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BT Brands Reports Second Quarter 2024 Results

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BT Brands, Inc. (Nasdaq: BTBD) reported Q2 2024 financial results. Total revenues increased 2.7% to $4.1 million, but the company posted a net loss of $69,952 ($.010 per share), an improvement from a $233,734 loss in 2023. Restaurant-level adjusted EBITDA declined to $437,000 from $632,000 year-over-year. Cash and short-term investments decreased to $5.2 million from $6.9 million last year.

Highlights include:

  • Pie in the Sky's revenue increased 17.5% to $1,057,000
  • Burger Time units saw 10%+ same-store sales growth
  • Acquired Schnitzel Haus restaurant in Florida

The company faces challenges with increased labor costs and input prices but expects significant improvement in restaurant operating results in H2 2024.

BT Brands, Inc. (Nasdaq: BTBD) ha riportato i risultati finanziari del Q2 2024. Le entrate totali sono aumentate del 2,7% a 4,1 milioni di dollari, ma l'azienda ha registrato una perdita netta di 69.952 dollari (0,010 dollari per azione), un miglioramento rispetto a una perdita di 233.734 dollari nel 2023. L'EBITDA rettificato a livello di ristorante è diminuito a 437.000 dollari rispetto a 632.000 dollari dell'anno precedente. Cash e investimenti a breve termine sono scesi a 5,2 milioni di dollari da 6,9 milioni di dollari dell'anno scorso.

Tra i punti salienti:

  • Le entrate di Pie in the Sky sono aumentate del 17,5% a 1.057.000 dollari
  • Le unità di Burger Time hanno visto una crescita delle vendite same-store superiore al 10%
  • Acquisito il ristorante Schnitzel Haus in Florida

L'azienda affronta sfide legate all'aumento dei costi del lavoro e dei prezzi delle materie prime, ma si aspetta un miglioramento significativo dei risultati operativi dei ristoranti nel secondo semestre del 2024.

BT Brands, Inc. (Nasdaq: BTBD) ha informado los resultados financieros del Q2 2024. Los ingresos totales aumentaron un 2,7% a 4,1 millones de dólares, pero la compañía reportó una pérdida neta de 69.952 dólares (0,010 dólares por acción), una mejora respecto a una pérdida de 233.734 dólares en 2023. El EBITDA ajustado a nivel de restaurante disminuyó a 437.000 dólares de 632.000 dólares del año anterior. El efectivo y las inversiones a corto plazo disminuyeron a 5,2 millones de dólares de 6,9 millones de dólares el año pasado.

Los aspectos destacados incluyen:

  • Los ingresos de Pie in the Sky aumentaron un 17,5% a 1.057.000 dólares
  • Las unidades de Burger Time vieron un crecimiento en las ventas en la misma tienda de más del 10%
  • Adquirido el restaurante Schnitzel Haus en Florida

La compañía enfrenta desafíos con el aumento de los costos laborales y precios de insumos, pero espera una mejora significativa en los resultados operativos de los restaurantes en la segunda mitad de 2024.

BT Brands, Inc. (Nasdaq: BTBD)는 2024년 2분기 재무 결과를 보고했습니다. 총 수익은 2.7% 증가하여 410만 달러에 달했습니다, 그러나 회사는 69,952달러의 순손실(주당 0.010달러)을 기록했으며, 이는 2023년의 233,734달러 손실에 비해 개선된 수치입니다. 레스토랑 차원에서의 조정된 EBITDA는 전년 대비 632,000달러에서 437,000달러로 감소했습니다. 현금 및 단기 투자는 지난해 690만 달러에서 520만 달러로 줄었습니다.

주요 사항은 다음과 같습니다:

  • Pie in the Sky의 수익은 17.5% 증가하여 1,057,000달러에 달했습니다
  • Burger Time 매장은 10% 이상의 동종 매출 성장률을 기록했습니다
  • 플로리다의 Schnitzel Haus 레스토랑을 인수했습니다

회사는 증가한 인건비와 원자재 가격 상승 등 도전과제를 마주하고 있지만, 2024년 하반기에는 레스토랑 운영 결과에서 유의미한 개선을 기대하고 있습니다.

