Wed, Feb 26, 7:46 PM (18 days ago)
BAB, Inc. (BABB) reported a net income of $525,000 for the fiscal year ending November 30, 2024, compared to $467,000 in 2023, reflecting a solid growth in profitability. Total revenues increased by 1.0% to $3,545,000, driven by a rise in franchise fee and royalty revenues. Operating expenses decreased slightly to $2,880,000, improving the operating income margin to 18.8%. The earnings per share rose to $0.07 from $0.06. Strategically, the company operates 61 franchise units and 4 licensed units, with plans for further expansion. However, it faces risks from competition, changing consumer preferences, and economic conditions affecting the food service industry. The company maintains a healthy financial condition with $2,178,000 in unrestricted cash and a working capital of $1,784,000. Looking ahead, BAB, Inc. plans to continue leveraging synergies between its brands and anticipates stable growth despite potential market challenges. The company declared a $0.03 dividend per share, indicating a commitment to returning value to shareholders. Overall, BAB, Inc. remains well-positioned in its market, with ongoing efforts to adapt and expand its franchise operations.