PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In Thousands Except Per Share Amounts)

	Thirteen Weeks Ended		Twenty Six Weeks Ended
	March 29, 2008	March 31, 2007	March 29, 2008	March 31, 2007

REVENUES:
Restaurant food sales	$10,785	$10,029	$20,532	$19,059
Restaurant bar sales	2,481	2,349	4,771	4,436
Package store sales	3,400	3,531	6,831	7,013
Franchise related revenues	211	308	542	608
Ownerís fee	49	40	115	80
Other operating income	57	47	96	93
	16,983	16,304	32,887	31,289

COSTS AND EXPENSES:
Cost of merchandise sold:
Restaurant and lounges	4,403	4,180	8,473	7,995
Package goods	2,396	2,519	4,861	5,063
Payroll and related costs	4,910	4,542	9,718	8,604
Occupancy costs	1,015	974	1,980	1,826
Selling, general and administrative expenses	3,289	3,279	6,705	6,279
	16,013	15,494	31,737	29,767
Income from Operations	970	810	1,150	1,522

OTHER INCOME (EXPENSE):
Interest expense	(121)	(125)	(241)	(258)
Interest and other income	21	34	37	70
	(100)	(91)	(204)	(188)

Income before Provision for Income Taxes and Minority Interest in (Earnings) Losses of Consolidated Limited Partnerships	870	719	946	1,334

Provision for Income Taxes	(197)	(184)	(349)	(367)

Minority Interest in (Earnings) Losses of Consolidated Limited Partnerships	(203)	(203)	58	(311)

NET INCOME	$ 470	$ 332	$ 655	$ 656

FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In Thousands Except Per Share Amounts)

(Continued)

	Thirteen Weeks Ended			Twenty Six Weeks Ended
	March 29, 2008	March 31, 2007		March 29, 2008	March 31, 2007

Net Income Per Common Share:
Basic	$0.25		$0.18	$0.35		$0.35
Diluted	$0.25		$0.17	$0.34		$0.34

Weighted Average Shares and Equivalent Shares Outstanding
Basic	1,889,121		1,887,917	1,889,746		1,886,059
Diluted	1,899,992	1,915,176		1,901,543	1,912,122

See accompanying notes to unaudited condensed consolidated financial statements.

FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

MARCH 29, 2008 (UNAUDITED) AND SEPTEMBER 29, 2007

(In Thousands)

ASSETS

	March 29, 2008	September 29, 2007

CURRENT ASSETS:

Cash and cash equivalents	$4,420	$2,223
Notes and mortgages receivables, current maturities, net	15	14
Prepaid income taxes	76	--
Due from franchisees	381	735
Other receivables	203	137
Inventories	2,119	2,165
Prepaid expenses	541	840
Deferred tax asset	159	208

Total Current Assets	7,914	6,322

Property and Equipment, Net	20,248	19,410

Investment in Limited Partnership	149	142

OTHER ASSETS:

Liquor licenses, net	345	347
Notes and mortgages receivable, net	37	44
Deferred tax asset	600	492
Leasehold purchases	1,969	2,085
Other	1,424	1,495

Total Other Assets	4,375	4,463

Total Assets	$ 32,686	$ 30,337

FLANIGAN'S ENTERPRISES, INC, AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

MARCH 29, 2008 (UNAUDITED) AND SEPTEMBER 29, 2007

(In Thousands)

(Continued)

LIABILITIES AND STOCKHOLDERSí EQUITY

	March 29, 2008	September 29, 2007

CURRENT LIABILITIES:

Accounts payable and accrued expenses	$3,858	$3,666
Income taxes payable	--	331
Due to franchisees	322	312
Current portion of long term debt	172	196
Deferred revenues	39	45
Deferred rent	18	17

Total Current Liabilities	4,409	4,567

Long Term Debt, Net of Current Maturities	4,836	4,922
Line of Credit	1,562	962

Deferred Rent, Net of Current Portion	223	232

Minority Interest in Equity of Consolidated Limited Partnerships	8,935	7,570

Commitments, Contingencies and Subsequent Events

Stockholdersí Equity:
Common stock, $.10 par value, 5,000,000 shares authorized; 4,197,642 shares issued	420	420
Capital in excess of par value	6,240	6,240
Retained earnings	11,986	11,331
Treasury stock, at cost, 2,309,109 shares at March 29, 2008 and 2,306,909 shares at September 29, 2007	(5,925)	(5,907)

Total Stockholdersí Equity	12,721	12,084

Total Liabilities and Stockholdersí Equity	$ 32,686	$ 30,337

See accompanying notes to unaudited condensed consolidated financial statements.

FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE TWENTY SIX WEEKS ENDED MARCH 29, 2008 AND MARCH 31, 2007

(In Thousands)

	March 29, 2008	March 31, 2007

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income	$655	$656
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,061	987
Amortization of leasehold purchases	116	92
Loss on abandonment of property and equipment	8	23
Deferred income tax	(59)	34
Deferred rent	(8)	20
Minority interest in earnings (loss) of consolidated limited partnerships	(58)	311
Income from unconsolidated limited partnership	(13)	(4)
Recognition of deferred revenue	(6)	(5)
Changes in operating assets and liabilities: (increase) decrease in
Due from franchisees	354	357
Other receivables	(66)	175
Prepaid income taxes	(76)	--
Inventories	46	(168)
Prepaid expenses	299	(478)
Other assets	34	(179)
Increase (decrease) in:
Accounts payable and accrued expenses	192	1,116
Income taxes payable	(331)	(172)
Due to franchisees	10	232
Net cash provided by operating activities	2,158	2,997

CASH FLOWS FROM INVESTING ACTIVITIES:

Collection on notes and mortgages receivable	6	5
Purchase of property and equipment	(1,955)	(1,738)
Purchase of leasehold interests	--	(955)
Purchase of assets of franchised restaurant	--	(100)
Proceeds from sale of fixed assets	85	92
Proceeds from sale of marketable securities	--	381
Distributions from unconsolidated limited partnerships	6	--
Proceeds from insurance settlement	--	112
Net cash used in investing activities	(1,858)	(2,203)

FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE TWENTY SIX WEEKS ENDED MARCH 29, 2008 AND MARCH 31, 2007

(In Thousands)

(Continued)

	March 29, 2008	March 31, 2007

CASH FLOWS FROM FINANCING ACTIVITIES:

Payment of long term debt	(110)	(890)
Proceeds from long term debt	--	960
Proceeds from line of credit	600	1,200
Purchase of treasury stock	(18)	(9)
Purchase of minority limited partnership interest	(120)	--
Distributions to limited partnership minority partners	(480)	(418)
Proceeds from limited partnership interests	2,025*	--
Proceeds from exercise of stock options	--	34

Net cash provided by financing activities	1,897	877


Net Increase in Cash and Cash Equivalents	2,197	1,671

Beginning of Period	2,223	1,698

End of Period	$ 4,420	$ 3,369

Supplemental Disclosure for Cash Flow Information: Cash paid during period for:
Interest	$241	$258
Income taxes	$816	$497

Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Purchase of real property in exchange for debt	--	$250

* exclusive of the Companyís investment in the limited partnership owning the restaurant in Davie, FL

of $1,850,000.

See accompanying notes to unaudited condensed consolidated financial statements

FLANIGANíS ENTERPRISES, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 29, 2008

(1) BASIS OF PRESENTATION:

The accompanying financial information for the periods ended March 29, 2008 and March 31, 2007 are unaudited. Financial information as of September 29, 2007 has been derived from the audited financial statements of the Company, but does not include all disclosures required by generally accepted accounting principles. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated have been included. For further information regarding the Company's accounting policies, refer to the Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K for the year ended September 29, 2007. Operating results for interim periods are not necessarily indicative of results to be expected for a full year.

These financial statements include estimates relating to performance based officersí bonuses. The estimates are reviewed periodically and the effects of any revisions are reflected in the financial statements in the period they are determined to be necessary. Although these estimates are based on managementís knowledge of current events and actions it may take in the future, they may ultimately differ from actual results.

(2) EARNINGS PER SHARE:

Statements of Financial Accounting Standards ("SFAS") No. 128, Earnings per share establishes standards for computing and presenting earnings per share ("EPS"). This statement requires the presentation of basic and diluted EPS. The data on Page 3 shows the amounts used in computing earnings per share and the effects on income and the weighted average number of shares of potentially dilutive common stock equivalents.

(3) RECLASSIFICATION:

Certain amounts in the fiscal year 2007 financial statements have been reclassified to conform to the fiscal year 2008 presentation.

(4) RECENT ACCOUNTING PRONOUNCEMENTS:

In March 2008, the FASB issued Statement No. 161 ìDisclosures about Derivative Instruments and Hedging Activitiesî (ìSFAS 161î) to enhance disclosures about an entityís derivative and hedging activities. SFAS 161 is effective for all financial statements issued in fiscal years and interim periods beginning after November 15, 2008 and early application is encouraged. SFAS 161 also encourages but does not require comparative disclosures for earlier periods at initial adoption. As we do not currently engage in derivative transactions or hedging activities, we do not anticipate any significant financial statement disclosure impact as a result of our evaluation of SFAS 161.