BT Brands, Inc. (Nasdaq: BTBD) a publié ses résultats financiers pour le T2 2024. Les revenus totaux ont augmenté de 2,7 % pour atteindre 4,1 millions de dollars, mais l'entreprise a enregistré une perte nette de 69 952 dollars (0,010 dollar par action), une amélioration par rapport à une perte de 233 734 dollars en 2023. L'EBITDA ajusté au niveau des restaurants a diminué de 632 000 dollars à 437 000 dollars d'une année sur l'autre. La liquidité et les investissements à court terme ont diminué, passant de 6,9 millions de dollars à 5,2 millions de dollars par rapport à l'année dernière.

Parmi les faits marquants :

  • Les revenus de Pie in the Sky ont augmenté de 17,5 % pour atteindre 1 057 000 dollars
  • Les unités de Burger Time ont connu une croissance de plus de 10% des ventes dans les mêmes magasins
  • Achat du restaurant Schnitzel Haus en Floride

La société fait face à des défis dus à l'augmentation des coûts de main-d'œuvre et des prix des matières premières, mais elle s'attend à une amélioration significative des résultats d'exploitation des restaurants au second semestre de 2024.

BT Brands, Inc. (Nasdaq: BTBD) hat die finanziellen Ergebnisse für das Q2 2024 veröffentlicht. Die Gesamterlöse stiegen um 2,7% auf 4,1 Millionen Dollar, doch das Unternehmen verzeichnete einen Nettoverlust von 69.952 Dollar (0,010 Dollar pro Aktie), was eine Verbesserung gegenüber einem Verlust von 233.734 Dollar im Jahr 2023 darstellt. Das bereinigte EBITDA auf Restaurantebene sank von 632.000 Dollar auf 437.000 Dollar im Jahresvergleich. Die liquiden Mittel und kurzfristigen Investitionen verringerten sich von 6,9 Millionen Dollar auf 5,2 Millionen Dollar im letzten Jahr.

Die Höhepunkte umfassen:

  • Die Einnahmen von Pie in the Sky stiegen um 17,5% auf 1.057.000 Dollar
  • Die Burger Time-Einheiten verzeichneten ein Umsatzwachstum von über 10% bei gleichbleibenden Filialen
  • Erwerb des Restaurants Schnitzel Haus in Florida

Das Unternehmen steht vor Herausforderungen durch steigende Arbeitskosten und Inputpreise, erwartet jedoch eine erhebliche Verbesserung der Betriebsergebnisse in den Restaurants im zweiten Halbjahr 2024.

Positive
  • Total revenues increased 2.7% to $4.1 million in Q2 2024
  • Net loss improved to $69,952 from $233,734 in the previous year
  • Pie in the Sky revenue increased 17.5% to $1,057,000
  • Burger Time units saw over 10% same-store sales growth
  • Acquired Schnitzel Haus restaurant with potential for growth
Negative
  • Restaurant-level adjusted EBITDA declined to $437,000 from $632,000 year-over-year
  • Cash and short-term investments decreased to $5.2 million from $6.9 million last year
  • Facing persistent challenges in staffing and upward pressure on labor costs
  • Experiencing pressure on cost of sales inputs
  • Not providing financial forecast for fiscal 2024 due to uncertainties

Insights

BT Brands' Q2 2024 results present a mixed picture. The 2.7% revenue increase to $4.1 million is positive, but the net loss of $69,952 is concerning, albeit an improvement from 2023. The decline in restaurant-level adjusted EBITDA from $632,000 to $437,000 indicates pressure on profitability. Notably, cash reserves decreased from $6.9 million to $5.2 million year-over-year, reflecting recent acquisitions and capital improvements.

Bright spots include Pie in the Sky's 17.5% revenue growth and Burger Time's 10%+ same-store sales increase. However, persistent challenges in staffing, rising labor costs and inflationary pressures on input costs are squeezing margins. The acquisition of Schnitzel Haus presents growth potential, but its impact remains to be seen. The lack of financial guidance for 2024 suggests uncertainty in the company's near-term outlook.

BT Brands' diverse portfolio of restaurant concepts shows promise, but also presents operational challenges. The strong performance of Pie in the Sky and Burger Time units demonstrates the company's ability to grow existing brands. However, the overall modest revenue growth suggests difficulties in scaling across all concepts.

