Good Times Restaurants Inc
For the period ended Dec 31, 2024. Filed Feb 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 6, 2025
GTIM$1.24-2.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-25; filed 2024-08-01.
0001214659-24-013547
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-06.
0001214659-25-002118
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 122 previous paragraphs and 79 current paragraphs.
17 unchanged; 36 reworded; 26 added; 61 removed; 8 previous and 0 current paragraphs rearranged.
Tables are not compared: 37 previous and 28 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
Company-Owned/ Joint-Venture:
Current report
Franchisee / Licensee:
Current report
We acquired two Denver metro area Good Times restaurants from a franchisee during the quarter ended December 31, 2024.
Current report
Bad Daddy’s restaurant sales increased $1,958,000 to $26,078,000 for the quarter ended December 31, 2024 from $24,120,000 for the quarter ended December 26, 2023. This increase is due to an additional week in the current fiscal quarter versus the prior year fiscal quarter and menu price increases, partially offset by the prior-year closure of one Bad Daddy’s restaurant and by negative mix shift attributable to the success of the Company’s smashed patty burgers, and slightly reduced traffic in-part due to the impact of reduced number of days between Thanksgiving and Christmas Day compared to the prior year and the shift of Christmas Day from Monday in the current quarter to Wednesday in the prior-year first fiscal quarter. The average menu price increase for the quarter ended December 31, 2024 over the same prior-year quarter was approximately 4.5%.
Current report
Franchise and other revenues increased $157,000 to $368,000 in the quarter ended December 31, 2024 compared to $211,000 in the quarter ended December 26, 2023. This increase is primarily due to an increase in gift card breakage, partially offset by reduced royalties earned and collected due to the aforementioned Good Times restaurant acquisitions from franchisees.
Current report
Bad Daddy’s same store restaurant sales increased 1.5% during the fiscal quarter ended December 31, 2024 compared to the fiscal quarter ended December 26, 2023, primarily driven by menu price increases, partially offset by negative mix shift attributable to the success of the Company’s smashed patty burgers, the prior quarter closure of one Bad Daddy’s restaurant, and slightly reduced traffic in-part due to the impact of reduced number of days between Thanksgiving and Christmas Day compared to the prior year and the shift of Christmas Day from Monday in the current quarter to Wednesday in prior-year first fiscal quarter. There were thirty-eight restaurants included in the same store sales base at the end of the quarter.
Current report
Bad Daddy’s payroll and other employee benefit costs were $9,156,000 (35.1% of restaurant sales) for the quarter ended December 31, 2024 up from $8,641,000 (35.8% of restaurant sales) in the same prior year period. The $515,000 increase is primarily attributable to higher restaurant sales during the current quarter versus the same quarter in the prior year, an additional week in the current fiscal quarter versus the prior year fiscal quarter, and higher average pay rates, partially offset by the prior quarter closure of one Bad Daddy’s restaurant and increased labor productivity. As a percent of sales, payroll and employee benefits costs decreased by 0.7% primarily attributable to the leveraging impact of higher sales on fixed labor costs, predominately manager salaries, a 4.5% increase in menu pricing, and increased labor productivity, partially offset by higher average wage rates paid to attract qualified employees.
Current report
Good Times payroll and other employee benefit costs were $3,627,000 (36.7% of restaurant sales) in the quarter ended December 31, 2024, up from $2,983,000 (33.8% of restaurant sales) in the same prior-year period. The $644,000 increase is attributable to the current quarter acquisition of two Good Times restaurants, and the third fiscal quarter 2024 acquisition of one Good Times restaurant, previously owned by franchisees, an additional week in the current fiscal quarter versus the prior year fiscal quarter, as well as higher average wage rates and decreased labor productivity, partially offset by the prior quarter closure of one Good Times restaurant and the current quarter temporary closure of one Good Times restaurant for remodel. As a percent of sales, payroll and employee benefits costs increased by 2.9% primarily attributable to higher average wage rates and decreased labor productivity, partially offset by a 3.9% increase in menu pricing.
Current report
Bad Daddy’s other operating costs were $3,697,000 (14.2% of restaurant sales) for the quarter ended December 31, 2024 up from $3,581,000 (14.8% of restaurant sales) in the same prior year period. The $116,000 increase was primarily attributable toan additional week in the current fiscal quarter versus the prior year fiscal quarterled by increased delivery and credit card fees as a result of the related increase in sales, as well as higher utility expenses, partially offset by the prior quarter closure of one Bad Daddy’s restaurant.
Current report
Good Times other operating costs were $1,309,000 (13.2% of restaurant sales) for the quarter ended December 31, 2024, up from $1,147,000 (13.0% of restaurant sales) in the same prior year period. The $162,000 increase was primarily attributable the current quarter acquisition of two Good Times restaurants, and the third fiscal quarter 2024 acquisition of one Good Times restaurant, previously owned by franchisees, an additional week in the current fiscal quarter versus the prior year fiscal quarter, as well as increased technology-related fees and utilities, partially offset by the prior quarter closure of one Good Times restaurant.
Current report
Good Times depreciation and amortization costs for the quarter ended December 31, 2024 increased $68,000 to $245,000 from $177,000 in the quarter ended December 26, 2023.
Current report
Good Times advertising costs were $244,000 (2.5% of total revenues) in the quarter ended December 31, 2024 compared to $360,000 (4.0% of total revenues) in the same prior year period. The decrease is primarily due to decreased radio advertising and research, partially offset by increases in social media expenses.
