Good Times (GTIM) Q1 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2025
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Source: NASDAQ.COM
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About GTIM
Good Times Restaurants Inc. is an operator of Bad Daddy's Burger Bar and Good Times Burgers & Frozen Custard. The Company, through its subsidiaries, owns and operates or licenses 38 Bad Daddy’s restaurants in seven states. Bad Daddy’s Burger Bar is a full-service, casual dining small box concept. Bad Daddy's operates all its restaurants under a table service / full bar service model. Its menu consists of burgers, sandwiches, main-course salads, and appetizers. Good Times is a drive-thru, quick-service burger-focused restaurant concept. The Company owns and operates 27 Good Times restaurants, and franchises an additional three: one located in Aurora, Colorado and two in Wyoming. Its menu consists of wild fries, crinkle cut fries, jalapeno cheddar cheese poppers, onion rings, soft drinks, fresh lemonades, with a selection of shakes and floats made with its frozen custard. Its subsidiaries include Good Times Drive Thru, Inc., BD of Colorado, LLC, and Bad Daddy’s International, LLC.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Financial Overview: Good Times Restaurants reported a Q1 GAAP EPS of $0.01, with revenue of $33.2 million reflecting an 8.6% year-over-year decline, indicating pressure in the competitive market.
- Net Income Status: The net income attributable to common shareholders was $0.1 million for the quarter, demonstrating the company's ability to maintain profitability despite declining revenues, though overall financial performance requires improvement.
- Adjusted EBITDA: The adjusted EBITDA stood at $1.4 million, a non-GAAP measure indicating some operational efficiency improvements, despite the challenges posed by revenue decline.
- Financial Position: At the end of the quarter, the company had $2.7 million in cash and $1.0 million in long-term debt, reflecting a solid liquidity management strategy, although the debt level warrants attention regarding its impact on future operations.
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- Sales Growth Trend: Despite ongoing negative comps, both Good Times and Bad Daddy's reported sequential improvement in same-store sales, with Ryan Zink noting a slight year-over-year increase in net income, indicating business resilience even with one less week in the fiscal calendar.
- Cost Control Effectiveness: Keri August highlighted that food and beverage costs decreased to 30.2%, a 130 basis point drop from last year, while menu price increases and cost controls improved margins, reflecting the company's adaptability in challenging conditions.
- Loyalty Program Enhancement: The newly launched loyalty program increased attachment rates from 3%-4% to over 7%, with top-performing restaurants exceeding 10%, which not only enhances customer loyalty but also lays a foundation for future sales growth.
- Future Outlook: Management expects continued improvement in same-store sales trends into Q2, planning a 1.1% menu price increase at Bad Daddy's, demonstrating the company's keen responsiveness to market dynamics and flexible pricing strategies.
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- Earnings Performance: Good Times Restaurants reported a GAAP EPS of $0.02 for Q1, with revenue at $32.7 million, reflecting a 10% year-over-year decline, indicating resilience amidst market challenges.
- Stock Price Reaction: Following the earnings report, Good Times Restaurants' shares rose by 5.93%, demonstrating investor confidence in the company's future growth potential despite the revenue decline.
- Menu Price Adjustment: The company anticipates an average menu price increase of 1.7% at Bad Daddy's in Q1 2026 while targeting value promotions to attract customers and boost sales.
- Future Outlook: Despite the revenue drop in Q1, Good Times Restaurants is actively adjusting its strategies to respond to market changes, aiming to restore growth through price adjustments and promotional activities.
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- Sales Weakness: Good Times Restaurants Inc. reported a net income of only $6 for FY 2025, reflecting a decline from the previous year and indicating overall sales weakness across both Bad Daddy's and Good Times brands, particularly in the Colorado market.
- Same Store Sales Improvement: Despite the overall sales decline, Bad Daddy's demonstrated greater resilience in markets outside Colorado, with same-store sales outperforming consolidated results by nearly 100 basis points for FY 2025, highlighting the brand's potential in other markets.
- Advertising Strategy Adjustment: The company is adjusting its advertising and promotional strategies, including launching a new branding campaign aimed at effectively reaching customers to drive improved traffic and sales at its restaurants.
- Optimistic Future Outlook: CEO Ryan M. Zink expressed optimism for FY 2026 performance despite the challenges faced in FY 2025, planning to enhance brand competitiveness by better understanding customer needs and swiftly adapting to meet them.
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