Good Times Restaurants Inc.
For the period ended Dec 30, 2025. Filed Feb 5, 2026.
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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 30, 2025 · Filed Feb 5, 2026
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 2025-07-01; filed 2025-08-07.
0001214659-25-011690
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-30; filed 2026-02-05.
0001214659-26-001242
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 77 current paragraphs.
18 unchanged; 42 reworded; 16 added; 54 removed; 8 previous and 1 current paragraphs rearranged.
Tables are not compared: 24 previous and 23 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 (16)
Current report
Company-Owned / Joint-Venture:
Current report
Franchisee / Licensee:
Current report
Good Times restaurant sales decreased $716,000 to $9,171,000 for the quarter ended December 30, 2025 from $9,887,000 for the quarter ended December 31, 2024. This decrease is driven by an additional week in the prior fiscal quarter versus the current year fiscal quarter partially offset by favorability in weather that drove higher traffic, increases in menu price, increases for two Good Times restaurants acquired from a franchisee in the prior year quarter, as well as an increase due to the prior year quarter’s temporary closure of one Good Times restaurant for renovations. The average menu price increase for the quarter ended December 30, 2025 over the same prior-year quarter was approximately 0.7%.
Current report
Bad Daddy’s food and packaging costs were $7,015,000 (30.2% of restaurant sales) for the quarter ended December 30, 2025, down from $8,214,000 (31.5% of restaurant sales) for the quarter ended December 31, 2024. This decrease is primarily attributable to an additional week in the prior year fiscal quarter versus the current year fiscal quarter, the fourth fiscal quarter 2025 closure of one Bad Daddy’s restaurant and the current quarter closure of one Bad Daddy’s restaurant as well as favorability in chicken and cheese prices partially offset by higher beef, bacon and bison purchase prices. The decrease, as a percent of sales, is attributable to the impact of recipe portion controls and waste controls along with favorability in the above-mentioned commodity basket items, partially offset by higher purchase prices of other above-mentioned commodity basket items compared to the prior year period.
Current report
Good Times food and packaging costs were $2,826,000 (30.8% of restaurant sales) for the quarter ended December 30, 2025, down from $3,149,000 (31.8% of restaurant sales) for the quarter ended December 31, 2024. This decrease is primarily attributable to an additional week in the prior year fiscal quarter versus the current year fiscal quarter, and lower chicken and egg purchase prices, partially offset by costs related to the acquisition of two Good Times restaurants from a franchisee in the prior year quarter, the prior year quarter temporary closure of one Good Times restaurant for remodel, and higher beef and bacon prices. The decrease as a percentage of sales is attributable to recipe portion controls and waste controls as well as the above-mentioned commodity price impacts.
Current report
Good Times occupancy costs were $915,000 (10.0% of restaurant sales) in the quarter ended December 30, 2025, down from $950,000 (9.6% of restaurant sales) in the same prior year period. This was primarilydue to a decrease in the non-cash rent adjustments between the quarterly periods.
Current report
Bad Daddy’s other operating costs were $3,385,000 (14.6% of restaurant sales) for the quarter ended December 30, 2025 down from $3,573,000 (13.7% of restaurant sales) in the same prior year period. The $188,000 decrease was primarily attributable to an additional week in the prior year fiscal quarter versus the current year fiscal quarter, the fourth fiscal quarter 2025 closure of one Bad Daddy’s restaurant and the current quarter closure of one Bad Daddy’s restaurant. As a percentage of sales, the increase is primarily due to increases in customer delivery expenses, repair and maintenance and utilities.
Current report
Good Times other operating costs were $1,278,000 (13.9% of restaurant sales) for the quarter ended December 30, 2025, up from $1,255,000 (12.7% of restaurant sales) in the same prior year period. As a percentage of sales, the increase is primarily due to increases in customer delivery expenses, repair and maintenance and utilities.
Current report
The following table reconciles net income to EBITDA and Adjusted EBITDA*(in thousands)*:
Current report
Cash and Working Capital
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
Current report
Financing cash flows
Current report
Net cash used in financing activities for the quarter ended December 30, 2025 was $523,000, which includes proceeds from long-term debt of $500,000, $1,008,000 of payments on long-term debt, and cash usage for restricted stock unit vesting of $15,000.
