Good Times Restaurants Inc. (GTIM) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call revealed disappointing financial results with decreased revenues, increased costs, and a net loss. Despite some optimistic guidance for fiscal 2026, the lack of Q&A engagement and absence of a clear shareholder return plan add to uncertainty. The negative sentiment is compounded by regulatory challenges and operational cost increases, leading to a likely negative stock reaction.
Key Financial Performance
Total revenues Decreased approximately 5.1% for the quarter to $34 million and decreased approximately 0.5% compared to fiscal year 2024 sales to $141.6 million. The decline was attributed to soft sales and higher costs, particularly elevated ground beef prices.
Bad Daddy's total restaurant sales Decreased $1.7 million to $24 million for the quarter and decreased $2.2 million to $101.4 million for the full year. The decrease was driven by reduced customer traffic and the closure of the Longmont, Colorado restaurant, partially offset by menu price increases.
Bad Daddy's same-store sales Decreased 4.6% for the quarter. The decline was attributed to reduced customer traffic, though there was sequential improvement in Colorado restaurants.
Bad Daddy's food and beverage costs Increased to 31.6% for the quarter, a 40 basis point increase from last year's quarter. The increase was due to record high ground beef prices and higher prices for other proteins, partially offset by a 24% average increase in menu pricing.
Bad Daddy's labor costs Increased by 140 basis points to 35.7% for the quarter. The increase was due to lower team member productivity resulting from sales deleverage.
Bad Daddy's restaurant-level operating profit Decreased to $2.4 million for the quarter or 9.9% of sales, compared to $3.4 million or 13.2% last year. The decline was due to increases in labor and food and beverage costs, as well as the deleveraging impact of lower sales on fixed costs.
Good Times total restaurant sales Decreased approximately $0.3 million to $9.7 million for the quarter compared to the prior year fourth quarter. The decrease was attributed to soft sales and higher costs.
Good Times same-store sales Decreased 6.6% for the quarter. The decline was attributed to soft sales, though there was a 240 basis point sequential improvement from the fiscal third quarter.
Good Times food and packaging costs Increased to 32.1% for the quarter, a 120 basis point increase compared to last year's quarter. The increase was due to record high beef prices and higher costs for bacon and eggs.
Good Times labor costs Increased to 35.9%, a 200 basis point increase from the prior year's quarter. The increase was due to higher average wage rates resulting from market forces and minimum wage increases, as well as decreased productivity due to sales deleverage.
Good Times restaurant-level operating profit Decreased by $0.4 million for the quarter to $0.8 million. As a percent of sales, it decreased by 420 basis points to 8% due to elevated costs throughout the P&L.
Combined general and administrative expenses Decreased to $2.4 million during the quarter or 7% of total revenues, a decrease of 70 basis points from the prior year quarter. The decrease was primarily related to reduced multi-unit supervision costs, legal and professional services, and outsourced accounting fees.
Net loss to common shareholders $3,000 or $0.00 per share for the quarter, compared to net income of $0.2 million or $0.02 per share in the fourth quarter last year. The decline was due to elevated costs and reduced profitability.
Adjusted EBITDA Negative $74,000 for the quarter, compared to $1.3 million for the fourth quarter of 2024. The decline was due to reduced sales and increased costs.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Cook-to-order process: Good Times is rolling out a true cook-to-order process for all burger products, aiming to improve quality without impacting service speed.
New menu items: Bad Daddy's introduced a giant shareable Bavarian pretzel and a chocolate cookie cheesecake, both of which are being considered for inclusion in the core menu.
Seasonal promotions: Bad Daddy's plans to introduce a burger of the month platform to simplify messaging and focus on product execution.
Same-store sales trends: Good Times saw a 6.6% decline in same-store sales in Q4, but this was a sequential improvement from Q3. Bad Daddy's same-store sales were down 4.6% in Q4 but showed improvement in Colorado locations.
Pricing strategy: Both brands implemented modest price increases (around 1%) to address market positioning while remaining competitive.
Labor cost management: Efforts are being made to realign general manager schedules at Good Times to improve operational efficiency during peak hours.
Training improvements: Enhanced restaurant-level training is being implemented to support operational changes like the cook-to-order process.
Targeted value promotions: Good Times plans to address value concerns with targeted promotions and expanded loyalty program offerings.
Mobile app refresh: Good Times updated its mobile app to simplify the ordering experience and enhance customer engagement.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Market Conditions: Soft sales in the fourth fiscal quarter, particularly at the Good Times concept, negatively impacted profitability. Same-store sales at Good Times remained negative, with a 6.6% decline in the fourth quarter and a 3.6% decline in the first 11 weeks of the first fiscal quarter.
Cost Pressures: Significantly elevated costs of ground beef and other proteins, as well as higher labor costs due to wage increases and decreased productivity, have adversely affected profitability. Labor costs increased by 140 basis points for Bad Daddy's and 200 basis points for Good Times compared to the prior year.
Supply Chain Constraints: Record high beef prices and significantly higher costs for bacon and eggs were experienced during the quarter, contributing to increased food and packaging costs.
Economic Uncertainties: General economic and operating conditions, including inflation and wage increases, have created financial pressures. Colorado's minimum wage increase in January 2026 will further impact labor costs.