In December 2007, the FASB issued SFAS No. 141 (revised 2007), ìBusiness Combinationsî (ìSFAS 141Rî). SFAS 141R establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in the acquiree and the goodwill acquired. SFAS 141R also establishes disclosure requirements to enable the evaluation of the nature and financial effects of the business combination. SFAS 141R is effective for the fiscal years beginning after December 15, 2008 and will be adopted by us for any acquisitions after September 27, 2009.

In December 2007, the FASB issued Statement of Financial Accounting Standard No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51 (ìSFAS 160î). SFAS 160 will change the accounting and reporting for minority interests, which will be recharacterized as noncontrolling interests (NCI) and classified as a component of equity. This new consolidation method will significantly change the accounting for transactions with minority interest holders. SFAS 160 is effective for fiscal years beginning after December 15, 2008 (our fiscal year 2010). We have not yet determined the impact, if any, of SFAS 160 on our consolidated financial statements.

In February 2007, the FASB issued SFAS 159, ìFair Value Option for Financial Assets and Liabilitiesî which permits an entity to choose to measure many financial instruments and certain other items at fair value. The standard contains an amendment to SFAS 115 pertaining to available-for-sale and trading securities. The objective of the standard is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The provisions of SFAS 159 are effective for financial statements issued for fiscal years beginning after November 15, 2007. We do not expect the adoption of Statement 159 at the beginning of fiscal year 2009 to have a material impact.

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, ìFair Value Measurementsî (ìSFAS 157î). SFAS 157 provides a common definition of fair value and establishes a framework to make the measurement of fair value in generally accepted accounting principles more consistent and comparable. SFAS 157 also requires expanded disclosures to provide information about the extent to which fair value is used to measure assets and liabilities, the methods and assumptions used to measure fair value and the effect of fair value measures on earnings. SFAS 157 is effective for fiscal years beginning after November 15, 2007 (our fiscal year 2009), although early adoption is permitted. In September 2007, the FASB provided a one-year deferral for the implementation of SFAS 157 only with regard to nonfinancial assets and liabilities. We have not yet determined the impact, if any, of SFAS 157 on our consolidated financial statements.

(5) INVESTMENT IN LIMITED PARTNERSHIP:

Davie, Florida

We are the sole general partner and a 48% limited partner in this limited partnership which owns the restaurant in Davie, Florida. 9.5% of the remaining limited partnership interest is owned by persons who are either officers, directors or their family members. During the second quarter of fiscal year 2008, the limited partnership continued its renovations and upgrades to the business premises. We anticipate that this location will be open for business as a ìFlaniganís Seafood Bar and Grillî restaurant during the fourth quarter of fiscal year 2008. During the twenty six weeks ended March 29, 2008, the limited partnership which owns the Davie, Florida restaurant completed its private offering, raising the sum of $3,875,000, of which $1,850,000 represents our investment. We did not advance any funds to this limited partnership in excess of our investment. As of March 29, 2008 we still held $1,816,000 in funds from the private offering, which we anticipate will be sufficient to complete the renovations and upgrades to the Davie, Florida restaurant and provide working capital.

(6) LINE OF CREDIT:

Under a secured line of credit with a third party financial institution we are able to borrow up to $2,600,000. As of March 29, 2008, the amount outstanding under the line of credit was $1,562,000, with a remaining availability of $1,038,000. During the second quarter of fiscal year 2008, we made no draws on our line of credit and paid monthly installments of interest payments, with no principal payments. During the third quarter of fiscal year 2008, we extended the maturity date of our secured line of credit from January 2, 2009 to April 2, 2009.

(7) INCOME TAXES:

Financial Accounting Standards Board Statement No. 109, Accounting for Income Taxes, requires among other things, recognition of future tax benefits measured at enacted rates attributable to deductible temporary differences between financial statement and income tax basis of assets and liabilities and to tax net operating loss carryforwards and tax credits to the extent that realization of said tax benefits is more likely than not.

(8) STOCK OPTION PLANS:

We have two stock option plans under which qualified stock options may be granted to our officers and other employees. Under these plans, the exercise price for the qualified stock options must be at least 110% of the fair market value of the Companyís Common Stock on the date the options are granted. In general, options granted under our stock option plans expire after a five (5) year period and generally vest no later than one (1) year from the date of grant. As of March 29, 2008, options to acquire 49,400 shares were outstanding at an average exercise price of $6.31 per share. Under the plans, options to acquire an aggregate of 45,000 shares are available for grant.

No stock options were granted during the twenty six weeks ended March 29, 2008, nor were stock options granted during the twenty six weeks ended March 31, 2007.

There were no stock option exercises during the twenty six weeks ended March 29, 2008. Stock option exercises during the twenty six weeks ended March 31, 2007 resulted in cash inflow to the Company of $34,000. The corresponding intrinsic value as of the exercise date of the 5,050 stock options exercised during the twenty six weeks ended March 31, 2007 was $22,000.

