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Good Times Restaurants (NasdaqCM:GTIM) Q1 2026 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsKeri August - Chief Accounting OfficerKevin Holden - Founder and CEORyan Zink - CEOOperatorHello, everyone. Thank you for joining us, and welcome to the Good Times Restaurants Incorporated Q1 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, p ...

Good Times Restaurants (NasdaqCM:GTIM) Q1 2026 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsKeri August - Chief Accounting OfficerKevin Holden - Founder and CEORyan Zink - CEOOperatorHello, everyone. Thank you for joining us, and welcome to the Good Times Restaurants Incorporated Q1 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, p ...

Good Times Restaurants (NasdaqCM:GTIM) Q1 2026 Earnings call February 05, 2026 05:00 PM ET Speaker2Hello, everyone. Thank you for joining us, and welcome to the Good Times Restaurants Incorporated Q1 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Keri August, Chief Accounting Officer. Please go ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 30, 2025 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 0-18590 Good Times Restaurants Inc. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) 651 CORP ...

Exhibit 99.1 FOR IMMEDIATE RELEASE February 5, 2026 Nasdaq Capital Markets - GTIM GOOD TIMES RESTAURANTS REPORTS RESULTS FOR THE 2026 FIRST FISCAL QUARTER ENDED DECEMBER 30, 2025 (DENVER, CO) Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad Daddy's Burger Bar and Good Times Burgers & Frozen Custard restaurant brands, today reported financial results for the 2026 first fiscal quarter. Key highlights of the Company's financial results include: Ryan M. Zink, the Company's Chief Executive Officer ...

Core Viewpoint - The restaurant industry is facing challenges due to cautious consumer spending and cost pressures, with Rave Restaurant Group, Inc. (RAVE) and Good Times Restaurants Inc. (GTIM) representing two distinct business models in this environment [1][2]. Company Overview - RAVE operates an asset-light, franchise-driven model primarily through Pizza Inn and Pie Five, allowing for lower costs and flexibility in expansion [1][2]. - GTIM has a more operations-intensive dual-brand portfolio that includes both quick-service and full-service concepts, which creates broader revenue opportunities but also increases sensitivity to execution and labor costs [2]. Stock Performance - RAVE has outperformed GTIM, with a stock increase of 22.2% over the past year compared to GTIM's decline of 52.6% [3]. - Over the past three months, RAVE's stock rose by 4.1%, while GTIM's stock fell by 26.2% [3]. Valuation Metrics - RAVE's trailing 12-month enterprise value-to-sales (EV/S) ratio is 2.9X, above its five-year median of 1.9X, indicating a higher valuation [5]. - GTIM's trailing 12-month EV/S multiple is 0.1X, below its five-year median of 0.2X, suggesting it is undervalued compared to the sector average of 1.8X [5]. Factors Supporting RAVE - RAVE's business model is well-suited for a cost-conscious consumer environment, allowing for participation in sales trends through royalties while maintaining low capital needs [6]. - The Pizza Inn brand is showing improving momentum due to value-focused promotions, which support traffic and comparable performance [7]. - RAVE maintains a strong liquidity position with significant cash and short-term investments, enhancing its operational resilience [8]. Factors Supporting GTIM - GTIM is undergoing an operational reset to address softer sales, with early fiscal 2026 showing signs of stabilization in performance [9]. - The company is enhancing traffic and guest engagement through improved marketing and menu initiatives, including refreshed advertising strategies and loyalty programs [10]. - GTIM's dual-brand model provides exposure to various dining occasions, supporting long-term growth potential [11]. Investment Recommendation - RAVE is currently viewed as a better investment option compared to GTIM due to its stronger stock performance, scalable model, and fewer execution challenges [14][15].