The acquisition of Schnitzel Haus is intriguing, offering potential for growth through extended operating hours. Yet, integrating a new concept while managing existing brands may strain resources. The company's focus on cost reduction and performance improvement is crucial, especially given the persistent labor and input cost pressures. The lack of 2024 guidance raises questions about the company's ability to navigate these challenges effectively and achieve consistent profitability across its diverse portfolio.

BT Brands' Q2 results reflect broader industry trends, particularly in labor and input costs. The company's multi-concept strategy provides diversification but also increases complexity in a challenging market. The strong performance of Pie in the Sky and Burger Time suggests these concepts are resonating with consumers, possibly due to their value proposition in an inflationary environment.

The acquisition of Schnitzel Haus indicates a strategic move towards upscale dining, which could be risky given current economic uncertainties. However, the potential for expansion and the low acquisition multiple could prove advantageous if executed well. The company's cautious outlook, evidenced by the lack of 2024 guidance, aligns with the uncertain economic climate but may concern investors looking for clear growth trajectories in the competitive restaurant sector.

WEST FARGO, N.D.--(BUSINESS WIRE)-- BT Brands, Inc. (Nasdaq: BTBD and BTBDW), today reported its financial results for the second quarter, the thirteen weeks ending June 30, 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 food restaurant, located in Hobe Sound, near Stuart, Florida (“Schnitzel”).

Highlights and recent activities include:

  • Total revenues for the 2024 period increased 2.7% over 2023 to $4.1 million;
  • Net loss attributable to common shareholders was $69,952, or $.010 per share for the second quarter compared to a net loss of $233,734 in 2023;
  • Restaurant-level adjusted EBITDA (a non-GAAP measure) for the 13-week period was $437,000, a decline from $632,000 in the prior year's second quarter ;
  • Our equity in the second quarter loss of our Bagger Dave’s affiliate was $81,000;
  • We ended the quarter with $5.2 million in total cash and short-term investments, down from $6.9 million one year ago as a result of our recent acquisition and capital improvements at our restaurant;
  • Pie in the Sky continues to contribute strong performance, with a second-quarter revenue increase of approximately 17.5% over the same period in 2023 to approximately $1,057,000.
  • The Burger Time units increased same-store sales by more than 10% and increased total revenue by approximately 15% over the prior year.

Gary Copperud, the Company’s Chief Executive Officer, said, “Our second quarter results reflect improving results at our restaurants, reduced by 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 inputs. There is a persistent challenge in staffing, which, even though the shortage of candidates has moderated we continue to see an upward pressure on labor costs. We are continuing our initiative to reduce costs and improve performance in all of our businesses, and we remain focused on achieving profitability consistent with our expectations.”

Kenneth Brimmer, COO, commented, “We expect to see significant improvement in restaurant operating results in the second half of 2024.”

Schnitzel Haus Acquisition

Effective May 13, 3024, we acquired the assets of the approximately 175-seat upscale Schnitzel Haus restaurant in Hobe Sound, Florida. The retirement of the previous owners presented BT Brands with an opportunity to acquire a business with robust cash flow at a particularly low multiple. We believe there is considerable upside exists as the prior owners significantly limited the serving hours. There are several potential opportunities available to grow the business.

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)

 

26 Weeks
Ended,

26 Weeks
Ended,

13 Weeks
Ended,

13 Weeks
Ended,

June 30,
2024

July 2,
2023

June 30,
2024

July 2,
2023

SALES

$

7,300,786

$

7,070,763

$

4,110,639

$

3,999,965

 

COSTS AND EXPENSES

Restaurant operating expenses

Food and paper costs

2,844,028

2,898,498

1,565,070

1,608,175

Labor costs

2,938,448

2,615,136

1,551,762

1,412,376

Occupancy costs

680,631

505,861

344,356

148,736

Other operating expenses

415,738

394,243

211,838

198,629

Depreciation and amortization expenses

331,893

356,027

171,351

192,520

General and administrative expenses

909,420

944,992

454,805

519,077

Gain on sale of assets

-

(313,688)

-

-

Total costs and expenses

8,120,158

7,401,069

4,299,182

4,079,513

Loss from operations

(819,372)

(330,306)

