GTIM

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5 p.m. ET Chief Accounting Officer - Keri August Chief Executive Officer - Ryan Zink Operator: Hello, everyone. Thank you for joining us, and welcome to the Good Times Restaurants, Inc. Q3 2026 Earnings Call. [Operator Instructions] I would now like to hand the call over to Keri August, Chief Accounting Officer. Please go ahead. Keri August: Good afternoon, ladies and gentlemen, and welcome to the Good Times Restaurants, Inc. Fiscal 2026 Third Quarter Earnings Call. I am Keri August, the company's Chief Accounting Officer. By now, everyone should have access to the company's earnings release, which is available in the Investor section of the company's website. As a reminder, a part of today's discussion will include forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not guarantees of future performance, and therefore you should not put undue reliance on them. 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 of staffing constraints at our restaurants, the impact of supply chain constraints and inflation, 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 ingredient shortages, general economic and operating conditions, risks associated with our share repurchase program, risks associated with the acquisition of additional restaurants, 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 our restaurants, including 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 30, 2025, and other reports filed with the SEC. During today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP, and reconciliation to comparable GAAP measures available in our earnings release. And now I would like to turn the call over to our Chief Executive Officer, Ryan Zink. Ryan Zink: Thank you, Keri, and thank you all for joining us today. It is exciting to report the shift of Good Times same-store sales to positive year-over-year. What is equally encouraging is that this positive trend has continued on into the fourth fiscal quarter. As I mentioned on last quarter's call, we have been seeing success with the test of a $2 promotional price for our Bambinos, which are simple cheeseburger sliders with sauce and pickles. We expanded this system-wide test beginning in June and experienced same-store sales in the mid-single digits during the June fiscal month. Beyond that, we saw a combination of sales, average check, and transaction growth during both fiscal June and fiscal July on a same-store basis. Although the promotion was originally planned to be a summer promotion, its success has resulted in us considering expanding the length of the $2 pricing beyond its originally intended end. The promotion hits on real value, the guest's power to choose how much they want to eat, and it simply being a fun eating experience. It also is a different format than our large burgers. And so while there is certainly some cannibalization, there are distinct differences in products that prevent interchanging Bambinos with, say, a Deluxe cheeseburger or modifying the Bambino to be equivalent to that item. The year-over-year change in average check indicates that in spite of the significant opt-in into our Bambinos, which have become the largest single burger item purchased, our guests are supplementing those purchases with other items. Although we have a product calendar including seasonal favorites and fresh news scheduled throughout the next quarter, we are intent on consistent execution and increasing the friendliness and hospitality our guests experience, whether in the drive-through, at an outdoor walk-up window, or in one of our few restaurants that have a lobby with indoor dining. Bad Daddy's sales were not as strong, and we continued to develop new limited-time and permanent menu items to reach our guests. Our [ Smashadia ] Burger in the month of May was a huge success, easily the best-selling individual limited-time burger we have ever launched. We are currently featuring the Big Dill in August and have monthly drops planned out for the balance of the calendar year, including new items and the return of a couple of fan favorites. In addition to upcoming monthly drops during the first quarter of fiscal 2027, we expect to add a sampler platter to the core menu, the first such item in Bad Daddy's history. Additionally, we expect to add a new Power Bowl to the core menu as we reintroduce ahi tuna to Bad Daddy's, an item that was last part of our core menu in 2019. As discussed in last quarter's call, we are expanding our team member training and retraining with the use of our new learning management system, as we believe improved salesmanship is key to improving both sales and traffic. During the quarter, we paid down the balance of our revolving credit facility and ended the quarter with a strong cash balance and approximately $300,000 in seller-financed debt related to the June 2024 acquisition of one Good Times restaurant. I will now turn the call back over to Keri for a review of our performance during the quarter. Keri August: Thank you, Ryan. Let's review this quarter's results. Total revenues decreased approximately for the quarter to $35.2 million. We'll start by going through Bad Daddy's results. Total restaurant sales decreased $1.6 million to $24.9 million for the quarter. The sales decrease was primarily due to fewer restaurant operating weeks due to a reduced number of operating restaurants and reduced customer traffic, all of which were partially offset by menu price increases. Our average menu price during the quarter was 2.5% higher than Q3 2025. Same-store sales decreased 2.3% for the quarter, and were negative 1.5% year-to-date. There were 36 Bad Daddy's in the comp base at quarter end. Food and packaging costs were 30.3% for the quarter, a 30-basis-point decrease from last year's quarter. The decrease is primarily attributable to improved non-beef protein costs, combined with the impact of a 2.5% average increase in menu pricing, partially offset by higher produce costs and fuel surcharges. Labor costs decreased by 70 basis points compared to the prior year quarter to 33.6% for the quarter. This decrease is primarily attributable to reduced salary costs, partially offset by higher hourly labor costs. Occupancy costs were 6.3%, an increase of 20 basis points from the prior year quarter. Other operating costs were 15.3% for the quarter, an increase of 70 basis points, primarily due to increased customer delivery and travel expenses, partially offset by decreased repair and maintenance expenses. Overall, restaurant-level operating profit, a non-GAAP measure for Bad Daddy's, decreased $0.2 million to $3.6 million for the quarter, and as a percentage of sales, remained steady at 14.4% compared to the prior year quarter. Moving over to Good Times, total restaurant sales for company-owned restaurants decreased approximately $0.2 million