BT Brands Reports Third Quarter 2024 Results

Rhea-AI Summary

BT Brands (NASDAQ: BTBD) reported Q3 2024 financial results with total revenues increasing 8.1% to a record $4.3 million. The company posted a net loss of $219,479 ($0.04 per share) compared to a $3,486 loss in 2023. Restaurant-level adjusted EBITDA declined by $56,000 to $442,000. Pie in the Sky showed strong performance with a 13% revenue increase to $1,467,000, while Burger Time units increased quarterly sales by 9%. The company ended Q3 with $5.0 million in cash and short-term investments. Post-quarter, BT Brands sold its Hot-N-Now trademark for $250,000 upfront with potential future payments up to $150,000.

Positive

• Record high quarterly revenue of $4.3 million, up 8.1%
• Pie in the Sky revenue increased 13% to $1,467,000
• Burger Time quarterly sales grew 9%
• Sale of Hot-N-Now trademark for $250,000 with additional potential earnings
• Strong cash position of $5.0 million

Negative

• Net loss widened to $219,479 from $3,486 year-over-year
• Restaurant-level adjusted EBITDA declined by $56,000
• Increased labor costs affecting bottom line performance
• Continuing pressure on cost of sales input
• Equity loss in Bagger Dave's increased to $116,000

Insights

Financial Analyst

BT Brands' Q3 results reveal significant operational challenges despite top-line growth. While total revenues reached a record high of $4.3 million, representing an 8.1% increase, the company posted a concerning net loss of $219,479. The deteriorating bottom line, marked by a decline in restaurant-level adjusted EBITDA to $442,000 from $498,000, signals mounting pressure from labor costs and operational inefficiencies.

The bright spots include Pie in the Sky's 13% revenue growth and Burger Time's 9% quarterly sales increase. The post-quarter trademark sale of Hot-N-Now for $250,000 plus potential future payments provides some financial cushion. However, with cash reserves slightly declining to $5.0 million and ongoing cost pressures, the company's reluctance to provide fiscal 2024 guidance suggests continued uncertainty in operational performance.

WEST FARGO, N.D.--(BUSINESS WIRE)-- BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial results for the third quarter, the thirteen weeks ending September 29, 2024.

Including our 40% ownership of Bagger Dave’s Burger Tavern with six locations (OTCMarkets: BDVB), BT Brands currently operates seventeen restaurants comprising the following:

		Eight Burger Time fast-food restaurants; located in the North Central region of the United States, collectively (“BTND”);
		Bagger Dave’s Burger Tavern, Inc., a 40% owned affiliate, operates six Bagger Dave’s 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”).
		Village Bier Garten, a German-themed restaurant, bar, and entertainment venue in Cocoa, Florida (“VBG”). Schnitzel Haus, a German-themed restaurant in Hobe Sound, near Stuart, Florida (“Schnitzel”).

Highlights and recent activities include:

• Total revenues for the 2024 period increased 8.1% to a record high of $4.3 million;
• Net loss attributable to common shareholders was $219,479, or $.04 per share for the third quarter compared to a net loss of $3,486 in 2023;
• Restaurant-level adjusted EBITDA (a non-GAAP measure) for the 13-week period was $442,000, a decline of $56,000 from the prior year's third quarter of $498,000 ;
• Our equity in the third quarter loss of our Bagger Dave’s affiliate was $116,000 compared to a loss of 109,000 in the same period a year ago;
• We ended the quarter with $5.0 million in total cash and short-term investments, down from $5.1 million at the end of the second quarter;
• Pie in the Sky continues to contribute strong performance, with a third-quarter revenue increase of approximately 13% over the same period in 2023 to approximately $1,467,000.
• The Burger Time units increased quarterly sales by approximately 9% and increased total sales increased by approximately 24% over the prior year for the 39 weeks.

Gary Copperud, the Company’s Chief Executive Officer, said, “Our third quarter results continued challenging bottom line performance at our restaurants as a result of increased labor costs, including the addition of senior staff at Pie In the Sky. Our stores experience seasonal sales patterns; Burger Time and Pie in the Sky traditionally see an increase in sales in the second quarter compared to the first quarter due to weather and tourism. Overall, we continue to see pressure on our cost of sales input. The challenge in staffing has moderated. However, we continue to see upward pressure on labor costs.” BT Brands, CFO, Kenneth Brimmer, added “We are continuing our efforts to reduce costs and improve performance in all of our businesses, and we remain focused on achieving profitability consistent with our expectations.”

Sale of Trademark Asset

Following the end of the quarter, we completed the sale of a trademark asset property, Hot-N-Now, with no cost basis for an upfront cash payment of $250,000 and future payments of up to $150,000 based upon $10,000 per unit opened by the purchaser. A gain of approximately $250,000 will be recognized in the fourth quarter.

Ham Lake Burger Time Location

In July 2024, we rebranded our Ham Lake, Minnesota location to Burger Time. While there were difficulties with training and local brand recognition during the first few months of opening, we expect this location to perform similarly to our other Burger Time locations.

Fiscal 2024 Outlook: Because of the uncertain nature of recent acquisitions' performance and our evolving character, as well as continuing uncertainty surrounding the current inflationary environment and the state of the economy, the Company is not, at this point, providing a financial forecast for fiscal 2024.

