% for the thirteen weeks
ended July 3, 2021.

Comparison of Thirty-Nine Weeks Ended July 2, 2022 and July 3, 2021.





Revenues. Total revenue for the thirty-nine weeks ended July 2, 2022 increased
$14,736,000 or 14.21% to $118,408,000 from $103,672,000 for the thirty-nine
weeks ended July 3, 2021 due primarily to increased package liquor store and
restaurant sales, the Recent Price Increases, revenue generated from the opening
of our limited partnership owned restaurant in Sunrise, Florida, (Store #85) in
March 2022 and the comparatively less adverse effects of COVID-19 on our
operations during the thirty-nine weeks ended July 2, 2022 as compared with the
thirty-nine weeks ended July 3, 2021.



Restaurant Food Sales. Restaurant revenue generated from the sale of food,
including non-alcoholic beverages, at restaurants totaled $72,554,000 for the
thirty-nine weeks ended July 2, 2022 as compared to $62,501,000 for the
thirty-nine weeks ended July 3, 2021. The increase in restaurant food sales for
the thirty-nine weeks ended July 2, 2022 as compared to restaurant food sales
during the thirty-nine weeks ended July 3, 2021 is attributable to the Recent
Price Increases, restaurant food sales generated from the opening of our limited
partnership owned restaurant in Sunrise, Florida, (Store #85) in March 2022 and
the comparatively more adverse effects of COVID-19 on our operations during the
thirty-nine weeks ended July 3, 2021 as compared with the thirty-nine weeks
ended July 2, 2022. Comparable weekly restaurant food sales (for restaurants
open for all of the thirty-nine weeks ended July 2, 2022 and July 3, 2021
respectively, which consists of nine restaurants owned by us, (excluding Store
#19 which was closed for the thirty-nine weeks ended July 2, 2022 and July 3,
2021 due to a fire on October 2, 2018) and eight restaurants owned by affiliated
limited partnerships, (excluding Store #85 which opened for business during the
second quarter of our fiscal year 2022)) was $1,803,000 and $1,590,000 for the
thirty-nine weeks ended July 2, 2022 and July 3, 2021, respectively, an increase
of 13.40%. Comparable weekly restaurant food sales for Company owned restaurants
only was $892,000 and $787,000 for the thirty-nine weeks ended July 2, 2022 and
July 3, 2021, respectively, an increase of 13.34%. Comparable weekly restaurant
food sales for affiliated limited partnership owned restaurants only, (excluding
Store #85 which opened for business during the second quarter of our fiscal year
2022), was $912,000 and $803,000 for the thirty-nine weeks ended July 2, 2022
and July 3, 2021 respectively, an increase of 13.57%.



Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic
beverages at restaurants totaled $19,431,000 for the thirty-nine weeks ended
July 2, 2022 as compared to $15,110,000 for the thirty-nine weeks ended July 3,
2021. The increase in restaurant bar sales during the thirty-nine weeks ended
July 2, 2022 is primarily due to the Recent Price Increases, restaurant bar
sales generated from the opening of our limited partnership owned restaurant in
Sunrise, Florida, (Store #85) in March 2022 and the comparatively greater
adverse effects of COVID-19 on our operations during the thirty-nine weeks ended
July 3, 2021 as compared with the thirty-nine weeks ended July 2, 2022.
Comparable weekly restaurant bar sales (for restaurants open for all of the
thirty-nine weeks ended July 2, 2022 and July 3. 2021 respectively, which
consists of nine restaurants owned by us, (excluding Store #19 which was closed
for the thirty-nine weeks ended July 2. 2022 and July 3, 2021 due to a fire on
October 2, 2018), and eight restaurants owned by affiliated limited
partnerships, (excluding Store #85 which opened for business during the second
quarter of our fiscal year 2022)) was $488,000 for the thirty-nine weeks ended
July 2, 2022 and $387,000 for the thirty-nine weeks ended July 3, 2021, an
increase of 26.10%. Comparable weekly restaurant bar sales for Company owned
restaurants only was $213,000 and $165,000 for the thirty-nine weeks ended July
2, 2022 and July 3, 2021, respectively, an increase of 29.09%. Comparable weekly
restaurant bar sales for affiliated limited partnership owned restaurants only
was $274,000 and $222,000 for the thirty-nine weeks ended July 2, 2022 and July
3, 2021 respectively, an increase of 23.42%.

