BT Brands, Inc.

What they do

BT Brands owns and operates nine restaurants: six Burger Time fast-food locations in the North Central U.S., Keegan's Seafood Grille in Florida, Pie In The Sky Coffee in Massachusetts, and Schnitzel Haus in Florida. It also holds a 40.7% non-controlling interest in Bagger Dave's Burger Tavern, which operates five casual-dining restaurants, and owns a small corporate office. The company is currently pursuing a merger with Aero Velocity, a private unmanned aerial vehicle manufacturer, with plans to spin off restaurant operations into a separate entity if completed.

Revenue drivers

• Burger Time (BTND) — Six fast-food restaurants with flame-broiled burgers; average transaction ~$14.50; largest revenue contributor and focus of operating improvements.
• Keegan's Seafood Grille — Casual seafood restaurant in Indian Rocks Beach, Florida; contributes to overall sales in the Florida market.
• Pie In The Sky Coffee — Coffee shop and bakery in Woods Hole, Massachusetts; noted for successful operating improvements in 2025.
• Schnitzel Haus — German-themed fine dining restaurant and bar in Hobe Sound, Florida; acquired in May 2024.

Recent performance

For fiscal 2025 (52 weeks ended December 28, 2025), total revenue was $13.5 million, down from $14.8 million in 2024, reflecting closures of underperforming locations. Net loss improved to $(687,839), or $(0.11) per share, from a $(2.3) million loss ($(0.37) per share) in 2024. Restaurant-level EBITDA rose 138% to $1.7 million from $723,828, and operating loss narrowed to $(364,585) from $(1.8) million. The latest quarter (13 weeks ended March 29, 2026) reported revenue of $2.8 million. The company ended the year with approximately $4.4 million in cash and marketable securities.

Strategy

Management is executing an operating turnaround by closing underperforming restaurants (Village Bier Garten, three Burger Time locations), tightening labor and food costs, and focusing on unit-level efficiency. The primary stated strategy is to complete the proposed merger with Aero Velocity Inc., which would shift the company into drone manufacturing and Drones-as-a-Service, and to spin off restaurant operations into BT Group, Inc. The merger is subject to stockholder and regulatory approvals, and management also evaluates potential growth opportunities outside the restaurant sector.

Risks

• Merger may fail — The Aero Velocity merger is subject to stockholder and regulatory approvals, SEC comments, and customary conditions; failure could result in substantial transaction expenses and disruption.
• Business transformation risk — If completed, the company would pivot from restaurants to drone manufacturing, with historical results not indicative of future performance in a different regulatory and competitive environment.
• Restaurant operations decline — Revenue fell in 2025 due to closures, and management notes competitive pressures, labor costs, and food inflation may continue to pressure margins.
• Litigation and lease dispute — The landlord of the closed Village Bier Garten premises has filed suit for unpaid rent; the company recorded a $215,000 impairment and expects resolution through negotiation or litigation.

Outlook

Management expects continued improvement in restaurant profitability and cash flow in 2026, supported by a leaner footprint and cost controls. They are not providing formal financial guidance. The main near-term focus is completing the Aero Velocity merger, which is expected to reposition the company into a technology and drone services platform, with all restaurant assets distributed to pre-merger shareholders.