Good Times Restaurants Inc.
For the period ended Apr 1, 2025. Filed May 8, 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.
Apr 1, 2025 · Filed May 8, 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 2024-12-31; filed 2025-02-06.
0001214659-25-002118
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-04-01; filed 2025-05-08.
0001214659-25-007198
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 79 previous paragraphs and 123 current paragraphs.
20 unchanged; 41 reworded; 53 added; 17 removed; 1 previous and 9 current paragraphs rearranged.
Tables are not compared: 28 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 (53)
Current report
Franchise/License:
Current report
Bad Daddy’s restaurant sales decreased $1,631,000 to $24,817,000 for the quarter ended April 1, 2025 from $26,448,000 for the quarter ended March 26, 2024. This decrease is a result of the fourth fiscal quarter 2024 closure of one Bad Daddy’s restaurant, reduced customer traffic, and a negative mix shift attributable to the success of the Company’s smashed patty burgers, all of which are partially offset by menu price increases. The average menu price increase for the fiscal quarter ended April 1, 2025 over the same prior year quarter was approximately 4.7%.
Current report
Good Times restaurant sales increased $506,000 to $9,323,000 for the quarter ended April 1, 2025 from $8,817,000 for the quarter ended March 26, 2024. This increase is driven by the prior 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 as well as the prior quarter temporary closure of one Good Times restaurant for remodel and reduced customer traffic. Average menu pricing during the fiscal quarter ended April 1, 2025 was the same as during the same prior year quarter.
Current report
Franchise and other revenues decreased $44,000 to $139,000 in the quarter ended April 1, 2025 compared to $183,000 in the quarter ended March 26, 2024. This decrease is primarily due to reduced royalties earned and collected due to the previously mentioned Good Times restaurant acquisitions from franchisees.
Current report
Bad Daddy’s same store restaurant sales decreased 3.7% during the quarter ended April 1, 2025 compared to the same thirteen-week period ended March 26, 2024, primarily driven by reduced customer traffic as measured compared to the prior year, most significantly during January and February, 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.
Current report
Bad Daddy’s food and packaging costs were $7,619,000 (30.7% of restaurant sales) for the quarter ended April 1, 2025, down from $8,031,000 (30.4% of restaurant sales) for the quarter ended March 26, 2024. The increase, as a percentage of sales, is primarily attributable to higher purchase prices, primarily in ground beef, though in general throughout the commodity basket, compared to the prior year quarter, partially offset by the impact of a 4.7% increase in menu pricing.
Current report
Good Times food and packaging costs were $2,858,000 (30.7% of restaurant sales) for the quarter ended April 1, 2025, up from $2,568,000 (29.1% of restaurant sales)for the quarter ended March 26, 2024. This increase, as a percentage of sales, is primarily attributable tohigher purchase prices on food and paper goods, primarily in ground beef cost, compared to the prior year quarter without the benefit of any price increase.
Current report
Good Times payroll and other employee benefit costs were $3,316,000 (35.6% of restaurant sales) in the quarter ended April 1, 2025, up from $3,094,000 (35.1% of restaurant sales) in the same prior year period. The $222,000 increase is primarily due to the prior 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. The increase as a percentage of sales is primarily due to higher average wage rates resulting from market forces and the CPI-indexed minimum wage in Denver and the state of Colorado as well as decreased productivity resulting from the de-leveraging impact of lower sales, partially offset by reduced restaurant-level incentive compensation.
Current report
Bad Daddy’s other operating costs were $3,666,000 (14.8% of restaurant sales) for the quarter ended April 1, 2025 down from $3,895,000 (14.7% of restaurant sales) for the quarter ended March 26, 2024. The $229,000 decrease was primarily attributable to decreased customer delivery and credit card fees as well as the closure of one Bad Daddy’s restaurant during the fourth quarter of fiscal 2024.
