Press Release: Operating Performance Improves; Market Volatility Increased Investment Portfolio

Dow Jones08-19 00:08

PARK CITY, Utah, Aug. 18, 2026 (GLOBE NEWSWIRE) -- BT Brands, Inc. (Nasdaq: BTBD, BTBDW) ("BT Brands" or the "Company") today reported financial results for the twenty-six and thirteen weeks ended June 28, 2026.

BT Brands delivered improved operating performance during the second quarter of fiscal 2026, notwithstanding softness in restaurant sales, and market volatility impacted its investment portfolio in a positive manner.

Second Quarter Fiscal 2026 Highlights

   -- Restaurant operating performance continued to advance, driven by lower 
      costs, leaner general and administrative expenses, and tighter operating 
      discipline across all locations. 
 
   -- The restaurants produced income from operations of $117,000 compared to a 
      loss of $75,000 in the prior year period. 
 
   -- General and administrative expenses decreased by approximately 37% 
      to $334,000 from $531,000 in the prior year period, while food and paper 
      costs decreased to approximately 32% of sales compared to 33% in the 
      prior year period. 
 
   -- Restaurant-level EBITDA remained positive at $593,000 despite lower sales 
      volumes. 
 
   -- Net sales were $3.6 million compared to $3.8 million in the prior year 
      period, reflecting the closure of an underperforming location during 
      2025. 
 
   -- The Company ended the quarter with approximately $4.4 million in cash and 
      marketable securities and positive working capital of approximately $4.5 
      million. 

Management Commentary

Gary Copperud, Chief Executive Officer, commented: "Our second quarter results demonstrate continued progress in improving the underlying profitability of our restaurant operations. We achieved meaningful reductions in both operating and administrative costs while maintaining positive restaurant-level EBITDA and improved operating trends. We remain focused on further improving restaurant-level profitability, strengthening cash flow and maintaining balance sheet flexibility, while continuing to evaluate opportunities to enhance long-term stockholder value, including acquisitions, dispositions, investments, strategic partnerships, capital allocation alternatives and other transactions involving both our existing restaurant operations and businesses outside the restaurant industry."

Outlook

The Company is not providing formal financial guidance at this time. Management remains focused on improving restaurant profitability and cash flow, maintaining balance sheet strength, and continuing to evaluate strategic opportunities to enhance long-term shareholder value. The Company intends to continue exploring business combinations or other strategic transactions that may enhance shareholder value.

About BT Brands, Inc.

BT Brands, Inc. (Nasdaq: BTBD and BTBDW) owns and operates a fast-food restaurant chain called Burger Time in North Dakota, South Dakota, and Minnesota. In addition, the Company owns and operates Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts, Keegan's Seafood Grille near Clearwater, Florida, and Schnitzel Haus in Hobe Sound, Florida. The Company also owns a 40.7% interest in Bagger Dave's Burger Tavern, Inc. (OTCMarkets: BDVB), which owns six and operates five casual dining restaurants in Michigan, Indiana, and Ohio.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future, " "likely," "may," "should," "will," and similar references to future periods. Forward-looking statements in this release include statements concerning the Company's efforts to improve restaurant profitability and cash flow, maintain balance sheet strength, allocate capital and evaluate potential business combinations and other strategic opportunities. Such statements are subject to risks and uncertainties that could cause actual results to differ materially, including changes in consumer demand, food and labor costs, competition, general economic conditions, market volatility and the risks described in the Company's filings with the Securities and Exchange Commission. The Company is not providing formal financial guidance for fiscal 2026.Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date it is made. We undertake no obligation to publicly update any forward-looking statement, except as required by law.

FINANCIAL RESULTS FOLLOW:

 
                   BT BRANDS, INC. AND SUBSIDIARIES 
                 CONSOLIDATED STATEMENTS OF OPERATIONS 
 
                    26 Weeks     26 Weeks     13 Weeks     13 Weeks 
                     Ended        Ended        Ended        Ended 
                    June 28,     June 29,     June 28,     June 29, 
                      2026         2025         2026         2025 
                   ----------   ----------   ----------   ---------- 
SALES              $6,394,499   $7,010,763   $3,550,865   $3,779,690 
 
COSTS AND 
EXPENSES 
  Restaurant 
  operating 
  expenses 
     Food and 
      paper 
      costs         2,095,508    2,449,549    1,132,214    1,249,220 
     Labor costs    2,369,626    2,592,500    1,256,264    1,374,603 
     Occupancy 
      costs           647,455      611,715      327,331      302,021 
     Other 
      operating 
      expenses        456,739      441,105      232,601      253,185 
  Depreciation 
   and 
   amortization 
   expenses           303,151      301,120      151,575      144,725 
  General and 
   administrative 
   expenses           669,165      982,091      333,675      531,057 
                    ---------    ---------    ---------    --------- 
     Total costs 
      and 
      expenses      6,541,644    7,378,080    3,433,660    3,854,811 
                    ---------    ---------    ---------    --------- 
     Income 
      (loss) from 
      operations     (147,145)    (367,317)     117,205      (75,121) 
 
