BT Brands, Inc.
For the period ended Jun 29, 2025. Filed Aug 19, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2025 · Filed Aug 19, 2025
BTBD$1.56-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-30; filed 2025-05-14.
0001477932-25-003689
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-29; filed 2025-08-19.
0001477932-25-006037
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
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Added paragraphs (55)
Current report
Recent performance
Current report
The following are key highlights from the Company's performance for the 13-week and 26-week periods ending June 29, 2025:
Current report
Summary
Current report
The Company’s focus on operational efficiencies, disciplined expense management, and strategic closures of underperforming locations has resulted in improved margins and improved results despite lower sales volumes. Continued cost management and leveraging seasonal strengths are expected to be a central focus of management in future quarters. For the thirteen weeks ending June 29, 2025, net sales were $3.78 million, a decrease of $330,949 or 8.1% compared to $4.11 million for the same period in 2024. The decline reflects the closing of the Village Bier Garten and the Ham Lake Burger Time location in the first quarter of 2025. Total costs and expenses decreased to $3.85 million from $4.30 million in the prior year. The loss from operations narrowed significantly to $75,121, compared to a loss of $188,543 in 2024. After including investment gains, interest, and equity losses, the Company recorded net income of $55,031, a significant improvement compared to a net loss of $69,952 in the same period of 2024.
Current report
Overview of Results
Current report
For the thirteen weeks ending June 29, 2025, net sales were $3.78 million, a decrease of $330,949 or 8.1% compared to $4.11 million for the same period in 2024. The decline reflects the closing of the Village Bier Garten and the Ham Lake Burger Time location in the first quarter of 2025. Total costs and expenses decreased to $3.85 million from $4.30 million in the prior year. The operating result improved from a loss of $188,543 in the previous year to a loss of $75,121. After nonoperating items, including investment gains, interest, and equity losses, the Company recorded net income of $55,031, a significant improvement compared to a net loss of $69,952 in the same period of 2024.
Current report
Net Revenues
Current report
Net sales for the thirteen weeks ended June 29, 2025, were $3,779,690, reflecting a decline from $4,110,639 in the same period of 2024. The decrease was primarily due to the closure of two locations, which recorded approximately $400,000 in revenue in 2024. The recently acquired Schnitzel Haus, purchased in the second quarter of 2024, contributed approximately $330,000 in sales during the 2025 quarter.
Current report
Sales at Burger Time restaurants ranged from a low of approximately $133,000 to a high of $344,000 per location, with an average unit sales volume of approximately $240,000. Seasonal factors also influenced results: Cape Cod-based PIE remains a significant contributor in the second and third quarters. In the second quarter, PIE sales totaled $1,042,000, a 4% increase year-over-year.
Current report
Costs and Expenses-
Current report
Food and Paper Costs
Current report
Food and paper costs decreased to 33.1% of sales (or $1,249,220) compared to 38.1% ($1,565,070) for the prior year. This improvement reflects the benefits of selective menu price increases, menu adjustments at BTND (including the introduction of hand-cut fries), and cost-cutting measures at all locations, which helped offset inflationary pressures.
Current report
Labor and benefits costs were 36.4% of sales ($1,374,603) in 2025, down from 37.7% ($1,551,762) in 2024. The improvement was driven by enhanced labor cost controls and the closure of Village Bier Garten, which historically had higher labor costs.
Current report
Occupancy Costs
Current report
Occupancy costs declined to 8.0% of sales ($302,021) from 8.4% ($344,356) in 2024. The reduction was due to the closure of certain underperforming units and leveraging sales volume against fixed occupancy expenses.
Current report
Other Operating Expenses
Current report
Other operating expenses increased to 6.7% of sales ($253,185), compared to 5.2% ($211,838) in the prior year, reflecting higher maintenance, utilities, and fees associated with increased use of third-party delivery.
Current report
Depreciation and Amortization
Current report
Depreciation and amortization expense decreased to 3.8% of sales ($144,725), compared to 4.2% ($171,351) in 2024, due to more assets reaching full depreciation.
Current report
General and administrative costs increased to $531,057 from $454,805, increasing as a percentage of sales to 14.1% from 11.1% in the prior year. The increase is, in part, attributable to consulting costs directed toward company-wide cost control initiatives.
