BT Brands 2025 Q1 Earnings Narrowed Losses with 26% Net Income Improvement

BT Brands (BTBD) reported its fiscal 2025 Q1 earnings on May 14th, 2025. The total revenue of BT Brands increased by 1.3% to $3.23 million in 2025 Q1, up from $3.19 million in 2024 Q1. BT Brands narrowed losses to $0.05 per share in 2025 Q1 from a loss of $0.07 per share in 2024 Q1 (28.6% improvement). Meanwhile, the company successfully narrowed its net loss to $-329849 in 2025 Q1, reducing losses by 26.0% compared to the $-445700 net loss reported in 2024 Q1.

BT Brands' fiscal Q1 2025 results showed mixed performance against expectations. While revenue increased slightly, the company narrowed its net losses significantly compared to the previous year. However, the stock price has experienced notable declines, highlighting market concerns. In terms of guidance, BT Brands anticipates continued revenue growth and further reduction in losses, aligning with their strategic focus on operational efficiency and market expansion. This cautious optimism suggests potential improvements in their financial health by year-end.

Revenue

Earnings/Net Income

BT Brands narrowed losses to $0.05 per share in 2025 Q1 from a loss of $0.07 per share in 2024 Q1 (28.6% improvement). Meanwhile, the company successfully narrowed its net loss to $-329849 in 2025 Q1, reducing losses by 26.0% compared to the $-445700 net loss reported in 2024 Q1. This is a positive earnings outcome as both EPS and net income showed substantial improvements.

Price Action

The stock price of BT Brands has edged down 1.90% during the latest trading day, has tumbled 12.54% during the most recent full trading week, and has tumbled 9.65% month-to-date.

Post-Earnings Price Action Review

The investment strategy of purchasing BT Brands (BTBD) shares after their revenue increase on the financial report release date and holding for 30 days resulted in considerable losses. This approach yielded a return of -78.23% over the past five years, significantly underperforming the benchmark return of 21.26%. The excess return stood at -99.50%, with a compound annual growth rate (CAGR) of -35.44%. The strategy experienced a high maximum drawdown of -79.50%, indicating substantial risk and poor risk-adjusted returns, as evidenced by a Sharpe ratio of -0.30. The volatility was notably high at 117.77%, reflecting significant price fluctuations over the five-year period. These metrics highlight the considerable risks associated with this investment approach, underscoring the need for caution among investors considering similar strategies.

CEO Commentary

Gary Copperud, CEO of BT Brands, highlighted the company's continued revenue growth, with Q1 2025 revenue reaching $3.23 million, up 1.28% year-over-year. He noted the significant reduction in net losses, which decreased by nearly 26% compared to the previous year. Copperud emphasized the effectiveness of their strategic initiatives aimed at enhancing operational efficiency and customer engagement, which are critical in navigating the competitive landscape of the restaurant industry. He expressed a cautiously optimistic outlook, stating that the company is well-positioned to capitalize on emerging market opportunities while remaining focused on improving profitability.

Guidance

BT Brands anticipates revenue to steadily increase, targeting a range of $13 million to $15 million for the fiscal year 2025. The company expects to achieve a further reduction in losses, guiding towards an earnings per share (EPS) improvement to approximately -$0.20 by year-end. Additionally, BT Brands plans to invest in enhancing its service delivery and expanding its market presence, aiming for a more robust operational framework that supports long-term growth.

Additional News

In recent weeks, BT Brands has been actively involved in strategic initiatives beyond its earnings report. The company's Board of Directors has authorized a share repurchase program, allowing BT Brands to buy back up to 10% of its outstanding shares, reflecting confidence in its future prospects. Additionally, the company has continued its efforts to optimize its restaurant portfolio by closing underperforming locations, such as the Village Bier Garten, and pursuing the liquidation of certain properties, which could result in gains. Furthermore, BT Brands is focusing on enhancing its menu offerings, introducing hand-cut fries at Burger Time locations, which is expected to lower food costs and improve profitability. These measures underscore BT Brands' commitment to strengthening its operational framework and achieving long-term growth.