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 restaurant sales for Bad Daddy's decreased by $800,000 to $26.5 million for the quarter, primarily due to the closure of one restaurant and reduced customer traffic [11] - Good Times' total restaurant sales decreased by approximately $100,000 to $10.4 million, with same store sales down 9% [14] - Net income for the quarter was $1.5 million, or $0.14 per share, compared to $1.3 million, or $0.12 per share in the same quarter last year [17] Business Line Data and Key Metrics Changes - Bad Daddy's same store sales decreased by 1.4% for the quarter, with food and beverage costs at 30.6%, a decrease of 60 basis points from the previous year [12] - Good Times' same store sales decreased by 9%, with food and packaging costs at 31.5%, an increase of 100 basis points compared to the prior year [15] - Restaurant level operating profit for Bad Daddy's was approximately $3.8 million, or 14.4% of sales, compared to $3.9 million, or 14.3% last year [14] Market Data and Key Metrics Changes - Competitors in the QSR segment, particularly burger QSRs, are heavily discounting, impacting Good Times' sales performance [15][31] - Ground beef prices are at record highs, affecting both brands, with expectations of continued increases throughout the fiscal year [9][13] Company Strategy and Development Direction - The company is focusing on quality positioning rather than discounting, having not taken price increases since January 2024, and is now in parity with competitors [6] - A new marketing leader has been hired to enhance advertising and promotion strategies for both brands [4] - The company plans to launch a new campaign centered around Colorado native burgers and is considering incremental menu price increases to offset input cost inflation [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted mixed results in the third quarter, with improvements in same store sales at Bad Daddy's but declines at Good Times [4] - The management expressed confidence in operational improvements and the potential for increased sales through better marketing and communication of brand stories [10] - There are concerns about macroeconomic factors affecting sales, particularly demographic and geographic influences [30] Other Important Information - The company incurred $200,000 in capital expenditures related to restaurant remodels and signage projects during the quarter [19] - The company repurchased 21,968 shares under its share repurchase program, although future purchases may be reduced as cash accumulation is prioritized [18] Q&A Session Summary Question: CapEx and EBITDA expectations - Management indicated that they are not providing forward guidance on EBITDA but noted that the current quarter's EBITDA of $2.2 million is among the highest [22][23] Question: Good Times underperformance - Management attributed the underperformance to several factors, including heavy discounting by competitors and demographic challenges [30][31] Question: Share repurchase acceleration - Management suggested that any acceleration in share repurchases would likely occur in fiscal 2026, depending on macro factors and internal forecasts [33] Question: Special projects for fiscal 2026 - Management outlined plans for completing remodels at Good Times and replacing the point of sale system at Bad Daddy's as part of their capital plan [35][36]