About BT Brands Inc.: BT Brands, Inc. (BTBD and BTBDW) owns and operates a fast-food restaurant chain called Burger Time with locations in North and South Dakota and Minnesota. In addition, the Company owns the Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts, the Village Bier Garten in Cocoa, Florida, Keegan’s Seafood Grille near Clearwater, Florida and Schnitzel Haus in Hobe Sound, Florida. BT Brands is seeking acquisitions within the restaurant industry.

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 we make regarding guidance relating to net income and net income per share, expected operating results, such as revenue growth and earnings, anticipated levels of capital expenditures for the 2024 fiscal year,

Any forward-looking statement in this press release is based only on information currently available to us and speaks only as of the date on which 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
		39 Weeks Ended,		39 Weeks Ended,		13 Weeks Ended,		13 Weeks Ended,
		September 29, 2024		October 2, 2023		September 29, 2024		October 1, 2023
SALES	$	11,649,610	$	11,078,419	$	4,348,824	$	4,007,656
COSTS AND EXPENSES
Restaurant operating expenses
Food and paper costs		4,407,101		4,348,294		1,563,073		1,449,796
Labor costs		4,636,598		4,124,857		1,698,150		1,509,721
Occupancy costs		1,058,029		845,863		377,398		340,002
Other operating expenses		653,769		603,964		238,031		209,721
Depreciation and amortization expenses		473,420		470,801		141,527		114,774
General and administrative expenses		1,284,871		1,288,019		375,451		343,027
Loss (Gain) on sale of assets		30,205		(313,688)		30,205		-
Total costs and expenses		12,543,993		11,368,110		4,423,835		3,967,041
Income (Loss) from operations		(894,384)		(289,691)		(75,011)		40,615
UNREALIZED GAIN (LOSS) ON MARKETABLE SECURITIES		163,014		33,184		(69,933)		-
REALIZED GAIN (LOSS) ON SALE OF MARKETABLE SECURITIES		29,219		-		(343)		-
INTEREST AND OTHER INCOME		186,892		123,630		50,142		89,069
INTEREST EXPENSE		(72,591)		(73,857)		(22,552)		(23,948)
EQUITY IN NET LOSS OF AFFILIATE		(291,282)		(254,272)		(115,782)		(109,222)
LOSS BEFORE TAXES		(879,131)		(461,006)		(233,479)		(3,486)
INCOME TAX BENEFIT		144,000		82,000		14,000		-
NET LOSS	$	(735,131)	$	(379,006)	$	(219,479)	$	(3,486)
NET LOSS PER COMMON SHARE -	$	(0.12)	$	(0.06)	$	(0.04)	$	(0.00)
WEIGHTED AVERAGE SHARES - Basic and Diluted		6,221,154		6,257,652		6,181,952		6,246,118

BT BRANDS, INC., AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
	(Unaudited)
ASSETS	September 29, 2024			December 31, 2023
CURRENT ASSETS
Cash	$	3,085,342		$	5,300,446
Marketable securities		1,969,964			1,392,060
Receivables		49,390			28,737
Inventory		289,199			201,333
Prepaid expenses and other current assets		80,942			47,246
Assets held for sale		258,751			258,751
Total current assets		5,733,588			7,228,573
PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET		3,699,988			3,247,013
OPERATING LEASES RIGHT-OF-USE ASSETS		1,787,992			1,789,285
INVESTMENTS AND NOTES RECEIVABLE		851,524			1,022,806
DEFERRED INCOME TAXES		350,000			206,000
GOODWILL		796,220			671,220
INTANGIBLE ASSETS, NET		423,205			395,113
OTHER ASSETS, NET		37,543			49,202
Total assets	$	13,680,060		$	14,609,212
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	588,968		$	555,247
Broker margin loan		16,417			115,899
Current maturities of long-term debt		170,203			183,329
Current operating lease obligations		264,642			215,326
Accrued expenses		416,841			480,289
Total current liabilities		1,457,071			1,550,090
LONG-TERM DEBT, LESS CURRENT PORTION		2,151,016			2,269,771
NONCURRENT LEASE OBLIGATIONS		1,567,260			1,600,622
Total liabilities		5,175,346			5,420,483
TOTAL SHAREHOLDERS’ EQUITY		8,504,714			9,188,729
Total liabilities and shareholders' equity	$	13,680,060		$	14,609,212

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241113293108/en/

Kenneth Brimmer, 612-229-8811

Source: BT Brands, Inc.

FAQ

What was BT Brands (BTBD) revenue growth in Q3 2024?

BT Brands reported an 8.1% increase in total revenues to $4.3 million in Q3 2024.

How much did BT Brands (BTBD) lose in Q3 2024?

BT Brands reported a net loss of $219,479, or $0.04 per share, in Q3 2024.

What was the sale price of BT Brands' (BTBD) Hot-N-Now trademark?

BT Brands sold the Hot-N-Now trademark for $250,000 upfront with potential additional payments up to $150,000.

How much cash does BT Brands (BTBD) have as of Q3 2024?

BT Brands ended Q3 2024 with $5.0 million in total cash and short-term investments.