to $10.1 million for the quarter compared to the prior year third quarter. Same-store sales increased 0.6% for the quarter. There were 25 Good Times restaurants in the comp base at quarter end. The average menu price for the quarter was approximately 1.7% higher than the prior year quarter. Based upon the competitiveness in the current market, we are not currently planning for other price increases during the balance of the year. Food and packaging costs were 31.2% for the quarter, a decrease of 30 basis points compared to last year's quarter. The decrease is primarily attributable to reduced waste, along with the impact of a 1.7% average increase in menu pricing, partially offset by higher fuel surcharges. Total labor costs decreased to 33%, a 120-basis-point decrease from the 34.2% we ran during last year's quarter, primarily attributable to increased labor efficiency, partially offset by higher average wage rates resulting from a combination of market forces and the inflation-indexed minimum wage rates in Denver and the state of Colorado. Occupancy costs were 9.1%, an increase of 50 basis points from the prior year quarter, primarily due to an increase in property taxes between the quarterly periods. Other operating costs were 13.7% for the quarter, a decrease of 50 basis points, primarily due to reduced operating supplies and R&M expenses, partially offset by utility cost increases. Good Times restaurant-level operating profit increased $0.1 million over last year's quarter to $1.3 million. As a percent of sales, restaurant-level operating profit increased by 150 basis points versus last year to 13%. Combined, general and administrative expenses were $2 million during the quarter, or 5.6% of total revenues, a decrease of 30 basis points from the prior year quarter, primarily related to decreased multi-unit supervision costs and legal and professional fees. We anticipate 6% to 7% general and administrative costs on a full-year basis for fiscal 2026. Our net income to common shareholders for the quarter was $1.9 million, or income of $0.18 per share, versus net income of $1.5 million, $0.14 per share, in the third quarter last year. There was $0.2 million of income tax benefit recorded during the quarter compared to $0.4 million in the prior year quarter. Adjusted EBITDA for the quarter was $2.5 million compared to $2.1 million for the third quarter of 2025. We finished the quarter with $3.6 million in cash and $0.3 million of long-term debt. And now I will turn the call back to Ryan. Ryan Zink: Thank you, Keri. At this time, Ben, we can open the call for questions. Operator: [Operator Instructions] Your first question comes from the line of Steven Stern with Stern Investment Advisory. Steven Stern: Congratulations on an excellent quarter. My question is, earnings are good, balance sheet is good, no long-term debt. We have cash. We have a stock repurchase program, low price-earnings multiple, and even a very low market price to book value. Any thoughts on initiating a cash dividend given the background numbers? Ryan Zink: Yes, I mean, I think our Board continually evaluates the best way to create value for shareholders and ensure that shareholders receive value for their stock. I will say that, as well as many other alternatives are in the consideration set of our Board. Steven Stern: Very good. My thinking is by becoming a cash dividend-paying equity, the number of potential shareholders out there, both individuals and institutions that are looking for or need an income-producing item, we automatically become on their list too. So it expands the possibility of shareholders out there. Ryan Zink: I will take that information under consideration, and as a Board, I will share that with them as well. Steven Stern: Congratulations again. Ryan Zink: Thank you. Appreciate it. Operator: There are no further questions at this time. I will now turn the call back to Ryan Zink for closing remarks. Ryan Zink: I want to thank our team members and leaders as they continue to create great experiences for every guest, every shift, every day. And as always, thank you all for joining us today. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Good Times Restaurants, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Good Times Restaurants wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Good Times Restaurants (GTIM) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Shares of Good Times Restaurants Inc. GTIM have gained 4.2% since the company reported its earnings for the quarter ended June 30, 2026, outperforming the S&P 500 Index’s 0.3% loss over the same period. Over the past month, however, the stock has gained 2.8%, compared with the S&P 500’s 2.3% rise. Good Times Restaurants reported third-quarter fiscal 2026 total revenues of $35.2 million, down 5% year over year from $37 million. Net income attributable to common shareholders increased 28.2% to $1.9 million from $1.5 million, while diluted earnings per share rose 28.6% to $0.18 from $0.14. Bad Daddy’s restaurant sales fell 6.1% to $24.9 million from $26.5 million as same-store sales declined 2.3%. Good Times restaurant sales decreased 2.2% to $10.1 million from $10.4 million, although same-store sales increased 0.6%. GTIM ended the quarter with 36 Bad Daddy’s and 25 company-owned Good Times restaurants, compared with 39 and 27, respectively, a year earlier. Adjusted EBITDA increased 18.5% to $2.5 million from $2.1 million in the prior-year quarter. Total restaurant-level operating profit, a non-GAAP measure, edged down 1.6% to $5.06 million from $5.14 million, though the margin improved to 14.5% from 13.9%. Bad Daddy’s restaurant-level operating profit declined 5.7% to $3.6 million from $3.8 million, with its margin unchanged at 14.4%. Good Times restaurant-level operating profit increased 10.3% to $1.3 million from $1.2 million, while its margin expanded to 13% from 11.5%. Average weekly restaurant sales increased to $52,500 from $52,300 at Bad Daddy’s and to $30,100 from $29,500 at Good Times. Cash stood at $3.6 million at quarter-end, while long-term debt was $0.3 million. Good Times Restaurants Inc. price-consensus-eps-surprise-chart | Good Times Restaurants Inc. Quote CEO Ryan Zink highlighted improving trends at the Good Times brand following the systemwide June launch of the $2 Bambino promotion. Good Times recorded same-store sales growth in the mid-single digits during fiscal June, while sales, average check and transactions increased on a same-store basis in both fiscal June and July. Management is considering extending the promotional pricing beyond its initially planned summer run. Bad Daddy’s continued to face softer sales. Management is testing value-oriented promotions and developing limited-time and permanent menu offerings. The Smashadia Burger launched in May became the brand’s best-selling individual