Current report
Gain on Restaurant Asset and Equipment Sales. For the fiscal quarter ended December 31, 2024, the gain on restaurant asset disposals was $57,000 compared to a gain of $10,000 in the fiscal quarter ended December 26, 2023. The net gain in the current fiscal quarter is primarily due to fixed asset retirements subject to insurance claims as well as deferred gains on previous sale lease-back transactions related to two Good Times restaurants. The gain in the prior year fiscal quarter is primarily comprised of a deferred gain on previous sale lease-back transactions related to two Good Times restaurants.
Current report
**Other Income.**There was $140,000 of other income for the quarter ended December 31, 2024, related to the termination of an agreement in connection with the Company’s management services, and lease negotiations on behalf of a former franchisee, with respect to real estate previously subleased to a third party by the former franchisee.
Current report
Provision for Income Taxes. The provision for income taxes for the quarter ended December 31, 2024 was ($3,000), compared to $77,000 for the quarter ended December 26, 2023.
Current report
Net Income (Loss). Net income was $174,000 for the quarter ended December 31, 2024 compared to a net loss of ($483,000) in the quarter ended December 26, 2023.
Current report
For the quarter ended December 31, 2024, the income attributable to non-controlling interests was $10,000 compared to $73,000 for the quarter ended December 26, 2023. The $63,000 decrease is due todecreased profitability of the restaurants involved in the limited partnership with a non-controlling partner.
Current report
Cash and Working Capital
Current report
See Part II, Item 2 of this filing for a discussion of the Company’s share repurchase program.
Current report
The table below summarizes our cash flows from operating, investing, and financing activities for each period presented (in thousands):
Current report
Operating cash flows
Current report
Investing cash flows
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Financing cash flows
Current report
Net cash provided by financing activities for the quarter ended December 26, 2023 was $33,000, which includes proceeds from long-term debt of $500,000, distributions to non-controlling interests of $29,000, and $438,000 in payments for the repurchase of common stock under the Company’s share repurchase program.
Current report
Impact of Inflation and Wage Increases at Both Concepts
Current report
Although some commodity prices have been more stable over recent quarters, beef remains at or near record highs and prices are extremely volatile. Based on general industry consensus, we project that due the tightening of supply, ground beef costs will continue to increase throughout fiscal year 2025. Due to the uncertainty related to tariffs that have been implemented or threatened to be imposed on other countries, some of which are sources of food and packaging supplies for our business, we are unable to predict the degree of inflation and its associated impact on our business.
Removed paragraphs (61)
Previous report
Company-Owned/Co-Developed:
Previous report
Franchise/License:
Previous report
We acquired one Good Times restaurant in Parker, Colorado from a franchisee during the quarter ended June 25, 2024. We acquired one Good Times restaurant in Lafayette, Colorado and one Good Times restaurant in Greenwood Village, Colorado from franchisees during the 2023 fourth quarter. Additionally, we opened one Bad Daddy’s restaurant in Madison, Alabama during the 2023 fourth quarter.
Previous report
Bad Daddy’s restaurant sales increased $1,242,000 to $27,327,000 for the fiscal quarter ended June 25, 2024 from $26,085,000 for the fiscal quarter ended June 27, 2023. This increase is a result of the fourth quarter 2023 Madison, Alabama restaurant opening, the prior year remodel temporary closure of the Greenville, South Carolina restaurant, and menu price increases, partially offset by reduced customer traffic. The average menu price increase for the fiscal quarter ended June 25, 2024 over the same prior year quarter was approximately 4.4%.
Previous report
Franchise revenues decreased $56,000 to $200,000 in the fiscal quarter ended June 25, 2024 compared to $256,000 in the fiscal quarter ended June 27, 2023. This decrease is primarily due to the acquisition, by the Company during fourth quarter 2023, of two Good Times restaurants previously owned by franchisees, and the current fiscal quarter acquisition of a Good Times restaurant previously owned by a franchisee, resulting in reduced royalties earned and collected.
Previous report
Bad Daddy’s same store restaurant sales increased 1.2% during the fiscal quarter ended June 25, 2024 compared to the same thirteen-week period ended June 27, 2023, primarily driven by increased customer traffic and menu price increases. There were thirty-nine restaurants included in the same store sales base at the end of the current quarter.
Previous report
Good Times food and packaging costs were $3,181,000 (30.5% of restaurant sales) for the fiscal quarter ended June 25, 2024, up from $2,817,000 (30.3% of restaurant sales)for the fiscal quarter ended June 27, 2023. This increase, as a percentage of sales, is primarily attributable tohigher purchase prices on food and paper goods, partially offset by the impact of a 3.9% average increase in menu pricing.
Previous report
Bad Daddy’s payroll and other employee benefit costs were $9,227,000 (33.8% of restaurant sales) for the fiscal quarter ended June 25, 2024 up from $9,054,000 (34.7% of restaurant sales) for the fiscal quarter ended June 27, 2023. The $173,000 increase is primarily attributable to one additional operating restaurant during the current quarter compared to the same prior year quarter, higher wage rates offset by greater labor productivity. The decrease as a percent of sales is attributable to greater labor productivity.
Previous report
Good Times payroll and other employee benefit costs were $3,408,000 (32.7% of restaurant sales) in the fiscal quarter ended June 25, 2024, up from $2,886,000 (31.1% of restaurant sales) in the same prior year period. Theincrease is attributable to labor associated with three additional company-owned restaurants, an increase in operating hours caused by later closing times in nearly every restaurant, and higher average wage rates resulting from market forces and the CPI-indexed minimum wage in Denver and the state of Colorado.
Previous report
Good Times occupancy costs were $853,000 (8.2% of restaurant sales) in the fiscal quarter ended June 25, 2024, up from $732,000 (7.9% of restaurant sales) in the fiscal quarter ended June 27, 2023. The increase was primarilydue to the costs incurred for three additional company-owned restaurants as well as real property tax increases resulting from higher property values.
