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BT Brands (BTBD)
NASDAQ:BTBD
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BT Brands
(NASDAQ:BTBD)
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Rating:48Neutral
Price Target:
$1.50
▼(-3.23% Downside)
BT Brands' overall stock score is primarily impacted by its financial performance, which is challenged by declining revenues and negative profitability margins. Technical analysis indicates mixed momentum, with some bearish signals. Valuation is weak due to a negative P/E ratio and lack of dividend yield, further impacting the score.
Positive Factors
Operational Efficiency
The significant increase in restaurant-level adjusted EBITDA indicates improved operational efficiencies, which can enhance profitability and competitiveness over the long term.
Strategic Merger
The merger with Aero Systems could provide BT Brands access to new markets and technologies, potentially boosting growth and profitability in the long run.
Debt Management
Improved debt management enhances financial stability and flexibility, allowing the company to better navigate economic fluctuations and invest in growth opportunities.
Negative Factors
Declining Revenue
Declining revenue suggests challenges in maintaining market share and customer base, which could impact long-term growth and profitability if not addressed.
Profitability Challenges
Negative net profit margins highlight persistent profitability issues, which may hinder the company's ability to reinvest in business growth and innovation.
Cash Flow Issues
Negative cash flows can limit the company's ability to fund operations and growth initiatives, potentially affecting long-term financial health and stability.
BT Brands (BTBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.27M
Dividend YieldN/A
Average Volume (3M)129.35K
Price to Earnings (P/E)―
Beta (1Y)0.63
Revenue Growth-4.16%
EPS Growth29.52%
CountryUS
Employees40
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.15
Shares Outstanding6,154,724
10 Day Avg. Volume51,870
30 Day Avg. Volume129,348
Financial Highlights & Ratios
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 Cap1.14
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit3.39
Enterprise Value/Ebitda48.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
BT Brands Business Overview & Revenue Model
Company DescriptionBT 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 MoneyBT 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 Earnings Call Summary
Earnings Call Date:Mar 28, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a challenging year for BT Brands with a significant net loss. However, there are positive signs of growth and potential improvements in various segments like Keegan's and Burger Time locations. The company remains optimistic about future performance based on its strong financial position and strategic plans.Q4-2023 Updates
Positive Updates
Sales Growth Despite Challenges
BT Brands reported a 15% increase in sales, reaching $14 million, despite not making any new acquisitions during the year.
Strong Financial Position
The company holds $6.9 million in cash, mostly in treasury bills, with an additional $1 million at Bagger Dave's.
Positive Trends at Keegan's
Keegan's performance has improved, with recent weekly sales around $80,000, nearing capacity, and expectations for $3.2 million annual sales in 2024.
Burger Time Locations Show Promise
Double-digit sales growth reported at Burger Time locations in early 2024, attributed partly to favorable weather conditions.
Successful Pie in the Sky Acquisition
The acquisition has been highly successful, with a return on investment achieved in just over a year.
Negative Updates
Net Loss for the Year
BT Brands reported a net loss of $887,368 for the year, with significant losses attributed to Bagger Dave's and nonrecurring expenses.
Challenges with Bagger Dave's
Bagger Dave's contributed a $347,000 loss, representing 35% of the total company loss before tax.
Struggles at Village Bier Garten
Village Bier Garten remains unprofitable, requiring average weekly sales of $30,000 to break even, with only recent weeks showing potential profitability.
High Labor Costs Impact
Higher labor costs have affected profitability, with some locations struggling to maintain consistent management and effective staffing.
Dairy Queen Franchise Exit
BT Brands plans to exit the Dairy Queen franchise, as it doesn't align with their business model and has been an unsatisfactory relationship.
Company Guidance
During the BT Brands earnings call for Q4 2023, Kenneth Brimmer outlined the company's financial performance and future strategy. The company reported a net loss of $887,368 on $14 million in sales, marking a 15% sales increase compared to the previous year. Brimmer attributed 35% of the loss to Bagger Dave's, with costs of $347,000. Additionally, legal and professional expenses tied to Noble Roman's board efforts amounted to over $100,000. Despite these setbacks, BT Brands holds $6.9 million in cash and aims to revamp its operations by divesting its Dairy Queen franchise and rebranding Bagger Dave's, projecting potential revenue growth to $12 million with an EBITDA margin target of 15%. Keegan's, another venture, aims to achieve $3.2 million in annual sales with 10% profitability, while the Village Bier Garten needs to surpass $30,000 weekly to maintain profitability. Overall, Brimmer expressed optimism for future profitability and growth through potential acquisitions and operational improvements.BT Brands Financial Statement Overview
Summary
BT Brands is experiencing financial difficulties with declining revenues and negative profitability margins. While leverage management has improved, cash flow challenges persist. The company needs to address operational inefficiencies and enhance revenue growth to improve its financial health.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.45
Neutral
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.55
Neutral
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.40
Negative
| 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
Negative
1.55
Price Trends
1.73
Negative
1.73
Negative
1.52
Positive
Market Momentum
-0.06
Negative
46.02
Neutral
72.34
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 1.55 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.73, and above the 200-day MA of 1.52, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 72.34 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $33.11M | 12.52 | 20.05% | ― | 0.35% | 9.25% | |
62 Neutral | $13.45M | 3.30 | -1.73% | ― | 21.20% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $14.14M | 11.44 | 3.85% | ― | 1.84% | 12.10% | |
48 Neutral | $9.27M | ― | -11.53% | ― | -4.16% | 29.52% | |
47 Neutral | $25.60M | -1.83 | -33.50% | ― | -6.89% | -42.75% | |
40 Underperform | $10.86M | -0.78 | ― | ― | 21.10% | -18.56% |
* Consumer Cyclical Sector Average
BTBD
BT Brands
1.53
-0.11
-6.71%
ARKR
Ark Restaurants
7.19
-5.17
-41.83%
GTIM
Good Times Restaurants
1.28
-1.44
-52.94%
RAVE
Rave Restaurant Group
2.85
-0.40
-12.31%
REBN
Reborn Coffee, Inc.
1.78
0.65
57.52%
CHSN
Chanson International Holding Class A
2.41
-613.59
-99.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.