BT Brands Reports 2024 Results
MWN-AI** Summary
BT Brands, Inc. (Nasdaq: BTBD and BTBDW) has released its financial results for the fiscal year ending December 29, 2024, showing a mixed performance amidst various operational challenges. Total revenues increased by 5.3% to $14.8 million, an encouraging signal, yet the company reported a net loss of $2.31 million, translating to a loss of $0.37 per share. This decline in profitability was influenced by several factors, including a significant $371,872 charge related to the closure of the Village Bier Garten and a share of a $415,085 loss from its equity investment in Bagger Dave's, which constituted 18% of the total net loss.
Among the company's operations, BT Brands manages fifteen restaurant locations, including seven Burger Time outlets, five Bagger Dave's locations, Keegan's Seafood Grille, Pie In The Sky Coffee and Bakery, and Schnitzel Haus. The adjusted EBITDA per restaurant also saw a decline, dropping from 6.2% to 4.9%, reflecting the ongoing challenges in the casual dining sector exacerbated by Hurricane Helene, which temporarily closed Keegan's for repairs.
In terms of cash flow, BT Brands reported $4.3 million in cash and short-term investments as of the end of the reporting period. Future strategies discussed by management include aggressive cost-cutting measures, property liquidations, and menu enhancements to improve profitability. CEO Gary Copperud expressed disappointment over the year’s losses but emphasized ongoing efforts to enhance cash flow and operational efficiency moving forward.
Looking ahead, the company has refrained from providing specific financial forecasts for fiscal 2025 due to economic uncertainties and inflationary pressures.
MWN-AI** Analysis
BT Brands, Inc. (Nasdaq: BTBD) reported a challenging year for 2024, with total revenues gaining modestly by 5.3% to $14.8 million but ending the fiscal year with a significant net loss of $2.31 million, or $0.37 per share. Factors contributing to this loss included a $415,085 equity loss from Bagger Dave's, which faced ongoing difficulties in the competitive casual dining sector, and additional one-time charges for restaurant closures and asset impairments.
Despite the lackluster financial performance, several initiatives promise potential recovery. The company's proactive measures, including the closure of unprofitable locations like Village Bier Garten and a BTND outlet in Minnesota, signal a strategic pivot towards optimizing operations and cutting costs. Furthermore, the implementation of a menu redesign at Burger Time aims to enhance customer experience while reducing food costs, potentially stabilizing profit margins.
Investors should closely monitor the impact of these initiatives on 2025 results, especially given the company’s cautious stance about providing financial forecasts amid economic uncertainties. With $4.3 million in cash and short-term investments, BT Brands demonstrates adequate liquidity to weather near-term challenges, but rigorous financial discipline will be crucial.
In summary, while BT Brands faces significant headwinds in the short term, strategic closures and operational improvements may yield positive cash flow in the future. Investors should remain vigilant, keeping an eye on the effectiveness of management's strategies as they unfold. The stock may present a speculative buying opportunity for those willing to absorb potential volatility, particularly if further signs of recovery emerge as seen in the planned cost-cutting and improvement initiatives.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial results for the 52 weeks ending December 29, 2024. The results include our 39.6% share of the Bagger Dave’s Burger Tavern loss. BT Brands currently operates fifteen restaurants comprising the following:
- Seven Burger Time locations in the North Central region of the United States, collectively referred to as “BTND”.
- Bagger Dave’s Burger Tavern, Inc., a 39.6%-owned affiliate operating five Bagger Dave’s restaurants in Michigan, Ohio, and Indiana (“Bagger Dave’s”).
- Keegan’s Seafood Grille a casual dining restaurant in Indian Rocks Beach, Florida (“Keegan’s”).
- Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts (“PIE”).
- Schnitzel Haus, an upscale German-themed restaurant in Hobe Sound, Florida.
Recent results reflect:
- Total revenues for 2024 increased 5.3% over 2023 to $14.8 million.
- Net loss attributable to common shareholders was $2,311,207, or a loss of $.37 per share in 2024.
