Company: BTBDW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001477932-25-006037
Chunk: 37

Company: BT Brands, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 37
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 our restaurant base by utilizing the efficiencies of a central management team.

Notable Recent Events

At the beginning of 2025, we closed our Village Bier Garden restaurant in Cocoa, Florida, and in February 2025, we ceased operations at our Ham Lake, Minnesota location. For the 26-week period in 2024, the two closed locations contributed approximately $935,000  in revenue and recorded an operating loss of approximately $213,000.  We entered into an assignment of the Village Bier Garten lease to an unrelated party and are currently assessing alternatives for the Ham Lake location, including the sale of the property, which we believe would result in a gain on the sale of assets. 

Material Trends and Uncertainties

Industry trends have a direct impact on our business. Current trends include difficulties attracting food service workers and rapid inflation in the cost of input items. Recent trends also include the rapidly changing area of technology and food delivery. The major companies in the restaurant industry have rapidly adopted and developed smartphone and mobile delivery applications, aggressively expanded drive-through operations, and developed loyalty programs and database marketing supported by a robust technology platform. We expect these trends to continue as restaurants aggressively compete for customers. Competitors will continue to discount prices through aggressive promotions.

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Recent performance

The following are key highlights from the Company's performance for the 13-week and 26-week periods ending June 29, 2025:

 ·Net sales for the 13 weeks were $3.78 million, down 8.1% from 2024 due to two store closures; Schnitzel Haus contributed $0.5 million. ·Net income for the 13 weeks improved to $55,031 from a loss of $69,952 in 2024. ·Restaurant-level EBITDA for the quarter improved to 16.9% of revenues from negative 10.6% in 2024. ·Labor costs fell to 37.0% of sales from 40.2% in 2024, reflecting improved staffing efficiency and store closures. ·Total costs and expenses decreased significantly due to disciplined cost control, offsetting a decline in sales. ·For the 26 weeks, net loss improved to $274,818 from $515,652 in 2024, driven by operational efficiencies and the closing of two underperforming locations. ·Strong focus on cost control, improved pricing strategies, and the impact of strategic closures contributed to improved margins.