BT Brands Reports Record Third-quarter 2025 Profit of $0.15 per Share

MINNETONKA, Minn.--( BUSINESS WIRE)--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 Reports Record Third-quarter 2025 Profit of $0.15 per Share - nine month profit is $.10 per share. Restaurant EBITDA increases 74% to $823,000 Planned merger with Aero Systems progresses with expectation of spinoff to deliver value.

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:

Third Quarter 2025 Highlights

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:

Following completion of these transactions, BT Brands shareholders will:

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

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