BT Brands Reports Record Third-quarter 2025 Profit of $0.15 per Share
MWN-AI** Summary
BT Brands, Inc. (Nasdaq: BTBD; BTBDW) reported impressive financial results for the third quarter of 2025, achieving record earnings of $0.15 per share, a significant recovery from the net loss of $0.04 per share reported in Q3 2024. The company’s net income reached nearly $915,000, up from a loss of approximately $219,000 a year earlier. Revenue for the quarter totaled $3.9 million, a decline from $4.3 million in the previous year, primarily due to the reduction in operating locations.
The operating income also showcased remarkable improvement, standing at $735,000 compared to a loss of $75,000 in Q3 2024, bolstered by a $242,000 gain from asset sales. Restaurant-level adjusted EBITDA rose to $823,000, marking a notable 74% increase from the prior year. Additionally, cash and short-term investments grew by $1.2 million from the second quarter, totaling $4.7 million as of the end of September.
BT Brands operates 14 restaurant locations, including its franchise concept, Burger Time, and holds a 40.7% stake in Bagger Dave’s Burger Tavern. Looking ahead, the company is optimistic about the proposed merger with Aero Velocity, Inc., which aims to create a combined entity focusing on drone services under the name Aero Systems, Inc.
Management expressed confidence in maintaining profitability through the remaining fiscal year, though detailed guidance was not provided due to the merger's uncertainties. CEO Gary Copperud emphasized the positive impact of operational efficiencies and ongoing efforts to align expenses with revenue amidst industry challenges. Overall, BT Brands is poised for future growth and value creation, benefiting shareholders through both the merger and its core restaurant operations.
MWN-AI** Analysis
BT Brands, Inc. (Nasdaq: BTBD) has reported a remarkable turnaround in its third-quarter earnings for 2025, posting a profit of $0.15 per share compared to a loss in the same quarter last year. This financial rebound is buoyed by a substantial increase in cash and short-term investments, up from $3.5 million to $4.7 million. The company has also shown impressive operational efficiencies, which contributed to a significant 74% increase in restaurant-level adjusted EBITDA.
Despite this success, revenue decreased to $3.9 million from $4.3 million due to two fewer operating locations, an important factor for investors to consider. The positive operating income of $735,000 indicates that the company is effectively managing costs, but caution should be exercised as the decrease in revenue suggests challenges in maintaining growth.
Moreover, BT Brands' proposed merger with Aero Velocity, Inc. presents both opportunities and risks for shareholders. This move aims to enhance shareholder participation in a high-growth sector while retaining the core restaurant operations under a newly formed subsidiary, BT Group, Inc. The planned spin-off might create value for shareholders in the long term, as they will own shares in both entities post-merger.
Nevertheless, the company has refrained from providing detailed guidance for fiscal 2025 due to uncertainties in the restaurant sector and economic pressures. Investors should keep an eye on the competitive landscape, inflationary challenges, and personal consumer behavior, as these can affect BT Brands’ future profitability.
Given the current market trends and BT Brands' operational improvements, it may be an opportune time for investors to consider positions in BT Brands while remaining vigilant regarding potential market volatility and the outcomes of the merger with Aero.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
BT Brands, Inc. (Nasdaq: BTBD; BTBDW) today announced its results for the thirteen weeks ended September 28, 2025, reporting record earnings per share of $.15 for the third quarter and earnings of $.10 per share for the nine-month period. Significantly, cash and short-term investments increased by $1.2 million from the second quarter’s level.
BT Brands currently operates fourteen restaurant locations, including its 40.7% ownership interest in Bagger Dave’s Burger Tavern, which operates five casual dining restaurants across Michigan, Ohio, and Indiana (OTC: BDVB). Operations include:
- Six Burger Time fast-food restaurants located in the North Central United States
- Bagger Dave’s Burger Tavern (40.7% owned affiliate)
- Keegan’s Seafood Grille in Indian Rocks Beach, Florida
- Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts
- Schnitzel Haus, a German-themed dining restaurant in Hobe Sound, Florida
Third Quarter 2025 Highlights
- Net income of $914,975 , or $0.15 per share , compared to a net loss of $219,000 in Q3 2024
- Revenue of $3.9 million , versus $4.3 million in the prior year, primarily reflecting two fewer operating locations
- Operating income of $735,000 , including a $242,000 gain on asset sales , compared to a loss of $75,000 in Q3 2024
- Restaurant-level adjusted EBITDA (a non-GAAP measurement) increased 74% , rising to $823,000 from $472,000 in Q3 2024
- Equity method loss from Bagger Dave’s was $100,000 , an improvement from $116,000 in the prior-year quarter
- Cash and short-term investments totaled $4.7 million , up from $3.5 million at the end of Q2 2025
Proposed Business Combination with Aero Velocity, Inc.
