Here are 1-3 brief analogies for BT Brands (BTBD):

• A micro-cap version of McDonald's, operating just a handful of fast-food restaurants in a few states.
• Like a publicly-traded, regional Wendy's that also happens to run a Dairy Queen franchise.

• Burger Time Restaurant Offerings: This includes various fast-food items such as burgers, chicken and pulled pork sandwiches, side dishes, and soft drinks.
• Dairy Queen Restaurant Offerings: This includes a variety of fast-food items like burgers, chicken, sides, along with ice cream, desserts, and various beverages.

BT Brands (symbol: BTBD) sells primarily to individuals. Its major customer categories include:

• General Public / Local Residents: Individuals and families residing in or visiting the communities where the Burger Time and Dairy Queen restaurants are located, seeking convenient and affordable meals or treats for daily consumption.
• Travelers and Commuters: People passing through the north central region of the United States who are looking for quick and accessible dining options while on the go.
• Families with Children: Families seeking casual dining experiences that cater to diverse tastes, particularly benefiting from the kid-friendly menus and dessert offerings at both Burger Time and Dairy Queen.

Gary Copperud Chief Executive Officer and Director

Gary Copperud serves as the Chief Executive Officer and a Director of BT Brands, Inc.. He has been instrumental in guiding the company's vision and growth, leveraging his deep experience with the foundational Burger Time brand. His tenure as CEO began on July 31, 2018. Copperud is recognized for his commitment to operational excellence, product innovation, and fostering strong brand identities, possessing a track record in navigating complex market dynamics and driving sustainable profitability through a clear corporate strategy.

Kenneth W. Brimmer Chief Operating Officer, Chief Financial Officer, Principal Accounting Officer, and Chairman of the Board

Kenneth W. Brimmer holds multiple critical leadership roles at BT Brands, Inc., serving as Chief Operating Officer, Chief Financial Officer, Principal Accounting Officer, and Chairman of the Board. His multifaceted responsibilities are integral to the company's strategic and operational framework. As COO, he oversees daily business operations, ensuring efficiency and the successful execution of business plans. In his capacity as CFO and Principal Accounting Officer, Brimmer is responsible for the financial health, planning, budgeting, accounting, and reporting, ensuring compliance with financial regulations and managing capital to drive profitability.

Here are the key risks to BT Brands' business:

1. Limited Geographic Concentration and Regional Economic Sensitivity: BT Brands operates its nine Burger Time restaurants and one Dairy Queen franchise exclusively in the north central region of the United States, specifically Minnesota, North Dakota, and South Dakota. This high geographic concentration exposes the company to specific regional economic downturns, adverse weather conditions (particularly severe winters common in these states that can impact customer traffic), and localized demographic shifts.
2. Intense Competition in the Fast-Food Industry: The fast-food sector in the United States is highly saturated and fiercely competitive. BT Brands, with its regional Burger Time chain and a single Dairy Queen franchise, faces significant competition from numerous national and local fast-food chains. This intense rivalry puts constant pressure on pricing, marketing, menu innovation, and operational efficiency to attract and retain customers.
3. Rising Operating Costs (Labor and Ingredients): The restaurant industry, including fast food, is highly susceptible to fluctuations in key operating costs. Labor expenses, encompassing wages, benefits, and payroll taxes, typically constitute a significant portion (25-35% for fast-food restaurants) of a restaurant's total revenue. Similarly, ingredient costs, especially for items like meat proteins which can represent a large share of expenses, are subject to volatility due to supply chain disruptions, inflation, and market demand, directly impacting profit margins.

The emergence and proliferation of virtual restaurants and ghost kitchens present a clear emerging threat. These new business models operate without traditional storefronts, focusing solely on food delivery with significantly lower overhead costs. This allows for greater flexibility in menu offerings, rapid market entry, and aggressive pricing, directly competing for the same customer base as traditional brick-and-mortar fast-food establishments like BT Brands’ Burger Time and Dairy Queen locations, especially in the growing food delivery segment.

BT Brands, Inc. operates fast-food restaurants, including Burger Time and Dairy Queen franchises, across Minnesota, North Dakota, and South Dakota. The addressable markets for their main products and services can be identified at both regional (state) and national (U.S.) levels.

