GTIM — Good Times Restaurants Inc.

GTIM Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Total Revenues: Decreased by 5.1% to $34 million for Q4 2025; down 0.5% from record fiscal year 2024 sales of $141.6 million.
• Bad Daddy's Sales: Decreased by $1.7 million to $24 million for Q4; same-store sales down 4.6%.
• Good Times Sales: Decreased by $300,000 to $9.7 million for Q4; same-store sales down 6.6%.
• Net Loss: $3,000 for the quarter, compared to a net income of $200,000 in the previous year.
• Adjusted EBITDA: Negative $74,000, down from $1.3 million in Q4 2024.
• Labor Costs: Increased for both brands, with Bad Daddy's at 35.7% and Good Times at 35.9% of sales.
• Food and Beverage Costs: Elevated due to high ground beef prices, with Bad Daddy's at 31.6% and Good Times at 32.1%.

2. Strategic Updates and Business Highlights:

• Leadership Changes: Craig So, Director of Operations for Good Times, is enhancing accountability and operational execution.
• Training Improvements: Focus on restaurant-level training and the rollout of cook-to-order for burger products.
• Menu Pricing Strategy: Minimal price increases (1% since January 2024) to maintain competitive positioning; targeted value promotions planned for spring.
• Promotional Success: Bad Daddy's successful fall promotion featuring a Bavarian pretzel and a new chocolate cookie cheesecake for the holiday season.

3. Forward Guidance and Outlook:

• Sales Improvement: Same-store sales for Good Times expected to improve from a 6.6% decline in Q4 to approximately 3.6% in early Q1 2026.
• Cost Management: Anticipate lower food input costs and improvements in food and beverage costs as a percentage of sales in Q1 2026.
• General and Administrative Costs: Expected to remain at 6% to 7% for fiscal 2026.

4. Bad News, Challenges, or Points of Concern:

• Sales Declines: Continued negative same-store sales trends for both Good Times and Bad Daddy's, with a need for recovery.
• Profitability Pressures: Increased labor and food costs impacting operating profits; Bad Daddy's operating profit down to 9.9% of sales from 13.2%.
• Market Conditions: Competitive pressures in the quick-service restaurant sector, particularly regarding value perception among consumers.
• Regulatory Risks: Upcoming minimum wage increases in Colorado could further impact labor costs.

5. Notable Q&A Insights:

• No questions were posed during the call, indicating either a lack of investor concerns or perhaps a focus on the management's prepared remarks.

In summary, while GTIM faced challenges in Q4 2025 with declining sales and profitability pressures, management is optimistic about strategic initiatives aimed at improving operations and guest experiences in 2026. The focus on targeted promotions and careful pricing strategies suggests a path toward recovery, although external market pressures remain a concern.