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): 0.51
• 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: 1.51
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 3.81
• Enterprise Value/Ebitda: -54.56
• 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: $1.00 ▼(-33.77% Downside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

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

Improved leverage

An improved debt-to-equity ratio meaningfully reduces refinancing and liquidity risk over the medium term. Better leverage provides financial flexibility to support operations, invest in unit-level improvements or pursue the Aero Velocity transaction without immediate solvency pressure.

Access to capital via ATM

A larger ATM equity facility creates a durable option to raise capital opportunistically, supporting cash needs, potential closing costs for the Aero Velocity merger, or working capital. Structurally this reduces short-term liquidity constraints versus reliance solely on operations.

Established QSR brand portfolio

Operating recognizable franchised QSR brands provides steady, baseline demand and proven unit economics. Brand recognition and franchise relationships support unit-level sales resilience and offer pathways (refranchising/licensing) to improve returns over the medium term.

Negative Factors

Declining revenue

Sustained revenue decline erodes scale and reduces ability to cover fixed costs at restaurant level. Over months this weakens margins, limits reinvestment in operations or remodeling, and makes achieving a stable, cash-generative base more difficult without clear traffic or pricing recovery.

Negative operating and free cash flow

Persistent cash burn forces reliance on external financing or equity issuance to fund operations and growth. Over a multi-month horizon this increases dilution risk, restricts capital allocation to unit maintenance or expansion, and complicates execution of strategic transactions.

Negative profitability and ROE

Ongoing negative margins and ROE indicate structural operational and profitability issues. Without sustained margin improvement, the company will struggle to convert sales into shareholder value, hampering ability to self-fund turnaround initiatives or support longer-term growth.

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	Mar 2025	Dec 2023	Mar 2023	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	-218.10K	-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	5.05M	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: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.32, above the 50-day MA of 1.41, and below the 200-day MA of 1.54, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 59.79 is Neutral, 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	78 Outperform	$44.77M	15.92	20.05%	―	0.35%	9.25%
CHSN	62 Neutral	$78.74M	3.09	-1.73%	―	21.20%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GTIM	48 Neutral	$12.99M	12.51	3.85%	―	1.84%	12.10%
ARKR	46 Neutral	$25.21M	-1.84	-29.84%	―	-9.70%	-194.23%
REBN	46 Neutral	$10.19M	-0.61	―	―	21.10%	-18.56%
BTBD	43 Neutral	$7.90M	-8.87	-11.53%	―	-4.16%	29.52%

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.