WEST FARGO, N.D. - BT Brands, Inc. (NASDAQ:BTBD and BTBDW), a multi-brand restaurant operator, disclosed its financial outcomes for the second quarter ending June 30, 2024, with a slight revenue increase but a continued net loss. The company, which includes a portfolio of restaurants such as Burger Time and Pie In The Sky, saw its total revenues rise by 2.7% to $4.1 million compared to the same period last year.
Despite the revenue growth, BT Brands experienced a net loss of $69,952, or $0.010 per share, which is an improvement from a net loss of $233,734 in the previous year. The company's restaurant-level adjusted EBITDA, a non-GAAP measure, declined to $437,000 from $632,000 in the second quarter of 2023.
The financial report highlighted the performance of individual brands, with Pie in the Sky showing a robust 17.5% increase in revenue over the same quarter in the previous year. Burger Time units also reported a more than 10% increase in same-store sales and a 15% rise in total revenue year over year.
CEO Gary Copperud commented on the results, noting improvements at the restaurants were offset by rising labor costs, including the hiring of senior staff at Pie In The Sky. Copperud also mentioned seasonal sales patterns and ongoing pressure on cost of sales inputs, along with challenges in staffing, despite a moderate shortage of candidates.
The company ended the quarter with $5.2 million in total cash and short-term investments, a decrease from $6.9 million a year ago, attributed to recent acquisitions and capital improvements.
BT Brands also announced the acquisition of Schnitzel Haus, an upscale German restaurant in Hobe Sound, Florida, which occurred on May 13, 2024. The company expects that the acquisition will provide considerable upside potential due to its robust cash flow and opportunities for business growth.
InvestingPro Insights
As BT Brands, Inc. (NASDAQ:BTBD and BTBDW) navigates through its financial year, certain metrics from InvestingPro provide a deeper understanding of the company's current financial health and market position. BT Brands holds more cash than debt on its balance sheet, which is a positive sign for investors looking for companies with a solid financial foundation. This can be particularly reassuring as the company invests in acquisitions and capital improvements. Additionally, the company's liquid assets exceed its short-term obligations, which suggests financial flexibility in the near term.
However, it's worth noting that BT Brands has not been profitable over the last twelve months, which aligns with the net loss reported in their recent financial outcomes. The company's stock is also trading near its 52-week low, reflecting a significant price drop over the past six months. These factors, combined with the company's weak gross profit margins of 11.81%, paint a picture of the financial challenges BT Brands is currently facing.
InvestingPro data shows a market capitalization of $8.12 million, and a negative P/E ratio of -6.44 for the last twelve months as of Q1 2024, indicating that the company is not currently generating profits relative to its share price. The stock's price volatility is high, which may attract certain investors looking for short-term opportunities but could also imply a higher risk profile.
For those interested in exploring further, InvestingPro offers additional insights and tips on BT Brands, Inc., which could be valuable for making informed investment decisions. There are currently 7 more InvestingPro Tips available for BT Brands, Inc., which can be found at: https://www.investing.com/pro/BTBD.
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