Good Times Restaurants Reports Results for the Fiscal 2025 Fourth Quarter and Fiscal Year Ended September 30, 2025

GOLDEN, Colo.--( BUSINESS WIRE)--Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, today reported financial results for the fiscal fourth quarter and fiscal year ended September 30, 2025.

Highlights of the Company’s financial results include:

Ryan M. Zink, the Company’s Chief Executive Officer, said, “The second half of the 2025 fiscal year marked weakness in sales at both brands though Bad Daddy’s exhibited greater resilience in markets outside of Colorado, where for both the year and the quarter same store sales performed better than the consolidated results by nearly 100 basis points and better than the Colorado results by nearly 300 basis points. We have seen sequential Same Store Sales improvement during the first quarter of fiscal 2026 at both concepts, and at Bad Daddy’s, most specifically in the Colorado restaurants. Our Good Times team is laser-focused on increasing Same Store Sales while at the same time improving restaurant-level margins, which we expect both in food and beverage cost as well as in restaurant labor costs.”

“We have adjusted our advertising and promotional strategies at both brands and will continue to fine-tune those to better reach our guests and drive improved traffic to our restaurants. Most notably, we have included streaming video advertising in the media mix at both brands and launched a new branding campaign for Good Times, Colorado Native Burgers, which highlights the brand’s Colorado roots. In the second quarter, we are kicking off campaigns featuring both value-oriented items and items unique to Good Times that support our Colorado heritage and also have broad appeal among our current and future guests. At Bad Daddy’s, in the fiscal 2026 second quarter we will be featuring a Mediterranean Power Bowl, expanding upon our already popular salad line-up, complemented by two separate regional burger specials. Beginning in March, we will be adopting a Burger of the Month platform to focus more heavily on familiar items with broad customer appeal that are not part of our core menu. Though less complex and more approachable in nature, these items will still be built to Bad Daddy’s exacting standards for quality and flavor.” Zink continued.

Mr. Zink concluded, “I am optimistic that fiscal 2026 will see improved performance for both brands after a difficult 2025. Our leadership teams are committed to delivering better results that we believe starts with understanding our guests’ interactions with our brands while taking swift action to meet their changing needs and communicate the superior food, beverage, and service that both of our brands provide compared to our competitors.”

Conference Call

Management will host a conference call to discuss its fiscal fourth quarter and year ended September 30, 2025, financial results on Tuesday, December 23, 2025, at 5:00 p.m. ET. Hosting the call will be Ryan M. Zink, its Chief Executive Officer and Keri A. August, its Senior Vice President of Finance and Accounting.

The conference call can be accessed live over the phone by dialing 888-210-2831, access code 3024033. The conference call will also be webcast live from the Company's corporate website www.goodtimesburgers.com. An archive of the webcast will be available at the same location on the corporate website shortly after the call has concluded.

Good Times Restaurants Inc. (Nasdaq: GTIM)

Good Times Restaurants Inc. owns, operates, and licenses 38 Bad Daddy’s Burger Bar restaurants through its wholly owned subsidiaries. Bad Daddy’s Burger Bar is a full-service “small box” restaurant concept featuring a chef-driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar and a focus on a selection of craft beers in a high-energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly owned subsidiaries, Good Times Restaurants Inc. owns, operates and franchises 30 Good Times Burgers & Frozen Custard restaurants primarily in Colorado. Good Times is a regional quick-service concept featuring 100% all-natural burgers and chicken sandwiches, signature wild fries, green chili breakfast burritos and fresh frozen custard desserts.

