BAB, Inc. Sees Positive Growth in Fiscal Year Results
BAB, Inc. Financial Highlights
BAB, Inc. recently shared its financial performance metrics for the fiscal year ending November 30, 2024. The company reported a remarkable net income of $525,000, translating to earnings of $0.07 per share. This performance reflects a slight increase from the previous year's net income of $467,000, or $0.06 per share, even as revenues grew from $3,510,000 last year to $3,545,000 this year.
Analysis of Operational Income
The operational income is another area where the company has shown strong results, amounting to $665,000 for the fiscal year 2024 compared to $615,000 in 2023. This improvement represents an increase of $50,000, marking an 8.1% growth in income before interest and taxes.
Understanding the Tax Expense
The tax provision for the year stood at $206,000, up from $183,000 a year earlier. The increase in tax expense is largely attributed to the rise in operational income and additional interest income reported by BAB, Inc. in 2024.
Operating Expenses and Cost Control
BAB, Inc. successfully managed its operating expenses, which decreased to $2,880,000 in 2024 from $2,895,000 in the prior year. The reduction is primarily due to a $67,000 decline in Marketing Fund expenses and reduced costs in occupancy and advertising.
Revenue Breakdown
The total revenue of $3,545,000 comprises various income streams, with royalty fees from franchised stores contributing $1,994,814. In addition, franchise and area development fee revenue increased significantly by 106.2% to $55,673 compared to last year. The company also reported licensing fees and other income of $317,992, up by 8.1% from 2023.
Franchise Business Performance
BAB, Inc. has successfully franchised popular brands such as Big Apple Bagels®, My Favorite Muffin®, SweetDuet®, and Brewster's® Coffee. This diverse business model continues to enhance the company's revenue stability and growth.
Looking Ahead: Financial Strategy and Goals
As BAB, Inc. moves forward, its focus will remain on sustaining growth and improving operational efficiency. The company's commitment to maintaining a healthy balance sheet while exploring new franchising opportunities will be crucial for its long-term success.
Frequently Asked Questions
What financial results did BAB, Inc. report for 2024?
BAB, Inc. reported a net income of $525,000, or $0.07 per share, indicating increased revenue from $3,510,000 in 2023 to $3,545,000 in 2024.
How did BAB, Inc.'s operating expenses change in 2024?
The company managed to reduce its total operating expenses from $2,895,000 in 2023 to $2,880,000 in 2024.
What are the key drivers of revenue for BAB, Inc.?
The primary drivers include royalty fees from franchised operations, franchise and area development fees, and licensing fees.
What brands does BAB, Inc. franchise?
BAB, Inc. franchises popular brands such as Big Apple Bagels®, My Favorite Muffin®, SweetDuet®, and Brewster's® Coffee.
What strategic goals does BAB, Inc. have for the future?
Future goals focus on sustaining growth, enhancing operational efficiency, and expanding franchise opportunities for increased revenue stability.
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