Gary Copperud, the Chief Executive Officer of BT Brands, Inc. (NASDAQ:BTBD), has increased his stake in the company with a series of stock purchases totaling $27,537. These transactions, conducted between August 20 and October 28, 2024, involved acquiring shares at prices ranging from $1.29 to $1.70 per share.
The largest single purchase occurred on October 28, when Copperud acquired 10,000 shares at $1.70 per share, adding a substantial amount to his holdings. This follows several smaller acquisitions, including 5,000 shares on October 17 at the same price point.
In addition to these purchases, a significant transaction on October 17 involved the acquisition of 40,285 shares valued at $68,484, although this was categorized differently from the other purchases.
These moves reflect Copperud's continued confidence in BT Brands, a company operating within the retail-eating places sector. As of the latest transaction, Copperud's direct ownership in the company stands at 1,005,142 shares.
In other recent news, BT Brands reported a slight increase in its Q2 revenue, rising by 2.7% to $4.1 million compared to the same period last year. Despite this, the company experienced a net loss of $69,952, an improvement from the previous year. Particularly noteworthy were the performances of Pie in the Sky and Burger Time units, which reported revenue increases of 17.5% and 15%, respectively.
However, the company's restaurant-level adjusted EBITDA declined to $437,000 from $632,000 in Q2 of 2023, attributed to rising labor costs and challenges in staffing, along with ongoing pressure on cost of sales inputs, as stated by CEO Gary Copperud.
In addition to these financial developments, BT Brands announced the acquisition of Schnitzel Haus, a German restaurant in Florida, seeing this as a significant opportunity for growth due to its robust cash flow.
On the corporate side, there have been changes in BT Brands' board of directors. Steven W. Schussler resigned from the board and audit committee, with his unvested options under the 2019 Incentive Plan becoming fully vested on the date of his resignation. Fred Croci was appointed to fill the vacancy on the board and joined the audit and compensation committees. These recent developments are part of BT Brands' ongoing evolution of its executive team and corporate oversight mechanisms.
InvestingPro Insights
Gary Copperud's recent stock purchases align with several key insights from InvestingPro. Despite the company's current challenges, including not being profitable over the last twelve months, Copperud's actions suggest a belief in BT Brands' potential for turnaround.
InvestingPro data shows that BT Brands has a market capitalization of $10.22 million, with a revenue of $14.31 million in the last twelve months as of Q2 2024. While the company's gross profit margin is low at 10.45%, an InvestingPro Tip highlights that BT Brands holds more cash than debt on its balance sheet, indicating financial stability.
Interestingly, another InvestingPro Tip notes that the stock has shown a strong return over the last three months, with a price total return of 19.57% during this period. This positive momentum could be a factor in Copperud's decision to increase his stake.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for BT Brands, providing a deeper understanding of the company's financial health and market position.
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