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A regional fast-food burger chain, akin to a small-scale, Upper Midwest In-N-Out Burger.

A specialized golf accessories company, similar to a compact Callaway or Acushnet (Titleist's parent company) focused on gear like bags and push carts.

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• Burger Time Restaurants: Operates a chain of quick-service restaurants primarily known for burgers, fries, and milkshakes.
• Broaster Company Foodservice Equipment: Manufactures and distributes proprietary pressure fryers and related cooking equipment for commercial kitchens.
• Broaster Company Food Ingredients: Supplies proprietary marinades, coatings, and other food ingredients used with their foodservice equipment.
• Baking Made Better (BMB) Distribution: Distributes a variety of bakery products and ingredients to commercial and institutional clients.

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BT Brands (symbol: BTBD) serves different customer types across its operating segments.

The company's largest revenue-generating segment, Quick Service Restaurants (including Burger Time, Pizza Time, and Subway locations), sells primarily to individuals. The major categories of individual customers served by this segment include:

• Local residents and commuters: Individuals and families in the geographic areas of their restaurants (North Dakota, South Dakota, and Minnesota) seeking convenient, quick, and affordable meals.
• Travelers and passersby: Customers who are on the road and stop at their restaurant locations for a fast and accessible dining option.
• Budget-conscious diners: Patrons looking for value, speed, and ease of access in their meal choices.

Additionally, BT Brands' Manufacturing Segment, operated through its subsidiary Dynamic Foods, Inc., sells pizzelle waffle cookies and snack foods primarily to other companies. This segment has a major corporate customer:

• One primary customer, described as a prominent mass merchandiser and retailer, accounted for approximately 97% of the manufacturing segment's sales for the year ended December 31, 2023. The specific name of this major customer is not publicly disclosed by BT Brands in its SEC filings.

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Gary Copperud, Chief Executive Officer and Director

Mr. Copperud has served as Chief Executive Officer and Director of BT Brands, Inc. since July 31, 2018. He previously served as Chief Executive Officer, President, and Chief Financial Officer of BTND, LLC, the predecessor to BT Brands, Inc.. Under his leadership, BT Brands has focused on creating shareholder value through strategic initiatives, including evaluating potential merger transactions. He has demonstrated confidence in the company through personal stock purchases. His tenure has also seen the acquisition of new restaurant concepts, such as Schnitzel Haus.

Kenneth Brimmer, Chief Operating Officer, Chief Financial Officer, Principal Accounting Officer

Mr. Brimmer has been the Chief Operating Officer, Chief Financial Officer, and Principal Accounting Officer of BT Brands, Inc. since 2018. He is responsible for key financial and operational aspects of the company. Mr. Brimmer has been instrumental in efforts to improve profitability across all business units and aims to achieve positive operating cash flow and earnings.

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The key risks to BT Brands (symbol: BTBD) are:

1. Uncertainty and Execution Risks from Strategic Overhaul and Diversification
   BT Brands is currently undergoing a strategic overhaul, which includes exploring potential mergers and diversifying into unrelated sectors such as biotech, cryptocurrency, and drones. This ambitious strategy introduces substantial execution risks, as there is no assurance that these strategic alternatives will result in successful transactions or generate long-term value for shareholders. The pursuit of these cross-industry synergies has contributed to significant stock volatility and speculative trading. Recent concerns have also been noted regarding its "drone security pivot" and shareholder inquiries.
2. Weak Financial Performance and Valuation Concerns
   BT Brands has reported negative financial performance in recent periods, including a trailing twelve-month net income of -2.07 million USD and negative operating income. Despite some past revenue growth, the company's stock is trading at a lower-than-expected price-to-sales ratio, indicating that many investors are not convinced the company can sustain its growth rates or overcome underlying performance challenges. Technical analysis further suggests a negative forecast for the stock, with "sell signals" from moving averages.
3. Highly Competitive Restaurant Industry
   BT Brands operates within the restaurant and food service industry, which is characterized by intense competition. The company faces significant rivalry from a wide array of competitors, including large established chains and independent restaurants. This competitive landscape can exert pressure on pricing, market share, and profitability.