Forward Looking Statements

This press release contains forward looking statements within the meaning of federal securities laws. The words “intend,” “may,” “believe,” “will,” “should,” “anticipate,” “expect,” “seek”, “plan” and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from results expressed or implied by the forward-looking statements. Such risks and uncertainties include, among other things, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company, the disruption to our business from pandemics and other public health emergencies, the impact and duration of staffing constraints at our restaurants, the impact of supply chain constraints and the current inflationary environment, the uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants, delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, other general economic and operating conditions, risks associated with the acquisition of additional restaurants, the adequacy of cash flows and the cost and availability of capital or credit facility borrowings to provide liquidity, changes in federal, state, or local laws and regulations affecting the operation of our restaurants, including minimum wage and tip credit regulations, and other matters discussed under the Risk Factors section of Good Times’ Annual Report on Form 10-K for the fiscal year ended September 24, 2024 filed with the SEC, and other filings with the SEC.

Category: Financial

Good Times Restaurants Inc.

Unaudited Supplemental Information

(In thousands, except per share amounts)

Fiscal Quarter Ended

Fiscal Year Ended

13 Weeks

53 Weeks

52 Weeks

September 30, 2025

September 24, 2024

September 30, 2025

September 24, 2024

NET REVENUES:

Restaurant sales

33,640

35,602

140,614

141,555

Franchise and other revenues

353

224

1,016

825

Total net revenues

33,993

35,826

141,630

142,380

RESTAURANT OPERATING COSTS:

Food and packaging costs

10,689

11,080

43,887

43,704

Payroll and other employee benefit costs

12,021

12,164

49,277

48,689

Restaurant occupancy costs

2,472

2,389

10,230

10,087

Other restaurant operating costs

5,201

5,260

20,737

20,288

Preopening costs

Depreciation and amortization

958

942

3,954

3,755

Total restaurant operating costs

31,341

31,835

128,093

126,523

General and administrative costs

2,394

2,757

9,734

10,581

Advertising costs

1,005

863

3,315

3,528

Impairment of long-lived assets

133

499

627

698

(Gain) loss on lease terminations and asset disposals

(414

)

(10

)

(469

)

Litigation contingencies

(332

)

(LOSS) INCOME FROM OPERATIONS:

(466

)

(118

)

330

1,380

OTHER INCOME (EXPENSES):

Interest and other expense, net

(43

)

(24

)

(196

)

(125

)

Other income

140

Total other income (expenses)

(43

)

(24

)

(56

)

(125

)

NET (LOSS) INCOME BEFORE INCOME TAXES:

(509

)

(142

)

274

1,255

Provision for income taxes

515

426

824

624

NET INCOME:

284

1,098

1,879

Income attributable to non-controlling interests

)

(54

)

(74

)

(266

)

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

)

230

1,024

1,613

NET (LOSS) INCOME PER SHARE, ATTRIBUTABLE TO COMMON SHAREHOLDERS:

Basic

(0.00

)

0.02

0.10

0.15

Diluted

(0.00

)

0.02

0.10

0.14

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

10,582

10,741

10,612

11,047

Diluted

10,582

10,851

10,703

11,148

Good Times Restaurants Inc.

Unaudited Supplemental Information

(In thousands)

53 Weeks

52 Weeks

September 30, 2025

September 24, 2024

Selected Balance Sheet Data:

Cash and Cash Equivalents

$ 2,605

$ 3,853

Current Assets

$ 5,254

$ 6,557

Total Assets

$ 83,807

$ 87,118

Current Liabilities

$ 14,378

$ 15,687

Shareholders’ Equity

$ 33,811

$ 33,088

Supplemental Information for Company-Owned Restaurants (dollars in thousands):

Bad Daddy’s Burger Bar

Good Times Burgers & Frozen Custard

Fourth Fiscal Quarter

Fiscal Year

Fourth Fiscal Quarter

Fiscal Year

13 weeks

53 weeks

52 weeks

13 weeks

53 weeks

52 weeks

2025

2024

2025

2024

2025

2024

2025

2024

Restaurant sales

23,977

25,644

101,385

103,539

9,663

9,958

39,229

38,016

Restaurants open at beginning of period

Restaurants opened or acquired during period

Restaurants closed during period

Restaurants open at period end

Restaurant operating weeks

506

514

2,065

2,074

351

335

1,418

1,309

Average weekly sales per restaurant

47.4

49.8

49.1

49.9

27.5

29.7

27.7

29.0

Margin Analysis:

