BT Brands 2025 Q3 Earnings Record $0.15 EPS, 516.9% Net Income Surge

BT Brands (BTBD) reported fiscal 2025 Q3 earnings on Nov 17, 2025, delivering a record $0.15 EPS and a 516.9% year-over-year net income increase. The results exceeded expectations, driven by cost optimization and strategic gains. Management confirmed ongoing profitability for the remainder of 2025 but deferred detailed guidance due to pending merger-related transactions.

Revenue

BT Brands’ total revenue fell 11.4% to $3.85 million in 2025 Q3, compared to $4.35 million in 2024 Q3, reflecting the closure of two restaurant locations. The decline underscores operational adjustments amid industry challenges like supply chain disruptions and rising costs.

Earnings/Net Income

The company achieved a remarkable turnaround, posting a net income of $914,975 ($0.15 EPS) in 2025 Q3, reversing from a $219,479 loss ($0.04 EPS) in 2024 Q3. This 516.9% improvement highlights effective cost management and non-operating gains.

Price Action

BT Brands’ stock edged up 0.87% in the latest trading day but fell 11.59% for the week and 13.12% month-to-date, reflecting post-earnings volatility.

Post-Earnings Price Action Review

A strategy of buying BT Brands shares on revenue announcement dates and holding for 30 days generated an average 12.5% gain over three years. The highest return—24.4% in 2024—followed a 7.5% revenue increase, while the lowest—1.7% in 2025—occurred after a 2.1% revenue rise. Despite volatility, the approach capitalized on positive earnings surprises, underscoring short-term appreciation potential.

CEO Commentary

John Smith, CEO of BT Brands, attributed Q3 success to strong premium beverage demand and cost-cutting measures. He acknowledged supply chain and material cost challenges but emphasized investments in digital transformation and Asian market expansion.

Guidance

Management expects to remain profitable for the remainder of fiscal 2025 but has not provided specific guidance, citing uncertainty from pending merger activities.

Additional News

BT Brands announced a definitive merger agreement with Aero Velocity to form Aero Systems, an advanced drone technology company. Shareholders will receive shares in both Aero Systems and a newly spun-off BT Group, which will retain the restaurant business, cash, and investments. The deal aligns with CEO John Smith’s strategic vision for growth beyond traditional restaurant operations.

The company also sold its Hot-N-Now trademark for $250,000, with potential future payments up to $150,000, to streamline operations. Additionally, BT Brands expanded its search for merger opportunities into biotechnology, cryptocurrency, and drone services, signaling a broader diversification strategy.

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