Current report
We have historically used menu price increases to manage profitability in times of inflation, however the current unusually high rate of wage inflation, exceeds what we believe we can reasonably pass through to our customers without negatively affecting frequency and trial by our customers, and we are not able to predict the impact of beef price inflation or our ability to offset the potential increase in cost of beef with menu price increases.
Removed paragraphs (54)
Previous report
Company-Owned/Co-Developed:
Previous report
Franchise/License:
Previous report
Good Times restaurant sales decreased $59,000 to $10,356,000 for the fiscal quarter ended July 1, 2025 from $10,415,000 for the quarter ended June 25, 2024. This decrease is primarily due to reduced customer traffic and the fourth quarter 2024 closure of one Good Times restaurant, partially offset by the Company’s first quarter 2025 acquisition of two Good Times restaurants previously owned by a franchisee, the same prior year fiscal quarter acquisition of a Good Times restaurant previously owned by a franchisee, and by the temporary closure of one Good Times restaurant for remodel during the prior year quarter. Average menu price for the fiscal quarter ended July 1, 2025 was approximately equal to the same prior-year quarter.
Previous report
Bad Daddy’s food and packaging costs were $8,100,000 (30.6% of restaurant sales) for the quarter ended July 1, 2025, down from $8,517,000 (31.2% of restaurant sales) for the quarter ended June 25, 2024. The decrease as a percent of sales is due to lower purchase prices, primarily for chicken wings and potatoes, compared to the prior year quarter, and the impact of the 3.8% increase in menu pricing compared to the prior year, partially offset by increased ground beef costs.
Previous report
Good Times food and packaging costs were $3,258,000 (31.5% of restaurant sales) for the quarter ended July 1, 2025, up from $3,181,000 (30.5% of restaurant sales)for the quarter ended June 25, 2024. The increase as a percent of sales is primarily attributable tohigher purchase prices on ground beef and eggs, compared to the prior year quarter, without the benefit of any price increase, partially offset by savings in potato pricing.
Previous report
Bad Daddy’s payroll and other employee benefit costs were $9,103,000 (34.3% of restaurant sales) for the quarter ended July 1, 2025 down from $9,227,000 (33.8% of restaurant sales) for the quarter ended June 25, 2024. The $124,000 decrease is primarily attributable to the fourth fiscal quarter 2024 closure of one Bad Daddy’s restaurant. The increase as a percent of sales is attributable to decreased labor productivity resulting from the de-leveraging impact of lower sales.
Previous report
Good Times payroll and other employee benefit costs were $3,544,000 (34.2% of restaurant sales) in the quarter ended July 1, 2025, up from $3,408,000 (32.7% of restaurant sales) in the same prior year period. Theincrease is primarily due to the Company’s first quarter 2025 acquisition of two Good Times restaurants previously owned by a franchisee, the same prior year fiscal quarter acquisition of a Good Times restaurant previously owned by a franchisee, and the temporary closure of one Good Times restaurant for remodel during the prior year quarter, partially offset by the fourth quarter 2024 closure of one Good Times restaurant. The increase as a percent 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.
Previous report
Bad Daddy’s occupancy costs were $1,602,000 (6.0% of restaurant sales) for the fiscal quarter ended July 1, 2025, down from $1,727,000 (6.3% of restaurant sales)for the fiscal quarter ended June 25, 2024. The decreaseis a result of the fourth fiscal quarter 2024 closure of one Bad Daddy’s restaurant, as well as decreases in non-cash rent for the Bad Daddy’s locations with impaired right-of-use lease assets.
Previous report
Good Times occupancy costs were $890,000 (8.6% of restaurant sales) for the quarter ended July 1, 2025, up from $853,000 (8.2% of restaurant sales) in the quarter ended June 25, 2024. Theincrease is primarily due to the Company’s first quarter 2025 acquisition of two Good Times restaurants previously owned by a franchisee and the same prior year fiscal quarter acquisition of a Good Times restaurant previously owned by a franchisee, partially offset by the fourth quarter 2024 closure of one Good Times restaurant.
