BTBDW BT Brands Inc

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