Good Times(US:GTIM)2026-02-05 23:00Financial 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]