Current report
Good Times other operating costs were $1,462,000 (15.7% of restaurant sales) in the quarter ended April 1, 2025, up from $1,210,000 (13.7% of restaurant sales) in the quarter ended March 26, 2024. The increase is primarily due to the prior quarter acquisition of two Good Times restaurants, and the third fiscal quarter 2024 acquisition of one Good Times restaurant, previously owned by franchisees, as well as increased repair and maintenance and technology expenses, partially offset by the prior-quarter closure of one Good Times restaurant.
Current report
Good Times depreciation and amortization costs for the quarter ended April 1, 2025 increased $52,000 to $238,000 from $186,000 in the quarter ended March 26, 2024 primarily resulting from the additional depreciation of newly acquired assets.
Current report
Impairment of Long-Lived Assets Costs. The were $494,000 of costs associated with impairments for the fiscal quarter ended April 1, 2025. There were no impairment costs for the fiscal quarter ended March 26, 2024. The current quarter impairment costs are primarily attributable to the impairment of lease right-of-use assetsfor restaurants generating insufficient income to contribute to rent, and which the Company believes are probable to close at the end of the current lease term; and new assets deployed in restaurants where impairment was previously assessed, and the Company’s current analysis indicated impairment of assets associated with those restaurants.
Current report
(Gain) Loss on Restaurant Asset and Equipment Sales. The net loss on restaurant asset sales and equipment disposals for the quarter ended April 1, 2025 was $6,000, which is composed of a loss of $9,000 on disposal of miscellaneous assets, and $3,000 of deferred gain recognition, compared to a net loss of $4,000 for the quarter ended March 26, 2024, which is composed of a loss of $13,000 on disposal of miscellaneous assets, and $9,000 of deferred gain recognition.
Current report
Litigation Contingency Costs. There were no litigation contingency costs in the fiscal quarter ended April 1, 2025. There was $97,000 of income related to adjustment of the Company’s litigation contingency reserve in the fiscal quarter ended March 26, 2024.
Current report
***Other Income.***No other income was earned in the quarters ended April 1, 2025 and March 26, 2024.
Current report
Net (Loss) Income. Net loss was $627,000 for the quarter ended April 1, 2025, compared to net income of $680,000 in the quarter ended March 26, 2024.
Current report
Good Times restaurant sales increased $1,567,000 to $19,210,000 for the two quarters ended April 1, 2025 from $17,643,000 for the two quarters ended March 26, 2024. This increase is driven by the prior 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 first fiscal quarter versus the prior year first fiscal quarter, partially offset by the prior quarter closure of one Good Times restaurant as well as the prior quarter temporary closure of one Good Times restaurant for remodel and reduced customer traffic. The average menu price increase for the two quarters ended April 1, 2025 over the same prior year quarters was approximately 2.0%.
Current report
Same Store Sales
Current report
Bad Daddy’s same store restaurant sales decreased 1.1% during the two quarters ended April 1, 2025 compared to the same two quarters ended March 26, 2024, primarily driven by reduced customer traffic, 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.
Current report
Good Times same store restaurant sales decreased 1.9% during the two quarters ended April 1, 2025 compared to the same two quarters ended March 26, 2024, primarily due to traffic decreases, predominately associated with unfavorable weather during the second fiscal quarter, as compared to the same-prior year quarter. There were twenty-seven restaurants included in the same store sales base at the end of the current quarter.
Current report
Restaurant Operating Costs
Current report
Food and Packaging Costs. Food and packaging costs for the two quarters ended April 1, 2025 increased $914,000 to $21,840,000 (31.2% of restaurant sales) from $20,926,000 (30.7% of restaurant sales) for the two quarters ended March 26, 2024.
Current report
Bad Daddy’s food and packaging costs were $15,834,000 (31.1% of restaurant sales) for the two quarters ended April 1, 2025, up from $15,640,000 (30.9% of restaurant sales) for the two quarters ended March 26, 2024. This increase is primarily attributable to an additional week in the first fiscal quarter versus the prior year first fiscal quarter and higher purchase prices on food and paper goods, most significantly ground beef, partially offset by the fourth fiscal quarter 2024 closure of one Bad Daddy’s restaurant and lower restaurant sales during the second fiscal quarter 2025 versus the second fiscal quarter 2024. The increase, as a percent of sales, is primarily attributable to higher purchase prices of food and paper goods, partially offset by the impact of a 4.6% average increase in menu pricing compared to the prior year-to-date period.
Current report
Good Times food and packaging costs were $6,006,000 (31.3% of restaurant sales) for the two quarters ended April 1, 2025, up from $5,286,000 (30.0% of restaurant sales) for the two quarters ended March 26, 2024. This increase is primarily attributable to the prior 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 first fiscal quarter versus the prior year first fiscal quarter. The increase as a percent of sales is primarily attributable to higher purchase prices on food and paper goods, most significantly ground beef, partially offset by the impact of a 2.0% average increase in menu pricing compared to the prior year-to-date period.
Current report
Payroll and Other Employee Benefit Costs. Payroll and other employee benefit costs for the two quarters ended April 1, 2025 increased $719,000 to $24,609,000 (35.1% of restaurant sales) from $23,890,000 (35.0% of restaurant sales) for the two quarters ended March 26, 2024.
Current report
Bad Daddy’s payroll and other employee benefit costs were $17,667,000 (34.7% of restaurant sales) for the two quarters ended April 1, 2025 down from $17,813,000 (35.2% of restaurant sales) for the two quarters ended March 26, 2024. The $146,000 decrease is primarily attributable tothe fourth fiscal quarter 2024 closure of one Bad Daddy’s restaurant, lower restaurant sales during the second fiscal quarter 2025 versus thesecond fiscal quarter 2024 as well as decreased manager salaries and restaurant-level incentive compensation, partially offset byan additional week in the first fiscal quarter versus the prior year first fiscal quarter. As a percent of sales, payroll and employee benefits costs decreased by 0.5% primarily attributable to decreased manager salaries and incentive compensation as well as the impact ofthe 4.6% increase in average menu pricing.
Current report
Occupancy Costs. Occupancy costs for the two quarters ended April 1, 2025 increased $148,000 to $5,266,000 (7.5% of restaurant sales) from $5,118,000 (7.5% of restaurant sales) for the two quarters ended March 26, 2024.
Current report
Bad Daddy’s occupancy costs were $3,378,000 (6.6% of restaurant sales) for the two quarters ended April 1, 2025, down from $3,461,000 (6.8% of restaurant sales) for the two quarters ended March 26, 2024.
Current report
Good Times occupancy costs were $1,888,000 (9.8% of restaurant sales) in the two quarters ended April 1, 2025, up from $1,657,000 (9.4% of restaurant sales) in the two quarters ended March 26, 2024. The increase was primarily due to the prior quarter acquisition of two Good Times restaurants, and the third fiscal quarter 2024 acquisition of one Good Times restaurant, previously owned by franchisees, as well as increased property tax as a result of higher property values, partially offset by the prior quarter closure of one Good Times restaurant.
Current report
Other Operating Costs. Other operating costs for the two quarters ended April 1, 2025, increased $301,000 to $10,134,000 (14.5% of restaurant sales) from $9,833,000 (14.4% of restaurant sales) for the two quarters ended March 26, 2024.
Current report
Good Times other operating costs were $2,777,000 (14.5% of restaurant sales) in the two quarters ended April 1, 2025, up from $2,357,000 (13.4% of restaurant sales) in the two quarters ended March 26, 2024. The increase is primarily attributable to the prior 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 first fiscal quarter versus the prior year first fiscal quarter as well as increased repair and maintenance and technology expenses, partially offset by the prior quarter closure of one Good Times restaurant.
Current report
Depreciation and Amortization Costs. Depreciation and amortization costs for the two quarters ended April 1, 2025, increased $161,000 to $2,014,000 from $1,853,000 ended for the two quarters ended March 26, 2024.
Current report
Bad Daddy’s depreciation and amortization costs for the two quarters ended April 1, 2025 increased $42,000 to $1,533,000 from $1,491,000 in the two quarters ended March 26, 2024.