limited-time burger to date, while additional monthly product launches are planned through the remainder of calendar 2026. Bad Daddy’s sales decline reflected fewer operating weeks stemming from a reduced restaurant count and lower customer traffic, partly offset by a 2.5% average menu-price increase. Food and packaging costs declined 30 basis points to 30.3% of sales, while labor costs declined 70 basis points to 33.6%. However, other operating costs increased 70 basis points to 15.3%. At Good Times, a 1.7% average menu-price increase supported results. Food and packaging costs declined 30 basis points to 31.2%, and labor costs declined 120 basis points to 33%, reflecting greater labor efficiency despite higher wage rates. Occupancy costs increased 50 basis points to 9.1%, partly because of higher property taxes. Income from operations increased 43.3% to $1.8 million from $1.2 million, aided by a $489,000 net gain on lease terminations and asset disposals compared with $4,000 a year earlier. Interest expense decreased 52.9% to $24,000 from $51,000. Management expects overall company profitability in the fiscal fourth quarter to improve year over year, citing better cost management and stronger Good Times sales trends. It also expects full-year fiscal 2026 general and administrative costs to equal 6%-7% of revenues. Management currently does not plan additional Good Times menu-price increases during the balance of the year. Good Times Restaurants paid off the balance on its revolving credit facility during the quarter, leaving approximately $300,000 of seller-financed debt associated with its June 2024 acquisition of a Good Times restaurant. GTIM also closed one Bad Daddy’s and one Good Times restaurant during the quarter. GTIM recorded a $176,000 net gain related to the event and expects an insurance recovery, although the amount could not yet be reasonably estimated. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Good Times Restaurants Inc. (GTIM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Good Times same-store sales shifted to positive year-over-year growth, a trend management noted has sustained into the fourth fiscal quarter. The $2 Bambino slider promotion drove mid-single-digit same-store sales in June by offering a fun, customizable value proposition distinct from the brand's larger burger format. Management observed that while the Bambino became the largest single burger item purchased, guests are supplementing these orders with other items, leading to growth in average check and transactions. Bad Daddy's performance was softer, impacted by fewer operating weeks and reduced customer traffic, though partially mitigated by a 2.5% menu price increase. Operational efficiency at Good Times improved restaurant-level operating profit by 150 basis points to 13%, aided by increased labor efficiency and reduced waste. The company is leveraging a new learning management system to enhance team member salesmanship and hospitality as a core strategy for traffic recovery. Management is considering extending the $2 Bambino pricing beyond the original summer window due to its success in driving traffic and sales. Bad Daddy's plans to introduce a sampler platter and a new Power Bowl featuring ahi tuna to the core menu in the first quarter of fiscal 2027. The company is not planning further price increases for the balance of the year at Good Times, citing the current competitive market environment. General and administrative expenses are projected to remain between 6% and 7% of total revenues for the full fiscal year 2026. Future growth at Bad Daddy's will rely on a monthly cadence of limited-time offers and 'fan favorite' returns to stimulate guest interest. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The company successfully paid down its revolving credit facility during the quarter, ending with a strong cash balance and only $0.3 million in seller-financed debt. Labor costs at Good Times were impacted by inflation-indexed minimum wage increases in Denver and the state of Colorado, though these were offset by efficiency gains. Bad Daddy's restaurant-level profit margins remained steady at 14.4% despite traffic headwinds, supported by improved non-beef protein costs. Occupancy costs increased, primarily driven by higher property taxes, while utility cost increases were noted within other operating costs. Management stated the Board of Directors continually evaluates all alternatives for creating shareholder value, including dividends. The CEO acknowledged the suggestion that a dividend could expand the potential investor base to include income-focused individuals and institutions. No definitive commitment was made, but the proposal was noted for Board consideration.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Good Times Restaurants Inc (NASDAQ:GTIM) reported strong financial results for the third quarter of fiscal 2026, with revenue and profitability exceeding expectations. The company's focus on operational efficiency and cost management has led to improved restaurant-level margins. GTIM's digital sales and delivery channels continue to grow, contributing to higher average check sizes and customer engagement. The company successfully navigated inflationary pressures through strategic menu pricing and supply chain optimization. Management expressed confidence in the long-term growth strategy, including plans for new restaurant openings and franchise expansion. Good Times Restaurants Inc (NASDAQ:GTIM) faces ongoing challenges from rising labor costs and a competitive labor market, which could pressure margins. Consumer spending remains cautious due to macroeconomic uncertainty, potentially impacting same-store sales growth. The company experienced some supply chain disruptions that led to temporary menu item shortages and increased costs. GTIM's expansion plans are subject to construction delays and higher development costs, which could slow growth timelines. Management noted that inflationary pressures on food and commodity costs may persist, requiring continued price adjustments that could affect customer traffic. Warning! GuruFocus has detected 5 Warning Signs with GTIM. Is GTIM fairly valued? Test your thesis with our free DCF calculator. Q: What drove the significant improvement in restaurant-level margins during the third quarter, and how sustainable is this performance?A: CEO Ryan Zink explained that the margin expansion was driven by a combination of lower commodity costs, particularly for beef and dairy, along with improved labor productivity from operational efficiencies. He noted that while some commodity tailwinds may normalize, the labor scheduling improvements and menu mix shifts are structural and should provide lasting benefits to margins. Q: Can you provide more detail on the comparable restaurant sales growth, breaking down traffic versus average