Press Releases August 18, 2026 12:08 PM

Operating Performance Improves; Market Volatility Increased Investment Portfolio

BT Brands reports improved operating performance and positive investment portfolio impact despite soft restaurant sales in Q2 2026

By Derek Hwang
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BT Brands, Inc. announced its fiscal 2026 second quarter results, showing improved restaurant operating performance driven by cost reductions and tighter operating discipline. Despite lower sales volumes and a closed underperforming location, the company achieved positive restaurant-level EBITDA and strengthened its cash position. Market volatility positively affected its investment portfolio, contributing to a net income of $576,433 for the quarter. The company plans to maintain focus on profitability and explore strategic opportunities to enhance shareholder value.

Operating Performance Improves; Market Volatility Increased Investment Portfolio
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Key Points

  • Restaurant operating income improved to $117,000 compared to a prior loss of $75,000, supported by lower costs and administrative expenses.
  • Net sales decreased slightly to $3.6 million due to the closure of an underperforming location, yet restaurant-level EBITDA remained positive at $593,000.
  • Investment portfolio gains from market volatility positively impacted overall financial results, increasing net income despite soft sales.

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 

Contact: [email protected] 


Risks

  • Continued softness in restaurant sales and reduced customer demand could negatively impact future revenues and profitability.
  • Exposure to market volatility poses risk to investment portfolio valuations, potentially reversing recent gains.
  • No formal financial guidance provided, indicating uncertainty in near-term earnings and strategic outcomes.

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