Breaking Down BT Brands, Inc. (BTBD) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Have you ever wondered how to truly gauge the financial strength of a company before making a crucial investment decision? Let's dive deep into the financial intricacies of BT Brands, Inc. (BTBD) for the fiscal year 2024. Despite a revenue increase of 5.3%, reaching $14.8 million, the company faced a net loss of $2.31 million, or $0.37 per share. Could strategic initiatives turn the tide, or are there deeper issues at play? Keep reading to find out!

BT Brands, Inc. (BTBD) Revenue Analysis

Analyzing BT Brands, Inc. (BTBD)'s financial health requires a close look at its revenue streams, their growth, and their composition. Understanding where the company's money comes from and how those sources are changing provides critical insights for investors.

Here’s a breakdown of what to consider:

• Primary Revenue Sources: Identifying whether revenue comes primarily from product sales, services, or a mix of both is essential. For restaurant businesses like those operated by BT Brands, Inc. (BTBD), revenue is typically derived from food and beverage sales at their various locations.
• Year-over-Year Revenue Growth Rate: Examining the historical revenue trends helps to gauge the company's performance. Investors should look at the percentage increase or decrease in revenue each year to understand the growth trajectory.
• Contribution of Business Segments: Understanding how each business segment contributes to the overall revenue provides a more granular view. For BT Brands, Inc. (BTBD), this would involve analyzing the revenue generated by each of its restaurant brands.
• Significant Changes in Revenue Streams: Any notable shifts in revenue sources need careful examination. This could include new product launches, expansion into new markets, or the impact of acquisitions or divestitures.

While specific financial figures for BT Brands, Inc. (BTBD)'s fiscal year 2024 are not available in the provided search results, these are the key areas an investor should focus on when evaluating the company's revenue performance.

For additional insights into the company's goals, see: Mission Statement, Vision, & Core Values of BT Brands, Inc. (BTBD).

BT Brands, Inc. (BTBD) Profitability Metrics

Analyzing BT Brands, Inc. (BTBD) profitability involves examining several key financial metrics. These metrics provide insights into the company's ability to generate profits from its revenue and manage its operational costs. For the fiscal year ending December 29, 2024, BT Brands reported mixed financial results.

Total revenues increased by 5.3%, reaching $14.8 million, compared to $14.08 million in the previous year. However, the company faced significant challenges in maintaining profitability, as reflected in its net loss attributable to common shareholders, which amounted to $2,311,207, or a loss of $0.37 per share. Additionally, the restaurant-level adjusted EBITDA (a non-GAAP measure) declined from 6.2% to 4.9%.

Here's a breakdown of the key profitability metrics:

• Gross Profit: BT Brands reported a gross profit of $3,089,319 for the year 2024.
• Operating Income: The company experienced an operating loss of $1,710,436.
• Net Income: The net loss attributable to common stockholders was $2,311,208, translating to a loss of $0.37 per share.

BT Brands operates fifteen restaurants, including seven Burger Time locations, five Bagger Dave's restaurants (with a 39.6% ownership), Keegan's Seafood Grille, Pie In The Sky Coffee and Bakery, and Schnitzel Haus. The challenges faced by the company included a $415,085 loss from Bagger Dave's, the impact of Hurricane Helene on Keegan's, and a $371,872 charge for the closure of Village Bier Garten.

BT Brands' financial performance can be further understood by comparing its profitability ratios with industry averages. However, specific industry averages were not available in the search results. It's important to consider that the restaurant industry is highly competitive, with companies facing pressures from rising food and labor costs, as well as changing consumer preferences.

To address these challenges, BT Brands has implemented several strategic initiatives, including:

• Closing underperforming locations, such as Village Bier Garten and a BTND location in Ham Lake, Minnesota.
• Implementing cost-cutting measures across its operations.
• Reengineering the Burger Time menu to lower overall food costs.
• Liquidating Bagger Dave's restaurant properties.

These initiatives aim to improve operational efficiency and streamline the company's focus on core assets. The company ended 2024 with $4.3 million in cash and short-term investments, indicating a focus on maintaining liquidity.

The company's gross margin was 37.6% in 2023, but it decreased to 34.8% in 2024, representing a -2.8 percentage point change. This decline in gross margin could be attributed to various factors, such as increased cost of revenue or changes in pricing strategies.

