BAB, Inc. Announces Cash Distribution
Rhea-AI Summary
BAB, Inc. (OTCQB: BABB) has announced a quarterly cash distribution of $0.01 per share, scheduled for payment on April 14, 2025, to shareholders of record as of March 24, 2025.
The company notes that for tax purposes, a portion of this distribution and potential future 2025 distributions may be classified as a return of capital to shareholders, while the remaining portion could be treated as a dividend. The exact dividend portion of the April 14 distribution will be determined in January 2026, based on the company's earnings for the fiscal year ending November 30, 2025.
BAB, Inc. operates as a franchisor and licensor of several brands including Big Apple Bagels®, My Favorite Muffin®, SweetDuet®, and Brewster's® coffee.
Positive
- Consistent quarterly dividend distribution maintained
- Potential tax advantage for shareholders through return of capital treatment
Negative
- Low dividend amount of only $0.01 per share
- Trading on OTCQB market instead of major exchange
News Market Reaction 1 Alert
On the day this news was published, BABB declined 1.23%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
DEERFIELD, Ill., March 07, 2025 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), today announced that its Board of Directors has declared a quarterly distribution of one cent (
The Company believes it is possible for tax purposes, a portion of this distribution and any future distributions that the Board may declare in 2025 (collectively, the “Distributions”) may be treated as a return of capital to shareholders to the extent of each shareholder’s basis, while the remaining portion of the Distributions may be treated as a dividend.
The portion of the April 14, 2025 Distribution that will be treated as a dividend will not be determined until January 2026, as that portion is dependent upon the Company’s earnings for tax purposes for its fiscal year ending November 30, 2025. The final determination will be reported to recipients of the Distributions on a tax information return in early 2026.
BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet® and Brewster’s® coffee. The Company’s stock is traded on the OTCQB under the symbol BABB and its web site can be visited at www.babcorp.com.
Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “estimate,” “project,” “intend,” “expect,” “should,” “would,” “believe” and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the company’s actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the company’s SEC filings.
Contact: BAB, Inc.
Michael K. Murtaugh
Phone: (847) 948-7520 Fax: (847) 405-8140
www.babcorp.com
FAQ
What is the amount of BAB Inc's (BABB) quarterly distribution announced for April 2025?
When is the record date for BABB's April 2025 cash distribution?
How will BABB's 2025 distributions be treated for tax purposes?
What brands does BAB Inc. (BABB) currently franchise and license?