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BT Brands (symbol: BTBD) operates primarily in the quick-service restaurant sector in the United States, with its main products and services delivered through its Burger Time restaurants, Dairy Queen franchises, and Bagger Dave's Burger Tavern locations. The addressable markets for these services in the U.S. are as follows:

• Quick Service Restaurants (QSR) Market: The United States quick service restaurants market size is valued at approximately USD 447.20 billion in 2025.
• Burger Restaurants Market: The market size of the Burger Restaurants industry in the United States is estimated at USD 173.6 billion in 2025.

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Here are 3-5 expected drivers of future revenue growth for BT Brands (BTBD) over the next 2-3 years:

1. Diversification and Merger with Aero Velocity: A significant driver of future revenue growth is the recently announced definitive merger agreement between BT Brands and Aero Velocity. This strategic move will see the combined entity focus on developing advanced drone technologies and AI-powered solutions for government and commercial applications, operating through a Drones-as-a-Service (DaaS) model. This expansion into new, high-growth sectors like aerial mapping, data collection, and UAV-based commercial services, including contract drone manufacturing, represents a substantial shift from its traditional restaurant business and a new source of revenue.
2. Organic Growth in Key Restaurant Concepts: BT Brands' existing restaurant portfolio, particularly "Pie in the Sky Coffee and Bakery" and "Burger Time" units, have demonstrated solid performance. In Q3 2024, Pie in the Sky reported a 13% revenue increase, and Burger Time units saw a 9% increase in quarterly sales. Continued focus on enhancing these strong-performing brands, potentially through menu innovations or localized marketing efforts, is expected to contribute to sustained organic revenue growth.
3. Strategic Repositioning of Bagger Dave's: The company's 39.6% owned affiliate, Bagger Dave's Burger Tavern, Inc., is in the process of negotiating the sale of five of its six operating restaurant locations. This potential transaction, expected to close in Q3 2025, aims to reposition BDVB as a platform to pursue new strategic opportunities, including a possible merger. This strategic re-evaluation could lead to new ventures or partnerships within the food service industry, opening up fresh revenue streams.
4. Acquisition of New Restaurant Concepts: BT Brands has shown a willingness to expand its restaurant portfolio through acquisitions, as evidenced by the acquisition of Schnitzel Haus in May 2024. Should the company continue to identify and integrate additional promising restaurant concepts, this strategy could serve as a driver for future revenue growth by expanding its market presence and diversifying its culinary offerings.

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Share Repurchases

• BT Brands' board of directors authorized a share repurchase program on June 6, 2024, for up to 625,000 shares, representing approximately 10% of its outstanding common shares.
• By the end of 2024, 306,394 shares had been repurchased under this program.

Share Issuance

• On November 12, 2021, BT Brands completed an initial public offering (IPO) of 2,400,000 units at $5.00 per unit, generating gross proceeds of $12 million.
• The company entered into an Equity Distribution Agreement with Maxim Group LLC on December 13, 2024, to sell up to $3,005,000 of common stock through an "at the market offering" program.
• In connection with the merger with Aero Velocity Inc. (announced September 2, 2025), Aero Velocity shareholders are expected to invest between $3 million and $5 million in BT Brands' Series B Preferred Stock.

Inbound Investments

• As part of the definitive merger agreement with Aero Velocity Inc. announced in September 2025, Aero Velocity's existing shareholders are anticipated to make an equity investment of $3 million to $5 million in BT Brands' Series B Preferred Stock.
• Post-merger, Aero Velocity shareholders are expected to own approximately 89% of the combined company.

Outbound Investments

• In 2024, BT Brands acquired Schnitzel Haus, a German-themed restaurant in Florida, which contributed $710,000 to the company's revenue.
• BT Brands holds a 39.6% interest in Bagger Dave's Burger Tavern, Inc. The 40.8% owned affiliate, Bagger Dave's Burger Tavern, Inc., is in the process of negotiating the sale of five of its six operating restaurant locations, with an expected closing in the third quarter of 2025.
• In June 2024, BT Brands was addressing its investment in Noble Roman's Inc. and communicated its intention to nominate a dissident slate of directors to Noble Roman's Board.

Capital Expenditures

• BT Brands' capital expenditure for the three months ended June 2025 was reported as $0.00 million.
• Analysis of BT Brands' cash flow as of Q2 2025 indicated "heavy investment expenditure culminating in overall negative investing cash flows."
• The company expects to begin repurposing six Bagger Dave's locations to a different restaurant concept in the second half of 2024.