Previous report
Bad Daddy’s other operating costs were $3,945,000 (14.4% of restaurant sales) for the fiscal quarter ended June 25, 2024 up from $3,750,000 (14.4% of restaurant sales) for the fiscal quarter ended June 27, 2023. The $195,000 increase was primarily attributable to one additional operating restaurant during the current quarter compared to the same prior year quarter as well as increased repair and maintenance expenses.
Previous report
Good Times other operating costs were $1,250,000 (12.0% of restaurant sales) in the fiscal quarter ended June 25, 2024, up from $1,061,000 (11.4% of restaurant sales) in the fiscal quarter ended March 28, 2023. The increase was primarilydue to costs associated with three additional company-owned restaurants, as well as increased repair and maintenance, credit card fees and customer delivery fees.
Previous report
Good Times depreciation and amortization costs for the fiscal quarter ended June 25, 2024 increased $60,000 to $211,000 from $151,000 in the fiscal quarter ended June 27, 2023. This increase is primarily due to additional depreciation on newly deployed assets including signs, menu boards, and restaurant remodels.
Previous report
For the balance of the fiscal year, we expect general and administrative costs to be approximately 7.0% - 7.5% of total revenues.
Previous report
Good Times advertising costs were $301,000 (2.9% of total revenues) in the fiscal quarter ended June 25, 2024 compared to $367,000 (3.9% of restaurant sales) in the fiscal quarter ended June 27, 2023. The decrease is primarily related to the timing of radio advertising, increased product rebates, and the additional revenue from the purchase of three previously franchised restaurants.
Previous report
Impairment of Long-Lived Assets Costs. The were $199,000 of costs associated with impairments for the fiscal quarter ended June 25, 2024, compared to $965,000 for the fiscal quarter ended June 27, 2023. The current year impairment costs are primarily attributable to the impairment of the lease right-of-use asset of one Colorado Bad Daddy’s location.
Previous report
Loss (Gain) on Restaurant Asset and Equipment Sales. The net loss on restaurant asset sales and equipment disposals for the fiscal quarter ended June 25, 2024 was $18,000, which is composed of a loss of $27,000 on disposal of miscellaneous assets, and $9,000 of deferred gain recognition, compared to a net gain of $10,000 for the fiscal quarter ended June 27, 2023.
Previous report
Litigation Contingency Costs. There were no litigation contingency costs for the fiscal quarters ended June 25, 2024 or June 27, 2023.
Previous report
Provision for Income Taxes. There was a $197,000 benefit from income taxes for the fiscal quarter ended June 25, 2024, compared to a $551,000 benefit for the fiscal quarter ended June 27, 2023. The most significant driver of the tax provision changes related to changes in projected full-year net income and available tax credits.
Previous report
Net Income. Net income was $1,398,000 for the fiscal quarter ended June 25, 2024, compared to net income of $977,000 in the fiscal quarter ended June 27, 2023.
Previous report
For the fiscal quarter ended June 25, 2024, the income attributable to non-controlling interests was $77,000 compared to $135,000 for the fiscal quarter ended June 27, 2023. This $58,000 decrease is primarily due to the temporary closure for remodel of one joint-venture restaurant during the fiscal quarter ended June 25, 2024.
Previous report
Fiscal three quarters ended June 25, 2024 (39 weeks) compared to fiscal three quarters ended June 27, 2023 (39 weeks):
Previous report
Bad Daddy’s restaurant sales increased $304,000 to $77,896,000 for the three quarters ended June 25, 2024 from $77,592,000 for the three quarters ended June 27, 2023. This increase is a result of the fourth quarter 2023 Madison, Alabama restaurant opening, the prior year remodel temporary closure of the Greenville, South Carolina restaurant, and menu price increases partially offset by reduced customer traffic, concentrated in certain restaurants. The average menu price increase for the three quarters ended June 25, 2024 over the same prior year quarters was approximately 4.4%.
Previous report
Good Times restaurant sales increased $2,526,000 to $28,057,000 for the three quarters ended June 25, 2024 from $25,531,000 for the three quarters ended June 27, 2023. This increase is primarily due to the acquisition, by the Company during fiscal 2023, of two Good Times restaurants previously owned by franchisees, the current fiscal quarter acquisition of a Good Times restaurant previously owned by a franchisee, and menu price increases. The average menu price increase for the three quarters ended June 25, 2024 over the same prior year quarters was approximately 4.1%.
Previous report
Franchise revenues decreased $138,000 to $568,000 in the three quarters ended June 25, 2024 compared to $706,000 in the three quarters ended June 27, 2023. This decrease is primarily due to the acquisition, during the fourth fiscal quarter of 2023, by the Company, of two Good Times restaurants previously owned by franchisees, and the current fiscal quarter acquisition of a Good Times restaurant previously owned by a franchisee, resulting in reduced royalties collected.
Previous report
Same Store Sales
Previous report
Bad Daddy’s same store restaurant sales decreased 2.7% during the three quarters ended June 25, 2024 compared to the same three quarters ended June 27, 2023, primarily driven by general weakness in the casual dining restaurant segment as indicated by sequentially lower same store sales as measured by Black Box Intelligence, weaker traffic specific to Bad Daddy’s in certain restaurants, partially offset by menu price increases. There were thirty-nine restaurants included in the same store sales base at the end of the current quarter.
Previous report
Good Times same store restaurant sales increased 3.7% during the three quarters ended June 25, 2024 compared to the same three quarters ended June 27, 2023, primarily due to menu price increases and increased customer traffic, There were twenty-six restaurants included in the same store sales base at the end of the current quarter.
