Summary of GTIM Q1 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenues: Decreased by 5.1% to $34 million for Q4 2025, down 0.5% year-over-year from a record $141.6 million in FY 2024.

Bad Daddy's Performance: Restaurant sales fell by $1.7 million to $24 million for the quarter; same-store sales down 4.6%. Full-year sales decreased by $2.2 million to $101.4 million.

Good Times Performance: Restaurant sales decreased by $300,000 to $9.7 million; same-store sales down 6.6%. Full-year sales increased by $1.2 million to $39.2 million.

Operating Profit: Bad Daddy's operating profit was $2.4 million (9.9% of sales), down from $3.4 million (13.2% last year). Good Times operating profit was $800,000 (8% of sales), down from $1.2 million (12.4% last year).

Net Loss: Reported a net loss of $3,000 (break-even per share) compared to a net income of $200,000 ($0.02 per share) in Q4 2024.

Adjusted EBITDA: Negative $74,000 compared to $1.3 million in the prior year.

2Strategic Updates and Business Highlights

Leadership Changes: Craig So, Director of Operations, is focusing on improving accountability and operational execution, particularly during peak revenue periods.

Menu Strategy: Introduction of cook-to-order for all burger products to enhance quality while maintaining service speed. Targeted value promotions are planned to address customer concerns about pricing.

Promotional Success: Recent product promotions, including a giant Bavarian pretzel and a chocolate cookie cheesecake, have been well-received, with potential for permanent menu inclusion.

Loyalty Program: Enhancements to the GT rewards loyalty program and a refreshed mobile app to improve customer engagement.

3Forward Guidance and Outlook

Sales Improvement: Same-store sales for Good Times are expected to improve to a decline of approximately 3.6% in the early part of Q1 2026. Bad Daddy's same-store sales have shown sequential improvement, down only 1.6% in the first quarter.

Cost Management: Input costs have decreased, and the company anticipates improved food and beverage costs as a percentage of sales moving forward.

Pricing Strategy: Expecting an average price increase of about 1.7% for Q1 2026, with no significant across-the-board increases anticipated in the next six months.

4Bad News, Challenges, or Points of Concern

Sales Declines: Both concepts experienced negative same-store sales, with Good Times showing a 6.6% decline and Bad Daddy's at 4.6%.

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

Profitability Impact: Operating profits have decreased substantially due to rising costs and lower sales, raising concerns about long-term profitability.

Market Competition: The quick-service burger segment faces challenges with value perception, and the company is cautious about large-scale discounting.

5Notable Q&A Insights

There were no questions from analysts during the call, indicating either a lack of immediate concerns or a possible hesitance to engage given the recent performance metrics. In conclusion, while GTIM faced a challenging fourth quarter with declining sales and increased costs, management is optimistic about strategic initiatives and potential improvements in 2026. However, ongoing cost pressures and competitive challenges remain significant concerns.