BAB, Inc. reported a net income of $525,000 for the fiscal year ending November 30, 2024, an increase from $467,000 in the previous year. The company's total revenues rose to $3.55 million, a 1.0% increase from $3.51 million in 2023. The growth in revenue was primarily driven by a $50,000 increase in royalty fees, which reached $1.99 million, attributed to franchisees' increased use of online ordering and delivery services. Franchise fee revenue also saw a significant rise, increasing by 107.4% to $56,000, while licensing fees and other income grew by 8.2% to $318,000. However, marketing fund revenue decreased by 5.4% to $1.18 million.
In terms of operational metrics, BAB, Inc. maintained 61 franchise units and 4 licensed units across 18 states, with 4 additional units under development. The company’s franchise system includes brands such as Big Apple Bagels® and My Favorite Muffin®, which leverage synergies in product offerings. The total operating expenses for the year were $2.88 million, representing 81.2% of revenues, a slight decrease from 82.5% in the previous year. This reduction in operating expenses was attributed to lower marketing and occupancy costs, although payroll and professional fees increased.
The company’s employee count remained stable, with 11 full-time and one part-time employee at its corporate headquarters. BAB, Inc. continues to focus on enhancing its franchisee support through marketing assistance, training, and bulk purchasing discounts. The company also reported an increase in interest income, which rose to $66,000, reflecting a broader financial strategy to optimize cash management.
Looking ahead, BAB, Inc. plans to continue its strategic focus on franchise development and operational efficiencies. The company has expressed intentions to maintain its cash distribution policy, having declared a $0.03 cash distribution per share in December 2024. Management remains optimistic about future growth opportunities, particularly in expanding its franchise network and enhancing product offerings to meet evolving consumer preferences. The company’s financial health is supported by a working capital of $1.78 million and unrestricted cash of $2.18 million as of November 30, 2024.
About BAB, INC.
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