On September 2, 2025, BT Brands entered into a definitive Merger Agreement with Aero Velocity, Inc. ("Aero"), an emerging leader in drone services. Under the terms of the agreement:
- Aero will merge with a BT Brands subsidiary
- The combined entity to be called Aero Systems, Inc. and Aero Systems will become the successor corporation
- Following the merger, BT Brands will spin off a newly formed subsidiary, BT Group, Inc., to existing BT Brands common shareholders
- BT Group, Inc. will retain all BT Brands restaurant operations, assets, cash, and investments. Management plans pursue a listing for the common stock of BT Group, Inc.
Following completion of these transactions, BT Brands shareholders will:
- Own a share of the newly merged Aero Systems
- Receive a share of BT Group, which will include all assets and liabilities of BT Brands, including its cash, investments and BT Brands restaurant business.
Management Commentary
Gary Copperud, Chief Executive Officer of BT Brands, commented:
“We are pleased with third-quarter results, driven by operational efficiencies and nonoperating contributions from asset sales and investment gains. While the restaurant industry continues to face challenges—including intense competition from industry leaders, consumer price sensitivity, and inflationary pressures—our focus on aligning expenses with revenue continues to yield positive results, as evidenced by a 74% increase in restaurant EBITDA from the prior year.
“We are enthusiastic about the proposed merger with Aero Systems, which we believe will offer our shareholders meaningful participation in both a high-growth platform with attractive profit margins and an improving core restaurant business.”
Outlook
The Company expects to maintain profitability through the remainder of fiscal 2025. Given the ongoing merger process and the potential for asset transactions, BT Brands is not providing detailed financial guidance for fiscal 2025 and beyond at this time.
About BT Brands, Inc.
BT Brands, Inc. (Nasdaq: BTBD; BTBDW) operates fast-food and casual dining restaurants, including Burger Time locations in North Dakota, South Dakota, and Minnesota; 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., which operates five restaurants in Michigan, Indiana, and Ohio. The Company has announced plans to merge with Aero Velocity, Inc.
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) | ||||||||||||||||
39 Weeks Ended | 39 Weeks Ended | 13 Weeks Ended | 13 Weeks Ended | |||||||||||||
September 28, 2025 | September 29, 2024 | September 28, 2025 | September 29, 2024 | |||||||||||||
SALES | $ | 10,864,445 | $ | 11,649,610 | $ | 3,853,682 | $ | 4,348,824 | ||||||||
COSTS AND EXPENSES | ||||||||||||||||
Restaurant operating expenses | ||||||||||||||||
Food and paper costs | 3,626,168 | 4,407,101 | 1,176,619 | 1,563,073 | ||||||||||||
Labor costs | 3,882,608 | 4,636,598 | 1,290,108 | 1,698,150 | ||||||||||||
Occupancy costs | 944,699 | 1,058,029 | 332,984 | 377,398 | ||||||||||||
Other operating expenses | 672,866 | 653,769 | 231,761 | 238,031 | ||||||||||||
Depreciation and amortization expenses | 452,130 | 473,420 | 151,010 | 141,527 | ||||||||||||
General and administrative expenses | 1,160,480 | 1,284,871 | 178,389 | 375,451 | ||||||||||||
Loss (gain) on sale of asset | (242,231 | ) | 30,205 | (242,231 | ) | 30,205 | ||||||||||
Total costs and expenses | 10,496,720 | 12,543,993 | 3,118,640 | 4,423,835 | ||||||||||||
Income (loss) from operations | 367,725 | (894,383 | ) | 735,042 | (75,011 | ) | ||||||||||
UNREALIZED GAIN (LOSS) ON MARKETABLE SECURITIES | 500,124 | 163,014 | 462,020 | (69,933 | ) | |||||||||||
REALIZED INVESTMENT GAIN (LOSS) | 312,954 | 29,219 | 138,890 | (343 | ) | |||||||||||
INTEREST AND DIVIDEND INCOME | 112,833 | 186,892 | 31,866 | 50,142 | ||||||||||||
INTEREST EXPENSE | (57,489 | ) | (72,591 | ) | (16,385 | ) | (22,552 | ) | ||||||||