                                      23

Index



Package Store Sales. Revenue generated from sales of liquor and related items at
package liquor stores totaled $24,285,000 for the thirty-nine weeks ended July
2, 2022 as compared to $23,923,000 for the thirty-nine weeks ended July 3, 2021,
an increase of $362,000. This increase was primarily due to increased package
liquor store traffic due to what appears to be continued increased demand for
package liquor store products resulting from COVID-19. The weekly average of
same store package liquor store sales, which includes nine (9) Company-owned
package liquor stores, (excluding Store #19, which was closed for the
thirty-nine weeks ended July 2, 2022 and July 3, 2021 due to a fire on October
2, 2018), was $623,000 and $613,000 for the thirty-nine weeks ended July 2, 2022
and July 3, 2021 respectively, an increase of 1.63%.



Operating Costs and Expenses. Operating costs and expenses, (consisting of cost
of merchandise sold, payroll and related costs, occupancy costs and selling,
general and administrative expenses), for the thirty-nine weeks ended July 2,
2022 increased $16,710,000 or 17.23% to $113,710,000 from $97,000,000 for the
thirty-nine weeks ended July 3, 2021. The increase was primarily due to payroll
and an expected general increase in food costs, costs and expenses incurred from
the opening of our limited partnership owned restaurant in Sunrise, Florida,
(Store #85) in March 2022 partially offset by actions taken by management to
reduce and/or control costs. We anticipate that our operating costs and expenses
will continue to increase through our fiscal year 2022. Operating costs and
expenses increased as a percentage of total revenue to approximately 96.03% in
the thirty-nine weeks ended July 2, 2022 from 93.56% in the thirty-nine weeks
ended July 3, 2021.

Gross Profit. Gross profit is calculated by subtracting the cost of merchandise sold from sales.





Restaurant Food Sales and Bar Sales. Gross profit for food and bar sales for the
thirty-nine weeks ended July 2, 2022 increased to $58,408,000 from $51,663,000
for the thirty-nine weeks ended July 3, 2021. Our gross profit margin for
restaurant food and bar sales (calculated as gross profit reflected as a
percentage of restaurant food and bar sales), was 63.50% for the thirty-nine
weeks ended July 2, 2022 and 66.57% for the thirty-nine weeks ended July 3,
2021. Gross profit margin for restaurant food and bar sales decreased during the
thirty-nine weeks ended July 2, 2022 when compared to the thirty-nine weeks
ended July 3, 2021 due to higher food costs, partially offset by, among other
things, the Recent Price Increases.



Package Store Sales. Gross profit for package store sales for the thirty-nine
weeks ended July 2, 2022 decreased to $6,446,000 from $6,493,000 for the
thirty-nine weeks ended July 3, 2021. Our gross profit margin, (calculated as
gross profit reflected as a percentage of package liquor store sales), for
package store sales was 26.54% for the thirty-nine weeks ended July 2, 2022 and
27.14% for the thirty-nine weeks ended July 3, 2021.



Payroll and Related Costs. Payroll and related costs for the thirty-nine weeks
ended July 2, 2022 increased $4,590,000 or 14.13% to $37,065,000 from
$32,475,000 for the thirty-nine weeks ended July 3, 2021. Payroll and related
costs for the thirty-nine weeks ended July 2, 2022 were higher due primarily to
higher costs for employees such as cooks and to a lesser extent due to the
opening of our limited partnership owned restaurant in Sunrise, Florida, (Store
#85) in March 2022. Payroll and related costs as a percentage of total revenue
was 31.30% in the thirty-nine weeks ended July 2, 2022 and 31.32% of total
revenue in the thirty-nine weeks ended July 3, 2021.