- For the year, restaurant-level adjusted EBITDA (a non-GAAP measure) declined to 4.9% from 6.2%.
- Our equity in the loss of Bagger Dave’s of $415,085.
- On December 29, 2024, we had $4.3 million in cash and short-term investments.
The loss for the year reflects a $371,872 charge for the closure of the Village Bier Garten, which occurred in January 2025, a non-cash charge of $415,085 for our equity in the Bagger Dave’s loss, and a $230,500 charge for stock-based compensation. We also fully reserved for future deferred tax benefits which resulted in a $206,000 non-cash tax charge in 2024. Gary Copperud, the Company’s Chief Executive Officer, said, “The loss for the year was disappointing. Bagger Dave’s faced challenges in the casual dining sector, leading to a our equity in the loss of $415,085. This non-cash item accounted for 18% of our total loss for the year. Hurricane Helene in September 2024 caused significant damage in Indian Rocks Beach, Florida, resulting in the closure of the Keegan's location for about one month as we cleaned and repaired the store. The local Indian Rock economy has been slow to recover, impacting recent sales at the restaurant.” Kenneth Brimmer, Chief Financial Officer, noted that beginning in the fourth quarter, we implemented several initiatives that we expect will lead to significantly improved results and profitability and positive cash flow in 2025. These initiatives include:
- Closing Village Bier Garten in January 2025 and writing off our remaining investment
- Closing a BTND location in Ham Lake, Minnesota — we are pursuing the liquidation of Ham Lake and Richmond properties, which we believe will result in a gain on the sale of assets in 2025.
- Aggressive cost-cutting and process improvement measures were implemented at Burger Time locations, including a menu reengineering introducing hand-cut fries to our customers, which we believe will lower overall food costs.
- Cost and headcount reductions at Pie, combined with a thorough review of product pricing, should return the business to historic, significantly improved profit levels.
- Continued efforts to liquidate Bagger Dave’s restaurant properties — we are encouraged that we will achieve our goal of liquidating the store properties in 2025.”
Fiscal 2025 Outlook: Given the evolving character of our Company and the potential impact of a slowdown in the overall economy and the recent inflationary environment, the Company is not providing a financial forecast for fiscal 2025
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 and Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts, the Schnitzel Haus in Hobe Sound Florida, and Keegan’s Seafood Grille near Clearwater, Florida.
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 2025 fiscal year, current or future volatility in the credit markets and future market conditions, our belief that we have sufficient liquidity to fund our business operations during the next fiscal year, market position, financial results and reserves, and strategy for risk management.
Any forward-looking statement in this press release is based solely 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.
BT BRANDS, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
52 Weeks Ended | 52 Weeks Ended, | |||||||
December 29, 2024 | December 29, 2023 | |||||||
SALES | $ | 14,823,472 | $ | 14,076,653 | ||||
COSTS AND EXPENSES | ||||||||
Restaurant operating expenses | ||||||||
Food and paper costs | 5,605,579 | 5,597,167 | ||||||
Labor costs | 6,128,574 | 5,458,351 | ||||||
Occupancy costs | 1,403,204 | 1,312,717 | ||||||
Other operating expenses | 962,287 | 841,894 | ||||||
Depreciation and amortization expenses | 742,860 | 598,540 | ||||||
Restaurant asset impairment charge | 371,872 | - | ||||||