Financial Performance - Fiscal 2025 net revenues decreased by $750,000 (0.5%) to $141,630,000 from $142,380,000 in fiscal 2024[17] - Same store sales decreased by 2.1% at Bad Daddy's brand and by 5.0% at Good Times brand during fiscal 2025[17] - Total interest expense on notes payable was $191,000 for fiscal 2025, compared to $108,000 for fiscal 2024[26] - Good Times experienced a same store sales decrease of 5.0% in fiscal 2025, following a 2.9% increase in fiscal 2024, with a compound annual growth rate of 3.5% from fiscal 2015 to 2025[36] Cash and Debt Management - As of September 30, 2025, the company ended with $2.6 million in cash and $2.3 million in long-term debt[17] - The Cadence Credit Facility allows for loans up to $8,000,000, with an interest rate of 7.27% as of September 30, 2025[22] - The Cadence Credit Facility allows for loans up to $8,000,000, with a maturity date of April 20, 2028, and an interest rate of 7.27% as of September 30, 2025[20][22] Share Repurchase and Stock Performance - The company has repurchased a total of 1,822,246 shares at an aggregate cost of approximately $5,019,000 under its share repurchase program[19] Sales and Revenue Streams - Off-premises sales accounted for approximately 27% of all system-wide sales in fiscal 2025[30] - Bad Daddy's restaurants averaged $2.6 million in sales for fiscal 2025, a decline from fiscal 2024, but income from operations increased year over year[45] - Total alcoholic beverages account for approximately 12% of all sales and 16% of on-premises sales in Bad Daddy's restaurants[37] - Bad Daddy's average sales per transaction are approximately $38, with lunch representing 33% and dinner/happy hour 67% of sales[30] Operational Strategy - The company emphasizes operational excellence and financial discipline, aiming for growth while maintaining a low debt load[39] - The company aims to enhance operational capabilities while managing expenses, particularly in cost of sales and labor[47] - The company has implemented a cloud-based point-of-sale system across all company-owned Good Times restaurants, with plans to complete implementation at Bad Daddy's locations within 18 months[78] Brand Development and Growth Plans - Bad Daddy's brand is focused on disciplined unit growth, primarily financed from operating cash flow, with significant expansion potential due to small market penetration[40] - The company anticipates that most of its unit growth will come from the development of additional Bad Daddy's Burger Bar locations[98] - Good Times does not have explicit plans for additional restaurant development but may consider opportunistic growth in Colorado and surrounding states[49] Employee and Operational Structure - As of September 30, 2025, the company employed approximately 2,078 active employees, with 1,839 being hourly team members and 239 salaried managers or professional staff[82] - Bad Daddy's Burger Bar utilizes a team of three to four managers per restaurant, with a bonus pool based on sales and operational objectives to incentivize performance[68] Marketing and Customer Engagement - The marketing strategy for Bad Daddy's Burger Bar focuses on local store marketing and community events, supplemented by targeted social and digital media investments[63] - Good Times aims to drive same-store sales by attracting new customers and increasing visit frequency, while also highlighting product differentiation[64] Competitive Landscape - The restaurant industry is highly competitive, with Bad Daddy's Burger Bar facing competition from both local and national gourmet burger concepts[83] - Good Times competes with several hamburger-oriented quick-service restaurants, including those with greater financial resources and market presence[84] - Good Times may have a competitive advantage in product quality compared to traditional quick-service burger chains, but faces challenges from established competitors with greater financial resources[86] Regulatory and Compliance Issues - The company is subject to various health, safety, and labor regulations, which could impact restaurant operations and development[88] - Each restaurant is subject to various health and safety regulations, which could delay new openings if licenses are not obtained[88] Franchise Operations - The company operates two reportable business segments: Good Times Burgers and Frozen Custard, and Bad Daddy's Burger Bar[91] - The company actively monitors franchisee performance and provides support in areas such as menu management and marketing to ensure compliance with operational standards[77] - The company is subject to federal and state laws regulating franchise operations, which may impose restrictions on franchise agreements[89] Future Outlook - Forward-looking statements indicate expectations for unit growth primarily through the development of additional Bad Daddy's Burger Bar locations[98] - Management believes it will have adequate cash from operations and credit facility borrowings to meet future capital expenditure and working capital requirements in fiscal 2026[98]

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Financial Data and Key Metrics Changes - Total revenues decreased approximately 5.1% for the quarter to $34 million and decreased approximately 0.5% compared to the all-time record fiscal year 2024 sales of $141.6 million [11] - The net loss to common shareholders for the quarter was $3,000 or 0 cents per share compared to net income of $0.2 million or 2 cents per share in the fourth quarter last year [18] - Adjusted EBITDA for the quarter was negative $74,000 compared to $1.3 million for the fourth quarter of 2024 [19] Business Line Data and Key Metrics Changes - For 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 [11] - Same-store sales for Bad Daddy's decreased 4.6% for the quarter, while same-store sales for Good Times decreased 6.6% for the quarter [11][15] - Good Times' total restaurant sales for company-owned restaurants decreased approximately $0.3 million to $9.7 million for the quarter compared to the prior year fourth quarter [15] Market Data and Key Metrics Changes - Same-store sales at Good Times remained negative in the fourth quarter, with a 6.6% decline representing a 240 basis points sequential improvement from the fiscal third quarter [4] - Bad Daddy's same-store sales weakened during the fourth quarter but improved sequentially to date in the first quarter, down approximately 1.6% through the first 11 weeks of the quarter compared to the same time period in the prior year [8] Company Strategy and Development Direction - The company is committed to immediate improvement in profitability and is focusing on realigning general manager schedules to enhance operational efficiency [5] - The company plans to address value concerns with targeted value promotions and expects expanded offerings through the GT Rewards loyalty program and a refreshed mobile app [8] - The company remains averse to large-scale discounting due to its impacts on profitability [8] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the fourth quarter results but noted that the first quarter of fiscal 2026 is shaping up to show improvement in same-store sales and Adjusted EBITDA [23] - Management highlighted the importance of operational improvements and guest experiences as key drivers for future value creation [23] Other Important Information - Food and beverage costs for Bad Daddy's were 31.6% for the quarter, a 40 basis point increase from last year's quarter, primarily due to record high ground beef prices [12] - Labor costs increased by 140 basis points compared to the prior year quarter to 35.7% for Bad Daddy's, attributed to lower team member productivity [13] - The company anticipates general and administrative costs to be 6%-7% in fiscal 2026 [18] Q&A Session Summary - There were no questions during the Q&A session [21]