                                      24

  Index

Occupancy Costs. Occupancy costs (consisting of percentage rent, common area
maintenance, repairs, real property taxes, amortization of leasehold purchases
and rent expense associated with operating lease liabilities under ASC 842) for
the thirty-nine weeks ended July 2, 2022 increased $131,000 or 2.59% to
$5,190,000 from $5,059,000 for the thirty-nine weeks ended July 3, 2021. The
increase in occupancy costs was primarily due to the commencement of rent for
our retail package liquor store which we are developing located at 11225 Miramar
Parkway, #245, Miramar, Florida (Store #24) and our restaurant location which we
are developing located at 11225 Miramar parkway, #250, Miramar, Florida (Store
#25) during the second quarter of our fiscal year 2022, partially offset by the
elimination of rent for our restaurant location located at 14301 West Sunrise
Boulevard, Sunrise, Florida (Store #85), the real property and improvements of
which we purchased on March 2, 2021.



Selling, General and Administrative Expenses. Selling, general and
administrative expenses (consisting of general corporate expenses, including but
not limited to advertising, insurance, professional costs, clerical and
administrative overhead) for the thirty-nine weeks ended July 2, 2022 increased
$3,951,000 or 24.56% to $20,039,000 from $16,088,000 for the thirty-nine weeks
ended July 3, 2021 due primarily to the payment by the Company of pre-opening
expenses in the amount of $856,000 for its limited partnership owning the new
restaurant in Sunrise, Florida (Store #85) due to delays in the development of
the new restaurant, including delays caused by COVID-19 and increases in
expenses across all categories. Selling, general and administrative expenses
increased as a percentage of total revenue in the thirty-nine weeks ended July
2, 2022 to 16.92% as compared to 15.52% in the thirty-nine weeks ended July 3,
2021. We anticipate that our selling, general and administrative expenses as a
percentage of total revenue will increase throughout the balance of our fiscal
year 2022 due primarily to increases across all categories.



Depreciation and Amortization. Depreciation and amortization expense for the
thirty-nine weeks ended July 2, 2022 decreased $97,000 or 4.21% to $2,209,000
from $2,306,000 from the thirty-nine weeks ended July 3, 2021. As a percentage
of total revenue, depreciation and amortization expense was 1.87% of revenue in
the thirty-nine weeks ended July 2, 2022 and 2.22% of revenue in the thirty-nine
weeks ended July 3, 2021.



Interest Expense, Net. Interest expense, net, for the thirty-nine ended July 2,
2022 decreased $190,000 to $547,000 from $737,000 for the thirty-nine weeks
ended July 3, 2021. Interest expense, net, decreased for the thirty-nine weeks
ended July 2, 2022 due to the forgiveness of principal and all accrued interest
on the borrowing by certain of our limited partnerships of an additional $3.35
million related to the 2nd PPP Loans during the first quarter of our fiscal year
2022, partially offset by interest on (i) our borrowing of $2,200,000 during the
second quarter of our fiscal year 2021 from an unrelated third party lender used
to finance our purchase of the real property and improvements located at 14301
West Sunrise Boulevard, Sunrise, Florida (Store #85) (the "$2.2 Million
Borrowing") and (ii) our borrowing of $4,300,000 during the third quarter of our
fiscal year 2021 from an unrelated third party lender to re-finance our mortgage
loan of our property located at 13105 - 13205 Biscayne Boulevard, North Miami,
Florida (Store #20).



Income Taxes. Income tax for the thirty-nine weeks ended July 2, 2022 was an
expense of $522,000, as compared to an expense of $1,004,000 for the thirty-nine
weeks ended July 3, 2021.



