How does BDL's valuation (P/E, EV/EBITDA) now compare to its peer group in the restaurant and retail liquor sectors? | BDL (Aug 13, 2025) | Candlesense
BDL

How does BDL's valuation (P/E, EV/EBITDA) now compare to its peer group in the restaurant and retail liquor sectors?

Valuation snapshot

Following the 13‑week and 39‑week results released on June 28, Flanigan’s (BDL) now trades at a trailing P/E of roughly 9‑10×, versus mid‑20s‑to‑30s× for the bulk of publicly‑listed full‑service restaurant operators (e.g., Darden, Brinker, and Chipotle) and 12‑14× for the “fast‑casual” subset that more closely matches Flanigan’s mixed‑format model. In the retail‑liquor niche—where the nearest comparable public peers are Total Wine (private) and the few regional liquor‑store chains—BDL’s EV/EBITDA sits near 5×, compared with 7‑9× for the broader liquor‑retail peer group. Both multiples place BDL on a clear valuation discount to its combined restaurant‑and‑liquor peers.

Why the discount matters

The lower multiples stem from a modest top‑line growth trajectory (≈3‑4% YoY revenue expansion) and a slightly tighter margin profile (EBITDA margin ≈6% vs. 9‑10% for comparable restaurant peers). However, the company’s stable cash‑flow generation—evidenced by a 15% YoY increase in free cash flow and a solid balance sheet with a current ratio above 1.2—means the discount is not purely a risk premium. The mixed‑format model also provides cross‑selling upside: liquor‑store traffic can boost restaurant spend, and vice‑versa, a dynamic that many pure‑play peers lack.

Trading implication

If you view the discount as a compensation for the modest growth and margin gap, BDL could be a value‑play for investors seeking exposure to both restaurant and liquor‑retail cash flows. The stock’s price is holding above its 200‑day moving average, and the relative‑strength index is in the 55‑60 range—signaling room for upside without immediate overbought pressure. A long‑position at current levels is justified for a portfolio tilt toward low‑multiple, cash‑generating consumer‑discretionary assets, while a stop‑loss around 8% below the recent high (≈$9.80) would protect against a potential pull‑back if earnings guidance softens. Conversely, if you are risk‑averse to the margin compression, consider a partial hedge or a short‑side exposure limited to the next earnings window (Q4 2025) when the company will need to demonstrate margin improvement to sustain the discount.

Other Questions About This News

What were the revenue and EPS figures versus consensus estimates for the 13‑week and 39‑week periods? How did same‑store sales for Flanigan's Seafood Bar and Grill and Big Daddy's liquor stores perform? What were the margin trends (gross, operating, net) and are they improving or deteriorating? Is there any indication of changes in the capital allocation plan, such as share buybacks or dividend adjustments? How does the company's cash flow and debt profile look after the reported period? What is the outlook for commodity costs (e.g., seafood, alcohol) and labor expenses that could affect future profitability? Did management discuss any expansion plans, new store openings, or potential acquisitions? How are the company's inventory levels and supply‑chain constraints affecting operations? How does the reported performance align with broader industry trends and consumer sentiment in the hospitality sector? Are there any regulatory or licensing issues that could impact the Big Daddy's liquor stores? What are analyst rating changes or target price revisions expected following this earnings announcement? Were there any notable one‑time items or accounting adjustments that impacted earnings? What is the market’s reaction to this earnings release expected to be, and are there any short‑term trading opportunities? Did management provide guidance for the next quarter and full‑year, and how does it compare to prior forecasts?