Current report
charged to general and administrative expenses,
Current report
Operating Income (Loss)
Current report
The loss from operations improved to a loss of $75,121, compared to a $188,543 loss in the same period of 2024. This improvement reflects cost savings initiatives and better margins despite lower sales.
Current report
Other Income and Expenses
Current report
Net Income (Loss)
Current report
Net income for the thirteen weeks ending June 29, 2025, was $55,031 (1.5% of sales) compared to a net loss of $69,952 (1.7% of sales) in 2024. The improved results were the result of expense reductions, disciplined cost management, and improvements in operating performance, as well as investment gains and dividends.
Current report
Results of Operations – Twenty-Six Weeks Ended June 29, 2025 Compared to Twenty-Six Weeks Ended June 30, 2024
Current report
Overview of Results
Current report
For the twenty-six weeks ending June 29, 2025, net sales were $7.01 million, a decrease of $290,093 or 4.0% compared to $7.30 million for the same period in 2024. Total costs and expenses decreased to $7.33 million from $8.12 million in the prior year. The loss from operations improved significantly to $367,317, compared to a loss of $819,372 in 2024. The following table sets forth our Condensed Statements of Operations and percentages of total sales for the twenty-six week fiscal periods. The percentages below may not reconcile because of rounding.
Current report
Net Revenues
Current report
Net sales for the twenty-six weeks ended June 29, 2025, were $7,010,763, reflecting a decline from $7,300,786 in the same period of 2024. The decrease was principally the result of a decline in sales of approximately $900,000, resulting from the closure of two locations, offset by the inclusion of Schnitzel Haus for the entire 26-week period in 2025. Burger Time unit sales for the 26 weeks ranged in gross sales from approximately a low of $250,000 to a high of $628,000. The average sales for each Burger Time location open during the 26-week period in both years was approximately $448,000, a decline from $465,000 in 2024.
Current report
Costs and Expenses-
Current report
Food and Paper Costs
Current report
Food and paper costs decreased to 34.9% of sales (or $2,449,549) compared to 39.0% ($2,844,028) for the prior year. This decrease reflects the benefits of menu pricing strategies, improved purchasing, and cost control efforts.
Current report
Labor Costs
Current report
Labor and benefits costs were 37.0% of sales ($2,592,500) in 2025, down from 40.2% ($2,938,448) in 2024. The improvement was due to better labor cost management, operational efficiencies, and the closure of higher-cost locations.
Current report
Occupancy Costs
Current report
Occupancy costs declined to 8.7% of sales ($611,715) from 9.3% ($680,631) in 2024. This reduction reflects the benefit associated with closing the Village Bier Garten, which had a high occupancy cost.
Current report
Other Operating Expenses
Current report
Other operating expenses decreased to 6.3% of sales ($441,105), compared to 5.7% ($415,738) in the prior year. The increase resulted from fees associated with greater utilization of third-party delivery services and higher utility costs at most restaurants.
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Removed paragraphs (28)
Previous report
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Table of Contents
Previous report
Sales:
Previous report
Net sales for the first fiscal quarter of 2025 increased $40,926 to $3,231,073 from $3,190,147 in fiscal 2024. The increase resulted from sales increases at most of our locations, which were offset by the decline of approximately $507,000 resulting from the closing of two locations. Schnitzel Haus, which was acquired in the second quarter of 2024, had sales of approximately $500,000 in the first quarter of 2025, contributing to the overall sales increase.
Previous report
Restaurant unit sales for Burger Time for the 13 weeks ranged from a low of approximately $121,000 to a high of approximately $295,000. The average sales for each Burger Time unit were approximately $217,000 in 2025, approximately $8,000 above the same period in 2024.
Previous report
Our various restaurants each experience unique seasonal sales patterns. The first quarter is seasonally slower for BTND and PIE. PIE revenues are significantly higher in the second and third quarters of the year, resulting from tourist traffic in the Cape Cod area. In 2024, approximately 40% of sales occurred during the seasonally strong third quarter. PIE had sales of $451,000 in the first quarter of 2025, a decrease of 2% from the same quarter a year ago.
Previous report
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Table of Contents
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Costs of Sales - food and paper:
Previous report
The cost of sales—food and paper—for the fiscal 2025 period decreased as a percentage of restaurant sales to 37.1% from 40.1% in the first quarter of fiscal 2024. This decrease was the net result of improved margins realized through selective menu price increases, a menu change at BTND to introduce hand-cut fries with a lower food cost component, and cost-cutting steps at all locations, moderating inflationary pressures, including a decline in the cost of several key inputs from a year ago.
