BTBD · BT Brands, Inc.

BT Brands reported significantly improved financial results for fiscal year 2025, marking what management described as a turning point for the company. The operating turnaround was driven by several specific actions: closure of underperforming locations, tighter labor and food cost controls, and continued focus on operating efficiency with notable success at Burger Time and Pie In The Sky operations. These measures resulted in improved restaurant-level margins despite a 9% decline in revenue from $14.8 million in 2024 to $13.5 million in 2025. The company's restaurant-level EBITDA margin improved from 4.9% to 12.4%, reflecting better operational efficiency. Management commentary from CEO Gary Copperud emphasized disciplined execution and cost control as key drivers, while CFO Kenneth Brimmer highlighted improved profitability, balance sheet strength, and disciplined capital allocation. The company recorded a $216,248 charge to reduce NGI bottled water inventory to estimated net realizable value during the year. Looking forward, BT Brands enters 2026 with an improved operating base, positive EBITDA, and what management views as a transformational strategic opportunity through the proposed merger with Aero Velocity. The company is not providing formal financial guidance at this time but remains focused on improving restaurant profitability and cash flow while advancing the Aero Velocity transaction. The proposed merger would reposition BT Brands into a high-growth technology and infrastructure platform focused on AI-driven analytics and drone-based inspection services, with all restaurant assets and related liabilities to be distributed to pre-merger shareholders upon closing.