Current report
General and Administrative Costs. General and administrative costs for the two quarters ended April 1, 2025, increased $264,000 to $5,166,000 (7.3% of total revenues) from $4,902,000 (7.1% of total revenues) for the two quarters ended March 26, 2024.
Current report
Advertising Costs. Advertising costs for the two quarters ended April 1, 2025, decreased to $1,569,000 (2.2% of total revenues) from $1,916,000 (2.8% of total revenues) for the two quarters ended March 26, 2024.
Current report
Impairment of Long-Lived Assets Costs. There were $494,000 of costs associated with impairments for the two quarters ended April 1, 2025. There were no impairment costs for the two quarters ended March 26, 2024. The current year impairment costs are primarily attributable to the impairment of lease right-of-use assets and new assets deployed in restaurants where impairment was previously assessed, and the Company’s current analysis indicated impairment of assets associated with those restaurants.
Current report
(Gain) Loss on Restaurant Asset and Equipment Sales. The net gain on restaurant asset sales and equipment disposals for the two quarters ended April 1, 2025 was $51,000, which is composed of a net gain of $43,000 on disposal of miscellaneous assets and $8,000 of deferred gain recognition, compared to a net gain of $6,000 for the two quarters ended March 26, 2024, which is composed of a loss of $13,000 on disposal of miscellaneous assets and $19,000 of deferred gain recognition.
Current report
Litigation Contingency Costs. There were no litigation contingency costs in the two fiscal quarters ended April 1, 2025. There was $97,000 of income related to the adjustment of the Company’s litigation contingency reserve in the two quarters ended March 26, 2024. This adjustment was due tothe recognition of $235,000 in contingent liabilities related to routine course of business claims as well as the reversal of our previous contingency reserve of $332,000.
Current report
(Loss)Income from Operations. Loss from operations was $437,000 in the two quarters ended April 1, 2025 compared to income from operations of $270,000 in the two quarters ended March 26, 2024.
Current report
The change in the (loss) income from operations for the two quarters ended April 1, 2025 is due primarily due to matters discussed in the relevant sections above.
Showing the first 40 of 53 passages. Open the source sections for the rest.
Removed paragraphs (17)
Previous report
Franchisee / Licensee:
Previous report
We acquired two Denver metro area Good Times restaurants from a franchisee during the quarter ended December 31, 2024.
Previous report
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 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.
Previous report
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 report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Depreciation and amortization has been reduced by any amounts attributable to non-controlling interests.
Previous report
Cash and Working Capital
Previous report
The table below summarizes our cash flows from operating, investing, and financing activities for each period presented (in thousands):
Previous report
Operating cash flows
Previous report
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 report
Investing cash flows
Previous report
Financing cash flows
Reworded paragraphs (41)
Previous wording
Overview. Good Times Restaurants Inc., through its subsidiaries (collectively, the “Company” or “we”, “us” or “our”) operates and licenses full-service hamburger-oriented restaurants under the name Bad Daddy’s Burger Bar (“Bad Daddy’s”) and operates and franchises hamburger-oriented drive-through restaurants under the name Good Times Burgers & Frozen Custard (“Good Times”).
Current wording
Overview. Good Times Restaurant Inc., through its subsidiaries (collectively, the “Company” or “we”, “us” or “our”) operates and licenses full-service hamburger-oriented restaurants under the name Bad Daddy’s Burger Bar (“Bad Daddy’s”) and operates and franchises hamburger-oriented drive-through restaurants under the name Good Times Burgers & Frozen Custard (“Good Times”).
Previous 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.
Current wording
***Net Revenues.***Net revenues for the quarter ended April 1, 2025 decreased $1,169,000 or 3.3% to $34,279,000 from $35,448,000 for the quarter ended March 26, 2024. Bad Daddy’s concept revenues decreased $1,592,000 while our Good Times concept revenues increased $423,000 compared to the same prior year quarter.
Previous 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.
Current 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.
Previous 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.
