Sally Copperud, a significant shareholder of BT Brands, Inc. (NASDAQ:BTBD), recently purchased shares totaling $43,372. The acquisitions, made on two separate occasions, involved buying 21,745 shares at prices ranging from $1.99 to $2.00 each. Following these transactions, Copperud now holds 780,285 shares directly.
In addition to these purchases, Copperud engaged in other transactions involving the disposal of shares, valued at $270,427, at a price of $1.50 per share. These transactions have left her with a total of 600,000 shares owned directly.
BT Brands, a company operating in the retail-eating places sector, continues to see its shares actively traded by its major stakeholders.
In other recent news, BT Brands, Inc. reported several significant developments. The company witnessed a slight 2.7% increase in Q2 revenue, totaling $4.1 million, compared to the same period last year. However, it also reported a net loss of $69,952, albeit an improvement from the previous year. Pie in the Sky and Burger Time units were the standout performers, with revenue increases of 17.5% and 15%, respectively. Despite these gains, the company's restaurant-level adjusted EBITDA fell to $437,000 from $632,000 in Q2 of 2023, with CEO Gary Copperud attributing this to rising labor costs and staffing challenges.
In addition, BT Brands announced the acquisition of Schnitzel Haus, a high-end German restaurant based in Florida, identifying it as a potential growth opportunity due to its strong cash flow. On the governance front, the company disclosed board changes, including the resignation of Steven W. Schussler from its board of directors and audit committee. Following his departure, all of Schussler's unvested options under the 2019 Incentive Plan became fully vested. Subsequently, Fred Croci was appointed to fill the board vacancy and also joined the audit and compensation committees, receiving fully vested options to purchase 5,000 shares of BT Brands common stock at $1.73 per share upon his appointment. These are among the recent developments in the company.
InvestingPro Insights
Recent transactions by Sally Copperud, a significant shareholder of BT Brands, Inc. (NASDAQ:BTBD), reflect a complex picture of the company's current standing. While Copperud's recent purchases suggest confidence in the company's future, the stock has faced challenges. According to InvestingPro data, BT Brands has experienced a significant 10.49% drop in its stock price over the past week, with its current price of $1.55 representing just 50.82% of its 52-week high.
Despite these short-term setbacks, InvestingPro Tips indicate that BT Brands holds more cash than debt on its balance sheet, potentially providing financial stability during turbulent times. This could explain Copperud's decision to increase her stake in the company. Additionally, the company's liquid assets exceed its short-term obligations, which may offer some reassurance to investors concerned about immediate financial pressures.
However, it's worth noting that BT Brands is not currently profitable, with a negative operating income margin of -10.89% for the last twelve months as of Q3 2024. This aligns with another InvestingPro Tip highlighting the company's weak gross profit margins.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for BT Brands, providing a deeper understanding of the company's financial health and market position.
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