Previous report
Restaurant Operating Costs
Previous report
Food and Packaging Costs. Food and packaging costs for the three quarters ended June 25, 2024 increased $439,000 to $32,624,000 (30.8% of restaurant sales) from $32,185,000 (31.2% of restaurant sales) for the three quarters ended June 27, 2023.
Previous report
Bad Daddy’s food and packaging costs were $24,156,000 (31.0% of restaurant sales) for the three quarters ended March 25, 2024, up from $24,131,000 (31.1% of restaurant sales) for the three quarters ended June 27, 2023. This increase is primarily attributable to the fourth quarter 2023 Madison, Alabama restaurant opening, and the prior year remodel temporary closure of the Greenville, South Carolina restaurant, partially offset by lower average unit volumes. The decrease, as a percent of sales, is primarily attributable to the impact of a 4.4% average annual increase in menu pricing.
Previous report
Payroll and Other Employee Benefit Costs. Payroll and other employee benefit costs for the three quarters ended June 25, 2024 increased $1,048,000 to $36,525,000 (34.5% of restaurant sales) from $35,477,000 (34.4% of restaurant sales) for the three quarters ended June 27, 2023.
Previous report
Bad Daddy’s payroll and other employee benefit costs were $27,040,000 (34.7% of restaurant sales) for the three quarters ended June 25, 2024 up from $26,951,000 (34.7% of restaurant sales) for the three quarters ended June 27, 2023. The $89,000 increase is primarily attributable tothe fourth quarter 2023 Madison, Alabama restaurant opening, and the prior year remodel temporary closure of the Greenville, South Carolina restaurant, partially offset by greater labor productivity and the deleveraging impact of lower average unit volumes.
Previous report
Good Times payroll and other employee benefit costs were $9,485,000 (33.8% of restaurant sales) in the three quarters ended June 25, 2024, up from $8,526,000 (33.4% of restaurant sales) in the same prior year period. The $959,000 increase was attributable tolabor associated with three additional company-owned restaurants and higher average wage rates resulting from market forces and the CPI-indexed minimum wage in Denver and the state of Colorado, and higher average wage rates, partially offset by increased labor productivity. As a percent of sales, payroll and employee benefits costs increased by 0.4% primarily attributable to increased wage rates, partially offset by menu price increases and increased labor productivity.
Previous report
Occupancy Costs. Occupancy costs for the three quarters ended June 25, 2024 increased $380,000 to $7,698,000 (7.3% of restaurant sales) from $7,318,000 (7.1% of restaurant sales) for the three quarters ended June 27, 2023.
Previous report
Bad Daddy’s occupancy costs were $5,188,000 (6.7% of restaurant sales) for the three quarters ended June 25, 2024, up from $5,124,000 (6.6% of restaurant sales) for the three quarters ended June 27, 2023.
Previous report
Other Operating Costs. Other operating costs for the three quarters ended June 25, 2024, increased $899,000 to $15,028,000 (14.2% of restaurant sales) from $14,129,000 (13.7% of restaurant sales) for the three quarters ended June 27, 2023.
Previous report
Bad Daddy’s other operating costs were $11,421,000 (14.7% of restaurant sales) for the three quarters ended June 25, 2024 up from $11,084,000 (14.3% of restaurant sales) for the three quarters ended June 27, 2023. The $337,000 increase was attributable tothe fourth quarter 2023 Madison, Alabama restaurant opening, and the prior year remodel temporary closure of the Greenville, South Carolina restaurant, increased repair and maintenance and other employee-related expenses, partially offset by a reduced restaurant supply cost.
Previous report
Good Times other operating costs were $3,607,000 (12.9% of restaurant sales) in the three quarters ended June 25, 2024, up from $3,045,000 (11.9% of restaurant sales) in the three quarters ended June 27, 2023. The increase was primarilydue to the acquisition, by the Company during fiscal 2023, of two Good Times restaurants previously owned by franchisees, and the current fiscal quarter acquisition of a Good Times restaurant previously owned by a franchisee, as well as increased repair and maintenance, credit card fees and customer delivery fees.
Previous report
New Store Preopening Costs. There were no new store preopening costs for the three quarters ended June 25, 2024, compared to $110,000 for the three quarters ended June 27, 2023 which were primarily related to re-training costs incurred as part of our closure and remodel of our Greenville, South Carolina Bad Daddy’s location.
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Reworded paragraphs (36)
Previous wording
**Restaurant Locations.**As of June 25, 2024, we operated, franchised, or licensed a total of forty-one Bad Daddy’s restaurants and thirty-one Good Times restaurants. The following table presents the number of restaurants operating at the end of the fiscal quarters ended June 25, 2024 and June 27, 2023.
Current wording
**Restaurant locations.**As of December 31, 2024, we operated, franchised, or licensed a total of forty Bad Daddy’s restaurants and thirty Good Times restaurants. The following table presents the number of restaurants operating at the end of the fiscal quarters ended December 31, 2024 and December 26, 2023.
Previous wording
***Net Revenues.***Net revenues for the fiscal quarter ended June 25, 2024 increased $2,310,000 or 6.5% to $37,942,000 from $35,632,000 for the fiscal quarter ended June 27, 2023. Bad Daddy’s concept revenues increased $1,249,000 while our Good Times concept revenues increased $1,061,000.
Current wording
***Net Revenues.***Net revenues for the quarter ended December 31, 2024 increased $3,176,000 or 9.6% to $36,333,000 from $33,157,000 for the quarter ended December 26, 2023. Bad Daddy’s concept revenues increased $2,173,000 while our Good Times concept revenues increased $1,003,000 compared to the same prior-year quarter.
