Loading...
01/10 16:01
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals a mix of challenges and strategic efforts. Financial performance was weak, with declining sales and increased costs, particularly in labor and food. The Q&A section highlighted management's commitment but lacked clarity on addressing operational challenges. The temporary pause in share repurchases and increased costs, coupled with a net loss, suggest negative sentiment. Despite some strategic initiatives, the overall outlook is challenging, leading to a negative stock price prediction.
Bad Daddy's Total Restaurant Sales $24.8 million, a decrease of $1.6 million year-over-year due to the closure of one restaurant, reduced customer traffic, and a negative mix shift.
Bad Daddy's Same-Store Sales Decreased 3.7% for the quarter.
Bad Daddy's Food and Beverage Costs 30.7%, an increase of 30 basis points year-over-year due to higher purchase prices, mainly in ground beef.
Bad Daddy's Labor Costs 34.3%, a decrease of 40 basis points year-over-year due to decreased manager salaries and restaurant-level incentive compensation.
Bad Daddy's Restaurant-Level Operating Profit Approximately $3.4 million or 13.6% of sales, compared to $3.6 million or 13.6% last year.
Good Times Total Restaurant Sales $9.3 million, an increase of approximately $0.5 million year-over-year.
Good Times Same-Store Sales Decreased 3.6% for the quarter.
Good Times Food and Packaging Costs 30.7%, an increase of 160 basis points year-over-year due to higher purchase prices on food and paper goods.
Good Times Labor Costs 35.6%, an increase of 50 basis points year-over-year due to higher average wage rates and decreased productivity.
Good Times Occupancy Costs 10.1%, an increase of 20 basis points year-over-year due to the sales decline.
Good Times Other Operating Costs 15.7%, an increase of 200 basis points year-over-year due to increased repair and maintenance, utilities, and technology-related fees.
Good Times Restaurant-Level Operating Profit Decreased by $0.3 million to $0.7 million, with a decrease of 420 basis points to 8% of sales.
General and Administrative Expenses $2.6 million or 7.5% of total revenues, an increase of 30 basis points year-over-year.
Net Loss to Common Shareholders $0.6 million or a loss of $0.06 per share, compared to net income of $0.6 million or $0.06 per share in the prior year.
Adjusted EBITDA $1 million, down from $1.5 million in the second quarter of 2024.
Cash Position $2.7 million at the end of the quarter.
Long-Term Debt $2.6 million.
CapEx $0.3 million incurred during the quarter for remodels and signage projects.
New Burger Builds: Rolling out new burger builds across all restaurants by the end of May, changing from full leaf lettuce to shredded lettuce to improve eating experience.
New Burger Process: Testing a new burger cooking process where patties are smashed instead of using preformed patties, aiming for a cook-to-order experience while maintaining lane times.
New Custard Base: Launching a new custard base this summer with greater vanilla flavor and smaller batch production for improved quality.
Fried Ice Cream: Introducing a new limited-time product, fried ice cream, in June.
Sales Performance: Same-store sales decreased slightly more than 3.5 points at both brands, indicating a challenging operating environment.
Marketing Strategy Shift: Shifting marketing spend from radio to social and digital media, with promising results from connected TV and video streaming tests.
Leadership Change: Craig Soto promoted to Director of Operations at Good Times to improve kitchen execution and product quality.
Labor Costs: Labor costs are expected to remain high due to training costs and market wage pressures.
Menu Condensation: Condensing the menu to focus on core items like burgers, fries, and frozen custard.
Supply Chain Leadership Change: New supply chain leader, Dave Wallmann, to enhance operational efficiency and cost management.
Pause on Share Repurchases: Temporarily pausing share repurchases to focus on cash accumulation and debt repayment.
Market Risks: The market price of the company's stock may fluctuate, impacting investor confidence and capital availability.
Public Health Risks: Disruption to business from pandemics and other public health emergencies could affect operations and customer traffic.
Staffing Constraints: Staffing constraints at restaurants may lead to operational inefficiencies and increased labor costs.
Supply Chain Challenges: Supply chain constraints and inflation are affecting food and packaging costs, particularly ground beef prices.
Regulatory Issues: Changes in federal, state, or local laws and regulations, including wage and tip credit regulations, could impact operational costs.
Economic Factors: General economic conditions and inflation may affect consumer spending and demand for restaurant services.
Competition: Increased competition, particularly from QSR (Quick Service Restaurants), may pressure pricing and market share.
Development Risks: Uncertain nature of restaurant development plans and potential delays in opening new locations due to permitting or weather.
Cash Flow Risks: Adequacy of cash flows and the cost and availability of capital or credit facility borrowings may impact liquidity.
Leadership Changes: Leadership transitions may affect operational consistency and strategic direction.
Leadership Changes: Craig Soto has been promoted to Director of Operations at Good Times, focusing on improved kitchen execution and product quality.
Menu Changes: Rolling out new burger builds and condensing the menu to focus on core items like burgers, fries, and frozen custard.
Product Quality Improvement: Launching a new custard base and introducing fried ice cream to enhance customer experience.
Marketing Strategy Shift: Shifting marketing spend from radio to social and digital media, with tests in connected TV and outdoor advertising.
Supply Chain Leadership Change: New supply chain leader, Dave Wallmann, to enhance operational efficiency and cost management.
Sales Expectations: Expecting to see improved sales trends as marketing strategies are implemented and menu changes take effect.
Labor Costs: Labor costs expected to remain high into the third fiscal quarter due to training costs.
CapEx Guidance: Budgeting approximately 1% of sales for ongoing maintenance CapEx, with $0.3 million incurred in Q2 for remodels.
General and Administrative Costs: Expecting to run between 6% and 7% for general and administrative costs for fiscal 2025.
Ground Beef Costs: Anticipating continued increases in ground beef costs throughout fiscal year 2025.
Share Repurchase Program: Repurchased 54,835 shares during the quarter under the share repurchase program. However, the company has temporarily paused share repurchases to redirect cash flow towards cash accumulation, debt repayment, and Good Times restaurant remodels and signage for the remainder of the third quarter.
The earnings call revealed disappointing financial results with decreased revenues, increased costs, and a net loss. Despite some optimistic guidance for fiscal 2026, the lack of Q&A engagement and absence of a clear shareholder return plan add to uncertainty. The negative sentiment is compounded by regulatory challenges and operational cost increases, leading to a likely negative stock reaction.
The earnings call reveals several concerns: decreased sales, increased costs, and underperformance of the Good Times concept, despite some positive aspects like improved net income and cash reserves. The Q&A highlights management's reluctance to provide forward guidance, contributing to uncertainty. Despite strategic shifts and potential future projects, the immediate outlook appears challenging, leading to a likely negative stock reaction.
The earnings call reveals a mix of challenges and strategic efforts. Financial performance was weak, with declining sales and increased costs, particularly in labor and food. The Q&A section highlighted management's commitment but lacked clarity on addressing operational challenges. The temporary pause in share repurchases and increased costs, coupled with a net loss, suggest negative sentiment. Despite some strategic initiatives, the overall outlook is challenging, leading to a negative stock price prediction.
The earnings call presents a mixed picture. Record revenue and improved net income are positive, while rising costs and flat same-store sales present challenges. The share repurchase program is a positive signal, but the lack of clear guidance on the legal case and location expansion limits optimism. The Q&A reveals cautious sentiment from analysts, especially regarding cost management and growth strategy. These factors balance each other out, suggesting a neutral stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