Quarter Ended

Year-to-Date Period Ended

13 Weeks

53 Weeks

52 Weeks

September 30, 2025

September 24, 2024

September 30, 2025

September 24, 2024

Bad Daddy’s Burger Bar 1:

Restaurant sales

23,977

100.0

25,644

100.0

101,385

100.0

103,539

100.0

Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):

Food and packaging costs

7,586

31.6

7,999

31.2

31,520

31.1

32,155

31.1

Payroll and benefits costs

8,555

35.7

8,791

34.3

35,325

34.8

35,831

34.6

Restaurant occupancy costs

1,617

6.7

1,580

6.2

6,658

6.6

6,796

6.6

Other restaurant operating costs

3,836

16.0

3,895

15.2

15,373

15.2

15,364

14.8

Restaurant-level operating profit (a non-GAAP measure)

2,383

9.9

3,379

13.2

12,509

12.3

13,393

12.9

Good Times Burgers & Frozen Custard:

Restaurant sales

9,663

100.0

9,958

100.0

39,229

100.0

38,016

100.0

Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):

Food and packaging costs

3,103

32.1

3,081

30.9

12,367

31.5

11,549

30.4

Payroll and benefits costs

3,466

35.9

3,373

33.9

13,952

35.6

12,858

33.8

Restaurant occupancy costs

876

9.1

901

9.0

3,655

9.3

3,411

9.0

Other restaurant operating costs

1,446

15.0

1,385

13.9

5,730

14.6

4,992

13.1

Restaurant-level operating profit (a non-GAAP measure)

772

8.0

1,218

12.2

3,525

9.0

5,206

13.7

Other 1:

Restaurant occupancy costs

(21

)

(0.0

(92

)

(0.3

(83

)

(0.0

(120

)

(0.0

Other restaurant operating costs

(81

)

(0.2

(20

)

(0.0

(366

)

(0.3

(68

)

0.0

Restaurant-level operating profit (a non-GAAP measure)

102

0.3

112

0.3

449

0.3

188

0.1

Total restaurant-level operating profit (a non-GAAP measure)

3,257

9.7

4,709

13.2

16,483

11.7

18,787

13.3

Prior to fourth quarter 2025, certain general and administrative activity now included in Other was combined and reported with the Bad Daddy's segment. In order to better align with our internal reporting and provide a better representation of restaurant-level operations, beginning with fourth quarter 2025, this activity has been removed from the Bad Daddy's segment. Fiscal 2024 figures have been recast for comparability.

Certain percentage amounts in the table above do not total due to rounding as well as the fact that restaurant operating costs are expressed as a percentage of restaurant revenues (as opposed to total revenues).

Reconciliation of U.S. GAAP Results to Non-GAAP Measurements

Reconciliation of (Loss) Income from Operations to Non-GAAP Restaurant-Level Operating Profit

(In thousands)

Quarter Ended

Year-to-Date Period Ended

13 Weeks

53 Weeks

52 Weeks

September 30, 2025

September 24, 2024

September 30, 2025

September 24, 2024

(Loss) income from operations

(466

)

(118

)

330

1,380

Less:

Franchise and other revenues

353

224

1,016

825

Add:

General and administrative

2,394

2,757

9,734

10,581

Depreciation and amortization

958

942

3,954

3,755

Advertising costs

1,005

863

3,315

3,528

Impairment of long-lived assets

133

499

627

698

Litigation contingencies

(332

)

(Gain) loss on lease terminations and asset disposals

(414

)

(10

)

(469

)