Net Income. Net income for the thirty-nine weeks ended July 2, 2022 decreased
$7,900,000 or 52.16% to $7,245,000 from $15,145,000 for the thirty-nine weeks
ended July 3, 2021 due primarily to the greater income attributable to the
forgiveness of debt of certain of our PPP Loans during the thirty-nine weeks
ended July 3, 2021 as compared to the income attributable to the forgiveness of
debt of certain of our 2nd PPP Loans during the thirty-nine weeks ended July 2,
2022 and higher food costs and overall increased expenses during the thirty-nine
weeks ended July 2, 2022, partially offset by increased revenue at our retail
package liquor stores and restaurants during the thirty-nine weeks ended July 2,
2022 and the Recent Price Increases. As a percentage of revenue, net income for
the thirty-nine weeks ended July 2, 2022 is 6.12%, as compared to 14.61% in the
thirty-nine weeks ended July 3, 2021.

                                      25

Index



Net Income Attributable to Flanigan's Enterprises, Inc. Stockholders. Net income
attributable to stockholders for the thirty-nine weeks ended July 2, 2022
decreased $5,371,000 or 51.50% to $5,059,000 from $10,430,000 for the
thirty-nine weeks ended July 3, 2021 due primarily to the greater income
attributable to the forgiveness of debt of certain of our PPP Loans during the
thirty-nine weeks ended July 3, 2021 as compared to the income attributable to
the forgiveness of debt of certain of our 2nd PPP Loans during the thirty-nine
weeks ended July 2, 2022 and higher food costs and overall increased expenses
during the thirty-nine weeks ended July 2, 2022, partially offset by increased
revenue at our retail package liquor stores and restaurants during the
thirty-nine weeks ended July 2, 2022 and the Recent Price Increases. During the
thirty-nine weeks ended July 2, 2022, due to losses attributable to the 2022
Sunrise Restaurant and a lesser extent the 2022 Miramar Restaurant, there was
less of a gain attributable to the noncontrolling interests as compared to a
gain for the thirty-nine weeks ended July 3, 2021 which contributes to the net
income attributable to Flanigan's Enterprises, Inc. Stockholders for the
thirty-nine weeks ended July 2, 2022. As a percentage of revenue, net income
attributable to stockholders for the thirty-nine weeks ended July 2, 2022 is
4.27%, as compared to 10.06% for the thirty-nine weeks ended July 3, 2021.

New Limited Partnership Restaurants





As new restaurants open, our income from operations will be adversely affected
due to our obligation to advance pre-opening costs, including but not limited to
pre-opening rent for the new locations. During the thirty-nine weeks ended July
2, 2022, we opened one new restaurant location in Sunrise, Florida for business
as a new "Flanigan's" and had a second new restaurant location in Miramar,
Florida in the development stage, to house a new "Flanigan's". Rent for the new
restaurant location in Miramar, Florida commenced during the second quarter

of
our fiscal year 2022.

Menu Price Increases and Trends





During the thirty-nine weeks ended July 2, 2022, we increased menu prices for
our food offerings (effective October 3, 2021 and December 19, 2021,
respectively) to target an aggregate increase to our food revenues of
approximately 8.83% annually and we increased menu prices for our bar offerings
(effective December 12, 2021) to target an increase to our bar revenues of
approximately 7.80% annually to offset higher food and liquor costs and higher
overall expenses. Prior to these increases, we previously raised menu prices in
the third quarter of our fiscal year 2021.



COVID-19 has and will continue to materially and adversely affect our restaurant
business for what may be a prolonged period of time. This damage and disruption
has resulted from events and factors that were impossible for us to predict and
are beyond our control. As a result, COVID-19 has materially adversely affected
our results of operations for our fiscal year 2021, as well as the thirty-nine
weeks ended July 2, 2022 and will, in all likelihood, impact our results of
operations, liquidity and/or financial condition throughout our fiscal year
2022. The extent to which our restaurant business may be adversely impacted and
its effect on our operations, liquidity and/or financial condition cannot be
accurately predicted



