Company: BTBDW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001477932-25-003689
Chunk: 4

Company: BT Brands, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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 10.5% in 2024, reflecting the closing of VBG and the impact of cost reductions at all locations and a sales increase on fixed costs.

Depreciation and Amortization Expense:

For the first fiscal quarter of 2025, depreciation and amortization expenses were $156,395 (4.8% of sales), a slight decrease from the prior year of $160,542 (5.0% of sales). The result is partially caused by a greater portion of BTND assets becoming fully depreciated.

General and Administrative Costs

General and administrative costs in the first fiscal quarter of 2025 were $451,034, a decrease of $3,581 from the previous year’s first quarter of $454,615. General and administrative costs were 14.0% of sales, a decrease from 14.3% in the previous year. The decrease is the result of a concerted cost reduction effort at all locations.

Loss from Operations

The loss from operations for the first quarter of fiscal 2025 was $292,196 compared to a loss of $630,829 in the prior fiscal year, reflecting cost-cutting in virtually all of the Company’s businesses and the items discussed in the “Net Revenues” and “Restaurant Operating Costs” sections above. 

Restaurant-level EBITDA 

To supplement the condensed consolidated financial statements, which are prepared and presented in accordance with GAAP. The Company uses restaurant-level EBITDA, which is not a measure defined by GAAP. This non-GAAP operating measure is useful to both management and, we believe, investors because it represents one means of gauging the overall profitability of our recurring and controllable core restaurant operations. This measure is not indicative of our overall results, nor does restaurant-level profit accrue directly to the benefit of stockholders, primarily due to the exclusion of corporate-level expenses. Restaurant-level EBITDA should not be considered a substitute or superior to operating income calculated under GAAP. The reconciliations to operating income set forth below should be carefully evaluated.

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We define restaurant-level EBITDA as operating income before pre-opening costs, if any, general and administrative costs, depreciation and amortization, and impairment charges. General and administrative expenses are excluded as they are generally not specifically identifiable as restaurant-specific costs. Depreciation, amortization, and impairment charges are excluded because they are not ongoing controllable cash expenses and are not related to the health of ongoing operations.