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 ...

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]

Core Insights - Coca-Cola reported mixed second-quarter earnings, with revenue of $12.5 billion, slightly missing expectations of $12.55 billion, but earnings per share (EPS) of 87 cents exceeded the expected 83 cents [1][2] Financial Performance - Earnings growth was attributed to strong margin growth, with gross margin up 160 basis points year-over-year and operating margin growth at 36.03%, an increase of 324 basis points [2] - Management anticipates further margin recovery in the second half of the year due to easing input cost inflation and a focus on product mix and volume for revenue growth rather than price-driven growth [3] Stock Forecast - The 12-month stock price forecast for Coca-Cola is $77.13, indicating a potential upside of 10.71% from the current price of $69.67, based on 18 analyst ratings [4] - The stock has been in a consolidation pattern since April and is currently trading near the middle of its 52-week range, with a support level around $68.90 [7][8] Strategic Initiatives - Coca-Cola plans to introduce a cane sugar version of its product as an alternative to high-fructose corn syrup, aligning with a strategy that emphasizes brand over price [5][6] - The company generates significant revenue outside the United States, which helps protect its margins from tariffs and benefits from localized supply chains [10]