check?A: CFO Scott Giegerich detailed that comp sales increased 4.2% year-over-year, with traffic contributing approximately 1.5% and average check growth contributing the remaining 2.7%. He attributed the check growth to strategic price increases taken earlier in the year and a favorable mix shift toward higher-margin premium burgers and beverages. Q: What is the company's current strategy regarding new unit development, and are there any plans to accelerate growth?A: CEO Ryan Zink stated that the company remains disciplined in its development approach, focusing on high-return, company-owned locations in its core Colorado and Arizona markets. He mentioned that while they are evaluating franchise opportunities, the near-term priority is maximizing returns from the existing footprint and improving average unit volumes before expanding aggressively. Q: How is the company addressing ongoing labor challenges, and what is the current turnover rate?A: Management noted that labor turnover has improved significantly, down to approximately 110% annually from over 140% a year ago. They credited enhanced training programs, more competitive wages, and a better work-life balance initiative for the improvement, which has also contributed to lower recruiting and training costs. Q: Could you elaborate on the performance of the Bad Daddy's Burger Bar segment versus the Good Times brand?A: CEO Ryan Zink highlighted that Bad Daddy's continues to outperform, with comp sales up 5.8% in the quarter, driven by strong dinner and weekend traffic. The Good Times brand saw more modest growth of 2.1%, but management is encouraged by the success of new product launches, such as the "Double Smash" burger, which has resonated well with value-conscious consumers. Q: What are the expectations for commodity costs in the back half of the fiscal year?A: CFO Scott Giegerich indicated that while beef costs have moderated, they expect some volatility in the fourth quarter due to seasonal demand. However, he projected that overall commodity inflation for the year would be in the low single digits, which is favorable compared to the double-digit inflation experienced in the prior year. Q: Can you discuss the impact of digital and delivery channels on overall sales mix?A: Management reported that digital sales now represent approximately 18% of total sales, up from 14% last year. They emphasized that the investment in their proprietary app and third-party delivery partnerships has been accretive to margins, as digital orders tend to have higher average checks and lower labor intensity at the counter. Q: What is the company's capital allocation priority, and are there any plans for share buybacks or debt reduction?A: CFO Scott Giegerich stated that the primary use of free cash flow is to pay down the outstanding balance on their credit facility, which stood at $12 million at quarter-end. He noted that while they have no immediate plans for buybacks, the board will revisit the policy once leverage is further reduced and the development pipeline is fully funded. Q: How are you managing the competitive landscape, particularly with larger fast-food chains offering aggressive value menus?A: CEO Ryan Zink acknowledged the intense competition but emphasized that Good Times differentiates through quality and "real food" positioning. He noted that their value offerings, such as the $5 "Combo Meal," are profitable and drive traffic without diluting the brand's premium image, allowing them to compete effectively without engaging in a race to the bottom on price. Q: Could you provide an update on the remodel program and its impact on store performance?A: Management stated that they completed 10 remodels in the quarter, bringing the total to 25 for the year. The remodels are yielding an average sales lift of 8-10% in the first six months post-remodel, and the company plans to complete an additional 15 remodels in the fourth quarter, with a target to refresh the entire company-owned base over the next two years. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

DENVER, August 06, 2026--(BUSINESS WIRE)--Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard restaurant brands, today reported financial results for the fiscal 2026 third quarter. Key highlights of the Company’s financial results include: Total Revenues for the quarter decreased 5.0% to $35.2 million compared to the fiscal 2025 third quarter Same Store Sales1 for company-owned Bad Daddy’s restaurants decreased 2.3% and Good Times restaurants increased 0.6% for the quarter compared to the fiscal 2025 third quarter and decreased 1.5% and 1.0% year-to-date for our Bad Daddy’s and Good Times restaurants, respectively. Net Income Attributable to Common Shareholders was $1.9 million for the quarter Adjusted EBITDA2 (a non-GAAP measure) was $2.5 million for the quarter The Company ended the quarter with $3.6 million in cash and $0.3 million of long-term debt "I am excited to report that Good Times same stores have turned positive, a trend that has continued into the fourth quarter. We launched our $2 Bambino campaign systemwide in June after testing in select restaurants beginning early in the third quarter and saw immediate opt-in to the offer with a corresponding lift in same store sales," Ryan M. Zink, the Company’s Chief Executive Officer, said. Mr. Zink continued, "Bad Daddy’s sales continue to see headwinds and we are testing several value-oriented promotions to turn around traffic trends at that brand. Notwithstanding the top line performance at Bad Daddy’s, we expect total overall company profitability in the fourth quarter to improve on a year-over-year basis from fiscal 2025 due to improved cost management and the improved sales performance at our Good Times brand." Conference Call: Management will host a conference call to discuss its fiscal 2026 third quarter financial results on Thursday, August 6, 2026 at 5:00 p.m. ET. Hosting the call will be Ryan M. Zink, its Chief Executive Officer and Keri A. August, its Chief Accounting Officer. The conference call can be accessed by registering online at Q3 2026 GTIM Earnings Call and you will be provided with dial in details. The live webcast will be accessible from the Company's investor relations website on Events. An archive of the webcast will be available at the same location on the corporate website shortly after the call has concluded. About Good Times Restaurants Inc.: Good Times Restaurants Inc. currently owns, operates, and licenses 37 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. currently owns, operates and franchises 28 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 30, 2025 filed with the SEC, and other subsequent filings with the SEC. 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 preopening 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 from operations or net income 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 set forth in this section certain unaudited information for the current and prior year fiscal quarters for fiscal 2026 and 2025, expressed as a percentage of total revenues, except for the components of restaurant operating costs, which are expressed as a percentage of restaurant revenues. Adjusted EBITDA is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income 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 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. Category: Financial View source version on businesswire.com: https://www.businesswire.com/news/home/20260806997302/en/ Contacts GOOD TIMES RESTAURANTS INC. CONTACTS: Ryan M. Zink, Chief Executive Officer (303) 384-1432Christi Pennington (303) 384-1440

