BT Brands Reports Second Quarter 2024 Results

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

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240812146703/en/

Kenneth Brimmer, 612-229-8811