Stock option activity during the twenty six weeks ended March 29, 2008 was as follows:

	Total Options	Weighted Average Exercise Price
Outstanding at September 29, 2007	50,300	$6.31

Granted	--	--
Exercised	--	--
Expired	900	$6.14

Outstanding at March 29, 2008	49,400	$6.31

Options exercisable at March 29, 2008	49,400	$6.31

The weighted-average remaining contractual terms of stock options outstanding and stock options exercisable at March 29, 2008 was approximately 1.0 year. The aggregate intrinsic value of options outstanding and stock options exercisable at March 29, 2008 was approximately $86,000.

(9) ACQUISITIONS:

Purchase of Company Common Stock

Pursuant to a discretionary plan approved by the Board of Directors, during the second quarter ended March 29, 2008, we purchased 1,000 shares of our common stock on the open market for an aggregate purchase price of $8,204. During the twenty six weeks ended March 29, 2008, we purchased 2,200 shares of our common stock for an aggregate purchase price of $17,804. Of the shares purchased, we purchased 1,000 shares of our common stock on the open market for an aggregate purchase price of $8,204 and 1,200 shares of our common stock from the Joseph G. Flanigan Charitable Trust for a purchase price of $9,600.

Purchase of Limited Partnership Interests

During the second quarter of our fiscal year 2008, we purchased from a limited partner (not a family member of any of our directors or officers) limited partnership interests of 0.76% to 2.76% in our limited partnerships, with the only exception being CIC Investors #55, Ltd., which limited partnership owns the Davie, Florida restaurant, for $120,000.

(10) COMMITMENTS AND CONTINGENCIES:

Guarantees

We guarantee various leases for franchisees, limited partnerships that own restaurants and locations sold in prior years. Remaining rental commitments required under these leases are approximately $2,674,000. In the event of a default under any of these agreements, we will have the right to repossess the premises and operate the business to recover amounts paid under the guarantee either by liquidating assets or operating the business.

Litigation

We own the building where our corporate offices are located. On April 16, 2001, we filed suit against the owner of the adjacent shopping center to determine our right to non-exclusive parking in the shopping center. During fiscal year 2007, the appellate court affirmed and upon re-hearing, again affirmed the granting of a summary judgment in favor of the shopping center. The seller from whom we purchased the building was named as a defendant in the lawsuit and is currently asserting a claim against us for reimbursement of its attorneysí fees and costs resulting from the litigation. We dispute the sellerís entitlement to reimbursement of its attorneyís fees and costs and are appealing the ruling against us by the trial court. We are also disputing the amount of the sellerís claim as excessive.

During fiscal year 2007, we and the limited partnership which owns the restaurant in Pinecrest, Florida filed suit against the limited partnershipís landlord. We are the sole general partner and a 39% limited partner in this limited partnership. We are seeking to recover the cost of structural repairs to the business premises we paid, as we believe these structural repairs were the landlordís responsibility under the lease. The lawsuit, in addition to attempting to recover the amounts expended by us for structural repairs is also attempting to recover the rent paid by the limited partnership while the repairs were occurring. The claim also includes a request by the limited partnership for the court to determine if the limited partnership has the exclusive right to the use of a pylon sign which was formerly in front of the business premises before being removed by the landlord and to require the landlord to re-construct the same, at its cost. The landlord filed its answer to the complaint denying liability for structural repairs to the business premises, denying any obligation to reimburse the limited partnership for any rent paid while structural repairs occurred and denying the limited partnershipís right to use the pylon sign which it removed. The lawsuit is in the discovery stage.

(11) BUSINESS SEGMENTS:

We operate principally in two reportable segments – package stores and restaurants. The operation of package stores consists of retail liquor sales and related items. Information concerning the revenues and operating income for the thirteen weeks and twenty six weeks ended March 29, 2008 and March 31, 2007, and identifiable assets for the two reportable segments in which we operate, are shown in the following table. Operating income is total revenue less cost of merchandise sold and operating expenses relative to each segment. In computing operating income, none of the following items have been included: interest expense, other non-operating income and expense and income taxes. Identifiable assets by segment are those assets that are used in our operations in each segment. Corporate assets are principally cash, notes and mortgages receivable, real property, improvements, furniture, equipment and vehicles. We do not have any operations outside of the United States and transactions between restaurants and package liquor stores are not material.

	Thirteen Weeks Ending March 29, 2008	Thirteen Weeks Ending March 31, 2007
Operating Revenues:
Restaurants	$13,266	$12,378
Package stores	3,400	3,531
Other revenues	317	395
Total operating revenues	$16,983	$16,304


›		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934