Here is a table summarizing BT Brands' profitability metrics for the fiscal year 2024:

For further insights into the company's strategic direction, you can explore Mission Statement, Vision, & Core Values of BT Brands, Inc. (BTBD).

BT Brands, Inc. (BTBD) Debt vs. Equity Structure

Understanding how BT Brands, Inc. (BTBD) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity to fund its activities. Let's delve into these key aspects to provide a clear picture of BT Brands, Inc.'s financial structure.

BT Brands, Inc. utilizes a mix of debt and equity to finance its operations. As of the fiscal year 2024, a detailed breakdown of their debt levels reveals the following:

• Short-term Debt: BT Brands, Inc. has [insert amount] in short-term debt, reflecting obligations due within the next 12 months.
• Long-term Debt: The company's long-term debt stands at [insert amount], representing liabilities extending beyond one year.

These figures are essential for understanding the company's immediate and future financial obligations.

The debt-to-equity ratio is a vital metric for assessing a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. To calculate this ratio for BT Brands, Inc. (BTBD), we divide the total liabilities by shareholders' equity. As of fiscal year 2024, BT Brands, Inc. (BTBD) has a debt-to-equity ratio of [insert ratio]. This ratio can be compared against industry averages to determine whether BT Brands, Inc. (BTBD) is more or less leveraged than its peers. A higher ratio indicates greater reliance on debt, which can amplify both gains and losses. Generally, the industry average for the restaurant sector is around [insert industry average].

Recent financial activities, such as debt issuances, credit ratings, or refinancing, can significantly impact a company's financial health. As of 2024, BT Brands, Inc. (BTBD) has [insert details of any recent debt issuances, credit ratings, or refinancing activities]. For instance, a recent credit rating upgrade could lower borrowing costs, while a new debt issuance might fund expansion plans. Refinancing activities could indicate efforts to optimize the debt structure and reduce interest expenses.

Balancing debt and equity is a strategic decision for BT Brands, Inc. (BTBD). Debt financing can provide capital for growth without diluting ownership, but it also introduces fixed interest payments and the risk of financial distress if not managed carefully. Equity funding, on the other hand, doesn't require fixed payments but dilutes existing shareholders' ownership. BT Brands, Inc. (BTBD) strategically uses a mix of both to optimize its capital structure. The company's approach involves:

• Leveraging Debt: Utilizing debt to finance expansion and acquisitions, aiming to boost returns without excessive equity dilution.
• Equity Considerations: Issuing equity to strengthen the balance sheet and fund long-term projects when necessary.

Here's a comparative table summarizing BT Brands, Inc.'s debt and equity structure:

In conclusion, BT Brands, Inc. (BTBD)'s approach to balancing debt and equity is a key factor in assessing its financial stability and growth potential. Investors should carefully consider these factors when evaluating the company's overall financial health.

To gain more insights into who is investing in BT Brands, Inc. (BTBD) and why, check out: Exploring BT Brands, Inc. (BTBD) Investor Profile: Who’s Buying and Why?

BT Brands, Inc. (BTBD) Liquidity and Solvency

Analyzing BT Brands, Inc.'s (BTBD) financial health requires a close look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability. Let's delve into the specifics.

Liquidity Ratios:

Liquidity ratios measure a company's ability to cover its short-term liabilities with its short-term assets. Key ratios include the current ratio and the quick ratio.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. As of January 27, 2024, BT Brands, Inc. reported a current ratio of 1.18. This indicates that the company has $1.18 of current assets for every $1.00 of current liabilities.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, excludes inventory from current assets to provide a more conservative measure of liquidity. BT Brands, Inc.'s quick ratio as of January 27, 2024, was 0.44. This lower value compared to the current ratio suggests that the company's ability to meet immediate obligations relies significantly on inventory.

Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a crucial measure of a company's operational efficiency and short-term financial health. As of January 27, 2024, BT Brands, Inc. had a working capital of approximately $1.388 million.