Current wording
Good Times same store restaurant sales decreased 3.6% during the fiscal quarter ended April 1, 2025 compared to the same thirteen-week period ended March 26, 2024, primarily due to reduced customer traffic driven by significantly unfavorable weather during the quarter compared to the same prior year quarter. There were twenty-seven restaurants included in the same store sales base at the end of the current quarter.
Previous 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.
Current wording
Food and Packaging Costs. Food and packaging costs for the fiscal quarter ended April 1, 2025 decreased $122,000 to $10,477,000 (30.7% of restaurant sales) from $10,599,000 (30.1% of restaurant sales) for the fiscal quarter ended March 26, 2024.
Previous 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.
Current wording
Payroll and Other Employee Benefit Costs. Payroll and other employee benefit costs for the quarter ended April 1, 2025 decreased $440,000 to $11,826,000 (34.6% of restaurant sales) from $12,266,000 (34.8% of restaurant sales) for the quarter ended March 26, 2024.
Previous wording
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 wording
Bad Daddy’s payroll and other employee benefit costs were $8,510,000 (34.3% of restaurant sales) for the quarter ended April 1, 2025 down from $9,172,000 (34.7% of restaurant sales) for the quarter ended March 26, 2024. The $662,000 decrease is primarily attributable to the fourth fiscal quarter 2024 closure of one Bad Daddy’s restaurant, decreased restaurant sales during the current quarter versus the same quarter in the prior year, decreased manager salaries , and decreased restaurant-level incentive compensation. As a percent of sales, payroll and employee benefits costs decreased by 0.4% primarily attributable to decreased manager salaries and restaurant-level incentive compensation as well as the impact of a 4.7% increase in menu pricing.
Previous 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.
Current wording
Occupancy Costs. Occupancy costs for the quarter ended April 1, 2025 decreased $30,000 to $2,583,000 (7.6% of restaurant sales) from $2,613,000 (7.4% of restaurant sales) for the quarter ended March 26, 2024.
Previous 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.
Current wording
Bad Daddy’s occupancy costs were $1,644,000 (6.6% of restaurant sales) for the quarter ended April 1, 2025, down from $1,743,000 (6.6% of restaurant sales)for the fiscal quarter ended March 26, 2024.
Previous 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.
Current wording
Good Times occupancy costs were $939,000 (10.1% of restaurant sales) for the quarter ended April 1, 2025, up from $870,000 (9.9% of restaurant sales) in the quarter ended March 26, 2024. The increase isprimarily due to the prior 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 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.
Current wording
Other Operating Costs. Other operating costs for the quarter ended April 1, 2025, increased $23,000 to $5,128,000 (15.0% of restaurant sales) from $5,105,000 (14.5% of restaurant sales) for the quarter ended March 26, 2024.
Previous 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.
Current wording
Depreciation and Amortization Costs. Depreciation and amortization costs for the quarter ended April 1, 2025, increased $70,000 to $996,000 from $926,000 in the quarter ended March 26, 2024.
Previous 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.
Current wording
Bad Daddy’s depreciation and amortization costs for the quarter ended April 1, 2025 increased $18,000 to $758,000 from $740,000 in the quarter ended March 26, 2024.
Previous 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.
Current wording
General and Administrative Costs. General and administrative costs for the quarter ended April 1, 2025, increased $14,000 to $2,578,000 (7.5% of total revenues) from $2,564,000 (7.2% of total revenues) for the quarter ended March 26, 2024.
Previous wording
This increase in general and administrative expenses for the quarter ended December 31, 2024 is attributable to:
Current wording
This increase in general and administrative expenses in the quarter ended April 1, 2025 is primarily attributable to:
Previous 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.
Current wording
Advertising Costs. Advertising costs for the quarter ended April 1, 2025, decreased $119,000 to $705,000 (2.1% of total revenues) from $824,000 (2.3% of total revenues) for the quarter ended March 26, 2024.
Previous wording
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.
Current wording
Good Times advertising costs were $369,000 (3.9% of total revenues) in the quarter ended April 1, 2025 compared to $285,000 (3.2% of total revenues) in the quarter ended March 26, 2024. The increase is primarily related to increases in agency fees and social media, partially offset by decreased marketing research expenses. 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 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.