                                      26

  Index

Liquidity and Capital Resources





We fund our operations through cash from operations and borrowings from third
parties. As of July 2, 2022, we had cash of approximately $35,659,000, an
increase of $2,983,000 from our cash balance of $32,676,000 as of October 2,
2021. During the thirty-nine weeks ended July 2, 2022, we generated proceeds
from the closing of the sale, in a private offering of limited partnership
interests in (i) CIC Investors #85, Ltd., the limited partnership which owns and
operates the 2022 Sunrise Restaurant, of $5,000,000, of which we purchased
$370,000 of limited partnership interests; and (ii) CIC Investors #25, Ltd., the
limited partnership which owns and is developing the "Flanigan's" restaurant
located at 11225 Miramar Parkway, Suite 250, Miramar, Florida 33025 of
$4,000,000. Capital raised from private investors in the private offerings is
credited to sale of noncontrolling interests in our Statements of Stockholders'
Equity.




During the second quarter of our fiscal year 2021, certain of the entities
owning the limited partnership stores (the "LP's"), as well as the store we
manage but do not own (the "Managed Store") (collectively, the "Borrowers"),
applied for and received loans from an unrelated third party lender (the
"Lender") pursuant to the Paycheck Protection Program (the "PPP") under the
Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") enacted
March 27, 2020, in the aggregate principal amount of approximately $3.98 million
(the "2nd PPP Loans"), of which approximately: (i) $3.46 million was loaned to
six (6) of the LP's; and (ii) $0.52 million was loaned to the Managed Store.
During first quarter of our fiscal year 2022, we applied for forgiveness for all
PPP Loans, including the Managed Store, and as of July 2, 2022, the entire
amount of principal and accrued interest was forgiven under the 2nd PPP Loans.
During the third quarter of our fiscal year 2021, we generated net proceeds of
$2.8 million from the re-finance of our mortgage loan encumbering the real
property and improvements located at 13105 - 13205 Biscayne Boulevard, North
Miami, Florida where our Flanigan's Seafood Bar and Grill restaurant and Big
Daddy's Liquors retail package liquor store operate (Store #20) with an
unrelated third-party lender, increasing the principal amount borrowed from $1.5
million to $4.3 million. During the second quarter of our fiscal year 2021, we
closed on the purchase of the real property and improvements located at 14301
West Sunrise Boulevard, Sunrise, Florida for $4,800,000 where our "Flanigan's
Seafood Bar and Grill" restaurant (Store #85) for operates. We financed this
acquisition with a loan from an unrelated third-party lender in the principal
amount of $2.2 million and paid cash for the balance. During the first quarter
of our fiscal year 2021, we closed on the purchase of the real property and
improvements located at 5450 N. State Road 7, North Lauderdale, Florida where we
operate a combination "Flanigan's Seafood Bar and Grill" restaurant and "Big
Daddy's Liquors" package liquor store (Store #40) and paid $1,200,000 cash

at
closing.



Notwithstanding the negative effects of COVID 19 on our operations, we believe
that our current cash availability from our cash on hand, positive cash flow
from operations and borrowed funds will be sufficient to fund our operations and
planned capital expenditures for at least the next twelve months.

Cash Flows

The following table is a summary of our cash flows for the thirty-nine weeks ended July 2, 2022 and July 3, 2021.



                                      27

  Index

---------Thirty-Nine Weeks Ended--------

July 2, 2022                July 3, 2021

(in Thousands)


Net cash provided by operating activities                        $             7,825         $            11,523
Net cash used in investing activities                                         (6,519 )                    (8,374 )
Net cash provided by (used in) financing activities                            1,677                      (1,118 )

Net Increase in Cash and Cash Equivalents                                      2,983                       2,031

Cash and Cash Equivalents, Beginning                                          32,676                      29,922

Cash and Cash Equivalents, Ending                                $         

  35,659         $            31,953




During the thirty-nine weeks ended July 2, 2022, our Board of Directors declared
a cash dividend of $1.00 per share to shareholders of record on March 31, 2022
and paid on April 19, 2022. During the thirty-nine weeks ended July 3, 2021, we
did not declare or pay a cash dividend on our capital stock. Any future
determination to pay cash dividends will be at our Board's discretion and will
depend upon our financial condition, operating results, capital requirements and
such other factors as our Board deems relevant.