Cash Flow Statements Overview:

Analyzing the cash flow statement provides insights into how BT Brands, Inc. generates and uses cash. The cash flow statement is divided into three main sections:

• Operating Activities: This section reflects the cash generated or used from the company's core business operations. For the year ended January 27, 2024, BT Brands, Inc. had net cash used in operating activities of approximately $1.326 million.
• Investing Activities: This section includes cash flows related to the purchase and sale of long-term assets. For the year ended January 27, 2024, BT Brands, Inc. had net cash used in investing activities of about $0.215 million.
• Financing Activities: This section reports cash flows related to debt, equity, and dividends. For the year ended January 27, 2024, BT Brands, Inc. had net cash provided by financing activities of approximately $2.166 million.

Potential Liquidity Concerns or Strengths:

BT Brands, Inc.'s liquidity position presents a mixed picture. The current ratio above 1.0 indicates a reasonable ability to cover short-term liabilities with current assets. However, the lower quick ratio suggests a reliance on inventory to meet immediate obligations. The negative cash flow from operating activities is a concern, indicating that the company is using cash rather than generating it from its core business. However, the positive cash flow from financing activities, driven by proceeds from loans, has helped to offset the negative operating cash flow. Here is more about the company's Mission Statement, Vision, & Core Values of BT Brands, Inc. (BTBD).

Debt and Solvency:

Solvency ratios assess a company's ability to meet its long-term obligations. A key metric is the total debt to equity ratio.

• Total Debt to Equity Ratio: As of January 27, 2024, BT Brands, Inc.'s total liabilities were $11.713 million and total stockholders' equity was $8.227 million. This results in a debt-to-equity ratio of approximately 1.42, indicating that the company's debt is 142% of its equity.

Additional Considerations:

It’s important to consider these figures in the context of the restaurant industry and BT Brands, Inc.'s specific business strategy. Factors such as expansion plans, seasonal sales variations, and ongoing cost management efforts can significantly impact the company's financial health. The following table summarizes key financial data for BT Brands, Inc. as of January 27, 2024:

BT Brands, Inc. (BTBD) Valuation Analysis

Assessing whether BT Brands, Inc. (BTBD) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Let's delve into these aspects to provide a clearer picture for investors. For more detailed insights, you can also check out: Breaking Down BT Brands, Inc. (BTBD) Financial Health: Key Insights for Investors

One of the primary methods to gauge valuation is by examining ratios like price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA). These ratios offer a snapshot of how the market values the company relative to its earnings, book value, and operational cash flow.

• P/E Ratio: A higher P/E ratio might suggest that the stock is overvalued because investors are paying more for each dollar of earnings. Conversely, a lower P/E could indicate undervaluation.
• P/B Ratio: This ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio can imply that the stock is undervalued, as it suggests that the market price is less than the net asset value of the company.
• EV/EBITDA: This ratio is often used in valuation as it is capital structure-neutral. A lower EV/EBITDA multiple may indicate that a company is undervalued compared to its peers.

Analyzing the stock price trends over the last 12 months (or longer) provides insights into market sentiment and investor confidence. A consistently upward trend may reflect positive market perception, while a downward trend could signal concerns about the company's performance or future prospects.

If applicable, dividend yield and payout ratios are crucial for income-focused investors. The dividend yield indicates the annual dividend income relative to the stock price, while the payout ratio shows the proportion of earnings paid out as dividends. A sustainable and growing dividend yield can be an attractive sign.

Here's a hypothetical example of how these valuation metrics might look for BT Brands, Inc. (BTBD):

Analyst consensus on the stock, categorized as buy, hold, or sell, reflects the collective opinion of financial experts. These ratings are typically based on thorough research and analysis of the company's financials, industry trends, and overall economic outlook.

BT Brands, Inc. (BTBD) Risk Factors

BT Brands, Inc. (BTBD) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and the company's own operational and strategic decisions.

Here's an overview of key risks impacting BT Brands, Inc.:

• Industry Competition: The restaurant industry is highly competitive, with rapidly changing technology and food delivery trends intensifying the pressure.
• Inflationary Pressures: Rising food costs, especially for beef and eggs, pose a substantial risk to profitability.
• Labor Costs: A competitive labor market is driving up wages, increasing labor costs across all restaurant operations.
• Public Health Risks: Public health matters can disrupt operations and financial results through commodity inflation, supply chain issues, and labor availability challenges.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Challenges:
• Closure of underperforming restaurants like Village Bier Garten, which resulted in a $371,872 charge.
• The closure of a Burger Time location in Ham Lake, Minnesota.
• Financial Risks:
• A net loss of $2.31 million, or $0.37 per share, in 2024.
• Decline in restaurant-level adjusted EBITDA from 6.2% to 4.9%.
• Equity loss from Bagger Dave's of $415,085, representing 18% of total losses.
• Strategic Risks:
• Challenges integrating acquired businesses and managing diverse restaurant concepts.
• Difficulties in liquidating Bagger Dave's restaurant properties.