Previous report
Restaurant Operating Costs:
Previous report
Restaurant operating costs (which refer to all the costs associated with the operation of our restaurants but do not include general and administrative expenses and depreciation and amortization) as a percentage of restaurant sales decreased to 90.2% of sales in the fiscal quarter of 2025 from 100.5% in the similar period of fiscal 2024. The decrease resulted from selective price increases, the introduction of hand-cut fries lowering food costs at BTND, and cost-cutting measures at all locations. These actions, combined with moderate inflation, resulted in a decline in key input costs compared to last year, stabilizing commodity costs, as well as the matters discussed in the “Cost of Sales - food and paper,” “Labor Costs,” and “Occupancy and Other Operating Costs” sections below.
Previous report
For the first quarter of fiscal 2025, labor and benefits costs decreased as a percentage of restaurant sales to 37.7% from 43.5% in fiscal 2024. The decrease in the percentage cost resulted from improved labor cost controls at all locations and the impact of the closing of the Village Bier Garten, which had higher labor costs than other locations. Payroll costs are semi-variable, meaning they do not change proportionally to changes in revenue.
Previous report
Occupancy and Other Operating Expenses
Previous report
For the first fiscal quarter of 2025, occupancy and other expenses decreased to 9.6% of sales from 10.5% in 2024, reflecting the closing of VBG and the impact of cost reductions at all locations and a sales increase on fixed costs.
Previous report
Depreciation and Amortization Expense:
Previous report
For the first fiscal quarter of 2025, depreciation and amortization expenses were $156,395 (4.8% of sales), a slight decrease from the prior year of $160,542 (5.0% of sales). The result is partially caused by a greater portion of BTND assets becoming fully depreciated.
Previous report
General and administrative costs in the first fiscal quarter of 2025 were $451,034, a decrease of $3,581 from the previous year’s first quarter of $454,615. General and administrative costs were 14.0% of sales, a decrease from 14.3% in the previous year. The decrease is the result of a concerted cost reduction effort at all locations.
Previous report
Loss from Operations
Previous report
The loss from operations for the first quarter of fiscal 2025 was $292,196 compared to a loss of $630,829 in the prior fiscal year, reflecting cost-cutting in virtually all of the Company’s businesses and the items discussed in the “Net Revenues” and “Restaurant Operating Costs” sections above.
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Table of Contents
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We define restaurant-level EBITDA as operating income before pre-opening costs, if any, general and administrative costs, depreciation and amortization, and impairment charges. General and administrative expenses are excluded as they are generally not specifically identifiable as restaurant-specific costs. Depreciation, amortization, and impairment charges are excluded because they are not ongoing controllable cash expenses and are not related to the health of ongoing operations.
Previous report
Recently, our Burger Time business sales have shown a slight upward trend. On March 30, 2024, the restaurant EBITDA increased significantly from the 2024 performance. We had $3.8 million in cash and marketable securities and net working capital of $3.5 million, a decrease of approximately $66,000 from December 29, 2024.
Previous report
Our primary requirements for liquidity are to fund our working capital needs, capital expenditures, and general corporate needs, as well as to invest in or acquire businesses. Our operations do not require significant working capital, and, like many restaurant companies, we generally operate with negative working capital. We anticipate that working capital deficits may be incurred and possibly increase. Our primary liquidity and cash flow sources are operating cash flows and cash on hand. We use this to service debt, maintain our stores operating efficiently, and increase our working capital. Our working capital position benefits from the fact that we collect cash from sales from our customers at the point of purchase or within a few days from our credit card processor; generally, payments to our vendors are not due for thirty days.
Previous report
Operating cash flow for the thirteen weeks ending March 30, 2025, was a negative $306,739. Seasonal patterns in our business impacted cash flow in the first quarter.
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Reworded paragraphs (7)
Previous wording
The average customer transaction at our Burger Time restaurants was unchanged in the first quarter of 2025 and is currently approximately $15.00. We have implemented new initiatives for Burger Time in third-party delivery, which generally results in a higher check average, and we expect to contribute to future sales growth. Many factors influence our sales trends. Our business environment is challenging, as competition is intense.
Current wording
The average customer transaction at our Burger Time restaurants was unchanged in the first half of 2025 at approximately $15.00. We have implemented new initiatives for Burger Time in third-party delivery, which generally results in a higher check average, and we expect to contribute to future sales growth. Many factors influence our sales trends. Our business environment is challenging, as competition is intense.
