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Financial Data and Key Metrics Changes - Total revenues decreased approximately 10% for the quarter to $32.7 million [15] - Net income to common shareholders for both the current quarter and the prior year quarter was $0.2 million or $0.02 per share [25] - Adjusted EBITDA was $1.3 million for both the first quarters of 2026 and 2025 [25] Business Line Data and Key Metrics Changes - Bad Daddy's total restaurant sales decreased $2.9 million to $23.2 million for the quarter, with same-store sales decreasing 1.2% [15][16] - Good Times total restaurant sales decreased approximately $0.7 million to $9.2 million for the quarter, with same-store sales decreasing 3.1% [20][21] Market Data and Key Metrics Changes - The average menu price during the quarter was 1.7% higher than Q1 2025 for Bad Daddy's [16] - Good Times expanded pricing tiers based on testing and measuring price elasticity, allowing for more precise pricing adjustments [21] Company Strategy and Development Direction - The company aims to prioritize paying down remaining debt, building cash reserves, and resuming share repurchases [29] - The company is focused on developing additional Bad Daddy's locations while being selective about site choices [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving sales trends at both brands, despite challenges from weather and operational disruptions [6][34] - The company is adapting its menu and promotional strategies to better meet customer preferences and market trends [12][13] Other Important Information - The company experienced significant weather-related disruptions, losing 28 full restaurant operating days due to storms [7] - Labor costs decreased by 60 basis points compared to the prior year quarter, attributed to reduced incentive compensation [18] Q&A Session Summary Question: Plans for cash deployment after buying back franchises - Management's first priority is paying down remaining debt, followed by building cash reserves and resuming share repurchases, with Bad Daddy's development as a third priority [29] Question: General feedback on company performance - Management received positive feedback on the company's turnaround efforts and expressed gratitude for the team's contributions [31]

Financial Data and Key Metrics Changes - Total revenues decreased approximately 10% for the quarter to $32.7 million [14] - Net income to common shareholders for both the current quarter and the prior year quarter was $0.2 million or $0.02 per share [24] - Adjusted EBITDA was $1.3 million for both the first quarters of 2026 and 2025 [24] Business Line Data and Key Metrics Changes - Bad Daddy's total restaurant sales decreased $2.9 million to $23.2 million for the quarter, with same-store sales decreasing 1.2% [14][15] - Good Times total restaurant sales decreased approximately $0.7 million to $9.2 million for the quarter, with same-store sales decreasing 3.1% [19] Market Data and Key Metrics Changes - The average menu price during the quarter was 1.7% higher than Q1 2025 for Bad Daddy's [15] - Good Times' average menu price for the quarter was approximately 0.7% higher than the prior year quarter [19] Company Strategy and Development Direction - The company is focusing on paying down remaining debt as a priority, followed by building additional cash and resuming share repurchase [28] - The company plans to develop additional Bad Daddy's locations, being selective about site choices [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued improvement in sales trends at both brands, despite challenges from weather and market conditions [5][33] - The company is adapting its loyalty program to better understand guests and drive incremental traffic [10] Other Important Information - The company experienced significant weather impacts, losing 28 full restaurant operating days due to storms [6] - Labor costs decreased by 60 basis points compared to the prior year quarter, attributed to reduced incentive compensation [17] Q&A Session Summary Question: Plans for cash deployment after buying back franchises - Management's first priority is paying down remaining debt, followed by building cash and resuming share repurchase, with Bad Daddy's development as a third priority [28] Question: General feedback on company performance - Management received positive feedback on the turnaround efforts and expressed gratitude for the team's contributions [30]