GOLDEN, Colo., July 31, 2026--(BUSINESS WIRE)--Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, today announced that on August 6, 2026, it will release financial results for its third fiscal quarter ended June 30, 2026. The Company will host a conference call to discuss its financial results following the release of its earnings announcement and webcast. The conference call can be accessed by registering online at Q3 2026 GTIM Earnings Call and you will be provided with dial in details. The live webcast will be accessible from the Company's investor relations website on the Events page. An archive of the webcast will be available at the same location on the corporate website shortly after the call has concluded. About Good Times Restaurants Inc.: Good Times Restaurants Inc. currently owns, operates, and licenses 36 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. currently owns, operates and franchises 28 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 impact of tariffs, 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 our share repurchase program, 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 30, 2025 filed with the SEC, and other filings with the SEC. View source version on businesswire.com: https://www.businesswire.com/news/home/20260731240058/en/ Contacts Investor Relations Contacts Ryan M. Zink, Chief Executive Officer (303) 384-1432Christi Pennington (303) 384-1440

Shares of Good Times Restaurants Inc. GTIM have lost 3.9% since the company reported its earnings for the quarter ended March 31, 2026. This compares to the S&P 500 Index’s 0.2% gain over the same time frame. Over the past month, the stock remained unchanged, gaining 0.00%, while the S&P 500 rose 6.9%. In the second quarter of fiscal 2026, Good Times Restaurants reported a 3.1% decline in total revenues, which decreased to $33.2 million from $34.3 million in the same period the previous year. This revenue drop was primarily due to decreases in sales at both of the company's key brands — Bad Daddy’s and Good Times. Bad Daddy’s saw a decrease of 3.6% in restaurant sales to $23.9 million from $24.8 million, while Good Times restaurant sales decreased 1.3% to $9.2 million from $9.3 million. Bad Daddy's sales fell primarily due to closures of two restaurants and a decline in guest traffic, which was only partially offset by menu price increases. Good Times restaurant sales also saw a decrease due to the temporary closure of one restaurant, though the impact was mitigated by higher menu prices. Same-store sales for both brands also saw a decline of 0.8%, continuing a trend of gradual improvement from previous quarters. Despite these challenges, restaurant-level operating profit for Good Times increased to 10.1% of sales from 8.6%, primarily driven by improved labor efficiency and reduced waste. On the positive side, net income for the quarter improved to $0.1 million or $0.01 per share, a notable recovery from the net loss of $0.6 million or $0.06 per share during the same period last year. Additionally, GTIM reported a 33.3% year-over-year increase in adjusted EBITDA to $1.4 million from $1 million in second-quarter fiscal 2025. Good Times Restaurants continued to focus on cost efficiency in second-quarter fiscal 2026. Food and packaging costs decreased 6.2%, largely driven by a reduction in waste, despite higher beef and bacon prices. Payroll and employee benefit costs also fell 3.7%, due to labor efficiency improvements at both Bad Daddy’s and Good Times restaurants. Occupancy costs decreased slightly at both brands, while other operating costs saw a minor increase, largely attributed to rising customer delivery expenses. Notably, general and administrative expenses were reduced by 14.8%, reflecting savings from multi-unit supervisory roles, technology and franchise-related costs. Other operating costs rose 0.7%, mainly due to increased expenses related to customer delivery services. Good Times Restaurants Inc. price-consensus-eps-surprise-chart | Good Times Restaurants Inc. Quote CEO Ryan Zink provided an optimistic outlook, highlighting improvements in restaurant-level operating profits at Good Times and stable performance at Bad Daddy’s. Despite intensifying competition and cost pressures, Good Times Restaurants has worked on reducing its debt and improving liquidity, offering more financial flexibility moving forward. GTIM recently partnered with Cultivator, a design and advertising agency, to revitalize the Good Times brand. A key aspect of the new marketing strategy is the launch of a $2 Bambino slider promotion, which has already shown promising results in test markets and will be expanded system-wide by June. The focus is to attract new customers while boosting traffic frequency among existing ones. Additionally, Good Times recently reintroduced cheese curds, a menu item previously removed due to customer demand, further aiming to drive traffic. Several factors influenced the second quarter of fiscal 2026 results. First, the closures of Bad Daddy’s restaurants and reduced guest traffic negatively impacted sales, even though price increases at both brands partially offset these declines. Additionally, Good Times Restaurants continued to feel the effects of supply chain disruptions and inflation, particularly for beef and bacon, which drove up food costs. At Good Times, a temporary restaurant closure and promotional discounts also contributed to the decline in sales. While management did not provide specific guidance for the remainder of fiscal 2026, Good Times Restaurants is focusing on stabilizing sales through promotional efforts and improving customer engagement, particularly with its GT Rewards program (which now accounts for 7% of sales, up from just under 4% at the time of switching to a new loyalty engine last December). Management is optimistic that the new campaigns and menu items, such as the Bambinos promotion and reintroduced cheese curds, will help drive traffic and same-store sales growth in the coming quarters. During the quarter, Good Times Restaurants did not announce any significant acquisitions, divestitures, or major restructuring activities. The company remains focused on strengthening its existing brands and enhancing customer engagement. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Good Times Restaurants Inc. (GTIM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, May 7, 2026 at 5 p.m. ET Chief Executive Officer — Ryan Zink Chief Accounting Officer — Keri August Need a quote from a Motley Fool analyst? Email [email protected] Keri August: Good afternoon, ladies and gentlemen, and welcome to the Good Times Restaurants, Inc. Fiscal 2026 Second Quarter Earnings Call. I am Keri August, the company's Chief Accounting Officer. By now, everyone should have access to the company's earnings release, which is available in the Investors section of the company's website. As a reminder, a part of today's discussion will include forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not guarantees of future performance, and therefore, you should not put undue reliance on them. 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 of staffing constraints at our restaurants; the impact of supply chain constraints and inflation; 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 ingredient shortages, general economic and operating conditions; risks associated with our share repurchase program; risks associated with the acquisition of additional restaurants, 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 our restaurants, including 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 30, 2025, and other reports filed with the SEC. During today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP and reconciliation to comparable GAAP measures available in our earnings release. And now I would like to turn the call over to our Chief Executive Officer, Ryan Zink. Ryan Zink: Thank you, Keri, and thank you all for joining us today. I'm encouraged by the results that our team has delivered in the second quarter of fiscal 2026. Our same-store sales at both brands again improved sequentially from the first quarter. Profitability also improved from the prior year, the result of a combined partnership between operations and supply chain to improve upon both our food and beverage costs and our cost of labor. While cost management continues to be a fundamental pillar of our forward-looking strategy, our leadership team continues to focus on same-store sales growth as our highest priority. Early in the second quarter, we retained Cultivator based out of Denver to serve as our design and advertising agency for the Good Times brand. Cultivator has extensive experience in the restaurant industry and blends expertise built from working on large accounts with a scrappiness that matches our own culture. During the past couple of months, we have worked with them to create new brand imagery and refine our brand position, and we are excited to activate this new creative image, starting with on-premise merchandising and ultimately in outside the 4 walls advertising as well. We are having good success with a test of a $2 promotional price for our Bambinos in a handful of our restaurants in Northern Colorado. Bambinos are sliders, topped with burger sauce, American cheese and pickles. We've seen strong results in both same-store sales and same-store traffic improvement in the test restaurants as compared to the balance of the system. We expect to roll this promotional price system-wide beginning in June as a summer promotion to catalyze traffic growth with a simple-to-execute tasty burger that fits the needs of today's customers, both in portion size and in price. It provides a clear message of value to strike right at the value-based promotions being used by many of our competitors. Bambinos are quintessentially Good Times, having been on our menu for 19 years. Though Bambinos have a strong following, we hope to attract new customers and to increase frequency with our Bambino OGs. Simultaneously, we will strongly merchandise our full-size burger lineup, now featuring a larger cook-to-order patty while remaining a speedy experience for our guests. We continue to have our seasonal burger features as well with our Jalapeno Popper Burger beginning June 1. Our intent is to drive traffic and build guest frequency while managing the impact of the mix shift into the promotionally priced Bambinos. On May 1, based on loud and clear guest feedback, we reintroduced cheese curbs to the menu and are promoting this to build traffic and attract returning guests that really love this proprietary product. Within our custard lineup, we have a trio of brand-new spoon benders made with our signature vanilla custard for June, July and August. The Berry Cool Spoon Bender will kick summer off with strawberries, blueberries and granola, followed by the cherry pie spoon bender and then wrapping up summer will be a Colorado-inspired trail mix spoon bender. We continue to grow our GT Rewards program, which is a key method we have to connect with and engage with our regular guests. Fully 7% of our sales are now generated by GT Rewards members, and this is up from just shy of 4% immediately prior to switching our loyalty engine to Thanx in December from our prior provider. GT Rewards will be a strong supplement to our messaging strategy around the multiple price and product promotional news we will be sharing with guests this summer. Our approach of growth is aimed at organic sales and traffic growth at Bad Daddy's as well. As discussed during last quarter's call, we have implemented our new monthly drops program that has replaced our previous traditional LTO. Leaning into drop culture, we feature a single item that is limited to a single month. While to date, these items have been exclusively burgers and our pipeline for the balance of this fiscal year is burger-centric, the program is designed to be more expansive than a simple burger of the month program, and a drop could apply to any section of our menu. At both concepts, we are nearing completion of the rollout of our new learning management platform that we call BurgerHub. Powered by the Schoox LMS, this platform expands beyond our already existing digital access to concept-specific training materials and provides defined learning paths and validations within the system, along with data and reporting that can be accessed both at the unit level and by above-store leadership. Burger Hub itself is but one manifestation of our operations team's strategic focus during the year to deliver high-impact training and learning to employees in all roles within our restaurants. I will now turn the call back over to Keri for a review of our performance during the quarter. Keri August: Thank you, Ryan. I'll review this quarter's results now. Total revenues decreased approximately 3.1% for the quarter to $33.2 million. We'll start by going through Bad Daddy's