GTIM Q4 2025 Earnings Call Summary

1Key Financial Results and Metrics

Total Revenues: Decreased by approximately 5.1% to $34 million for Q4 2025; down 0.5% from record fiscal year 2024 sales of $141.6 million.

Bad Daddy's Performance:

Q4 sales decreased by $1.7 million to $24 million; full-year sales down $2.2 million to $101.4 million.

Same-store sales down 4.6% in Q4, but improved sequentially in Q1 2026.

Restaurant-level operating profit was $2.4 million (9.9% of sales), down from $3.4 million (13.2%).

Good Times Performance:

Q4 sales decreased by $0.3 million to $9.7 million; full-year sales increased by $1.2 million to $39.2 million.

Same-store sales down 6.6% in Q4, with a small price increase expected in Q1 2026.

Restaurant-level operating profit decreased to $0.8 million (8% of sales).

Net Loss: $3,000 or $0.00 per share, compared to net income of $0.2 million ($0.02 per share) in Q4 2024.

Adjusted EBITDA: Negative $74,000, down from $1.3 million in Q4 2024.

Cash Position: $2.6 million in cash with $2.3 million in long-term debt.

2Strategic Updates and Business Highlights

Leadership Changes: Craig Soto, Director of Operations for Good Times, is focusing on improving accountability and operational execution.

Menu Strategy: Introduction of a cook-to-order process and targeted value promotions planned for spring 2026 to address customer concerns about pricing.

Promotional Success: Bad Daddy's successful fall promotion and plans for a burger of the month platform to enhance product execution and customer engagement.

Loyalty Program Enhancements: Expansion of the GT Rewards loyalty program and a refreshed mobile app to improve customer experience.

3Forward Guidance and Outlook

Sales Improvement: Early indicators show improvement in same-store sales for Q1 2026, particularly in Colorado locations.

Cost Management: Expectation of lower input costs in Q1 2026 and modest price increases to manage profitability.

General and Administrative Costs: Anticipated to remain at 6% to 7% of total revenues in fiscal 2026.

4Bad News, Challenges, or Points of Concern

Sales Decline: Continued negative same-store sales for both Good Times and Bad Daddy's, with Good Times experiencing a 6.6% decline in Q4.

Cost Pressures: Significant increases in food and labor costs, particularly due to high ground beef prices and rising minimum wage in Colorado.

Profitability Impact: Elevated costs have led to decreased operating profits and negative adjusted EBITDA.

Market Competition: Concerns over competitive pressures and the need to maintain value perception in a challenging quick-service restaurant environment.

5Notable Q&A Insights

No questions were posed during the call, indicating either a lack of investor concern or a need for more engagement from analysts. In conclusion, while GTIM faced a challenging fourth quarter with declining sales and rising costs, there are signs of potential recovery in the early part of fiscal 2026, driven by strategic initiatives and operational improvements. However, the company must navigate ongoing cost pressures and competitive dynamics to restore profitability.