General and administrative expenses | 1,691,404 | 1,650,755 | ||||||
Gain on sale of assets | (250,000 | ) | (310,182 | ) | ||||
Total costs and expenses | 16,655,780 | 15,149,242 | ||||||
Loss from operations | (1,832,308 | ) | (1,072,589 | ) | ||||
UNREALIZED GAIN (LOSS) ON MARKETABLE SECURITIES | (93,458 | ) | 80,139 | |||||
REALIZED GAIN ON MARKETABLE SECURITIES | 143,340 | 23,058 | ||||||
INTEREST AND DIVIDEND INCOME | 178,279 | 300,923 | ||||||
INTEREST EXPENSE | (99,906 | ) | (97,608 | ) | ||||
OTHER INCOME | 13,930 | 80,790 | ||||||
EQUITY IN NET LOSS OF AFFILIATE | (415,085 | ) | (347,081 | ) | ||||
LOSS BEFORE TAXES | (2,105,208 | ) | (1,032,368 | ) | ||||
INCOME TAX BENEFIT (EXPENSE) | (206,000 | ) | 145,000 | |||||
NET LOSS | $ | (2,311,208 | ) | $ | (887,368 | ) | ||
NET LOSS PER COMMON SHARE - Basic and Diluted | $ | (0.37 | ) | $ | (0.14 | ) | ||
WEIGHTED AVERAGE SHARES USED IN COMPUTING PER COMMON SHARE AMOUNTS - Basic and Diluted | 6,194,842 | 6,261,631 |
BT BRANDS, INC., AND SUBSIDIARIES | ||||||||
December 31, 2024 | December 31, 2023 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 1,951,415 | $ | 5,300,446 | ||||
Marketable securities | 2,319,555 | 1,392,060 | ||||||
Receivables | 69,459 | 28,737 | ||||||
Inventory | 272,603 | 201,333 | ||||||
Prepaid expenses and other current assets | 127,621 | 47,246 | ||||||
Assets held for sale | 258,751 | 258,751 | ||||||
Total current assets | 4,999,404 | 7,228,573 | ||||||
PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET | 3,343,340 | 3,247,013 | ||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 1,724,052 | 1,789,285 | ||||||
EQUITY INVESTMENT IN UNCONSOLIDATED SUBSIDIARY | 304,439 | 718,806 | ||||||
INVESTMENT IN EQUITY AND NOTES RECEIVABLE FROM RELATED COMPANY | 424,000 | 304,000 | ||||||
DEFERRED INCOME TAXES | - | 206,000 | ||||||
GOODWILL | 796,220 | 671,220 | ||||||
INTANGIBLE ASSETS, NET | 367,799 | 395,113 | ||||||
OTHER ASSETS, NET | 37,543 | 49,202 | ||||||
Total assets | $ | 11,996,797 | $ | 14,609,212 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 612,059 | $ | 555,247 | ||||
Broker margin loan | - | 115,899 | ||||||
Current maturities of long-term debt | 185,009 | 183,329 | ||||||
Current operating lease obligations | 274,511 | 215,326 | ||||||
Accrued expenses | 371,356 | 480,289 | ||||||
Total current liabilities | 1,442,935 | 1,550,090 | ||||||
LONG-TERM DEBT, LESS CURRENT PORTION | 2,091,335 | 2,269,771 | ||||||
NONCURRENT OPERATING LEASE OBLIGATIONS | 1,497,300 | 1,600,622 | ||||||
Total liabilities | 5,031,570 | 5,420,483 | ||||||
SHAREHOLDERS' EQUITY | 6,965,227 | 9,188,729 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 11,996,797 | $ | 14,609,212 | ||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250331950262/en/
Kenneth Brimmer
612-229-8811
FAQ**
Considering the reported net loss and operational challenges, what strategic measures does BT Brands Inc. plan to implement to ensure the successful performance of its franchise locations, including the BT Brands Inc. Warrant BTBDW?
Given the equity loss in Bagger Dave’s and its impact on overall profitability, how does BT Brands Inc. intend to improve its investment strategy moving forward, particularly regarding the BT Brands Inc. Warrant BTBDW?
With recent cost-cutting initiatives and location closures, how does BT Brands Inc. anticipate these changes will influence future cash flows and shareholder value pertaining to the BT Brands Inc. Warrant BTBDW?
What guidance can BT Brands Inc. provide for potential investors regarding the recovery outlook in 2025 and the implications for the BT Brands Inc. Warrant BTBDW, amidst current economic conditions?
**MWN-AI FAQ is based on asking OpenAI questions about BT Brands Inc. Warrant (NASDAQ: BTBDW).
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