Operating Performance Improves; Market Volatility Increased Investment Portfolio
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 Ended | 26 Weeks Ended | 13 Weeks Ended | 13 Weeks Ended | ||||||||||||
| June 28, 2026 | June 29, 2025 | June 28, 2026 | June 29, 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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