Previous wording
Good Times restaurant sales increased $1,124,000 to $10,415,000 for the fiscal quarter ended June 25, 2024 from $9,291,000 for the fiscal quarter ended June 27, 2023. This increase is primarily due to the acquisition, by the Company during fourth quarter 2023, of two Good Times restaurants previously owned by franchisees, the current fiscal quarter acquisition of a Good Times restaurant previously owned by a franchisee, increased customer traffic, and menu price increases. The average menu price increase for the fiscal quarter ended June 25, 2024 over the same prior year quarter was approximately 3.9%.
Current wording
Good Times restaurant sales increased $1,061,000 to $9,887,000 for the quarter ended December 31, 2024 from $8,826,000 for the quarter ended December 26, 2023. This increase is driven by the current quarter acquisition of two Good Times restaurants, and the third fiscal quarter 2024 acquisition of one Good Times restaurant, previously owned by franchisees. Also driving the increase is an additional week in the current fiscal quarter versus the prior year fiscal quarter as well as menu price increases, partially offset by the prior quarter closure of one Good Times restaurant and the current quarter temporary closure of one Good Times restaurant for remodel. The average menu price increase for the quarter ended December 31, 2024 over the same prior-year quarter was approximately 3.9%.
Previous wording
Same store sales is 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 eighteen full fiscal months and use the comparable operating weeks from the prior year to the current year quarter’s operating weeks.
Current wording
Sales store sales is 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 eighteen full fiscal months and use the comparable operating weeks from the prior year to the current year quarter’s operating weeks.
Previous wording
Good Times same store restaurant sales increased 5.8% during the fiscal quarter ended June 25, 2024 compared to the same thirteen-week period ended June 27, 2023, primarily due to increased customer traffic and menu price increases. There were twenty-six restaurants included in the same store sales base at the end of the current quarter.
Current wording
Good Times same store restaurant sales were unchanged during the quarter ended December 31, 2024 compared to the fiscal quarter ended December 26, 2023. There were twenty-seven restaurants included in the same store sales base at the end of the quarter.
Previous wording
Food and Packaging Costs. Food and packaging costs for the fiscal quarter ended June 25, 2024 increased $775,000 to $11,698,000 (31.0% of restaurant sales) from $10,923,000 (30.9% of restaurant sales) for the fiscal quarter ended June 27, 2023.
Current wording
Food and Packaging Costs. Food and packaging costs for the fiscal quarter ended December 31, 2024 increased $1,036,000 to $11,363,000 (31.6% of restaurant sales) from $10,327,000 (31.3% of restaurant sales) for the quarter ended December 26, 2023.
Previous wording
Bad Daddy’s food and packaging costs were $8,517,000 (31.2% of restaurant sales) for the fiscal quarter ended June 25, 2024, up from $8,106,000 (31.1% of restaurant sales) for the fiscal quarter ended June 27, 2023. The increase, as a percentage of sales, is primarily attributable to higher purchase prices in our commodity basket compared to the prior year quarter, partially offset by the impact of a 4.4% average increase in menu pricing.
Current wording
Bad Daddy’s food and packaging costs were $8,214,000 (31.5% of restaurant sales) for the quarter ended December 31, 2024, up from $7,608,000 (31.5% of restaurant sales) for the quarter ended December 26, 2023. This increase is primarily attributable to a combination of higher restaurant sales during the current fiscal quarter versus the prior fiscal quarter, an additional week in the current fiscal quarter versus the prior year fiscal quarter, and higher food purchase prices. The steadiness, as a percent of sales, is attributable to the impact of a 4.5% average annual increase in menu pricing offset by higher purchase prices in our commodity basket compared to the prior-year period.
Previous wording
Good Times food and packaging costs were $8,468,000 (30.2% of restaurant sales) for the three quarters ended June 25, 2024, up from $8,054,000 (31.5% of restaurant sales) for the three quarters ended June 25, 2023. This increase is primarily attributable to the acquisition, by the Company during fiscal 2023, of two Good Times restaurants previously owned by franchisees and the current fiscal quarter acquisition of a Good Times restaurant previously owned by a franchisee. The decrease, as a percent of sales, is primarily attributable to the impact of a 4.1% average annual increase in menu pricing.
Current wording
Good Times food and packaging costs were $3,149,000 (31.8% of restaurant sales) for the quarter ended December 31, 2024, up from $2,719,000 (30.8% of restaurant sales) for the quarter ended December 26, 2023. This increase is primarily attributable to the impact of higher sales resulting from the current quarter acquisition of two Good Times restaurants, and the third fiscal quarter 2024 acquisition of one Good Times restaurant, previously owned by franchisees, and an additional week in the current fiscal quarter versus the prior year fiscal quarter, as well as higher food purchase prices, partially offset by the prior quarter closure of one Good Times restaurant and the current quarter temporary closure of one Good Times restaurant for remodel. The increase as a percentage of sales is attributable to higher purchase prices of food products, partially offset by a 3.9% average annual increase in menu pricing.
Previous wording
Payroll and Other Employee Benefit Costs. Payroll and other employee benefit costs for the fiscal quarter ended June 25, 2024 increased $695,000 to $12,635,000 (33.5% of restaurant sales) from $11,940,000 (33.8% of restaurant sales) for the fiscal quarter ended June 27, 2023.
Current wording
Payroll and Other Employee Benefit Costs. Payroll and other employee benefit costs for the quarter ended December 31, 2024 increased $1,159,000 to $12,783,000 (35.5% of restaurant sales) from $11,624,000 (35.3% of restaurant sales) for the quarter ended December 26, 2023.
