BT Brands Reports Revenue Increase and Reduced Operational Losses in Q1 Fiscal 2025

BT Brands, Inc. reported its financial results for the first quarter of fiscal 2025, ending March 30, 2025, revealing a slight increase in sales and a reduction in operational losses compared to the previous year. The company generated revenues of $3.23 million, up from $3.19 million in the same period last year. This increase was attributed to improved sales at most locations, particularly the newly acquired Schnitzel Haus, which contributed approximately $500,000 to the total revenue. Despite the closure of two locations, which resulted in a revenue decline of about $507,000, the overall performance showed resilience.

The company's total costs and expenses decreased significantly to $3.52 million from $3.82 million year-over-year, leading to a reduced loss from operations of $292,196, compared to a loss of $630,829 in the prior year. The decrease in costs was driven by lower food and labor costs, which fell to 37.1% and 37.7% of sales, respectively, down from 40.1% and 43.5% in the previous year. These improvements were attributed to strategic cost-cutting measures and operational efficiencies implemented across the restaurant chain.

In terms of operational developments, BT Brands currently operates 15 restaurants, including seven Burger Time locations and six Bagger Dave's restaurants, in addition to its other dining establishments. The average customer transaction at Burger Time remained stable at approximately $15.00. The company has also focused on enhancing its delivery services, which are expected to contribute positively to future sales growth. However, the company faces challenges such as labor shortages and inflationary pressures on input costs, which could impact profitability moving forward.

The balance sheet as of March 30, 2025, showed total assets of $11.00 million, a decrease from $11.99 million at the end of the previous fiscal year. Current liabilities also decreased significantly to $968,329 from $1.44 million, reflecting improved cash management and operational efficiencies. Cash and cash equivalents stood at $1.07 million, down from $1.95 million, while marketable securities increased to $2.75 million from $2.32 million, indicating a strategic focus on liquidity and investment.

Looking ahead, BT Brands remains cautiously optimistic about its growth trajectory, emphasizing the importance of adapting to industry trends and consumer preferences. The company plans to continue exploring opportunities for geographic expansion and potential acquisitions to enhance its market presence. However, management acknowledged the ongoing uncertainties in the economic environment and the potential impact of external factors on its operations and financial performance.