(188,543)

(79,548)

 

UNREALIZED GAIN (LOSS) ON MARKETABLE SECURITIES

232,947

(23,064)

118,184

(92,920)

REALIZED GAIN ON SALE OF MARKETABLE SECURITIES

29,562

-

29,562

-

INTEREST AND OTHER INCOME

136,750

90,809

61,896

1,761

INTEREST EXPENSE

(50,039)

(49,909)

(22,551)

(24,376)

EQUITY IN NET LOSS OF AFFILIATE

(175,500)

(145,050)

(81,000)

(90,651)

LOSS BEFORE TAXES

(645,652)

(457,520)

(82,452)

(285,734)

INCOME TAX BENEFIT

130,000

82,000

12,500

52,000

NET LOSS

$

(515,652)

$

(375,520)

$

(69,952)

$

(233,734)

NET LOSS PER COMMON SHARE -

$

(0.08)

$

(0.06)

$

(0.01)

$

(0.04)

 

WEIGHTED AVERAGE SHARES USED IN COMPUTING PER COMMON SHARE AMOUNTS - Basic and Diluted

6,240,953

6,261,631

6,235,788

6,246,114

BT BRANDS, INC., AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

 

(Unaudited)

ASSETS

June 30, 2024

December 31, 2023

CURRENT ASSETS

Cash

$

3,772,177

$

5,300,446

 

Marketable securities

1,513,146

1,392,060

 

Receivables

28,310

28,737

 

Inventory

300,147

201,333

 

Prepaid expenses and other current assets

93,017

47,246

 

Assets held for sale

258,751

258,751

 

Total current assets

5,965,548

7,228,573

 

 

PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET

3,773,270

3,247,013

 

OPERATING LEASES RIGHT-OF-USE ASSETS

1,854,459

1,789,285

 

INVESTMENTS AND NOTE RECEIVABLE

954,024

1,022,806

 

DEFERRED INCOME TAXES

182,988

206,000

 

GOODWILL

796,220

671,220

 

INTANGIBLE ASSETS, NET

442,830

395,113

 

OTHER ASSETS, NET

43,648

49,202

 

 

Total assets

$

14,072,499

$

14,609,212

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

CURRENT LIABILITIES

 

Accounts payable

$

612,585

$

555,247

 

Broker margin loan

-

115,899

 

Current maturities of long-term debt

164,408

183,329

 

Current operating lease obligations

282,803

215,326

 

Accrued expenses

452,680

480,289

 

Total current liabilities

1,492,476

1,550,090

 

 

LONG-TERM DEBT, LESS CURRENT PORTION

2,200,897

2,269,771

 

NONCURRENT LEASE OBLIGATIONS

1,630,165

1,600,622

 

Total liabilities

5,323,538

5,420,483

 

TOTAL SHAREHOLDERS’ EQUITY

13,714,457

9,188,729

 

 

Total liabilities and shareholders' equity

$

19,179,676

$

14,609,212

 

 

 

Kenneth Brimmer, 612-229-8811

Source: BT Brands, Inc.

FAQ

What was BT Brands' (BTBD) revenue growth in Q2 2024?

BT Brands (BTBD) reported a 2.7% increase in total revenues for Q2 2024, reaching $4.1 million.

How did BT Brands' (BTBD) net loss compare to the previous year in Q2 2024?

BT Brands (BTBD) reported a net loss of $69,952 in Q2 2024, an improvement from a net loss of $233,734 in the same quarter of 2023.

What was the performance of Pie in the Sky for BT Brands (BTBD) in Q2 2024?

Pie in the Sky, owned by BT Brands (BTBD), saw a 17.5% increase in revenue to approximately $1,057,000 in Q2 2024 compared to the same period in 2023.

How did Burger Time units perform for BT Brands (BTBD) in Q2 2024?

Burger Time units, owned by BT Brands (BTBD), increased same-store sales by more than 10% and total revenue by approximately 15% over the prior year in Q2 2024.

What recent acquisition did BT Brands (BTBD) make in Q2 2024?

BT Brands (BTBD) acquired the assets of Schnitzel Haus, a 175-seat upscale restaurant in Hobe Sound, Florida, effective May 13, 2024.

BT Brands, Inc.

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