BT Brands (BTBD) AI Stock Analysis

• Market Cap: $7.90M
• Dividend Yield: N/A
• Average Volume (3M): 129.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -4.16%
• EPS Growth: 29.52%
• Country: US
• Employees: 40
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.15
• Shares Outstanding: 6,154,724
• 10 Day Avg. Volume: 51,870
• 30 Day Avg. Volume: 129,348
• PEG Ratio: -0.02
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -7.33
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 48.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $1.50 ▼(-0.66% Downside)

The score is primarily held down by weak financial performance (declining revenue, negative profitability, and negative operating/free cash flow). Technical indicators are largely neutral and do not offset the fundamentals, valuation is pressured by losses (negative P/E), and the Nasdaq deficiency notice adds incremental regulatory/compliance risk.

Positive Factors

Multi-brand QSR portfolio

Operating multiple established QSR brands provides durable diversification of revenue and customer bases, strengthens franchisor relationships, and allows the company to leverage shared operational know‑how and supply agreements. This reduces single-brand risk and supports steady unit-level operations over months.

Improved leverage

A materially improved debt-to-equity ratio enhances financial flexibility and lowers interest burden, giving management more runway to execute restructuring or strategic M&A. Reduced leverage supports durability through economic cycles and lessens short-term refinancing pressure over the coming months.

Access to equity capital (ATM program)

A larger ATM program provides a reliable mechanism to raise equity as needed for operations, working capital or to fund transactions like the planned merger. Ongoing access to capital mitigates short-term liquidity risk and supports execution of strategic initiatives over a multi-month horizon.

Negative Factors

Declining revenue trend

Sustained revenue declines indicate weakening customer traffic or sales mix at restaurant units, reducing scale economics and limiting margin recovery. Over several months this curtails ability to invest in remodels, marketing, or unit expansion and undermines earnings recovery prospects.

Negative profitability and cash flow

Ongoing negative margins and operating cash burn signal structural unit economics issues and limit internal funding for growth or capex. This heightens reliance on external financing, raises dilution risk, and constrains strategic options over the next several months absent sustained margin improvement.

Nasdaq deficiency / governance risk

A Nasdaq deficiency notice introduces listing and regulatory risk that can distract management, delay the planned Aero Velocity merger, and require governance actions. This uncertainty can consume resources and complicate strategic timelines for multiple months if not resolved promptly.

BT Brands Business Overview & Revenue Model

Company Description

BT Brands, Inc. owns and operates fast-food restaurants in the north central region of United States. The company operates nine Burger Time restaurants located in Minnesota, North Dakota, and South Dakota; and a Dairy Queen franchise in Ham Lake, Minnesota. Its Burger Time restaurants provide various burgers and other food products, such as chicken sandwiches, pulled pork sandwiches, side dishes, and soft drinks; and Dairy Queen restaurant offers burgers, chicken, sides, ice cream and other desserts, and various beverages. The company was founded in 1987 and is based in West Fargo, North Dakota.

How the Company Makes Money

BT Brands generates revenue through multiple streams, primarily from franchise fees, royalties, and direct sales from company-owned locations. Franchise fees are collected from new franchisees who pay for the right to use the BT Brands' trademarks and business model. Additionally, BT Brands earns ongoing royalty payments based on a percentage of the franchisee's sales. The company's direct sales from its own outlets also contribute significantly to its revenue. Strategic partnerships with suppliers and distributors enable cost-effective procurement and inventory management, further enhancing profitability. Overall, BT Brands' revenue model is built on a combination of franchising, direct retail sales, and collaborative partnerships that ensure a steady income flow.

BT Brands Financial Statement Overview

Summary

Weak financial profile driven by declining revenue trends, persistently negative net/EBIT/EBITDA margins, and negative operating/free cash flow. Balance sheet leverage has improved, but negative ROE and ongoing cash burn keep the overall financial score low.