Previous wording
Occupancy Costs. Occupancy costs for the fiscal quarter ended June 25, 2024 increased $148,000 to $2,580,000 (6.8% of restaurant sales) from $2,432,000 (6.9% of restaurant sales) for the fiscal quarter ended June 27, 2023.
Current wording
Occupancy Costs. Occupancy costs for the quarter ended December 31, 2024 increased $178,000 to $2,683,000 (7.5% of restaurant sales) from $2,505,000 (7.6% of restaurant sales) for the quarter ended December 26, 2023.
Previous wording
Bad Daddy’s occupancy costs were $1,727,000 (6.3% of restaurant sales) for the fiscal quarter ended June 25, 2024, up from $1,700,000 (6.5% of restaurant sales)for the fiscal quarter ended June 27, 2023.
Current wording
Bad Daddy’s occupancy costs were $1,733,000 (6.6% of restaurant sales) for the quarter ended December 31, 2024, up from $1,719,000 (7.1% of restaurant sales) in the same prior year period.
Previous wording
Good Times occupancy costs were $2,510,000 (8.9% of restaurant sales) in the three quarters ended June 25, 2024, up from $2,194,000 (8.6% of restaurant sales) in the three quarters ended June 27, 2023. The increase was primarilydue to the acquisition, by the Company during fiscal 2023, of two Good Times restaurants previously owned by franchisees and the current fiscal quarter acquisition of a Good Times restaurant previously owned by a franchisee, as well asreal property tax increases resulting from increased property valuations.
Current wording
Good Times occupancy costs were $950,000 (9.6% of restaurant sales) in the quarter ended December 31, 2024, up from $786,000 (8.9% of restaurant sales) in the same prior year period. The increase was primarilydue to the current quarter acquisition of two Good Times restaurants, and the third fiscal quarter 2024 acquisition of one Good Times restaurant, previously owned by franchisees, partially offset by the prior quarter closure of one Good Times restaurant.
Previous wording
Other Operating Costs. Other operating costs for the fiscal quarter ended June 25, 2024, increased $384,000 to $5,195,000 (13.8% of restaurant sales) from $4,811,000 (13.6% of restaurant sales) for the fiscal quarter ended June 27, 2023.
Current wording
Other Operating Costs. Other operating costs for the quarter ended December 31, 2024, increased $278,000 to $5,006,000 (13.9% of restaurant sales) from $4,728,000 (14.4% of restaurant sales) for the quarter ended December 26, 2023.
Previous wording
New Store Preopening Costs. In the fiscal quarter ended June 25, 2024, there were no preopening costs compared to $80,000 of preopening costs for the fiscal quarter ended June 27, 2023, which primarily related to re-training costs incurred as part of our closure and remodel of our Greenville, South Carolina Bad Daddy’s location.
Current wording
New Store Preopening Costs. In the fiscal quarter ended December 31, 2024, preopening costs were $8,000 compared to no preopening costs for the fiscal quarter ended December 26, 2023. These costs primarily relate to training costs incurred as part of our two Good Times restaurant acquisitions.
Previous wording
Depreciation and Amortization Costs. Depreciation and amortization costs for the fiscal quarter ended June 25, 2024, increased $41,000 to $960,000 from $919,000 in the fiscal quarter ended June 27, 2023.
Current wording
Depreciation and Amortization Costs. Depreciation and amortization costs for the quarter ended December 31, 2024, increased $91,000 to $1,018,000 from $927,000 in the quarter ended December 26, 2023.
Previous wording
Bad Daddy’s depreciation and amortization costs for the fiscal quarter ended June 25, 2024 decreased $19,000 to $749,000 from $768,000 in the fiscal quarter ended June 27, 2023.
Current wording
Bad Daddy’s depreciation and amortization costs for the quarter ended December 31, 2024 increased $23,000 to $773,000 from $750,000 in the quarter ended December 26, 2023.
Previous wording
General and Administrative Costs. General and administrative costs for the fiscal quarter ended June 25, 2024, increased $303,000 to $2,680,000 (7.1% of total revenues) from $2,377,000 (6.7% of total revenues) for the fiscal quarter ended June 27, 2023.
Current wording
General and Administrative Costs. General and administrative costs for the quarter ended December 31, 2024, increased $250,000 to $2,588,000 (7.1% of total revenues) from $2,338,000 (7.1% of total revenues) for the quarter ended December 26, 2023.
Previous wording
This increase in general and administrative expenses in the fiscal quarter ended June 25, 2024 is primarily attributable to:
Current wording
This increase in general and administrative expenses for the quarter ended December 31, 2024 is attributable to:
Previous wording
Advertising Costs. Advertising costs for the fiscal quarter ended June 25, 2024, decreased $2,000 to $749,000 (2.0% of total revenues) from $751,000 (2.1% of total revenue) for the fiscal quarter ended June 27, 2023.
Current wording
Advertising Costs. Advertising costs for the quarter ended December 31, 2024, decreased $228,000 to $864,000 (2.4% of total revenues) from $1,092,000 (3.3% of total revenues) for the quarter ended December 26, 2023.
Previous wording
Bad Daddy’s advertising costs were $1,715,000 (2.2% of total revenues) for the three quarters ended June 25, 2024 compared to $1,414,000 (1.8% of restaurant sales) for the three quarters ended June 27, 2023. The $301,000 increase is primarily due to recognition of commission earned by third parties on gift cards sold through large-box retailers as well as increased social media and printing costs, partially offset by reduced local store marketing. Bad Daddy’s advertising costs consist primarily of third-party gift card commissions, menu development, printing costs, local store marketing and social media.
