Good Times(US:GTIM)2025-05-08 22:02Financial Data and Key Metrics Changes - Same store sales decreased slightly more than 3.5 points at each brand, indicating a challenging operating environment [4] - Total restaurant sales for Bad Daddy's decreased by $1.6 million to $24.8 million, primarily due to reduced customer traffic and a negative mix shift [17] - Good Times total restaurant sales increased by approximately $500,000 to $9.3 million, with same store sales decreasing by 3.6% [20] - Net loss to common shareholders for the quarter was $600,000, compared to net income of $600,000 in the same quarter last year [23] - Adjusted EBITDA for the quarter was $1 million, down from $1.5 million in the second quarter of the previous year [24] Business Line Data and Key Metrics Changes - Bad Daddy's average menu price increased by 4.7% compared to the previous year, while same store sales decreased by 3.7% [18] - Good Times' average menu price remained the same as the prior year, with food and packaging costs at 30.7%, an increase of 160 basis points [21] - Good Times restaurant level operating profit decreased by $300,000 to $700,000, with a profit margin of 8% [23] Market Data and Key Metrics Changes - The company noted a shift towards a more value-oriented customer, aligning menu and promotions accordingly [4] - Colorado-specific trends negatively affected sales performance, particularly for Bad Daddy's in Colorado [13] Company Strategy and Development Direction - The company is focusing on improving kitchen execution, consistency, and product quality, with a new Director of Operations for Good Times [5][6] - Menu changes include rolling out new burger builds and condensing the menu to focus on core items [9][10] - Marketing efforts are shifting towards social and digital media, with promising results from Connected TV and video streaming tests [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a tough quarter and expects the operating environment in the third fiscal quarter to remain challenging [28] - The focus is on improving execution and value perception through quality and service, aiming to create memorable guest experiences [28] Other Important Information - The company has temporarily paused share repurchases to redirect cash flow towards cash accumulation, debt repayment, and restaurant remodels [24] - Leadership changes include the retirement of the supply chain leader, with a new internal replacement expected to enhance operational efficiency [15] Q&A Session Summary Question: Were there any questions from participants? - There were no questions during the call, and the operator handed the call back for closing remarks [27]