Strategic Execution Risks: Challenges in implementing restaurant development plans, including delays due to weather, local permitting, and other reasons, have been noted. Additionally, the company faces risks associated with integrating new restaurants and executing targeted pricing adjustments.
Competitive Pressures: The quick service burger segment has faced a poor reputation for value due to significant price increases by competitors. The company remains sensitive to menu price increases and is averse to large-scale discounting, which could impact its competitive positioning.
Operational Challenges: Decreased customer traffic and closure of a restaurant in Longmont, Colorado, contributed to reduced sales for Bad Daddy's. Increased repair, maintenance, and utility expenses have also added to operational costs.
Regulatory Hurdles: Changes in federal, state, or local laws and regulations, including wage and tip credit regulations, could impact operations and financial performance.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Good Times same-store sales: Same-store sales at Good Times were down approximately 3.6% for the first 11 weeks of the first fiscal quarter compared to the same period in the prior year. The company expects to address value concerns with targeted value promotions starting in spring and expanded offerings through the GT Rewards loyalty program and a refreshed mobile app.
Bad Daddy's same-store sales: Same-store sales for Bad Daddy's improved sequentially in the first quarter and were down approximately 1.6% for the first 11 weeks of the quarter compared to the same period in the prior year. The company expects an average year-over-year price increase of approximately 1.7% for the first quarter of 2026.
Menu pricing adjustments: The company plans to take only modest price increases for both Good Times and Bad Daddy's in fiscal 2026, with targeted adjustments to specific menu items rather than significant across-the-board increases.
Food and beverage costs: Input costs, including record-high beef prices, have decreased into the first quarter of 2026. The company expects food and beverage costs as a percentage of sales to improve quarter-over-quarter for both Good Times and Bad Daddy's.
Labor costs: Labor costs are expected to improve in fiscal 2026 despite challenges such as minimum wage increases in Colorado. The company is focused on improving team member productivity to offset these increases.
General and administrative expenses: The company anticipates general and administrative costs to be in the range of 6% to 7% of total revenues in fiscal 2026.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
share repurchase program: Risks associated with the share repurchase program were mentioned as part of the forward-looking statements. However, no specific details or updates about the program were provided in the transcript.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Were there any questions asked during the Q&A session?
A:No, there were no questions asked during the Q&A session.
Q:What did Ryan Zink mention about the first quarter of fiscal 2026?
A:Ryan Zink mentioned that the first quarter of fiscal 2026 is showing improvement in same-store sales and adjusted EBITDA.
Q:What is the focus of the product and promotional road map?
A:The product and promotional road map is robust, targeted towards broad appeals, and aims to drive operating improvements for better guest experiences.
Q:What did Ryan Zink say about the restaurant teams?
A:Ryan Zink expressed pride in the leaders and team members in the restaurants for delivering memorable guest experiences and creating shareholder value.
Q:Review of Unclear Management Responses
A:There were no questions asked during the Q&A session, so management did not avoid answering any questions or provide unclear responses.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Accounting Corporate
Bad Daddy
Bowl burger
Changes state
Cheddar grain
Cheesecake core
Colorado restaurant
Corporate Secretary
Daddy input
Daddy quality
VP Finance
beef price
beverage percent
chocolate
cook
core menu
fall
feature
food beverage
house
improvement Colorado
manager
period
premium competitor
pretzel
pricing adjustment
productivity sale
profitability
record
sale Bad
sale deleverage
sale improvement
service burger
system
wage increase
GTIM Transcript
Good Times Restaurants Inc. (GTIM) Q2 2026 Earnings Call Transcript
Unknown5-9
The earnings call presents a mixed picture. Positive elements include revenue and net income growth, improved gross margin, and increased cash flow. However, significant challenges such as staffing and supply chain constraints, inflation, and delays in restaurant development temper these positives. The absence of a shareholder return plan discussion and unclear management responses in the Q&A further contribute to uncertainty. Given these factors, a neutral sentiment is appropriate, reflecting balanced positive financial performance against operational and strategic challenges.
Good Times Restaurants Inc. (GTIM) Q1 2026 Earnings Call Transcript
Unknown2-5
Despite a decrease in total revenues and same-store sales, there were improvements in cost management and operating profit margins. The company plans to address value concerns and expand offerings, but faces risks like increased competition and economic conditions. The Q&A session revealed a focus on debt reduction and potential development, but no new partnerships or guidance changes were announced. Given these mixed signals and no significant catalysts, the stock price reaction is expected to be neutral over the next two weeks.
Good Times Restaurants Inc. (GTIM) Q4 2025 Earnings Call Transcript
Unknown12-23
The earnings call revealed disappointing financial results with decreased revenues, increased costs, and a net loss. Despite some optimistic guidance for fiscal 2026, the lack of Q&A engagement and absence of a clear shareholder return plan add to uncertainty. The negative sentiment is compounded by regulatory challenges and operational cost increases, leading to a likely negative stock reaction.
Good Times Restaurants Inc. (GTIM) Q3 2025 Earnings Call Transcript
Unknown8-9
The earnings call reveals several concerns: decreased sales, increased costs, and underperformance of the Good Times concept, despite some positive aspects like improved net income and cash reserves. The Q&A highlights management's reluctance to provide forward guidance, contributing to uncertainty. Despite strategic shifts and potential future projects, the immediate outlook appears challenging, leading to a likely negative stock reaction.
GTIM Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