Pre-opening costs

Restaurant-level operating profit

3,257

4,709

16,483

18,787

The Company believes that restaurant-level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. The Company defines restaurant-level operating profit to be restaurant revenues minus restaurant-level operating costs, excluding restaurant closures and impairment costs. The measure includes restaurant-level occupancy costs, which include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance and other property costs, but excludes depreciation. The measure excludes depreciation and amortization expense, substantially all of which is related to restaurant level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes selling, general and administrative costs, and therefore excludes occupancy costs associated with selling, general and administrative functions, and pre-opening costs. The Company excludes restaurant closure costs as they do not represent a component of the efficiency of continuing operations. Restaurant impairment costs are excluded because, like depreciation and amortization, they represent a non-cash charge for the Company’s investment in its restaurants and not a component of the efficiency of restaurant operations. Restaurant-level operating profit is not a measurement determined in accordance with generally accepted accounting principles (“GAAP”) and should not be considered in isolation, or as an alternative, to income (loss) from operations or net income (loss) as indicators of financial performance. Restaurant-level operating profit as presented may not be comparable to other similarly titled measures of other companies. The tables above set forth certain unaudited information for the current and prior year fiscal quarters and year-to-date periods for fiscal 2025 and fiscal 2024, expressed as a percentage of total revenues, except for the components of restaurant operating costs, which are expressed as a percentage of restaurant revenues.

Quarter Ended

Fiscal Year Ended

13 Weeks

53 Weeks

52 Weeks

Sept. 30, 2025

Sept. 24, 2024

Sept. 30, 2025

Sept. 24, 2024

Calculation of Adjusted EBITDA

Net (loss) income attributable to common shareholders, as reported

)

230

1,024

1,613

Depreciation and amortization

977

966

4,049

3,849

Depreciation and amortization attributable to non-controlling interest

(26

)

(26

)

(101

)

(92

)

Interest expense, net

196

125

Provision for income taxes

(515

)

(426

)

(824

)

(624

)

EBITDA

476

768

4,344

4,871

Preopening expense

Non-cash stock-based compensation

112

134

Asset impairment

133

499

627

698

Non-cash gain on lease terminations and asset disposals

(708

)

(20

)

(763

)

Non-cash gain on disposal of assets attributable to non-controlling interest

)

(10

)

Litigation contingencies

(332

)

Adjusted EBITDA

(74

)

1,275

4,325

5,363

Adjusted EBITDA is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income (loss) or cash flow from operations, as determined by GAAP, and our calculation thereof may not be comparable to that reported by other companies. This measure is presented because we believe that investors' understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for evaluating our ongoing results of operations.

Adjusted EBITDA is calculated as net income (loss) before interest expense, provision for income taxes and depreciation and amortization and further adjustments to reflect the additions and eliminations presented in the table above.

Adjusted EBITDA is presented because: (i) we believe it is a useful measure for investors to assess the operating performance of our business without the effect of non-cash charges such as depreciation and amortization expenses and asset disposals, closure costs and restaurant impairments, and (ii) we use adjusted EBITDA internally as a benchmark for certain of our cash incentive plans and to evaluate our operating performance or compare our performance to that of our competitors. The use of adjusted EBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based on our GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. Companies within our industry exhibit significant variations with respect to capital structures and cost of capital (which affect interest expense and income tax rates) and differences in book depreciation of property, plant and equipment (which affect relative depreciation expense), including significant differences in the depreciable lives of similar assets among various companies. Our management believes that Adjusted EBITDA facilitates company-to-company comparisons within our industry by eliminating some of these foregoing variations. Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies, and our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by excluded or unusual items.

Same store sales are a metric used in evaluating the performance of established restaurants and is a commonly used metric in the restaurant industry. Same store sales for our brands are calculated using all company-owned units open for at least 18 full fiscal months and use the comparable operating weeks from the prior year to the current year period’s operating weeks.

For a reconciliation of Adjusted EBITDA to the most directly comparable financial measures presented in accordance with GAAP and a discussion of why the Company considers them useful, see the financial information schedules accompanying this release.