BAB, Inc. reported its financial results for the second quarter and first half of fiscal 2026, revealing a net income of $186,882 for the three months ending May 31, 2026, compared to $154,292 for the same period in 2025. Total revenues for the quarter were $803,689, a slight decrease of 0.1% from $808,486 in the prior year. For the six months ended May 31, 2026, the company achieved a net income of $306,051, up from $270,559 in the previous year, while total revenues decreased by 2.5% to $1,527,352 from $1,565,687.
The company experienced a 1.6% increase in royalty fee revenue, which reached $520,020 for the quarter, up from $511,879 in the prior year. Franchise fee revenue also saw a significant increase of 75% to $7,117, attributed to one new store opening during the quarter. However, marketing fund revenue declined by 8.8% to $207,441, reflecting a corresponding decrease in marketing fund expenses. Overall, total operating expenses decreased by 8.6% to $556,262, primarily due to reduced payroll and marketing expenses.
As of May 31, 2026, BAB, Inc. operated 60 franchised units and 3 licensed units, a slight decrease from 61 and 4, respectively, in the previous year. The company reported system-wide revenues of $20.3 million for the first half of 2026, compared to $20.0 million in the same period of 2025. The company continues to focus on cost control amid rising operational costs, which has contributed to improved profitability.
In terms of liquidity, BAB, Inc. reported working capital of $1,974,000 and unrestricted cash of $2,215,397 as of May 31, 2026, compared to $1,733,000 and $2,048,454, respectively, a year earlier. The company declared a cash distribution of $0.01 per share for the second quarter, following a $0.02 distribution in the first quarter. Looking ahead, management remains cautious but optimistic about future profitability and cash distribution potential, emphasizing ongoing evaluations of financial performance and market conditions.
About BAB, INC.
BAB, Inc. franchises and licenses specialty bagel and muffin retail stores under the Big Apple Bagels®, My Favorite Muffin®, and SweetDuet® brands across 18 U.S. states. It generates revenue primarily from franchise fees, ongoing royalties, and licensed product sales, including Brewster’s® coffee. The company supports franchisees with marketing, training, and supply chain services, leveraging brand recognition and product variety in the quick-service bakery café segment.
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