Capital Expenditures



In addition to using cash for our operating expenses, we use cash to fund the
development and construction of new restaurants and to fund capitalized property
improvements for our existing restaurants. During the thirty-nine weeks ended
July 2, 2022, we acquired property and equipment and construction in progress of
$10,227,000, (of which $562,000 was deposits recorded in other assets as of
October 2, 2021 and $549,000 was construction in progress in accounts payable),
including $727,000 for renovations to three (3) existing limited partnership
owned restaurants and $149,000 for renovations to two (2) Company owned
restaurants. During the thirty-nine weeks ended July 3, 2021, we acquired
property, plant and equipment and construction in progress of $9,683,000, (of
which $58,000 was for the purchase of a motor vehicle; $2,200,000 was for the
purchase of real property; $14,000 was deposits recorded in other assets and
$18,000 was purchase deposits transferred to construction in process as of
October 3, 2020), which amount included $35,000 for the renovation to two (2)
existing limited partnership restaurants and $70,000 for renovations to two

(2)
Company owned restaurants.



All of our owned units require periodic refurbishing in order to remain
competitive. We anticipate the cost of this refurbishment in our fiscal year
2022 will be approximately $1,000,000, excluding construction/renovations to
Store #19 (our combination package liquor store and restaurant which is being
rebuilt due to damages caused by a fire), Store #85 (our Sunrise, Florida
restaurant location opened for business during the thirty-nine weeks ended July
2, 2022), Store #24 (our Miramar, Florida package store location in development)
and Store #25 (our Miramar, Florida restaurant location in development), which
funds will be provided from operations, subject to reimbursement of all or a
part of the cost of construction/renovations through the proceeds generated from
the closing of the private offerings for the limited partnerships which own

Store #85 and Store #25.



                                      28

  Index

Long Term Debt



As of July 2, 2022, we had long term debt of $17,773,000, as compared to
$22,115,000 as of October 2, 2021. Our long term debt decreased as of July 2,
2022 as compared to October 2, 2021 due to the forgiveness of all principal and
accrued interest of the 2nd PPP Loans, partially offset by $1,861,000 for
financed insurance premiums, less any payments made on account thereof. As of
July 2, 2022, we are in compliance with the covenants of all loans with our
lender.



As of July 2, 2022, the aggregate principal balance owed from the financing of
our property and general liability insurance policies is $1,015,000, excluding
coverage for our franchises, (of approximately $272,000), which are not included
in our consolidated financial statements.



Construction Contracts

(a) 7990 Davie Road Extension, Hollywood, Florida (Store #19 - "Big Daddy's Wine & Liquors")





During the third quarter of our fiscal year 2019, we entered into an agreement
with a third party unaffiliated general contractor for site work at this
location totaling $1,618,000, (i) to connect the real property where this
restaurant operated (Store #19) to city sewer and (ii) to construct a new
building on the adjacent parcel of real property for the operation of a package
liquor store. Through the thirty-nine weeks ended July 2, 2022, we agreed to
change orders to the agreement for additional construction services increasing
the total contract price by $624,000 to $2,242,000, of which $1,951,000 of the
total amount obligated has been paid through July 2, 2022 and an additional $-0-
has been paid subsequent to the end of the thirty-nine weeks of ended July 2,
2022 through the date of filing this quarterly report.



(b)2505 N. University Drive, Hollywood, Florida (Store #19 - "Flanigan's")



During the first quarter of our fiscal year 2022, we entered into an agreement
with a third party unaffiliated general contractor to re-build our restaurant at
this location totaling $2,515,000, of which $226,000 has been paid through July
2, 2022 and an additional $-0- has been paid subsequent to the end of the third
quarter of our fiscal year 2022 through the date of filing of this quarterly
report.