Specific events in 2024 also presented unique challenges:

• Hurricane Helene caused significant damage to the Keegan's location in Florida, leading to a closure of about one month and impacting sales.

BT Brands, Inc. has implemented several mitigation strategies to address these risks:

• Cost-Cutting Measures: Aggressive cost-cutting and process improvement measures at Burger Time locations, including menu reengineering.
• Menu Optimization: Introduction of hand-cut fries at Burger Time to lower overall food costs.
• Cost and Headcount Reductions: Cost and headcount reductions at Pie In The Sky, combined with a review of product pricing.
• Strategic Initiatives:
• Closing underperforming locations.
• Pursuing the liquidation of Ham Lake and Richmond properties.
• Exploring the sale of all Bagger Dave's restaurant locations.
• Capital Management: Implementing a stock repurchase program, with 306,394 shares repurchased by the end of 2024.

Despite these efforts, BT Brands, Inc. is not providing a financial forecast for fiscal 2025, citing the evolving character of the company and potential economic impacts.

BT Brands' 2024 results reflect significant operational challenges, with a $2.31 million net loss despite a 5.3% revenue increase to $14.8 million. The adjusted EBITDA margin decline signals fundamental profitability issues. The $415,085 equity loss from Bagger Dave's represents 18% of total losses, highlighting investment strategy problems. Combined with a $371,872 charge for Village Bier Garten's closure, these factors indicate substantial financial and operational strain.

In response to these challenges, BT Brands is focusing on:

• Improving profitability at each store.
• Achieving positive operating cash flow and earnings in the second half of 2024.
• Repurposing the six Bagger Dave's locations to a different restaurant concept.

BT Brands is also proactively managing cybersecurity risks through a program aligned with NIST frameworks, including policies, controls, and third-party oversight.

See more about BT Brands, Inc. financial health: Breaking Down BT Brands, Inc. (BTBD) Financial Health: Key Insights for Investors

BT Brands, Inc. (BTBD) Growth Opportunities

BT Brands, Inc. (BTBD) faces a dynamic landscape with several potential growth drivers. These include product innovations, strategic market expansions, and potential acquisitions.

Analyzing BT Brands, Inc.'s (BTBD) growth prospects requires a look at several key areas:

• Product Innovations: New menu items or improvements to existing offerings can attract new customers and increase sales.
• Market Expansions: Entering new geographic markets or expanding into different restaurant formats can broaden BT Brands, Inc.'s (BTBD) reach.
• Acquisitions: Acquiring other restaurant chains or related businesses can quickly increase BT Brands, Inc.'s (BTBD) market share and revenue.

Future revenue growth and earnings estimates are crucial for investors. While specific projections require detailed financial modeling, understanding BT Brands, Inc.'s (BTBD) strategic initiatives provides insight. Keep in mind that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially.

Strategic initiatives and partnerships could significantly drive future growth for BT Brands, Inc. (BTBD). These may include:

• Technology Investments: Implementing new technologies for online ordering, delivery, or customer loyalty programs can enhance efficiency and customer experience.
• Franchise Expansion: Growing the franchise network can increase brand presence and generate revenue through franchise fees.
• Strategic Partnerships: Collaborating with other companies in the food and beverage industry can create synergies and expand market reach.

BT Brands, Inc. (BTBD) needs a sustainable competitive advantage to maintain and grow its market position. This could include:

• Brand Recognition: A strong brand reputation can attract and retain customers.
• Unique Menu Offerings: Differentiated menu items can set BT Brands, Inc. (BTBD) apart from competitors.
• Efficient Operations: Streamlined operations can improve profitability and customer satisfaction.

Here is a hypothetical projection of revenue growth:

For more insights into the company's direction, explore: Mission Statement, Vision, & Core Values of BT Brands, Inc. (BTBD).