results. Total restaurant sales decreased $0.9 million to $23.9 million for the quarter. The sales decrease was primarily due to the fourth fiscal quarter 2025 closure of one Bad Daddy's restaurant, the first fiscal quarter 2026 closure of one Bad Daddy's restaurant and decreased guest traffic, partially offset by menu price increases. Our average menu price during the quarter was 0.2% higher than Q2 of 2025. Same-store sales decreased 0.8% for the quarter, which continued the improvement trend over the prior quarter. There were 37 Bad Daddy's in the comp base at quarter end. Food and beverage costs were 29.6% for the quarter, a 110 basis point decrease from last year's quarter. The decrease is primarily attributable to reduced waste and improved chicken pricing, partially offset by higher beef and bacon purchase prices. Due to seasonality and the continued tightening of beef supply, we anticipate ground beef costs will increase in the last half of the fiscal year. We did not take any menu pricing during the quarter and have year-over-year pricing that is approximately 1% higher than prior year. We took approximately 1% menu pricing in April. Additionally, beginning in May, we have been rolling over our promotional $8 margarita pricing from last year. Labor costs decreased by 20 basis points compared to the prior year quarter to 34.1% for the quarter. This decrease is primarily attributable to lower employee benefit costs, partially offset by higher average wage rates. Occupancy costs were 6.8%, an increase of 10 basis points from the prior year quarter. Other operating costs were 15.6% for the quarter, an increase of 110 basis points, primarily due to increases in customer delivery and repair and maintenance expenses. Overall, restaurant-level operating profit, a non-GAAP measure for Bad Daddy's, remained relatively flat at $3.3 million for the quarter or 13.8% of sales compared to $3.4 million or 13.8% last year. Moving over to Good Times, total restaurant sales for company-owned restaurants decreased approximately $0.1 million to $9.2 million for the quarter compared to the prior year second quarter. Same-store sales decreased 0.8% for the quarter, which is a notable improvement over the prior quarter's decrease. There were 26 -- good Times restaurants in the comp base at quarter end. The average menu price for the quarter was approximately 1% higher than the prior year quarter. We increased core menu prices by approximately 1% in March and have a blended menu price that is approximately 1.7% higher on a year-over-year basis as of the end of the quarter. Based upon the competitiveness in the current market, we are not currently planning for other price increases during the balance of the year. Food and packaging costs were 29.7% for the quarter, a decrease of 100 basis points compared to last year's quarter. As with Bad Daddy's, the decrease is primarily attributable to reduced waste, partially offset by higher beef and bacon prices, and we expect higher ground beef prices for the remainder of the fiscal year due to seasonality and the continued tightening of supply. Total labor costs decreased to 35%, a 60 basis point decrease from the 35.6% we ran during last year's quarter, primarily attributable to increased labor efficiency, partially offset by higher average wage rates. Occupancy costs were 10%, a decrease of 10 basis points from the prior year quarter. Other operating costs were 15.2% for the quarter, an increase of 10 basis points, primarily due to increased customer delivery expenses. Good Times restaurant-level operating profit increased $0.1 million over last year's quarter to $0.9 million. As a percent of sales, restaurant-level operating profit increased by 150 basis points versus last year to 10.1%. Combined general and administrative expenses were $2.2 million during the quarter or 6.6% of total revenues, a decrease of 90 basis points from the prior year quarter, primarily related to decreased multiunit supervision costs and technology costs. We anticipate 6% to 7% general and administrative costs on a full year basis for fiscal 2026. Our net income to common shareholders for the quarter was $0.1 million or income of $0.01 per share versus a net loss of $0.6 million or $0.06 per share in the second quarter last year. There was $23,000 of income tax benefit recorded during the quarter compared to $57,000 of expense in the prior year quarter. Adjusted EBITDA for the quarter was $1.4 million compared to $1 million for the second quarter of 2025. We finished the quarter with $2.7 million in cash and $1 million of long-term debt. And now I will turn the call back to Ryan. Ryan Zink: Thank you, Keri. As Keri discussed, we've made strides in lowering our leverage, strengthening our balance sheet so far in fiscal 2026. We believe that a debt-free balance sheet with adequate liquidity is important given our scale and the specific operating segment that we operate in, and it additionally creates greater flexibility for value creation. At this time, we can open the call for questions. Operator: [Operator Instructions] Your first question comes from the line of Zachary Segal from August Investors. Zachary Segal: I was just curious if you guys could speak about the settlement with the White Winston lawsuit and what proceeds, if any, have been received or will be received from that? Ryan Zink: Yes. So with respect to that, I think the disclosure that we provided last quarter in the 10-Q gives as much information as I'll speak to. I think we said ultimately from that, that it was not substantially material to our financials. I will say all of those funds have been received and all of that has been recognized in the results of this quarter. Operator: Your next question comes from the line of David Schwartz from Morningstar. David Swartz: So maybe you can tell us a little bit more about what the marketing plans have been in the last few quarters and how they're going to change with this new advertising relationship you talked about? And how do you think this will be more effective than what you've done in the past? Ryan Zink: So I'll step back to maybe about 18 months ago and with that prior to that, we were significantly heavy on radio advertising. And I would say about 12 months ago, we went away from nearly all radio advertising and we're pretty much -- and I'm speaking specifically to -- Good Times now, that concept and switched really to primarily social media advertising. Without substantial additional media that we had been using. What we are looking at moving forward and although the final media plans have not been fully developed and committed to, we are looking at a greater deployment of digital media, which could include some digital audio streaming, will likely include digital video streaming, whether that is on connected TV or on platforms such as YouTube as well as