Current wording
(Loss) Income from Operations. Loss from operations was $514,000 in the quarter ended April 1, 2025 compared to income from operations of $644,000 in the quarter ended March 26, 2024.
Previous 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.
Current wording
The change in the (loss) income from operations for the quarter ended April 1, 2025 is primarily due to matters discussed in the relevant sections above.
Previous 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.
Current wording
***Interest Expense.***Interest expense was $56,000 during the quarter ended April 1, 2025, compared with $42,000 during the quarter ended March 26, 2024.
Previous wording
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 wording
Provision for Income Taxes. The provision for income taxes was $57,000 for the quarter ended April 1, 2025, compared to a $78,000 benefit for the quarter ended March 26, 2024.
Previous wording
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 wording
For the quarter ended April 1, 2025, the loss attributable to non-controlling interests was $3,000 compared to income of $62,000 for the quarter ended March 26, 2024. The $65,000 decrease is due to decreased profitability of the restaurants involved in the limited partnership with a non-controlling partner.
Previous wording
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 wording
Bad Daddy’s restaurant sales increased $327,000 to $50,895,000 for the two quarters ended April 1, 2025 from $50,568,000 for the two quarters ended March 26, 2024. This increase is due to an additional week in the first fiscal quarter versus the prior year first fiscal quarter and menu price increases, partially offset by the closure of one Bad Daddy’s restaurant during the fourth quarter of fiscal 2024, by reduced customer traffic, primarily in January and February and by negative mix shift attributable to the success of the Company’s smashed patty. The average menu price increase for the two quarters ended April 1, 2025 over the same prior year quarters was approximately 4.6%.
Previous wording
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 wording
Franchise and other revenues increased $113,000 to $507,000 in the two quarters ended April 1, 2025 compared to $394,000 in the two quarters ended March 26, 2024. 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.
Previous wording
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 wording
Good Times payroll and other employee benefit costs were $6,942,000 (36.1% of restaurant sales) in the two quarters ended April 1, 2025, up from $6,077,000 (34.4% of restaurant sales) in the same prior year period. The $865,000 increase is primarily attributable to the prior 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 first fiscal quarter versus the prior year first fiscal quarter, partially offset by the prior quarter closure of one Good Times restaurant. As a percent of sales, payroll and employee benefits costs increased by 1.7% primarily attributable to decreased labor productivity and higher average wage rates.
Previous wording
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 wording
Bad Daddy’s other operating costs were $7,357,000 (14.5% of restaurant sales) for the two quarters ended April 1, 2025 down from $7,476,000 (14.8% of restaurant sales) for the two quarters ended March 26, 2024. The $119,000 decrease is primarily attributable tothe fourth fiscal quarter 2024 closure of one Bad Daddy’s restaurant and a decrease in customer delivery and credit card fees, partially offset by costs associated with an additional weekin the first fiscal quarter versus the prior year first fiscal quarter as well as higher utility expenses.
Previous 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.
Current wording
New Store Preopening Costs. For the two quarters ended April 1, 2025, preopening costs were $8,000 compared to no preopening costs for the two quarters ended March 26, 2024. The current fiscal year costs primarily relate to training costs incurred as part of our two Good Times restaurant acquisitions.
Previous wording
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 wording
Good Times depreciation and amortization costs for the two quarters ended April 1, 2025 increased $119,000 to $481,000 from $362,000 in the two quarters ended March 26, 2024.
Previous 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.
Current wording
Bad Daddy’s advertising costs were $957,000 (1.9% of total revenues) for the two quarters ended April 1, 2025 compared to $1,269,000 (2.5% of total revenues) for the two quarters ended March 26, 2024. The decrease is primarily due to a reduction of commission earned by third parties on gift cards sold through large-box retailers as well as decreased social media and local store marketing expenses. 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
**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 wording
***Other Income.***There was $140,000 of other income for the two quarters ended April 1, 2025, 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. No other income was earned in the two quarters ended March 26, 2024.