Previous wording
During the first quarter this year, we closed our Village Bier Garden restaurant in Cocoa, Florida, and our Ham Lake, Minnesota location. In the first quarter of 2024, the two closed locations contributed $507,458 in revenue and recorded an operating loss of approximately $94,000. We entered into an assignment of the Village Bier Garten lease to an unrelated party and are currently assessing alternatives for the Ham Lake location, including the sale of the property, which we believe would result in a gain on the sale of assets.
Current wording
At the beginning of 2025, we closed our Village Bier Garden restaurant in Cocoa, Florida, and in February 2025, we ceased operations at our Ham Lake, Minnesota location. For the 26-week period in 2024, the two closed locations contributed approximately $935,000 in revenue and recorded an operating loss of approximately $213,000. We entered into an assignment of the Village Bier Garten lease to an unrelated party and are currently assessing alternatives for the Ham Lake location, including the sale of the property, which we believe would result in a gain on the sale of assets.
Previous wording
The following table sets forth our Condensed Statements of Income and percentages of total sales for the thirteen-week fiscal periods. The percentages below may not reconcile because of rounding.
Current wording
The following table sets forth our Condensed Statements of Operations and percentages of total sales for the thirteen-week fiscal periods. The percentages below may not reconcile because of rounding.
Previous wording
To supplement the condensed consolidated financial statements, which are prepared and presented in accordance with GAAP. The Company uses restaurant-level EBITDA, which is not a measure defined by GAAP. This non-GAAP operating measure is useful to both management and, we believe, investors because it represents one means of gauging the overall profitability of our recurring and controllable core restaurant operations. This measure is not indicative of our overall results, nor does restaurant-level profit accrue directly to the benefit of stockholders, primarily due to the exclusion of corporate-level expenses. Restaurant-level EBITDA should not be considered a substitute or superior to operating income calculated under GAAP. The reconciliations to operating income set forth below should be carefully evaluated.
Current wording
To supplement the consolidated financial statements, which are prepared and presented in accordance with GAAP, we use restaurant-level EBITDA (earnings before interest, taxes, depreciation, and amortization), which is not a measure defined by GAAP. This non-GAAP operating measure is useful to both management and investors because it represents one means of gauging the overall profitability of our recurring and controllable core restaurant operations. However, this measure is not indicative of our overall results, nor does the restaurant-level profit accrue directly to the benefit of stockholders, primarily due to the exclusion of corporate-level expenses. Depreciation and amortization are excluded because they are not ongoing. Restaurant-level EBITDA for the thirteen weeks ending June 29, 2025, was $600,661 (15.0% of revenues), compared to $437,613 (10.6% of revenues) in 2024. This non-GAAP metric reflects a significant improvement in controllable restaurant-level profitability, driven by better labor and cost controls, selective menu price increases, and efficiency improvements across operating units.
Previous wording
Unforeseen public health matters may again impact the United States at any time, and recently announced tariffs may impact the economy in the future. It is difficult to predict the United States economy in general, the impact on the quick service drive-through segment of the food service industry, and our operating results and financial condition.
Current wording
Unforeseen public health matters may impact the United States at any time, and increased tariffs may impact the economy in the future. It is difficult to predict the United States economy in general, the impact on the quick service drive-through segment of the food service industry, and our operating results and financial condition.
Previous wording
We have continued to make improvements in our existing businesses and to seek acquisitions in the food service and related industries.
Current wording
We have continued to make improvements in our existing businesses and to seek acquisitions. During the 13 weeks ending June 29, 2025, we advanced $572,357 to NGI Corporation and directly purchased $292,372 of inventory related to the NGI Corporation’s Disney water bottle program.
Previous wording
As of March 30, 2025, we had $3.7 million in contractual obligations, including $2.2 million relating to amounts due under mortgages on the real property where our stores are situated, including $1.5 million in operating lease obligations related to our recent acquisitions. Our monthly required payments on lease and mortgage obligations are approximately $36,000.
Current wording
As of June 29, 2025, we had $3.6 million in contractual obligations, including $2.2 million relating to amounts due under mortgages on the real property where our stores are situated, including $1.4 million in operating lease obligations related to our recent acquisitions. Our monthly required payments on lease and mortgage obligations are approximately $36,000.