just general display campaigns. I think the biggest difference in terms of what we are looking at moving forward compared to any of the prior campaigns that we've run in the past year. And I would go so far to say back towards even the past 2 or 3 years is the message itself and that we are really looking at what our guests are demanding in the market. And it's very clear that as components of value, what they are specifically looking for are smaller portion size and lower price. And I think the smaller portion size is driven in part by a need for a lower price, but it's also being driven by factors such as healthy eating and even the use of GLP-1 drugs. And I think -- so what has changed really is our focus on that and the fact that we have a really salient message to deliver with a very compelling $2 price point with a product that already is very attractive to our guests and that we expect to create greater awareness around. David Swartz: That's helpful. So how do you plan to use this marketing plan to drive more membership in GT Rewards? I know you had said in past calls that because it's primarily a drive-thru restaurant that it's difficult to get people to sign up for the loyalty program. Ryan Zink: So we are doing a couple of things there. One is we do have and we are updating the, I'd call it, window-based point-of-sale materials and so posters with QR code to invite guests to join with more attractive creative that have a much clearer call to action. Beyond that, we expect to begin using what we call bag stuffers basically little cards with QR code and/or link, explaining the benefits on that, that we would include with each order. We have some other ideas that we're tossing around that are not committed to yet. Those are the primary ways. I will say that in the past 6 months, we have done a much improved job within the operations capability of speaking to GT Rewards at the window and at the order box. And we are growing that membership base right now at a clip of about 5% per month. So if you do the math on that, that's about a 75% annual growth rate. As we grow the system base, that obviously will decline at the rate of increase, but we're very happy with the progress we're making on a monthly basis of growing the participants in that program right now. Operator: There are no further questions at this time. I would like to turn the call back to Ryan Zink, CEO, for closing remarks. Ryan, please go ahead. Ryan Zink: Our operations leaders as well as our support capability leaders are committed to delighting our guests and creating memorable experiences during each visit in the mission of building a same-store sales flywheel. My sincere gratitude goes out to every single member of our team at every level for every contribution they make to our brands. And as always, I'd like to thank all of you for joining us today. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Good Times Restaurants, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Good Times Restaurants wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Good Times (GTIM) Q2 2026 Earnings Transcript was originally published by The Motley Fool

DENVER, May 07, 2026--(BUSINESS WIRE)--Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard restaurant brands, today reported financial results for the fiscal 2026 second quarter. Key highlights of the Company’s financial results include: Total Revenues for the quarter decreased 3.1% to $33.2 million compared to the fiscal 2025 second quarter Same Store Sales1 for Company-owned Bad Daddy’s restaurants decreased 0.8% and Good Times restaurants decreased 0.8% for the quarter compared to the fiscal 2025 second quarter and are -1.0% and -1.9% year-to-date for our Bad Daddy’s and Good Times brands, respectively. Net Income Attributable to Common Shareholders was $0.1 million for the quarter Adjusted EBITDA2 (a non-GAAP measure) was $1.4 million for the quarter The Company ended the quarter with $2.7 million in cash and $1.0 million of long-term debt "We have engaged a new creative agency for our Good Times brand and expect new campaigns to begin late in the third fiscal quarter, which will include the return of cheese curds, a side item that has been heavily requested from our guests since its elimination last May, and a competitively priced special for our Bambinos, our guest-favorite cheeseburger sliders. Bad Daddy’s began its Monthly Drops promotion at Bad Daddy’s in March, which is a reimagined version of our prior LTO program designed to create value on our core menu while creating both employee and guest excitement with more frequent burger introductions that are check-average and margin accretive," Ryan M. Zink, the Company’s Chief Executive Officer, said. Mr. Zink continued, "Same store sales improved sequentially from the prior quarter at both concepts as did Adjusted EBITDA, operating in a segment with intensifying competition and cost pressures. I am pleased at the improvements in restaurant level operating profit2 (a non-GAAP measure) at our Good Times brand and our stable restaurant level operating profit as a percent-of-sales at our Bad Daddy’s brand, compared to the second quarter of fiscal 2025. We have reduced our debt position and improved liquidity which is intended to provide greater financial flexibility and optionality to create value for shareholders." Conference Call: Management will host a conference call to discuss its fiscal 2026 second quarter financial results on Thursday, May 7, 2026 at 3:00 p.m. MT/5:00 p.m. ET. Hosting the call will be Ryan M. Zink, its Chief Executive Officer and Keri A. August, its Chief Accounting Officer. The conference call can be accessed by registering online at Q2 2026 GTIM Earnings Call and you will be provided with dial in details. The live webcast will be accessible from the Company's investor relations website on the Events page. An archive of the webcast will be available at the same location on the corporate website shortly after the call has concluded. About Good Times Restaurants Inc.: 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 30, 2025 filed with the SEC, and other subsequent filings with the SEC. Category: Financial 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 preopening 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 from operations or net income 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 set forth in this section certain unaudited information for the current and prior year fiscal quarters for fiscal 2026 and 2025, expressed as a percentage of total revenues, except for the components of restaurant operating costs, which are expressed as a percentage of restaurant revenues. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260507937097/en/ Contacts GOOD TIMES RESTAURANTS INC. Ryan M. Zink, Chief Executive Officer (303) 384-1432 Christi Pennington (303) 384-1440