BT Brands Reports Net Income Turnaround and Revenue Decline for 39 Weeks Ending September 28, 2025

BT Brands, Inc. reported its financial results for the 39 weeks ending September 28, 2025, revealing a net income of $640,157, a significant turnaround from a net loss of $735,131 in the same period last year. Revenue for the period totaled $10.86 million, down 6.7% from $11.65 million in 2024, primarily due to the closure of two underperforming restaurant locations. The company’s operating income improved to $367,725, compared to a loss of $894,383 in the prior year, reflecting effective cost management and operational efficiencies.

In the third quarter alone, BT Brands generated $3.85 million in sales, an 11.4% decrease from $4.35 million in the same quarter of 2024. The decline was attributed to the closure of the Village Bier Garten and the Ham Lake Burger Time location. However, the company reported a substantial increase in income from operations, which reached $735,042, compared to a loss of $75,011 in the previous year. This improvement was driven by disciplined cost control measures, which resulted in a decrease in total costs and expenses from $4.42 million to $3.12 million.

Operationally, BT Brands has made strategic changes, including the closure of underperforming locations and a focus on enhancing labor efficiency. Labor costs as a percentage of sales fell to 33.5% from 39.0% in the previous year, while food and paper costs decreased to 30.5% of sales from 35.9%. The company also reported a gain of $288,731 from the sale of its Richmond property, contributing positively to its financial performance. Additionally, the company has been actively managing its investments, including a $304,000 impairment charge related to its investment in NGI Corporation.

Looking ahead, BT Brands is pursuing a merger with Aero Velocity Inc., which is expected to create a combined entity that will retain all of BT Brands' restaurant assets and liabilities. The merger is subject to shareholder approval and is anticipated to enhance the company's market position. Management remains focused on leveraging seasonal strengths, implementing cost reductions, and executing targeted sales initiatives to drive future growth. The company believes its current cash and investment balances will be sufficient to meet operational and investment needs in the foreseeable future.