BT Brands, Inc. (NASDAQ: BTBD)

Sector: Consumer Cyclical Industry: Restaurants CIK: 0001718224
Market Cap 9.43 Mn
P/B 1.22
P/E -10.07
P/S 0.67
ROIC (Qtr) -5.21
Div Yield % 0.00
Rev 1y % (Qtr) -11.39
Total Debt (Qtr) 3.74 Mn
Debt/Equity (Qtr) 0.48

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 1.28M provide 2.53x coverage of short-term debt 504769, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 10.82M provides 2.89x coverage of total debt 3.74M, indicating robust asset backing and low credit risk.
  • Short-term investments of 4.21M provide solid 14.77x coverage of other current liabilities 284764, indicating strong liquidity.
  • Tangible assets of 10.82M provide robust 38.01x coverage of other current liabilities 284764, indicating strong asset backing.
  • Cash reserves of 1.28M provide robust 1.31x coverage of current liabilities 974898, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (123603) barely covers its investment activities of (1.45M), with a coverage ratio of 0.09, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 1.28M provide limited coverage of acquisition spending of (624858), which is -2.04x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (123603) shows concerning coverage of stock compensation expenses of 184569, with a -0.67 ratio indicating potential earnings quality issues.
  • Short-term investments of 4.21M significantly exceed cash reserves of 1.28M, which is 3.29x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Free cash flow of (124680) provides weak coverage of capital expenditures of 1077, with a -115.77 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Restaurants
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MCD Mcdonalds Corp 222.05 Bn 26.39 8.45 55.82 Bn
2 SBUX Starbucks Corp 95.51 Bn 51.45 2.57 26.61 Bn
3 CMG Chipotle Mexican Grill Inc 50.94 Bn 33.15 4.32 4.98 Bn
4 YUM Yum Brands Inc 43.17 Bn 29.83 5.36 11.55 Bn
5 QSR Restaurant Brands International Inc. 22.43 Bn 24.33 2.42 15.64 Bn
6 DRI Darden Restaurants Inc 21.91 Bn 19.91 1.77 6.16 Bn
7 YUMC Yum China Holdings, Inc. 18.12 Bn 20.05 1.57 1.84 Bn
8 DPZ Dominos Pizza Inc 14.57 Bn 24.72 3.01 5.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.05 2.05
EV to Cash from Ops. EV/CFO -101.02 16.57
EV to Debt EV to Debt 3.34 4.75
EV to EBIT EV/EBIT -24.92 3.45
EV to EBITDA EV/EBITDA 66.39 9.76
EV to Free Cash Flow [EV/FCF] EV/FCF -100.15 29.06
EV to Market Cap EV to Market Cap 1.32 6.55
EV to Revenue EV/Rev 0.89 2.40
Price to Book Value [P/B] P/B 1.22 -1.40
Price to Earnings [P/E] P/E -10.07 13.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -9.56
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 18.72
Dividend per Basic Share Div per Share (Qtr) 0.00 0.84
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 30.41
Interest Coverage Int. cover (Qtr) -5.91 -86.85
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 99.69 -24.56
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -58.59 35.50
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.72
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 31.05 -564.81
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 116.17 25.78
EBIT Growth (1y) % EBIT 1y % (Qtr) 62.99 -507.68
EBT Growth (1y) % EBT 1y % (Qtr) 59.61 -41.98
EPS Growth (1y) % EPS 1y % (Qtr) 30.00 -126.51
FCF Growth (1y) % FCF 1y % (Qtr) 82.86 5,724.78
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 70.30 23.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.18 0.99
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 1.31 0.78
Current Ratio Curr Ratio (Qtr) 6.80 1.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.48 0.05
Interest Cover Ratio Int Coverage (Qtr) -5.91 -86.85
Times Interest Earned Times Interest Earned (Qtr) -5.91 -86.85
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.80 7.71
EBIT Margin % EBIT Margin % (Qtr) -3.57 -2.27
EBT Margin % EBT Margin % (Qtr) -4.17 -1.97
Gross Margin % Gross Margin % (Qtr) 18.20 34.04
Net Profit Margin % Net Margin % (Qtr) -6.70 -3.69