Financial Data and Key Metrics Changes - Total revenues decreased approximately 10% for the quarter to $32.7 million [14] - Net income to common shareholders for both the current quarter and the prior year quarter was $0.2 million or $0.02 per share [22] - Adjusted EBITDA was $1.3 million for both the first quarters of 2026 and 2025 [22] Business Line Data and Key Metrics Changes - Bad Daddy's total restaurant sales decreased $2.9 million to $23.2 million for the quarter, with same-store sales decreasing 1.2% [14][15] - Good Times total restaurant sales decreased approximately $0.7 million to $9.2 million for the quarter, with same-store sales decreasing 3.1% [18][19] - Restaurant level operating profit for Bad Daddy's was approximately $3.2 million for the quarter, or 13.7% of sales [17] - Good Times restaurant level operating profit was flat quarter-over-quarter at $0.9 million, with a percentage of sales increase to 10.3% [21] Market Data and Key Metrics Changes - Same-store sales at both brands remained negative for the quarter but showed sequential improvement from the previous quarter [5] - The average menu price during the quarter was 1.7% higher than Q1 2025 for Bad Daddy's [14] - Good Times expanded pricing tiers based on testing and measuring price elasticity, allowing for more targeted pricing adjustments [19] Company Strategy and Development Direction - The company aims to prioritize paying down remaining debt, building cash reserves, and resuming share repurchases, with a focus on Bad Daddy's development [27][28] - The company is shifting to a Burger of the Month platform to allow for more flexible promotional items [11][12] - The company continues to emphasize a guest-first mindset to enhance customer experience and drive long-term sales and profit gains [13] Management's Comments on Operating Environment and Future Outlook - Management noted that underlying sales trends have continued to improve into the second quarter, despite challenges from winter storms impacting operations [5] - The company is optimistic about the effectiveness of its loyalty program, which has seen an increase in loyalty attachment rates [9][10] - Management acknowledged the unpredictable economic environment and the need for liquidity [27] Other Important Information - Food and beverage costs for Bad Daddy's were 30.2% for the quarter, a 130 basis point decrease from the previous year [16] - Labor costs for Good Times decreased to 35%, a 170 basis point decrease from the prior year [20] - General and administrative expenses were $2.1 million during the quarter, or 6.3% of total revenues, a decrease of 80 basis points from the prior year [21] Q&A Session Summary Question: What is the plan to deploy cash after buying back the remaining franchises of Good Times? - Management's first priority is paying down remaining debt, followed by building cash reserves, and then resuming share repurchases, with a focus on Bad Daddy's development [26][27]

Revenue Performance - Net revenues for the quarter ended December 30, 2025 decreased by $3,627,000 or 10.0% to $32,706,000 from $36,333,000 for the quarter ended December 31, 2024[81]. - Bad Daddy's restaurant sales decreased by $2,876,000 to $23,202,000 for the quarter ended December 30, 2025, primarily due to the closure of one restaurant and an additional week in the prior fiscal quarter[82]. - Good Times restaurant sales decreased by $716,000 to $9,171,000 for the quarter ended December 30, 2025, driven by an additional week in the prior fiscal quarter and competitive pressures[83]. Same Store Sales - Same store sales for Bad Daddy's decreased by 1.2% during the fiscal quarter ended December 30, 2025, impacted by discounts and reduced customer traffic[86]. - Same store sales for Good Times decreased by 3.1% during the quarter ended December 30, 2025, primarily due to increased competition and reduced customer traffic[87]. Cost Management - Food and packaging costs for the quarter ended December 30, 2025 decreased by $1,522,000 to $9,841,000, representing 30.4% of restaurant sales[88]. - Payroll and other employee benefit costs decreased by $1,573,000 to $11,210,000, representing 34.6% of restaurant sales for the quarter ended December 30, 2025[91]. - Occupancy costs decreased by $174,000 to $2,509,000, representing 7.8% of restaurant sales for the quarter ended December 30, 2025[94]. - Depreciation and amortization costs decreased by $78,000 to $940,000 for the quarter ended December 30, 2025, compared to $1,018,000 in the same quarter of the previous year[100]. - General and administrative costs decreased by $533,000 to $2,055,000 (6.3% of total revenues) from $2,588,000 (7.1% of total revenues) for the quarter ended December 30, 2025[101]. Profitability - Income from operations increased to $300,000 for the quarter ended December 30, 2025, compared to $77,000 in the same quarter of the previous year[106]. - Net income for the quarter ended December 30, 2025, was $198,000, an increase from $174,000 in the same quarter of the previous year[109]. - Adjusted EBITDA for the quarter ended December 30, 2025, was $1,261,000, slightly down from $1,262,000 in the same quarter of the previous year[116]. Cash Flow and Capital Management - Net cash provided by operating activities was $1,421,000 for the quarter ended December 30, 2025, compared to a net cash used of $518,000 in the same quarter of the previous year[122]. - Net cash used in investing activities decreased significantly to $187,000 for the quarter ended December 30, 2025, from $1,846,000 in the same quarter of the previous year[124]. - The company reported a working capital deficit of $8,247,000 as of December 30, 2025[119]. Advertising and Interest Expenses - Advertising costs for Good Times increased to $574,000 (6.2% of total revenues) for the quarter ended December 30, 2025, compared to $298,000 (3.0% of total revenues) in the same quarter of the previous year[104]. - Interest expense increased to $51,000 during the quarter ended December 30, 2025, compared with $46,000 during the same quarter of the previous year[107]. Strategic Outlook - The company continues to pursue unit growth opportunities while adopting a more conservative approach to leverage due to the current economic environment[76]. - There were no preopening costs in the fiscal quarter ended December 30, 2025, compared to $8,000 in the prior year related to training for new restaurant acquisitions[99].