UNREALIZED GAIN 
 ON MARKETABLE 
 SECURITIES           399,190       38,104      829,976       82,128 
REALIZED 
 INVESTMENT GAIN 
 (LOSS)              (143,899)     174,064      (64,649)      79,026 
INTEREST AND 
 DIVIDEND INCOME       37,348       80,967       18,233       40,367 
INTEREST EXPENSE      (37,468)     (41,104)     (19,032)     (19,550) 
OTHER INCOME 
 (EXPENSE)           (257,856)      45,173     (270,994)      18,586 
EQUITY IN NET 
 INCOME (LOSS) OF 
 AFFILIATE            (24,748)    (204,705)     (34,306)     (70,405) 
                    ---------    ---------    ---------    --------- 
  INCOME (LOSS) 
   BEFORE TAXES      (174,578)    (274,818)     576,433       55,031 
INCOME TAX 
(EXPENSE) 
BENEFIT                     -            -            -            - 
                    ---------    ---------    ---------    --------- 
  NET INCOME 
   (LOSS)          $ (174,578)  $ (274,818)     576,433       55,031 
                    ---------    ---------    ---------    --------- 
     NET INCOME 
      (LOSS) PER 
      COMMON 
      SHARE - 
      Basic        $    (0.03)  $    (0.04)        0.09         0.01 
                    ---------    ---------    ---------    --------- 
     NET INCOME 
      (LOSS) PER 
      COMMON 
      SHARE - 
      Diluted      $    (0.03)  $    (0.04)        0.09         0.01 
                    ---------    ---------    ---------    --------- 
 
WEIGHTED AVERAGE 
SHARES USED IN 
COMPUTING 
  PER COMMON 
   SHARE AMOUNTS 
   - Basic          6,164,231    6,154,724    6,173,734    6,154,724 
                    =========    =========    =========    ========= 
  PER COMMON 
   SHARE AMOUNTS 
   - Diluted        6,164,231    6,154,724    6,173,734    6,154,724 
                    =========    =========    =========    ========= 
 
 
 
                     BT BRANDS, INC. AND SUBSIDIARIES 
                       CONSOLIDATED BALANCE SHEETS 
 
                                    (Unaudited) 
                                   June 28, 2026     December 28, 2025 
                                  ---------------   ------------------- 
ASSETS 
CURRENT ASSETS 
  Cash and cash equivalents        $    1,592,910    $          846,167 
  Marketable securities                 2,833,260             3,596,133 
  Receivables                              17,713                54,506 
  Inventory                               230,410               230,443 
  Inventory - bottled water held 
   for resale                             400,000               574,000 
  Prepaid expenses and other 
   current assets                          84,424                22,152 
  Deferred transaction costs              168,630               150,450 
  Assets held for sale                    424,123               424,123 
                                      -----------       --------------- 
     Total current assets               5,751,470             5,897,974 
                                      -----------       --------------- 
 
PROPERTY, EQUIPMENT AND 
 LEASEHOLD IMPROVEMENTS, NET            2,274,675             2,456,718 
OPERATING LEASES RIGHT-OF-USE 
 ASSETS                                 1,168,036             1,267,699 
NOTE RECEIVABLE FROM 
 UNCONSOLIDATED AFFILIATE, NET            152,340                     - 
GOODWILL                                  796,220               796,220 
INTANGIBLE ASSETS, NET                    277,137               305,270 
OTHER ASSETS, NET                          64,587                21,171 
                                      -----------       --------------- 
 
     Total assets                  $   10,484,465    $       10,745,052 
                                      ===========       =============== 
 
LIABILITIES AND SHAREHOLDERS' 
EQUITY 
CURRENT LIABILITIES 
Accounts payable                   $      274,278    $          245,226 
Current maturities of long-term 
 debt                                     199,976               191,531 
Current operating lease 
 obligations                              404,548               358,939 
Accrued expenses                          406,360               421,867 
                                      -----------       --------------- 
 
      Total current liabilities         1,285,162             1,217,563 
 
LONG-TERM DEBT, LESS CURRENT 
 PORTION                                1,798,038             1,899,592 
NONCURRENT OPERATING LEASE 
 OBLIGATIONS                            1,052,996             1,209,509 
                                      -----------       --------------- 
     Total liabilities                  4,136,196             4,326,664 
 
COMMITMENTS AND CONTINGENCIES 
 
SHAREHOLDERS' EQUITY 
  Preferred stock, $.001 par 
  value, 2,000,000 shares 
  authorized, no shares 
  outstanding at June 28, 2026 
  and December 28, 2025                         -                     - 
  Common stock, $.002 par value, 
   50,000,000 authorized, 
   6,491,118 and 6,461,118 at 
   June 28, 2026 and December 
   28, 2025, with 6,184,724 and 
   6,154,724 outstanding at June 
   28, 2026 and December 28, 
   2025                                    12,369                12,309 
  Less cost of 306,394 common 
   shares held in Treasury at 
   June 28, 2026 and December 
   28, 2025                              (499,718)             (499,718) 
  Additional paid-in capital           12,059,134            11,954,735 
  Accumulated deficit                  (5,223,516)           (5,048,938) 
                                      -----------       --------------- 
 
     Total shareholders' equity         6,348,269             6,418,388 
                                      -----------       --------------- 
 
     Total liabilities and 
      shareholders' equity         $   10,484,465    $       10,745,052 
                                      ===========       =============== 
 

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