Current wording
Bad Daddy’s advertising costs were $620,000 (2.3% of total revenues) in the quarter ended December 31, 2024 compared to $732,000 (3.0% of total revenues) in the same prior year period. The decrease is primarily due to lower commission earned by third parties on gift cards sold through large-box retailers as well as decreased agency and public relations fees. Bad Daddy’s advertising costs consist primarily of third-party gift card commissions, menu development, printing costs, local store marketing and social media.
Previous wording
Income from Operations. Income from operations was $1,228,000 in the fiscal quarter ended June 25, 2024 compared to income from operations of $444,000 in the fiscal quarter ended June 27, 2023.
Current wording
Income (Loss) from Operations. Income from operations was $77,000 in the quarter ended December 31, 2024 compared to a loss from operations of ($374,000) in the quarter ended December 26, 2023.
Previous wording
The change in the income from operations for the fiscal quarter ended June 25, 2024 is primarily due to matters discussed in the relevant sections above.
Current wording
The change in the income (loss) from operations for the quarter ended December 31, 2024 from the quarter ended December 26, 2023 is primarily attributable tomatters discussed in the relevant sections above.
Previous wording
***Interest Expense.***Interest expense was $27,000 during the fiscal quarter ended June 25, 2024, compared with $18,000 during the fiscal quarter ended June 27, 2023.
Current wording
***Interest Expense.***Net interest expense was $46,000 during the quarter ended December 31, 2024 compared with $32,000 during the quarter ended December 26, 2023.
Previous wording
The change from the fiscal quarter ended June 25, 2024 to the fiscal quarter ended June 27, 2023 was primarily attributable to the matters discussed in the relevant sections above.
Current wording
The change from the quarter ended December 31, 2024 to the quarter ended December 26, 2023 was primarily attributable to the matters discussed in the relevant sections above.
Previous wording
**Income Attributable to Non-Controlling Interests.**The non-controlling interest represents the limited partners’ or members’ share of income in the Good Times joint-venture restaurants.
Current wording
**Income Attributable to Non-Controlling Interests.**The non-controlling interest represents the limited partner’s share of income in the Good Times joint-venture restaurants.
Previous wording
Adjusted EBITDA is defined as EBITDA plus non-cash stock-based compensation expense, preopening expense, non-recurring acquisition costs, GAAP rent in excess of cash rent, and non-cash disposal of assets. Adjusted EBITDA is intended as a supplemental measure of our performance that is not required by or presented in accordance with GAAP. We believe that EBITDA and Adjusted EBITDA provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results. Our management uses EBITDA and Adjusted EBITDA (i) as a factor in evaluating management's performance when determining incentive compensation and (ii) to evaluate the effectiveness of our business strategies.
Current wording
Adjusted EBITDA is defined as EBITDA plus non-cash stock-based compensation expense, preopening expense, non-recurring acquisition costs, and non-cash disposal of assets. Adjusted EBITDA is intended as a supplemental measure of our performance that is not required by or presented in accordance with GAAP. We believe that EBITDA and Adjusted EBITDA provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results. Our management uses EBITDA and Adjusted EBITDA (i) as a factor in evaluating management's performance when determining incentive compensation and (ii) to evaluate the effectiveness of our business strategies.
Previous wording
Because of these limitations, Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only as a supplemental measure. You should review the reconciliation of net loss to EBITDA and Adjusted EBITDA below and not rely on any single financial measure to evaluate our business.
Current wording
Because of these limitations, Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only as a supplemental measure. You should review the reconciliation of net income (loss) to EBITDA and Adjusted EBITDA below and not rely on any single financial measure to evaluate our business:
Previous wording
Depreciation and amortization, the difference between GAAP rent and cash rent and loss (gain) on restaurant and equipment asset sales have been reduced by any amounts attributable to non-controlling interests.
Current wording
Depreciation and amortization has been reduced by any amounts attributable to non-controlling interests.
Previous wording
***Cash and Working Capital.***As of June 25, 2024, we had a working capital deficit of $8,834,000. Our working capital position benefits from the fact that we generally collect cash from sales to customers the same day, or in the case of credit or debit card transactions, within a few days of the related saleand have payment terms with vendors that are typically between 14 and 21 days. Further, we have increased our sale of gift cards through large box retailers and the outstanding balance on unredeemed cards has increased in concert with those additional sales, further increasing the deficit. Our current working capital deficit is additionally affected by the recognition of short-term lease liabilities, as we lease substantially all of our real estate and have both current and long-term obligations to our landlords. We believe that we will have sufficient capital to meet our working capital, and recurring capital expenditure needs in fiscal 2024. We anticipate any commitments in fiscal 2024 will be funded out of existing cash or future borrowings against the Cadence Credit Facility.
Current wording
As of December 31, 2024, we had a working capital deficit of $9,223,000. Our working capital position benefits from the fact that we generally collect cash from sales to customers on the same day, or in the case of credit or debit card transactions, within a few days of the related sale and have payment terms with vendors that are typically between 14 and 21 days. Our current working capital deficit is additionally affected by the recognition of short-term lease liabilities, as we lease substantially all of our real estate and have both current- and long-term obligations to our landlords. We believe that we will have sufficient capital to meet our working capital, and recurring capital expenditure needs in fiscal 2025. We anticipate any commitments in fiscal 2025 will be funded out of existing cash or future borrowings against the Cadence Credit Facility.
Previous wording
For a discussion of the Company’s credit arrangements and long-term financing, see Note 8 to the unaudited, consolidated financial statements included in this report.
Current wording
For a discussion of the Company’s financing arrangements (including the Cadence Credit Facility), refer to note 8 to the unaudited condensed consolidated financial statements included in this report.
