WEST FARGO, N.D., January 26, 2024--(BUSINESS WIRE)--BT Brands, Inc. (Nasdaq: BTBD and BTBDW), and its 39.6 percent owned affiliate, Bagger Dave’s Burger Tavern, Inc. (OTCMarkets: BDVB), today announced plans to review strategic alternatives for the Bagger Dave’s public corporation and the six Bagger Dave’s operating restaurant locations. As part of this review, it is anticipated that a proposal will be made to Bagger Dave’s shareholders to change the name of Bagger Dave’s to align the name appropriately with a new business strategy. We anticipate proposing to shareholders a reverse split of Bagger Dave’s outstanding shares, and plan to retain a PCAOB-registered audit firm to review the Bagger Dave’s financial statements audited for inclusion in a potential equity offering registration statement, which would coincide with an uplisting of the shares to NASDAQ Markets or another exchange.
Bagger Dave’s opened its first location In Berkley, Michigan, in 2008 and grew to over 25 units in three states; there are currently six Bagger Dave’s restaurants, including four in Michigan and single units in Ft. Wayne, Indiana, and Centerville, Ohio. Commenting on Bagger Dave’s, CEO Gary Copperud noted, "All six stores are in excellent locations representing an original investment of more than $5 million. The stores range from 4,000 to 6,000 square feet, carry full liquor licenses, and are in excellent physical condition. We have had several restaurant professionals look at the locations over the last year, and all agree the units provide an outstanding footprint for a conversion opportunity. The Bagger Dave’s locations will continue normal operations as Bagger Daves, with the process of conversion to another concept expected to begin sometime later this year. We look forward to identifying a dynamic growth opportunity, providing potential career growth for all current employees of Bagger Dave’s. We see the opportunity for Bagger Dave’s shareholders, including BT Brands, to earn significant returns from a successful conversion.
BT Brands and Bagger Dave’s have retained Eastwalk Consultants, LLC, as an advisor in transitioning Bagger Dave’s to a growing listed corporation.
About BT Brands Inc.: BT Brands, Inc. (BTBD and BTBDW) owns and operates a fast-food restaurant chain called Burger Time with locations in North and South Dakota and Minnesota and Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts, the Village Bier Garten in Cocoa, Florida, and Keegan’s Seafood Grille near Clearwater, Florida. BT Brands is seeking acquisitions within the restaurant industry.
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. Examples of forward-looking statements include, among others, statements we make regarding guidance relating to net income and net income per share, expected operating results, such as revenue growth and earnings, anticipated levels of capital expenditures for the 2023 fiscal year, current or future volatility in the credit markets and future market conditions, our belief that we have sufficient liquidity to fund our business operations during the next fiscal year, market position, financial results and reserves, and strategy for risk management.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the disruption to our business from public health emergencies, the impact on our results of operations, and our financial condition; the uncertain nature of the restaurant industry; our ability to integrate acquired restaurants, delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, staffing shortages and the effect of inflation on key supplies and inputs.
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 on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
BT BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
39 Weeks Ended
39 Weeks Ended,
13 Weeks Ended,
13 Weeks Ended,
October 1, 2023
October 2, 2022
October 1, 2023
October 2, 2022
SALES
$
11,078,419
$
9,621,996
$
4,007,656
$
4,023,920
COSTS AND EXPENSES
Restaurant operating expenses
Food and paper costs
4,348,294
3,637,814
1,449,796
1,604,858
Labor costs
4,124,857
3,122,867
1,509,721
1,336,039
Occupancy costs
845,863
803,792
340,002
367,872
Other operating expenses
603,964
577,035
209,721
248,383
Depreciation and amortization
470,801
351,084
114,774
168,855
General and administrative
1,288,019
1,035,639
343,027
288,921
Gain on sale of assets
(313,688)
-
-
-
Total costs and expenses
11,368,110
9,528,231
3,967,042
4,014,928
Income (loss) from operations
(289,691)
93,765
40,614
8,992
GAIN (LOSS) ON MARKETABLE SECURITIES
33,184
(155,220)
56,248
(74,982)
INTEREST AND OTHER INCOME
123,630
55,836
32,821
46,364
INTEREST EXPENSE
(73,857)
(88,099)
(23,948)
(33,638)
EQUITY NET LOSS OF AFFILIATE
(254,272)
(135,813)
(109,222)
(121,641)
LOSS BEFORE TAXES
(461,006)
(229,531)
(3,486)
(174,905)
INCOME TAX BENEFIT
82,000
5,000
-
-
NET LOSS
$
(379,006)
$
(224,531)
$
(3,486)
$
(174,905)
NET LOSS PER COMMON SHARE -
$
(0.06)
$
(0.03)
$
(0.00)
$
(0.04)
WEIGHTED AVERAGE SHARES
6,257,652
6,459,223
6,246,118
6,461,118
BT BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
October 1, 2023
January 1, 2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
5,546,874
$
2,150,578
Marketable securities
1,366,973
5,994,295
Receivables
55,200
76,948
Inventory
192,991
158,351
Prepaid expenses and other current assets
37,445
37,397
Assets held for sale
258,751
446,524
Total current assets
7,458,234
8,864,093
PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET
