Skip to main content

BAB, Inc. Reports Results for 2nd Quarter FY 2025

DEERFIELD, Ill., July 03, 2025 (GLOBE NEWSWIRE) — BAB, Inc. (OTCQB: BABB), announced its financial results for the second quarter ended May 31, 2025.

For the quarter ended May 31, 2025 BAB had revenues of $808,000 and net income of $154,000, or $0.02 per share earnings, versus revenues of $883,000 and net income of $146,000, or a $0.02 per share, for the same quarter last year. Our total revenue for the three months ended May 31, 2025 decreased compared to the prior period primarily due to a decrease in marketing fund expenses, which drive the recognition of marketing fund revenue. Under U.S. GAAP, we recognize marketing fund revenue at the time the related marketing fund expenses are incurred. As marketing fund revenue and expense directly offset each other in any given period, the decline has no impact on net income.

For the six months ended May 31, 2025, revenues were $1,566,000 and net income was $271,000, or $0.04 per share, versus revenues of $1,719,000 and net income of $244,000, or $0.03 per share for the same period in 2024. Our total revenue for the six months ended May 31, 2025 decreased compared to the prior period primarily due to a decrease in marketing fund expenses, which drive the recognition of marketing fund revenue. Under U.S. GAAP, we recognize marketing fund revenue at the time the related marketing fund expenses are incurred. As marketing fund revenue and expense directly offset each other in any given period, the decline has no impact on net income.

Total operating expenses for the three months ended May 31, 2025, were $608,000, versus $696,000, in 2024. The change in operating expenses for the quarter May 31, 2025 was primarily due to a decrease in marketing fund expenses of $80,000, a decrease in professional services of $15,000, employee benefits of $14,000 and a decrease in occupancy expense of $6,000, offset by an increase in payroll of $7,000 an increase in other expenses of $20,000. Total operating expenses for the six months ended May 31, 2025 were $1,218,000 versus $1,410,000 for May 31, 2024. Marketing expenses accounted for $122,000 of the decrease for the six months of 2025 compared to same period 2024. The Marketing Department is planning on increased spending in the third and fourth quarters of fiscal 2025 as they complete scheduled marketing projects. In addition, in the six months for May 31, 2025 there was a decrease of $35,000 in employee benefit expense, a decrease in professional fees of $16,000 and a decrease in other expenses of $19,000 versus 2024.

BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet® frozen yogurt and Brewster’s® Coffee. The Company’s stock is traded on the OTCQB under the symbol BABB and its website can be visited at www.babcorp.com.

Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “estimate,” “project,” “intend,” “expect,” “should,” “would,” “believe” and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the company’s actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the company’s SEC filings.

(TABLE FOLLOWS)

Contact:BAB, Inc.
Michael K. Murtaugh (847) 948-7520
Fax: (847) 405-8140
www.babcorp.com
  

BAB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            
            
 Quarter Ended Six Months Ended
 05/31/25 05/31/24 % Change 05/31/25 05/31/24 % Change
            
REVENUES           
            
Royalty fees from franchised stores$511,879  $513,474   -0.3% $969,073  $973,163   -0.4%
Franchise and area development fee revenue 3,583   9,215   -61.1%  12,166   19,461   -37.5%
Licensing fees and other income 65,975   53,513   23.3%  140,353   160,101   -12.3%
Marketing Fund Revenue 227,049   306,636   -26.0%  444,095   566,047   -21.5%
Total Revenue 808,486   882,838   -8.4%  1,565,687   1,718,772   -8.9%
            
OPERATING COSTS AND EXPENSES           
            
Selling, general and administrative 379,698   388,771   -2.3%  771,694   842,334   -8.4%
Depreciation and amortization 981   981   0.0%  1,961   1,961   0.0%
Marketing Fund Expenses 227,049   306,636   -26.0%  444,095   566,047   -21.5%
Total Expense 607,728   696,388   -12.7%  1,217,750   1,410,342   -13.7%
            
Income from operations 200,758   186,450   7.7%  347,937   308,430   12.8%
Interest expense                 
Interest/other income 13,734   16,735   -17.9%  28,622   32,260   -11.3%
Income taxes (60,200)  (57,500)  4.7%  (106,000)  (96,500)  9.8%
            
NET INCOME$154,292  $145,685   5.9% $270,559  $244,190   10.8%
            
Earnings per share – basic and diluted$0.02  $0.02  N/M $0.04  $0.03  N/M
Average number of shares outstanding 7,263,508   7,263,508     7,263,508   7,263,508   
                    

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.