Previous wording
***Operating Cash Flows.***Net cash from operating activities increased by $29,000, primarily due to decreased net income, income tax provision and long-lived asset impairments as well as increased cash usage for accounts payable, offset by decreased cash usage for accrued liabilities, other assets and deferred income, as presented on the Condensed Consolidated Statements of Cash Flows.
Current wording
Net cash from operating activities decreased by $266,000, primarily due to increases in accounts payable, prepaid expenses, notes receivable, and cash used for ROU assets and operating lease liabilities, partially offset by increased net income and decreases in other receivables, as presented on the Condensed Consolidated Statements of Cash Flows.
Previous wording
***Investing Cash Flows.***Net cash used in investing activities for the three quarters ended June 25, 2024 and June 27, 2023 were $2,802,000 and $7,572,000, respectively, which primarily reflect the purchases of property and equipment in each period as well as the acquisition of a restaurant from a franchisee in the current year period, and the net purchase of all non-controlling interests in our Bad Daddy’s locations in the prior year period.
Current wording
Net cash used in investing activities for the quarters ended December 31, 2024 and December 26, 2023 were $1,846,000 and $448,000, respectively, which primarily reflect the purchases of property and equipment in each quarter as well as the acquisition in the current fiscal quarter of two Good Times restaurants previously owned by a franchisee.
Previous wording
***Financing Cash Flows.***Net cash used in financing activities for the three quarters ended June 25, 2024 was $1,297,000, which includes proceeds from long-term debt of $1,380,000, including the making of the Parker Promissory Note, payments of long-term debt of $1,000,000, net contributions from non-controlling interests of $112,000, and $1,789,000 in payments for the purchase of treasury stock.
Current wording
Net cash provided by financing activities for the quarter ended December 31, 2024 was $1,534,000, which includes proceeds from long-term debt of $1,750,000, $10,000 of payments on long-term debt, distributions to non-controlling interests of $42,000, and $164,000 of payments for the repurchase of common stock under the Company’s share repurchase program.
Previous wording
In addition to food and supplies cost inflation, we have also experienced the need to meaningfully increase wages to attract restaurant employees, and in Colorado inflation-indexed statutory wage rate increases have created upward pressure on wages. Further, as property valuations have increased in Colorado and to a lesser extent elsewhere, we have seen significant increases in real property taxes.
Current wording
In addition to food cost inflation, we have also experienced the need to meaningfully increase wages to attract restaurant employees, and in Colorado inflation-indexed statutory wage rate increases continue to create upward pressure on wages.
Previous wording
We have historically used menu price increases to manage profitability in times of inflation, however consumer preferences and the relative pricing of competitors including aggressive discounting may prevent us from raising prices sufficient to offset the significant increases in labor costs and may require additional discounts or promotional pricing which may put pressure on our ability to offset input cost inflation.
Current wording
We have historically used menu price increases to manage profitability in times of inflation, however consumer preferences and the relative pricing of competitors may prevent us from raising prices sufficient to offset the significant increases in labor costs, particularly in Colorado where wage pressures are caused by both statutory and market forces.
Previous wording
Revenues of the Company are subject to seasonal fluctuations based on weather conditions adversely affecting Colorado restaurant sales primarily during the months of December, January, February, and March, which affects both of the Company’s brands, but the Company’s Good Times restaurants are more sensitive to these weather-based seasonal fluctuations. The Company’s Bad Daddy’s restaurants typically experience seasonal reductions in revenues between the months of November and January resulting from general consumer spending patterns.
Current wording
Revenues of the Company are subject to seasonal fluctuations based on weather conditions adversely affecting Colorado restaurant sales primarily during the months of December, January, February, and March, which affects both of the Company’s brands, though increasingly winter weather events have impacted our restaurants outside of Colorado. The Company’s Bad Daddy’s restaurants typically experience seasonal reductions in revenues between the months of November and January resulting from general consumer spending patterns.
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
Bad Daddy’s advertising costs were $448,000 (1.6% of total revenues) in the fiscal quarter ended June 25, 2024 compared to $384,000 (1.5% of restaurant sales) for the fiscal quarter ended June 27, 2023. The increase is primarily due to increases in third party gift card commissions and printing costs, partially offset by decreases in local store marketing and media services. Bad Daddy’s advertising costs consist primarily of third-party gift card commissions, menu development, printing costs, local store marketing and social media.
Previous report — wording carried elsewhere
***Net Revenues.***Net revenues for the three quarters ended June 25, 2024 increased $2,692,000, or 2.6%, to $106,521,000 from $103,829,000 for the three quarters ended June 27, 2023. Bad Daddy’s concept revenues increased $312,000 while our Good Times concept revenues increased $2,380,000.
Previous report — wording carried elsewhere
Same store sales is 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 eighteen full fiscal months and use the comparable operating weeks from the prior year-to-date period to the current year-to-date period’s operating weeks.
Previous report — wording carried elsewhere
This increase in general and administrative expenses in the three quarters ended June 27, 2024 is primarily attributable to:
Previous report — wording carried elsewhere
Good Times advertising costs consist primarily of radio advertising, social media, and on-site and point-of-purchase printing costs. Advertising costs are presented gross, with franchisee contributions to the fund being recognized as a component of franchise revenues.
Previous report — wording carried elsewhere
The change in the income from operations for the three quarters ended June 25, 2024 is primarily due to matters discussed in the relevant sections above.
Previous report — wording carried elsewhere
The change from the three quarters ended June 25, 2024 to the three quarters ended June 27, 2023 was primarily attributable to the matters discussed in the relevant sections above.
Previous report — wording carried elsewhere
**Income Attributable to Non-Controlling Interests.**The non-controlling interest represents the limited partners’ or members’ share of income in the Good Times and Bad Daddy’s joint-venture restaurants.