Good Times Restaurants Inc. Q4 FY2025 earnings call

• Good Times Challenges: Q4 was challenging with soft sales and higher costs, especially ground beef. Same-store sales declined 6.6% in Q4 but improved sequentially. Craig Soto focused on aligning GM schedules and training for cook-to-order with minimal speed impact. Low menu price increases, plan for targeted value promotions, GT Rewards, and refreshed app.
• Bad Daddy's Updates: Same-store sales weakened in Q4 but improved in Q1, especially in Colorado. Made targeted pricing adjustments, had a successful pretzel promotion and holiday cheesecake. Plan to move to burger of the month platform.

Bad Daddy's: Total restaurant sales for the quarter decreased to $24 million (a $1.7 million drop) and to $101.4 million for the full year (a $2.2 million drop). Same-store sales decreased 4.6% in the fourth quarter, with improvement in the first quarter, especially in Colorado. Food and beverage costs were 31.6% (a 40 basis point increase), labor costs were 35.7% (a 140 basis point increase), occupancy costs were 6.7% (a 50 basis point increase), and other operating costs were 16% (an 80 basis point increase). Restaurant-level operating profit was approximately $2.4 million (9.9% of sales) compared to $3.4 million (13.2%) last year. Good Times: Total restaurant sales for the quarter decreased to $9.7 million (a $0.3 million drop) but increased to $39.2 million for the year (a $1.2 million increase). Same-store sales decreased 6.6% in the fourth quarter. Food and packaging costs were 32.1% (a 120 basis point increase), labor cost was 35.9% (a 200 basis point increase), occupancy costs were 9.1% (a 10 basis point increase), and other operating costs were 15% (an 110 basis point increase). Restaurant-level operating profit decreased to $0.8 million. Net loss for the quarter was $3,000 vs. net income of $0.2 million last year. Adjusted EBITDA was negative $74,000 compared to $1.3 million in the prior year quarter.

• First quarter of fiscal 2026 expected to show improvement in same-store sales and adjusted EBITDA. Product and promotional road map is robust. General and administrative costs anticipated to be 6%-7% in fiscal 2026.

• Market price of stock, investment opportunities, pandemic disruptions, staffing and supply chain constraints, inflation, restaurant development delays, competition, share repurchase and acquisition risks, cash flow and capital availability, regulatory changes.

Q: Are there any questions?

A: Operator mentioned no questions at this time.