BT Brands 2025 Q3 Earnings Record Net Income Surges 516.9%

The company delivered a record net income of $914,975 ($0.15 EPS), reversing a 2024 Q3 loss. While revenue declined 11.4% to $3.85 million, management emphasized operational efficiency and asset sales as key drivers. The board highlighted strategic progress in its pending merger with Aero Velocity but refrained from issuing formal guidance due to transaction complexities.

Revenue

BT Brands reported total revenue of $3.85 million in Q3 2025, a 11.4% decline from $4.35 million in the prior-year period. The reduction primarily stemmed from the closure of two restaurant locations during the quarter. Despite the contraction, the company maintained disciplined cost management, contributing to improved profitability.

Earnings/Net Income

BT Brands achieved a record net income of $914,975 ($0.15 EPS) in Q3 2025, a dramatic turnaround from a net loss of $219,479 ($0.04 EPS) in 2024 Q3. This represents a 516.9% positive swing, driven by nonoperating gains from asset sales and reduced operating expenses. The EPS result underscores the company’s ability to navigate industry challenges through strategic cost alignment.

Post-Earnings Price Action Review

Following the earnings release, BT Brands’ stock experienced mixed short-term performance. Shares edged up 0.87% on the latest trading day but declined 11.59% over the prior full week and 13.12% month-to-date. The volatility reflects investor uncertainty around the pending merger and broader market conditions.

CEO Commentary

Gary Copperud, CEO of BT Brands, highlighted operational efficiencies and asset sales as critical to the quarter’s success. “Our focus on aligning expenses with revenue has yielded a 74% increase in restaurant EBITDA compared to last year,” he stated. Copperud emphasized the strategic merger with Aero Velocity as a transformative step, aiming to diversify the company’s offerings while preserving its core restaurant business.

Guidance

Management expects to remain profitable for the remainder of fiscal 2025 but declined to provide detailed financial guidance. The company cited ongoing merger-related uncertainties and evolving market dynamics as reasons for the decision.

Additional News

BT Brands announced a definitive merger agreement with Aero Velocity, an emerging leader in drone services, to form Aero Systems. The transaction will spin off a new entity, BT Group, retaining the company’s restaurant operations and assets. Shareholders will receive shares in both entities. Additionally, the company sold its Hot-N-Now trademark for $250,000 upfront, with potential future payments. These moves underscore BT Brands’ strategic pivot toward high-growth sectors while optimizing its existing portfolio.