BT Brands Reports Second Quarter 2025 Profit

MINNETONKA, Minn.--(BUSINESS WIRE)-- BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial results, which reflect a return to profitability for the second quarter, the thirteen weeks ending June 29, 2025.

Including its 40.7% ownership interest in Bagger Dave’s Burger Tavern, which operates five locations (OTCMarkets: BDVB), BT Brands currently operates a total of fourteen restaurants comprising the following:

• Six Burger Time fast-food restaurants, located in the North Central region of the United States (“BTND”);
• Bagger Dave’s Burger Tavern, Inc., a 40.7% owned affiliate, operating five restaurants in Michigan, Ohio, and Indiana (“Bagger Dave’s”);
• Keegan’s Seafood Grille in Indian Rocks Beach, Florida (“Keegan’s”);
• Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts (“PIE”);
• Schnitzel Haus, a fine-dining German-themed restaurant located in Hobe Sound, near Stuart, Florida.

Second Quarter 2025 Highlights and Recent Developments

• Net income of $55,000, or $0.01 per share, compared to a net loss of $70,000 in 2024.
• Revenues of $3.8 million, compared to $4.1 million for the prior-year quarter, reflecting the impact of two fewer operating locations year-over-year.
• Operating loss narrowed significantly to $75,000 from $189,000 in the second quarter of 2024.
• Restaurant-level adjusted EBITDA (a non-GAAP measure) increased by 51% over the prior year to $661,000 from $438,00 in 2024
• Equity in the second quarter loss of our Bagger Dave’s was $70,400, compared to a loss of $81,000 in the prior year quarter.
• The quarter ended with $3.5 million in total cash and short-term investments.
• We completed the sale of our Richmond, Indiana, property following the end of the second quarter, resulting in a gain of approximately $250,000 to be reported during our third quarter.

Management Commentary

Gary Copperud, the Company’s Chief Executive Officer, stated: “We are pleased to report a profitable second quarter of 2025. The second quarter profit reflects the results of cost-reduction initiatives and operational improvements. While industry headwinds remain, including consumer price sensitivity and inflationary pressures, our results demonstrate progress in aligning expenses with revenue. As we previously announced, we are continuing to work with our investment banker in evaluating merger opportunities. Based on our review of opportunities available, we believe that completing a transaction accretive to shareholder value by the end of the year is a realistic target.” Kenneth Brimmer, Chief Financial Officer, added: “The second quarter marked a return to profitability for BT Brands. We are continuing to improve restaurant-level performance and consider strategic asset sales contributing to overall profitability, and a favorable earnings trend that we expect to continue through the end of the year."

Fiscal 2025 Outlook

We anticipate maintaining profitability throughout the remainder of 2025. The outcome of merger discussions and possible asset sales cannot be assured. The Company, at this time, is not providing a detailed fiscal 2025 financial forecast.

About BT Brands, Inc.

BT Brands, Inc. (Nasdaq: BTBD and BTBDW) owns and operates a fast-food restaurant chain called Burger Time in North Dakota, South Dakota, and Minnesota. In addition, the Company owns and operates Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts, Keegan’s Seafood Grille near Clearwater, Florida, and Schnitzel Haus in Hobe Sound, Florida. The Company also owns a 40.7% interest in Bagger Dave’s Burger Tavern, Inc. (OTCMarkets: BDVB), which own six and operates five casual dining restaurants in Michigan, Indiana, and Ohio.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding guidance relating to net income and net income per share, expected operating results, such as revenue growth and earnings, and anticipated capital expenditures for fiscal 2025. Because of the uncertain nature of restaurant performance and the evolving character of our Company, and because of continuing uncertainty surrounding the overall economy, as consumers have become more price sensitive, and inflationary pressures relating to many aspects of our business, the Company is not at this point providing a financial forecast for fiscal 2025. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

FINANCIAL RESULTS FOLLOW:

BT BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		26 Weeks Ended				26 Weeks Ended,				13 Weeks Ended				13 Weeks Ended
		June 29, 2025				June 30, 2024				June 29, 2025				June 30, 2024
SALES		$	7,010,763			$	7,300,786			$	3,779,690			$	4,110,639
COSTS AND EXPENSES
Restaurant operating expenses
Food and paper costs			2,449,549				2,844,028				1,249,220				1,565,070
Labor costs			2,592,500				2,938,448				1,374,603				1,551,762
Occupancy costs			611,715				680,631				302,021				344,356
Other operating expenses			441,105				415,738				253,185				211,838
Depreciation and amortization expenses			301,120				331,893				144,725				171,351
General and administrative expenses			982,091				909,420				531,057				454,805
Total costs and expenses			7,378,080				8,120,158				3,854,811				4,299,182
Loss from operations			(367,317	)			(819,372	)			(75,121	)			(188,543	)
UNREALIZED GAIN ON MARKETABLE SECURITIES			38,104				232,947				82,128				118,184
REALIZED INVESTMENT GAIN			174,064				29,562				79,026				29,562
INTEREST AND DIVIDEND INCOME			80,967				136,750				40,367				61,896
INTEREST EXPENSE			(41,104	)			(50,039	)			(19,550	)			(22,551	)
OTHER INCOME			45,173				-				18,586				-
EQUITY IN NET LOSS OF AFFILIATE			(204,705	)			(175,500	)			(70,405	)			(81,000	)
INCOME (LOSS) BEFORE TAXES			(274,818	)			(645,652	)			55,031				(82,452	)
INCOME TAX BENEFIT			-				130,000				-				12,500
NET INCOME (LOSS)		$	(274,818	)		$	(515,652	)		$	55,031			$	(69,952	)
NET INCOME (LOSS) PER COMMON SHARE		$	(0.04	)		$	(0.08	)		$	0.01			$	(0.01	)
SHARES USED IN PER SHARE AMOUNTS			6,154,724				6,240,953				6,154,724				6,235,788

BT BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
		(Unaudited)
		June 29, 2025				December 29, 2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	560,068			$	1,951,415
Marketable securities			2,970,284				2,319,555
Receivables			33,193				69,459
Demand notes receivable from related company			692,357				120,000
Inventory			539,475				272,603
Prepaid expenses and other current assets			74,746				127,621
Assets held for sale			682,894				258,751
Total current assets			5,553,017				5,119,404
PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET			2,728,924				3,343,340
OPERATING LEASES RIGHT-OF-USE ASSETS			1,383,235				1,724,052
EQUITY INVESTMENT IN UNCONSOLIDATED SUBSIDIARY			99,734				304,439
EQUITY INVESTMENT IN RELATED COMPANY			304,000				304,000
GOODWILL			796,220				796,220
INTANGIBLE ASSETS, NET			331,708				367,799
OTHER ASSETS, NET			19,433				37,543
Total assets		$	11,216,271			$	11,996,797
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable		$	434,375			$	612,059
Current maturities of long-term debt			191,435				185,009
Current operating lease obligations			186,607				274,511
Accrued expenses			377,034				371,356
Total current liabilities			1,189,451				1,442,935
LONG-TERM DEBT, LESS CURRENT PORTION			1,992,334				2,091,335
NONCURRENT OPERATING LEASE OBLIGATIONS			1,250,342				1,497,300
Total liabilities			4,432,127				5,031,570
SHAREHOLDERS' EQUITY
Preferred stock, $.001 par value, no shares outstanding			-				-
Common stock, $.002 par value, 50,000,000 authorized, 6,461,118 issued and 6,154,724 outstanding at June 29, 2025, 2025 and December 29, 2024			12,309				12,309
Less cost of shares held in Treasury			(499,718	)			(499,718	)
Additional paid-in capital			11,907,470				11,813,735
Accumulated deficit			(4,635,917	)			(4,361,099	)
Total shareholders' equity			6,784,144				6,965,227
Total liabilities and shareholders' equity		$	11,216,271			$	11,996,797

Category: Financial Category

View source version on businesswire.com: https://www.businesswire.com/news/home/20250819114509/en/

KENNETH BRIMMER   612-229-8811

Source: BT Brands, Inc.