BT Brands Reports 2024 Results

Rhea-AI Summary

BT Brands (BTBD) reported its financial results for 2024, showing mixed performance. Total revenues increased 5.3% to $14.8 million, but the company recorded a net loss of $2.31 million ($0.37 per share). Restaurant-level adjusted EBITDA declined from 6.2% to 4.9%.

The company operates 15 restaurants, including seven Burger Time locations, five Bagger Dave's restaurants (39.6% ownership), and individual locations of Keegan's Seafood Grille, Pie In The Sky Coffee and Bakery, and Schnitzel Haus. Notable challenges included a $415,085 loss from Bagger Dave's, Hurricane Helene's impact on Keegan's, and a $371,872 charge for Village Bier Garten's closure.

Management has implemented strategic initiatives including closing underperforming locations, cost-cutting measures, and menu reengineering at Burger Time. The company ended 2024 with $4.3 million in cash and short-term investments.

Positive

• Revenue growth of 5.3% to $14.8M in 2024
• Strong cash position with $4.3M in cash and short-term investments
• Strategic restructuring initiatives implemented to improve profitability
• Potential gains expected from property liquidations in 2025

Negative

• Net loss of $2.31M ($0.37 per share) in 2024
• Restaurant-level adjusted EBITDA declined from 6.2% to 4.9%
• $415,085 loss from Bagger Dave's investment
• Closure costs of $371,872 for Village Bier Garten
• Hurricane damage impact on Keegan's location
• Multiple restaurant closures indicating operational challenges

Insights

Financial Analyst

BT Brands' 2024 results reveal significant operational challenges with $2.31 million in net losses ($0.37 per share) despite a 5.3% revenue increase to $14.8 million. The deteriorating restaurant-level adjusted EBITDA margin (dropped from 6.2% to 4.9%) signals fundamental profitability issues requiring more than incremental improvements.

The $415,085 equity loss from Bagger Dave's represents 18% of total losses, highlighting problems with their investment strategy. Combined with a $371,872 charge for Village Bier Garten's closure, $230,500 in stock-based compensation, and a $206,000 tax charge from deferred tax benefit reservation, these non-operational costs account for over 52% of total losses.

Management's aggressive restructuring plan—closing underperforming locations, implementing cost-cutting measures, and pursuing property liquidations—indicates they recognize the severity of their situation. With $4.3 million in cash/short-term investments against persistent operational losses, their liquidity runway may be without successful execution of these initiatives.

The lack of financial guidance for 2025 amid their restructuring efforts signals uncertainty about their turnaround timeline. While management expects "significantly improved results" in 2025, investors should note that returning to profitability will require substantial margin improvements across all remaining operations.

Restaurant Industry Expert

BT Brands' performance reflects broader headwinds facing small restaurant groups, particularly those operating in multiple segments like quick-service (Burger Time) and casual dining (Bagger Dave's). Their 5.3% revenue growth is likely below inflation-adjusted same-store sales, suggesting real traffic declines.

The strategic closure of Village Bier Garten and a Minnesota Burger Time location indicates management is appropriately pruning underperforming assets. However, the menu reengineering at Burger Time—particularly introducing hand-cut fries—represents a labor-intensive operational change that contradicts typical efficiency measures during downturns. While this might improve food costs, increased labor requirements could offset savings.

The hurricane impact on Keegan's in Florida demonstrates the vulnerability of single-location concepts in weather-sensitive regions. More concerning is management's admission that "the local Indian Rock economy has been slow to recover," suggesting prolonged sales depression beyond the immediate store closure.

The planned liquidation of Bagger Dave's properties likely reflects the broader casual dining segment struggles, where changing consumer preferences and inflation have disproportionately impacted mid-tier concepts. Their headcount reductions and pricing review at Pie signal classic defensive measures, but the underlying question remains whether their multi-concept portfolio approach can achieve sufficient scale economics in any single segment to drive meaningful profitability.

MINNETONKA, Minn.--(BUSINESS WIRE)-- 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 CONSOLIDATED BALANCE SHEETS
		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

Source: BT Brands, Inc.

FAQ

What caused BT Brands (BTBD) significant losses in 2024?

BTBD's $2.31M loss was primarily due to Bagger Dave's $415,085 loss, Village Bier Garten closure charge of $371,872, Hurricane Helene impact, and a $206,000 non-cash tax charge.

How many restaurants does BT Brands (BTBD) currently operate?

BTBD operates 15 restaurants: 7 Burger Time locations, 5 Bagger Dave's (39.6% ownership), Keegan's Seafood, Pie In The Sky, and Schnitzel Haus.

What strategic initiatives is BTBD implementing to improve profitability in 2025?

BTBD is closing Village Bier Garten and Ham Lake location, implementing cost-cutting measures, reengineering Burger Time's menu, and planning to liquidate Bagger Dave's properties.

How did BT Brands (BTBD) revenue perform in 2024?

BTBD's total revenues increased 5.3% to $14.8 million in 2024, though restaurant-level adjusted EBITDA declined from 6.2% to 4.9%.