(c) 14301 W. Sunrise Boulevard, Sunrise, Florida (Store #85 - "Flanigan's")



During the fourth quarter of our fiscal year 2020, we entered into an agreement
with a third party unaffiliated general contractor for interior renovations at
this location totaling $1,236,000 and through the second quarter our fiscal year
2022 we agreed to change orders to the agreement for additional interior
renovations increasing the total contract price by $215,000 to $1,451,000, which
has been paid in full by the end of the third quarter of our fiscal year 2022.
During the second quarter of our fiscal year 2022, we entered into an agreement
with a third party unaffiliated general contractor for exterior renovations at
this location totaling $343,000 and through the third quarter our fiscal year
2022 we agreed to change orders to the agreement for additional interior
renovations increasing the total contract price by $45,000 to $388,000, of which
$316,000 has been paid through July 2, 2022 and $-0- has been paid subsequent to
the end of the third quarter of our fiscal year 2022 through the date of filing
of this quarterly report.



                                      29

  Index

(d) Miramar, Florida (Store #25 - "Flanigan's")





During the first quarter of our fiscal year 2022, we entered into an agreement
with a third party unaffiliated general contractor for interior renovations at
this location totaling $1,421,000, and through the third quarter our fiscal year
2022 we agreed to change orders to the agreement increasing the total contract
price by $9,000 to $1,430,000 of which $180,000 has been paid through July 2,
2022 and $268,000 has been paid subsequent to the end of the thirty-nine weeks
ended July 2, 2022 through the date of filing of this quarterly report.

(e) Miramar, Florida (Store #24 - "Big Daddy's Wine and Liquors")





During the first quarter of our fiscal year 2022, we entered into an agreement
with a third party unaffiliated general contractor for interior renovations at
this location totaling $317,000, and through the third quarter our fiscal year
2022 we agreed to change orders to the agreement increasing the total contract
price by $18,000 to $335,000 of which $254,000 has been paid through July 2,
2022 and $-0- has been paid subsequent to the end of the thirty-nine weeks ended
July 2, 2022 through the date of filing of this quarterly report.



Purchase Commitments



In order to ensure adequate supply of baby back ribs for our restaurants for
calendar year 2022, on October 4, 2021, we entered into a purchase agreement
with our current rib supplier, whereby we agreed to purchase approximately
$10,414,000 of baby back ribs during calendar year 2022 from this vendor at
market cost. Our purchase agreement provides for the purchase of 2.25 & Down
Baby Back Ribs, at a monthly cost of the average market price per pound of

the
prior 4 weeks.

While we anticipate purchasing all of our rib supply from this vendor, we believe there are several other alternative vendors available, if needed.





Working Capital



The table below summarizes the current assets, current liabilities, and working
capital for our fiscal quarter ended July 2, 2022 and our fiscal year ended
October 2, 2021.



Item                   July 2, 2022       Oct. 2, 2021
                               (in Thousands)

Current Assets        $       45,320     $       39,790
Current Liabilities           22,932             20,223
Working Capital       $       22,388     $       19,567
Our working capital increased during our fiscal quarter ended July 2, 2022 from
our working capital as of October 2, 2021 primarily due to capital raises of two
(2) limited partnership offerings totaling $8,595,000.



While there can be no assurance due to, among other things, unanticipated
expenses or unanticipated decline in revenues, or both, we believe that our cash
on hand, positive cash flow from operations and borrowed funds will adequately
fund operations, debt reductions and planned capital expenditures throughout our
fiscal year 2022.

Off-Balance Sheet Arrangements

We do not have off-balance sheet arrangements.





                                      30

  Index

Inflation



The primary inflationary factors affecting our operations are food, beverage and
labor costs. A large number of restaurant personnel are paid at rates based upon
applicable minimum wage and increases in minimum wage directly affect labor
costs. Inflation is having a material impact on our operating results,
especially rising food, fuel and labor costs. We are unable to predict when
inflation rates will drop, if at all, in the future.

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