BT Brands Reports First Quarter 2026 Results

Operating Performance Improves; Company Maintains Strategic Flexibility

MINNETONKA, Minn., May 14, 2026 (GLOBE NEWSWIRE) -- BT Brands, Inc. (Nasdaq: BTBD, BTBDW) (“BT Brands” or the “Company”) today reported financial results for the thirteen weeks ended March 29, 2026.

BT Brands delivered improved operating performance during the first quarter of fiscal 2026, notwithstanding softness in restaurant sales and market volatility affecting its investment portfolio. The Company also announced that, following the termination of its merger agreement with Aero Velocity Inc., it continues to preserve strategic flexibility while evaluating opportunities to enhance shareholder value.

First Quarter Fiscal 2026 Highlights

• Restaurant operating performance continued to advance, driven by lower labor costs, leaner general and administrative expenses, and tighter operating discipline across all locations.
• During the seasonally weak first quarter, the loss from operations improved to a loss of $232,811 compared to a loss of $292,196 in the prior year period.
• General and administrative expenses decreased by approximately 22.4% to $348,901 from $451,034 in the prior year period, while food and paper costs improved to 33.9% of sales compared to 37.1% in the prior year period.
• Restaurant-level EBITDA remained positive at $267,665 despite lower sales volumes.
• Net sales were $2.84 million compared to $3.23 million in the prior year period, reflecting the closure of an underperforming location during 2025.
• The Company ended the quarter with approximately $3.6 million in cash and marketable securities and positive working capital of approximately $3.9 million.
• Subsequent to quarter end, the Company terminated the previously announced merger agreement and continues to evaluate opportunities to enhance shareholder value.
  

Management Commentary
Gary Copperud, Chief Executive Officer, commented: “Our first quarter results clearly demonstrate continued progress in improving the underlying profitability of our restaurant operations, despite this historically being our slowest seasonal quarter. We achieved meaningful reductions in both operating and administrative costs while maintaining positive restaurant-level EBITDA and improved operating trends. Importantly, our operating performance improved even as reported earnings were impacted by non-cash unrealized investment losses resulting from broader market volatility.”

Kenneth Brimmer, Chief Financial Officer, added: “We ended the quarter with a strong liquidity position, including approximately $3.6 million in cash and marketable securities and positive net working capital of approximately $3.9 million. As we enter our seasonally stronger operating periods, we believe the Company is well positioned to continue improving cash flow and operating performance.”

Merger Termination
On May 1, 2026, the Company terminated the previously announced merger agreement with Aero Velocity Inc. after certain closing conditions were not satisfied within the contractual deadline. The Company believes the termination was valid and effective and does not expect any material financial obligations associated with the termination.

On May 4, 2026, counsel for Aero delivered a letter disputing the termination. The Company disagrees with Aero’s position and intends to vigorously defend its rights under the merger agreement.

Additional information is contained in the Company’s Current Report on Form 8-K filed with the SEC on May 7, 2026.

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.

Financial Results

BT Brands, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In dollars)

	13 Weeks ended,
	March 29, 2026			March 30, 2025
NET SALES	$2,843,634			$3,231,073
Food and paper costs		963,763			1,200,329
Labor costs		1,110,584			1,217,897
Occupancy costs		304,023			309,694
Other operating expenses		197,599			187,920
Depreciation and amortization		151,575			156,395
General and administrative		348,901			451,034
Total costs and expenses		3,076,445			3,523,269
LOSS FROM OPERATIONS		(232,811)			(292,196)
Unrealized loss on marketable securities		(435,615)			(44,024)
Realized investment gain (loss)		(79,395)			95,038
Interest expense		(21,440)			(21,554)
Interest and dividend income		21,234			40,600
Other income (expense)		(12,542)			26,587
Equity in net income (loss) of affiliate		9,558			(134,300)
NET LOSS	$(751,011)			$(329,849)
NET LOSS PER SHARE – Basic and Diluted	$(0.12)			$(0.05)
WEIGHTED AVERAGE SHARES OUTSTANDING		6,154,791			6,154,791

BT Brands, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In dollars)

	March 29, 2026 (unaudited)		December 28, 2025 (audited)
Cash and cash equivalents	$1,014,989		$846,167
Marketable securities		2,629,120		3,596,133
Total current assets		5,239,820		5,897,974
Property, equipment and leasehold improvements, net		2,359,322		2,456,718
Operating lease right-of-use assets		1,218,169		1,267,699
Goodwill		796,220		796,220
Intangible assets, net		291,204		305,270
Total assets	$9,978,880		$10,745,052
Total liabilities		4,295,128		4,326,664
Total shareholders' equity		5,683,752		6,418,388

Non-GAAP Financial Measure — Restaurant-Level EBITDA
Restaurant-level EBITDA is a non-GAAP financial measure. The Company defines restaurant-level EBITDA as loss from operations before general and administrative expenses, depreciation and amortization, and impairment charges.

	13 Weeks Ended March 29, 2026			13 Weeks Ended March 30, 2025
Revenues	$2,843,634			$3,231,073
Loss from operations		(232,811)			(292,196)
Depreciation and amortization		151,575			156,395
General and administrative		348,901			451,034
Restaurant-level EBITDA	$267,665			$315,233
Restaurant-level EBITDA margin		9.4%			9.7%

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the Company's plans, objectives, future operating performance, strategic alternatives, and efforts to enhance shareholder value. Forward-looking statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including risks related to market conditions, operating performance, capital allocation decisions, the outcome of the Aero Velocity dispute, strategic initiatives, and the risks described in BT Brands' SEC filings available at www.sec.gov. These statements speak only as of the date hereof, and the Company disclaims any obligation to update them except as required by law.

About BT Brands, Inc.

BT Brands, Inc. (Nasdaq: BTBD and BTBDW) owns and operates nine restaurants, including six Burger Time fast-food locations in the North Central United States, Keegan's Seafood Grille in Indian Rocks Beach, Florida, Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts, and Schnitzel Haus in Hobe Sound, Florida. The Company also holds a 40.7% non-controlling equity interest in Bagger Dave's Burger Tavern, Inc., an unconsolidated affiliate operating five restaurant locations.

CONTACT FOR FURTHER INFORMATION:
Kenneth Brimmer | 612-229-8811 | [e-mail]