Addressable Markets:

• Fast Food Market (Minnesota): The fast food restaurants industry in Minnesota is projected to have a market size of approximately $5.6 billion in 2026.
• Fast Food Market (North Dakota): The fast food restaurants industry in North Dakota is projected to be approximately $780.6 million in 2026.
• Fast Food Market (South Dakota): The fast food restaurants industry in South Dakota is projected to be approximately $887.3 million in 2026.
• Burger Restaurants Market (U.S.): The market size for Burger Restaurants in the U.S. is projected to be $177.7 billion in 2026.
• Chicken Fast Food Segment (U.S.): The U.S. quick-service chicken restaurants segment generated approximately $60–65 billion in annual revenue in 2025.
• Ice Cream Market (U.S.): The U.S. ice cream market is estimated to reach approximately $20.03 billion in 2026.

• Development and Commercialization of Advanced Drone Technologies and AI-Powered Solutions: The combined company will concentrate on developing advanced drone technologies and providing AI-powered solutions for both government and commercial applications. This focus on cutting-edge technology and artificial intelligence is expected to drive significant revenue growth in a rapidly expanding market.
• Expansion of Contract Drone Manufacturing Business: Aero Velocity, as a wholly-owned subsidiary of the merged entity, is developing a contract drone manufacturing business. This initiative aims to broaden the company's portfolio and tap into the growing demand for drone hardware and production.
• Strategic Alliances and Partnerships in Drone and Robotics Inspections: The company is actively forming strategic alliances, such as agreements with SoftWash Systems and HMT, to scale drone and robotics inspection services. These collaborations are anticipated to facilitate market penetration and expand service offerings in various sectors for 2026 growth.
• Capitalizing on the Rapidly Expanding Global Drone Market: The global drone industry is experiencing rapid growth, with market forecasts predicting the sector will reach $63 billion by 2030. The merger positions BT Brands (as the new Aero Velocity Inc.) to leverage this substantial market expansion in commercial and defense applications.

Share Repurchases

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

Share Issuance

• In November 2021, BT Brands completed its initial public offering (IPO), pricing 2,400,000 units at $5.00 per unit, which generated gross proceeds of $12 million. [cite: 3 in previous step]
• BT Brands established an at-the-market (ATM) equity offering program on December 13, 2024. [cite: 14 in previous step]
• On November 25, 2025, the company amended its ATM equity offering program, increasing the maximum aggregate offering price from $3,005,000 to $3,565,880, allowing for the sale of additional common stock. [cite: 6 in previous step, 13 in previous step]

Inbound Investments

• As part of the definitive merger agreement with Aero Velocity Inc., announced on September 3, 2025, an equity investment ranging from $3 million to $5 million from Aero Velocity shareholders is included. [cite: 6 in previous step, 19 in previous step] This merger is expected to result in Aero Velocity shareholders owning approximately 89% of the combined company. [cite: 6 in previous step, 20 in previous step]

Outbound Investments

• BT Brands holds a significant ownership interest in Bagger Dave's Burger Tavern, Inc., which has been reported between 39.6% and 41.7%. [cite: 9 in previous step, 11 in previous step, 21 in previous step]
• The company also has an investment in Noble Roman's Inc., and as of June 2024, BT Brands' CEO indicated an intention to nominate a dissident slate of directors to Noble Roman's board and assist with refinancing its debt. [cite: 2 in previous step]
• In 2025, BT Brands' 40.8%-owned affiliate, Bagger Dave's Burger Tavern, Inc., sold its Chesterfield, Michigan location for approximately $400,000 in cash and notes, and was in negotiations to sell five other operating Bagger Dave's restaurants. [cite: 9 in previous step, 16 in previous step]

Capital Expenditures

• In the third quarter of 2025, BT Brands invested $63,000 in capital expenditures, focusing on long-term assets and infrastructure.
• The company's capital expenditures were approximately $494,000, which consumed a substantial portion of its operating cash flow, contributing to negative free cash flow.
• BT Brands primarily directs its capital expenditures towards maintaining its existing restaurant locations and acquiring businesses that align with its operational goals. [cite: 3 in previous step]