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

Revenue

The total revenue of BT Brands decreased by 11.4% to $3.85 million in 2025 Q3, down from $4.35 million in 2024 Q3. This decline was primarily attributed to the closure of two restaurant locations during the period. Despite this, the company maintained a strong cash position, with cash and short-term investments rising to $4.7 million by quarter-end.

Earnings/Net Income

BT Brands returned to profitability with EPS of $0.15 in 2025 Q3, reversing from a loss of $0.04 per share in 2024 Q3 (475.0% positive change). The company achieved a remarkable turnaround with net income of $914,975, representing a 516.9% positive swing from the net loss of $-219,479 in 2024 Q3. This performance was driven by operational efficiencies, non-operating contributions from asset sales, and disciplined expense management. The EPS turnaround from a loss to a profit reflects effective cost management and operational efficiencies.

Price Action

The stock price of BT Brands has edged up 0.87% during the latest trading day, has tumbled 11.59% during the most recent full trading week, and has tumbled 13.12% month-to-date.

Post-Earnings Price Action Review

The strategy of buying BT Brands (BTBD) shares on the date of its revenue raise announcement and holding for 30 days yielded positive returns, with an average gain of 12.5% per transaction, over 3 years. The highest gain was 24.4% in 2024, driven by a 7.5% revenue increase, while the lowest was 1.7% in 2025, following a 2.1% revenue rise. Despite some volatility, this strategy capitalized on positive earnings surprises, highlighting BTBD's potential for short-term appreciation following its financial updates.

Additional News

BT Brands announced a definitive merger agreement with Aero Velocity to form Aero Systems, an advanced drone technology company, while spinning off its restaurant operations into a new entity, BT Group. This strategic move aims to diversify the company’s portfolio and leverage high-growth opportunities in the drone services sector. Additionally, the company is exploring expansion into biotechnology and cryptocurrency, signaling a shift beyond its traditional food service focus. A recent property sale post-Q2 further strengthened its balance sheet, contributing to improved liquidity and financial flexibility. These developments underscore BT Brands’ commitment to strategic innovation and value creation for shareholders.

CEO Commentary

CEO Gary Copperud highlighted the company’s Q3 results, emphasizing operational efficiencies and non-operating gains as key drivers of profitability. He noted, “Our focus on aligning expenses with revenue has yielded a 74% increase in restaurant EBITDA compared to the prior year.” Copperud expressed optimism about the merger with Aero Velocity, stating it would provide shareholders with exposure to both a high-growth drone platform and an improving core restaurant business. He also acknowledged ongoing industry challenges, including labor costs and inflationary pressures, but reiterated confidence in the company’s strategic direction.

Guidance

Management expects to remain profitable for the remainder of fiscal 2025 but has not provided detailed financial guidance due to the pending merger and asset transactions. The company emphasized its commitment to disciplined expense management and operational improvements to sustain profitability amid evolving market conditions.