GTIM Q3 2026 Earnings Call Summary

1Key Financial Results and Metrics

Total Revenues: Decreased to $35.2 million.

Bad Daddy's Sales: Decreased by $1.6 million to $24.9 million, with same-store sales down 2.3% for the quarter and negative 1.5% year-to-date.

Good Times Sales: Slight decrease to $10.1 million, but same-store sales increased by 0.6%.

Net Income: Increased to $1.9 million ($0.18 per share), up from $1.5 million ($0.14 per share) in Q3 2025.

Adjusted EBITDA: Rose to $2.5 million from $2.1 million in the prior year.

Cash Position: Ended the quarter with $3.6 million in cash and $0.3 million in long-term debt.

2Strategic Updates and Business Highlights

Promotional Success: A $2 promotional price for Bambinos (cheeseburger sliders) led to positive same-store sales growth and increased average check.

Menu Innovations: Successful launches of new limited-time items, including the Smashadia Burger and the upcoming Big Dill, with plans for a sampler platter and a new Power Bowl.

Training Initiatives: Expanded team member training using a new learning management system to enhance salesmanship.

Debt Management: Paid down the revolving credit facility, reflecting a strong balance sheet.

3Forward Guidance and Outlook

Sales Trends: Positive same-store sales trends are expected to continue into Q4.

Cost Management: Anticipated general and administrative expenses to be 6% to 7% of total revenues for fiscal 2026.

Pricing Strategy: No further price increases planned for the remainder of the year due to market competitiveness.

4Bad News, Challenges, or Points of Concern

Bad Daddy's Performance: Continued decline in sales and customer traffic, attributed to fewer operating weeks and a reduced number of restaurants.

Labor Costs: Despite a decrease in overall labor costs, higher hourly rates due to market forces and inflation present ongoing challenges.

Competitive Pressures: The company faces risks related to staffing constraints, supply chain issues, and increased competition in the restaurant sector.

5Notable Q&A Insights

Dividend Consideration: A question regarding the potential initiation of a cash dividend was raised. CEO Ryan Zink acknowledged the Board's ongoing evaluation of shareholder value creation strategies, including dividends, but no immediate decision was made.

Market Positioning: The discussion highlighted the potential benefits of becoming a cash dividend-paying equity, which could attract a broader range of investors. Overall, while Good Times Restaurants reported some positive trends, particularly in the Good Times segment, challenges remain, especially with Bad Daddy's performance and external market pressures. The company is focused on strategic initiatives to enhance customer experience and operational efficiency moving forward.