IMPAIRMENT OF EQUITY INVESTMENT IN RELATED COMPANY | (304,000 | ) | - | (304,000 | ) | - | ||||||||||
OTHER INCOME (EXPENSE) | 12,449 | - | (32,724 | ) | - | |||||||||||
EQUITY IN NET LOSS OF AFFILIATE | (304,439 | ) | (291,282 | ) | (99,734 | ) | (115,782 | ) | ||||||||
INCOME (LOSS) BEFORE TAXES | 640,157 | (879,131 | ) | 914,975 | (233,479 | ) | ||||||||||
INCOME TAX (EXPENSE) BENEFIT | - | 144,000 | - | 14,000 | ||||||||||||
NET INCOME (LOSS) | $ | 640,157 | $ | (735,131 | ) | $ | 914,975 | $ | (219,479 | ) | ||||||
NET INCOME (LOSS) PER COMMON SHARE - Basic | $ | 0.10 | $ | (0.12 | ) | $ | 0.15 | $ | (0.04 | ) | ||||||
NET INCOME (LOSS) PER COMMON SHARE - Diluted | $ | 0.10 | $ | (0.12 | ) | $ | 0.15 | $ | (0.04 | ) | ||||||
WEIGHTED AVERAGE SHARES USED IN COMPUTING | ||||||||||||||||
PER COMMON SHARE AMOUNTS - Basic | 6,154,724 | 6,221,154 | 6,154,724 | 6,181,952 | ||||||||||||
PER COMMON SHARE AMOUNTS - Diluted | 6,154,791 | 6,221,154 | 6,159,750 | 6,181,952 |
BT BRANDS, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) September 28, 2025 | December 29, 2024 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 1,277,738 | $ | 1,951,415 | ||||
Marketable securities | 3,461,842 | 2,319,555 | ||||||
Receivables | 50,830 | 69,459 | ||||||
Demand notes receivable from related company | 744,858 | 120,000 | ||||||
Inventory | 563,640 | 272,603 | ||||||
Prepaid expenses and other current assets | 110,210 | 127,621 | ||||||
Assets held for sale | 424,123 | 258,751 | ||||||
Total current assets | 6,633,241 | 5,119,404 | ||||||
PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET | 2,638,957 | 3,343,340 | ||||||
OPERATING LEASES RIGHT-OF-USE ASSETS | 1,529,657 | 1,724,052 | ||||||
EQUITY INVESTMENT IN UNCONSOLIDATED SUBSIDIARY | - | 304,439 | ||||||
EQUITY INVESTMENT IN RELATED COMPANY | - | 304,000 | ||||||
GOODWILL | 796,220 | 796,220 | ||||||
INTANGIBLE ASSETS, NET | 319,337 | 367,799 | ||||||
OTHER ASSETS, NET | 21,142 | 37,543 | ||||||
Total assets | $ | 11,938,554 | $ | 11,996,797 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 185,365 | $ | 612,059 | ||||
Current maturities of long-term debt | 203,651 | 185,009 | ||||||
Current operating lease obligations | 301,118 | 274,511 | ||||||
Accrued expenses | 284,764 | 371,356 | ||||||
Total current liabilities | 974,898 | 1,442,935 | ||||||
LONG-TERM DEBT, LESS CURRENT PORTION | 1,930,029 | 2,091,335 | ||||||
NONCURRENT OPERATING LEASE OBLIGATIONS | 1,309,174 | 1,497,300 | ||||||
Total liabilities | 4,214,101 | 5,031,570 | ||||||
SHAREHOLDERS' EQUITY | 7,724,453 | 9,965,227 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 11,938,554 | $ | 11,996,797 |
Category: Financial Category
View source version on businesswire.com: https://www.businesswire.com/news/home/20251117480477/en/
CONTACT FOR FURTHER INFORMATION:
KENNETH BRIMMER 612-229-8811
FAQ**
How does the performance of BT Brands Inc. Warrant (BTBDW) correlate with the company's plans for the merger with Aero Velocity, Inc., and what implications might this have for shareholder value post-merger?
Given the recent increase in cash and short-term investments to $4.7 million, how does BT Brands Inc. plan to utilize these funds, especially in relation to the BT Brands Inc. Warrant (BTBDW) offerings?
What specific operational efficiencies has BT Brands Inc. identified to sustain profitability through the remainder of fiscal 2025, and how might this impact the performance of their warrants (BTBDW)?
With a significant net income improvement reported in Q3 2025, how does BT Brands Inc. plan to capitalize on this momentum moving forward, particularly in relation to the BT Brands Inc. Warrant (BTBDW) and its potential for growth?
**MWN-AI FAQ is based on asking OpenAI questions about BT Brands Inc. Warrant (NASDAQ: BTBDW).
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