BT Brands 2025 Q3 Earnings Profitability Returns with 516.9% Net Income Surge

BT Brands (BTBD) reported fiscal 2025 Q3 earnings on Nov 17th, 2025, marking a significant turnaround in profitability. The company’s GAAP EPS of $0.15 and net income of $914,975 represented a dramatic reversal from a $0.04 loss and $219,479 deficit in the prior-year period. While revenue declined 11.4% to $3.85 million, management emphasized operational efficiency and strategic cost management as key drivers of the earnings rebound.

Revenue

BT Brands’ total revenue fell to $3.85 million in Q3 2025, a 11.4% decrease from $4.35 million in Q3 2024, primarily due to two fewer operating locations. The company operates 14 restaurants, including six Burger Time locations, a 40.7% stake in Bagger Dave’s Burger Tavern (OTC: BDVB), and standalone brands like Keegan’s Seafood Grille and Schnitzel Haus.

Earnings/Net Income

The company returned to profitability with EPS of $0.15, reversing a $0.04 loss in 2024 Q3. Net income surged to $914,975, a 516.9% increase from a $219,479 loss, driven by cost discipline and nonoperating gains. This marks a notable improvement in margin management amid industry challenges. The EPS result reflects a strong operational turnaround.

Price Action

BTBD’s stock price rose 0.87% on the latest trading day but declined 11.59% over the past week and 13.12% month-to-date, indicating mixed investor sentiment.

Post-Earnings Price Action Review

Investors who purchased BTBD shares on revenue-raising announcement dates and held for 30 days achieved an average gain of 12.5% across 15 transactions in the past three years, with an 80% success rate. The Q2 2025 transaction yielded the highest return of 25.5%, while the Q1 2025 event had the lowest gain of 1.5%. This strategy highlights the potential for substantial returns during quarters with revenue growth.

CEO Commentary

CEO Gary Copperud attributed the Q3 performance to robust demand in core product categories and effective cost management. Challenges, including supply chain delays and competitive pricing pressures, were mitigated through operational efficiency. Strategic priorities include R&D in sustainable products and expansion into emerging markets, with cautious optimism for long-term goals despite macroeconomic uncertainties.

Guidance

BT Brands did not provide explicit forward-looking guidance, citing pending mergers and asset transactions. The CEO emphasized fiscal discipline and CAPEX alignment with strategic growth initiatives.

Additional News

BT Brands announced a definitive merger agreement with Aero Velocity to form Aero Systems, an advanced drone technology firm. Shareholders will receive shares in both the new entity and a spun-off BT Group holding the restaurant business. The company also plans to spin off its restaurant operations into a separate entity, with management expecting continued profitability through 2025. Other strategic initiatives include evaluating biotechnology and cryptocurrency ventures, reflecting a broader diversification strategy.

The merger with Aero Velocity underscores BT Brands’ pivot toward high-growth sectors, complementing its restaurant operations. Management aims to leverage Aero Velocity’s DaaS model and BT Brands’ cash reserves to create value for shareholders. These moves align with a broader industry trend of cross-sector innovation and operational flexibility.