Previous wording
EBITDA is defined as net income (loss) before interest, income taxes and depreciation and amortization.
Current wording
EBITDA is defined as net (loss) income before interest, income taxes and depreciation and amortization.
Previous 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.
Current wording
Adjusted EBITDA is defined as EBITDA plus non-cash stock-based compensation expense, preopening expense, non-recurring acquisition costs, asset impairment 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 income (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 (loss) income to EBITDA and Adjusted EBITDA below and not rely on any single financial measure to evaluate our business:
Previous 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.
Current wording
***Cash and Working Capital.***As of April 1, 2025, we had a working capital deficit of $9,504,000. 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. 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 financing arrangements (including the Cadence Credit Facility), refer to note 8 to the unaudited condensed 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 of the unaudited condensed consolidated financial statements included in this report.
Previous 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.
Current wording
***Investing Cash Flows.***Net cash used in investing activities for the two quarters ended April 1, 2025 and March 26, 2024 were $2,662,000 and $1,063,000, respectively, which primarily reflect the purchases of property and equipment in each period as well as the acquisition in the first quarter of fiscal 2025 of two Good Times restaurants previously owned by a franchisee.
Previous wording
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 wording
***Financing Cash Flows.***Net cash provided by financing activities for the two quarters ended April 1, 2025 was $1,325,000, which includes proceeds from long-term debt of $2,250,000, payments of long-term debt of $517,000, distributions to non-controlling interests of $47,000, cash settlement of restricted stock units of $58,000, and $303,000 of payments for the repurchase of common stock under the Company’s share repurchase program.
Previous 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.
Current wording
Net cash used in financing activities for the two quarters ended March 26, 2024 was $634,000, which includes proceeds from long-term debt of $1,000,000, payments of long-term debt of $500,000, distributions to non-controlling interests of $50,000, and $1,084,000 of payments for the repurchase of common stock under the Company’s share repurchase program.
Previous wording
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.
Current wording
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. 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 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.
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 sufficiently to offset the significant increases in labor costs, particularly in Colorado where wage pressures are caused by both statutory and market forces.
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Current report — wording carried from elsewhere
New Store Preopening Costs. There were no preopening costs in the quarters ended April 1, 2025 and March 26, 2024.
Current report — wording carried from elsewhere
Bad Daddy’s advertising costs were $336,000 (1.3% of total revenues) in the quarter ended April 1, 2025 compared to $539,000 (2.0% of total revenues) for the quarter ended March 26, 2024. The decrease is primarily due to social media, printing cost and local store marketing decreases. Bad Daddy’s advertising costs consist primarily of third-party gift card commissions, menu development, printing costs, local store marketing and social media.
Current report — wording carried from elsewhere
**(Loss) Income Attributable to Non-Controlling Interests.**The non-controlling interest represents the limited partners’ share of income in the Good Times joint-venture restaurants.
Current report — wording carried from elsewhere
Fiscal two quarters ended April 1, 2025 (27 weeks) compared to fiscal two quarters ended March 26, 2024 (26 weeks):
Current report — wording carried from elsewhere
***Net Revenues.***Net revenues for the two quarters ended April 1, 2025 increased $2,007,000, or 2.9%, to $70,612,000 from $68,605,000 for the two quarters ended March 26, 2024. Bad Daddy’s concept revenues increased $581,000 while our Good Times concept revenues increased $1,426,000.
Current report — wording carried from 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.
Current report — wording carried from elsewhere
This increase in general and administrative expenses in the two quarters ended April 1, 2025 is primarily attributable to:
Current report — wording carried from elsewhere
Good Times advertising costs were $612,000 (3.2% of total revenues) in the two quarters ended April 1, 2025 compared to $647,000 (3.6% of total revenues) in the two quarters ended March 26, 2024. The decrease is primarily due to decreased radio and research expenses, partially offset by increased social media expenses. 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.
Current report — wording carried from elsewhere
The change from the two quarters ended April 1, 2025 to the two quarters ended March 26, 2024 was primarily attributable to the matters discussed in the relevant sections above.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.