BAB, Inc. reported its financial results for the three months ending February 28, 2025, revealing a total revenue of $757,201, a decrease of 9.4% from $835,934 in the same period last year. The decline in revenue was attributed to lower franchise fees and licensing income, which fell by 10% and 29.9%, respectively. Despite the drop in revenue, the company achieved a net income of $116,267, up from $98,505 in the prior year, resulting in earnings per share of $0.02, compared to $0.01 in the previous year.
The company's operating expenses also decreased significantly, totaling $610,022 for the quarter, down 14.6% from $713,954 in the prior year. This reduction was primarily driven by lower marketing fund expenses and a decrease in employee benefit costs as some employees transitioned to Medicare. The provision for income taxes increased slightly to $45,800 from $39,000, reflecting an effective tax rate of 28.3%. The company’s cash and restricted cash at the end of the quarter stood at $2,228,427, compared to $2,119,724 a year earlier.
Operationally, BAB, Inc. maintained 61 franchise units and 4 licensed units as of February 28, 2025, a slight decrease from 64 franchise units a year prior. The company reported system-wide revenues of $9.4 million for the quarter, down from $9.6 million in the same period last year. The company continues to leverage synergies between its brands, including Big Apple Bagels and My Favorite Muffin, to enhance product offerings and operational efficiencies.
Looking ahead, BAB, Inc. plans to focus on franchise development and product innovation to drive growth. The company has four units under development and aims to improve its market presence, particularly in the Midwest and Western United States. Management remains optimistic about future performance, citing ongoing efforts to attract new franchisees and enhance customer engagement through its diverse product offerings. The Board of Directors has declared a $0.01 cash distribution per share for the second quarter, reflecting the company's commitment to returning value to shareholders while balancing its growth initiatives.
About BAB, INC.
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