BT (LON:BT) Brands, Inc. (NASDAQ:BTBD), a company specializing in retail eating places, announced on Monday that Steven W. Schussler has resigned from its board of directors and audit committee as of October 24, 2024. Schussler's departure was not due to any disagreement with the company's operations, policies, or practices. In connection with his resignation, BT Brands' Compensation Committee expedited the vesting of all of Schussler's unvested options under the 2019 Incentive Plan, making them fully vested as of his resignation date.
Following Schussler's departure, on October 25, 2024, Fred Croci was appointed to fill the vacancy on the board of directors. Croci also joined the audit and compensation committees. Upon his appointment, Croci received options to purchase 5,000 shares of BT Brands common stock at $1.73 per share, which were fully vested upon grant.
The company's board of directors assessed Croci's independence according to NASDAQ Stock Market and Securities and Exchange Commission rules. They determined that Croci qualifies as "independent" under these standards, is financially literate, and meets the independence criteria for serving on the audit committee as well as the additional independence test for compensation committee members.
This corporate update, based on a press release statement, is part of BT Brands' regulatory disclosures to the Securities and Exchange Commission and provides shareholders and the public with the latest governance changes within the company. These adjustments to the board composition and the immediate vesting of options reflect the ongoing evolution of BT Brands' executive team and corporate oversight mechanisms.
In other recent news, BT Brands, a multi-brand restaurant operator, has reported a marginal increase in its Q2 revenue, rising by 2.7% to $4.1 million compared to the same period last year. Despite this growth, the company experienced a net loss of $69,952, an improvement from the previous year's loss. The notable performers within the portfolio were Pie in the Sky and Burger Time units, which reported a 17.5% and a 15% increase in revenue, respectively.
However, the company's restaurant-level adjusted EBITDA declined to $437,000 from $632,000 in Q2 of 2023. CEO Gary Copperud attributed the mixed results to rising labor costs and challenges in staffing, along with ongoing pressure on cost of sales inputs.
In addition to its financial outcomes, BT Brands announced the acquisition of Schnitzel Haus, an upscale German restaurant in Florida. The company sees this acquisition as a considerable upside potential due to its robust cash flow and opportunities for business growth.
InvestingPro Insights
As BT Brands, Inc. (NASDAQ:BTBD) navigates through these governance changes, InvestingPro data offers additional context to the company's financial position. With a market capitalization of $10.5 million, BT Brands operates in a challenging environment, as evidenced by its negative P/E ratio of -8.05 over the last twelve months as of Q2 2024. This aligns with an InvestingPro Tip indicating that the company is not profitable over the last twelve months.
Despite these challenges, BT Brands shows some financial resilience. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide some stability during this transition period. Additionally, the company's liquid assets exceed short-term obligations, suggesting a degree of financial flexibility.
Investors should note that BT Brands has experienced a strong return over the last three months, with a price total return of 22.82% during this period. This recent performance might reflect market optimism about the company's future prospects or potential turnaround efforts.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for BT Brands, providing deeper insights into the company's financial health and market position.
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