Income Statement

BT Brands has experienced declining revenue growth with a negative trajectory in the TTM period. The gross profit margin has improved slightly, but net profit margins remain negative, indicating ongoing profitability challenges. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM period, indicating better leverage management. However, return on equity remains negative, highlighting profitability issues. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

BT Brands faces negative operating and free cash flows, with a declining free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is positive, suggesting some efficiency in converting net income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.04M	14.82M	14.08M	12.60M	8.45M	8.16M
Gross Profit	3.12M	3.09M	1.71M	3.62M	2.78M	2.73M
EBITDA	220.45K	-1.26M	-336.22K	-178.48K	1.21M	1.29M
Net Income	-935.92K	-2.31M	-887.37K	-562.28K	607.85K	791.99K
Balance Sheet
Total Assets	11.94M	12.00M	14.61M	16.77M	14.51M	3.39M
Cash, Cash Equivalents and Short-Term Investments	4.74M	4.27M	6.69M	8.14M	12.39M	1.32M
Total Debt	3.74M	4.05M	4.38M	5.64M	3.00M	3.18M
Total Liabilities	4.21M	5.03M	5.42M	6.62M	3.88M	4.09M
Stockholders Equity	7.72M	6.97M	9.19M	10.15M	10.63M	-702.32K
Cash Flow
Free Cash Flow	-585.40K	-1.22M	-747.17K	-266.60K	606.03K	1.24M
Operating Cash Flow	-123.60K	-723.50K	-258.79K	211.80K	813.96K	1.40M
Investing Cash Flow	-1.45M	-2.18M	4.71M	-11.04M	-207.92K	24.58K
Financing Cash Flow	-236.91K	-440.85K	-1.30M	590.70K	10.46M	-358.96K

BT Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTBD, the sentiment is Negative. The current price of 1.51 is above the 20-day moving average (MA) of 1.47, above the 50-day MA of 1.47, and below the 200-day MA of 1.53, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 5.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BTBD.

BT Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	77 Outperform	$47.47M	17.22	20.05%	―	0.35%	9.25%
CHSN	62 Neutral	$83.02M	3.15	-1.73%	―	21.20%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GTIM	46 Neutral	$12.25M	12.13	3.85%	―	1.84%	12.10%
REBN	46 Neutral	$11.30M	-0.65	―	―	21.10%	-18.56%
BTBD	43 Neutral	$7.90M	-8.74	-11.53%	―	-4.16%	29.52%
ARKR	40 Underperform	$23.66M	-2.15	-29.84%	―	-9.70%	-194.23%

BT Brands Corporate Events

BT Brands Receives Nasdaq Deficiency Notice on Shareholder Meeting

On January 14, 2026, BT Brands, Inc. announced it had received a deficiency notice from Nasdaq for failing to hold an annual shareholder meeting for the fiscal year ended December 31, 2024, though the notice does not immediately affect the listing or trading of its securities and the company has until March 2, 2026 to submit a compliance plan, with a possible extension to June 29, 2026. The company has already filed a Form S-4 on December 31, 2025 for a special shareholders’ meeting to vote on its planned merger with Aero Velocity, Inc. and elect five directors, and notes that if the required approvals are not obtained by April 30, 2026 and the merger agreement is terminated, it expects to promptly call an annual meeting to elect directors, a process that could affect its timeline to regain Nasdaq compliance and the progression of the Aero transaction.

The most recent analyst rating on (BTBD) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on BT Brands stock, see the BTBD Stock Forecast page.

BT Brands Expands ATM Offering Program

BT Brands, Inc. announced an amendment to its Equity Distribution Agreement with Maxim Group LLC, initially established on December 13, 2024, to increase the size of its ATM Offering Program from $3,005,000 to $3,565,880. This adjustment, approved by the company’s board of directors and formalized on November 21, 2025, allows BT Brands to sell additional shares of its common stock, potentially impacting its market presence and providing further capital for operations.

The most recent analyst rating on (BTBD) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on BT Brands stock, see the BTBD Stock Forecast page.