Good Times Restaurants anticipates a 1.7% average menu price hike at Bad Daddy's in Q1 2026, focusing on value promotions.
Management Insights: Good Times Restaurants Inc. faced challenges in Q4 2025, with soft sales and increased costs, particularly from high ground beef prices. Despite a 6.6% decline in same-store sales at Good Times, there was a sequential improvement noted, and operational changes are being implemented to enhance performance.
Financial Performance: Total revenues decreased by 5.1% to $34 million in Q4, with Bad Daddy’s and Good Times both experiencing declines in same-store sales. The company reported a net loss of $3,000 for the quarter, contrasting with a profit in the same period last year.
Outlook and Strategy: Management is optimistic about early Q1 trends, focusing on operational improvements and targeted promotions rather than broad discounting. They anticipate modest price increases and are committed to enhancing the customer experience through initiatives like a cook-to-order process and a refreshed mobile app.
Risks and Challenges: The company faces several risks, including market price volatility, staffing constraints, and inflationary pressures. Management is cautious about large-scale discounting and is instead focusing on targeted promotions to maintain value perception in a competitive market.
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Good Times (GTIM) Q1 2026 Earnings Call Transcript
Good Times Restaurants Inc. Reports $6 Net Income for FY 2025 Amid Sales Weakness
- 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.
