BT Brands, Inc. reported its financial results for the 39 weeks ending September 29, 2024, showing a revenue increase of 5.2% to $11.65 million, compared to $11.08 million for the same period in the previous year. The company experienced a notable rise in sales during the third quarter, with revenues reaching $4.35 million, a 7.8% increase from $4.01 million in Q3 2023. This growth was primarily driven by improved performance at its Burger Time restaurants and a 12% sales increase at Pie in the Sky.

Despite the revenue growth, BT Brands faced challenges in profitability. The total costs and expenses for the 39 weeks ended September 29, 2024, rose to $12.54 million, up from $11.37 million in the prior year. Consequently, the company reported an operating loss of $894,383 for the 39 weeks, compared to a loss of $289,691 in the same period of 2023. The net loss for the 39 weeks was $735,131, worsening from a loss of $379,006 in the previous year.

The company’s operational challenges were attributed to rising labor and occupancy costs, which increased significantly due to competitive labor market conditions and inflationary pressures. Labor and benefits costs as a percentage of restaurant sales rose to 39.0% in Q3 2024 from 37.7% in Q3 2023. Additionally, restaurant operating costs increased to 89.1% of sales in Q3 2024, up from 87.5% in the prior year.

Strategically, BT Brands made significant moves, including the acquisition of Schnitzel Haus for $943,000 in May 2024, which contributed to the sales increase. The company also repurchased 289,181 shares under its 2024 Share Repurchase Program, representing approximately 4.6% of its outstanding common stock, at a total cost of $470,843.

As of September 29, 2024, BT Brands had total assets of $13.68 million, down from $14.61 million at the end of 2023. Cash and cash equivalents decreased to $3.09 million from $5.30 million. The company’s total liabilities also decreased to $5.18 million from $5.42 million, while total shareholders' equity fell to $8.50 million from $9.19 million.

The company continues to navigate a competitive restaurant environment, facing challenges such as labor shortages and rising input costs, while aiming for operational improvements to enhance profitability.