Financial Performance - Total revenues for the first fiscal quarter of 2026 were $32.7 million, a decrease from $36.3 million in the same quarter of fiscal 2025[6] - Net income attributable to common shareholders was $0.2 million ($0.02 per share) for the quarter, compared to $0.164 million in the same quarter of fiscal 2025[6] - Adjusted EBITDA for the quarter was $1.3 million, reflecting the company's focus on cost containment and improved profitability[6] - Total restaurant-level operating profit for the company was $4,251,000 in Q1 2026, compared to $4,395,000 in Q1 2025, reflecting a decline[18] - Adjusted EBITDA for Q1 2026 was $1,261,000, slightly down from $1,262,000 in Q1 2025[21] - Net income attributable to common shareholders was $181,000 in Q1 2026, up from $164,000 in Q1 2025[21] Sales Performance - Same store sales for Bad Daddy's restaurants decreased by 1.2% and for Good Times restaurants decreased by 3.1% compared to the first quarter of fiscal 2025[6] - Bad Daddy's Burger Bar reported restaurant sales of $23,202,000 in Q1 2026, a decrease from $26,078,000 in Q1 2025[18] - Good Times Burgers & Frozen Custard had restaurant sales of $9,171,000 in Q1 2026, down from $9,887,000 in Q1 2025[18] Cost Management - Restaurant operating costs decreased to $29.1 million from $32.6 million in the same quarter of fiscal 2025, driven by improved cost controls[12] - Food and packaging costs for Bad Daddy's Burger Bar were 30.2% of sales in Q1 2026, a slight improvement from 31.5% in Q1 2025[18] - Payroll and benefits costs for Good Times Burgers & Frozen Custard were 35.0% of sales in Q1 2026, down from 36.7% in Q1 2025[18] - Restaurant occupancy costs for Bad Daddy's Burger Bar increased to $1,615,000 in Q1 2026, compared to $1,752,000 in Q1 2025[18] Strategic Initiatives - The company plans to shift to a single monthly food feature strategy at Bad Daddy's to enhance customer engagement and operational efficiency[4] - Good Times has transitioned to a cook-to-order model for burgers, improving product quality without increasing labor costs[4] - The company operates 38 Bad Daddy's restaurants and 30 Good Times locations, with a focus on expanding its market presence[9] Financial Position - Cash and cash equivalents at the end of the quarter were $3.3 million, an increase from $2.6 million at the end of the previous fiscal year[15] - The company ended the quarter with $1.8 million in long-term debt, indicating a stable financial position[6] Reclassification Impact - The company reclassified certain prior year activities, resulting in an increase to restaurant-level operating profit by approximately $0.3 million for Q1 2025[18] Performance Metrics - The company emphasizes that Adjusted EBITDA is a useful measure for assessing operating performance without the effects of non-cash charges[24]

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]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

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]