Previous report
Bad Daddy’s other operating costs were $3,895,000 (14.7% of restaurant sales) for the quarter ended July 1, 2025 down from $3,945,000 (14.4% of restaurant sales) for the quarter ended June 25, 2024. The $50,000 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, partially offset by increased utilities.
Previous report
Good Times other operating costs were $1,507,000 (14.6% of restaurant sales) in the quarter ended July 1, 2025, up from $1,250,000 (12.0% of restaurant sales) in the quarter ended June 25, 2024. Theincrease is primarily due to the Company’s first quarter 2025 acquisition of two Good Times restaurants previously owned by a franchisee, the same prior year fiscal quarter acquisition of a Good Times restaurant previously owned by a franchisee, as well as increased repair and maintenance and technology expenses, partially offset by the fourth quarter 2024 closure of one Good Times restaurant.
Previous report
Good Times advertising costs were $346,000 (3.3% of total revenues) in the quarter ended July 1, 2025 compared to $301,000 (2.9% of total revenues) in the quarter ended June 25, 2024. The increase is primarily related to social media and agency fees as well as a decrease in product rebates, partially offset by a decrease in radio and streaming media.
Previous report
Impairment of Long-Lived Assets Costs. The were no costs associated with impairments for the fiscal quarter ended July 1, 2025, compared to $199,000 for the quarter ended June 25, 2024, which primarily consisted of the impairment of the lease right-of-use asset of one Colorado Bad Daddy’s location.
Previous report
Fiscal three quarters ended July 1, 2025 (40 weeks) compared to fiscal three quarters ended June 25, 2024 (39 weeks):
Previous report
***Net Revenues.***Net revenues for the three quarters ended July 1, 2025 increased $1,083,000, or 1.0%, to $107,637,000 from $106,554,000 for the three quarters ended June 25, 2024. Bad Daddy’s concept revenues decreased $213,000 and our Good Times concept revenues increased $1,296,000.
Previous report
Bad Daddy’s restaurant sales decreased $488,000 to $77,408,000 for the three quarters ended July 1, 2025 from $77,896,000 for the three quarters ended June 25, 2024. This decrease is a result of the closure of one Bad Daddy’s restaurant during the fourth quarter of fiscal 2024, reduced customer traffic and by negative mix shift attributable to the success of the Company’s smashed patty burgers, partially offset by an additional week in the first fiscal quarter versus the prior year first fiscal quarter and menu price increases. The average menu price increase for the three quarters ended July 1, 2025 over the same prior year quarters was approximately 4.3%.
Previous report
Good Times restaurant sales increased $1,509,000 to $29,566,000 for the three quarters ended July 1, 2025 from $28,057,000 for the three quarters ended June 25, 2024. This increase is driven by the first quarter 2025 acquisition of two Good Times restaurants, the third quarter 2024 acquisition of one Good Times restaurant, previously owned by franchisees, the third quarter 2024 temporary closure of one Good Times restaurant for remodel, and an additional week in the first fiscal quarter versus the prior year first fiscal quarter, partially offset by the fourth quarter 2024 closure of one Good Times restaurant as well as the first quarter 2025 temporary closure of one Good Times restaurant for remodel, and reduced customer traffic. The average menu price increase for the three quarters ended July 1, 2025 over the same prior year quarters was approximately 1.3%.
Previous report
Franchise and other revenues increased $62,000 to $663,000 in the three quarters ended July 1, 2025 compared to $601,000 in the three quarters ended June 25, 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 report
Same Store Sales
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Good Times same store restaurant sales decreased 4.4% during the three quarters ended July 1, 2025 compared to the same three quarters ended June 25, 2024, primarily due to decreased customer traffic. There were twenty-seven 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 July 1, 2025 increased $574,000 to $33,198,000 (31.0% of restaurant sales) from $32,624,000 (30.8% of restaurant sales) for the three quarters ended June 25, 2024.
Previous report
Bad Daddy’s food and packaging costs were $23,933,000 (30.9% of restaurant sales) for the three quarters ended July 1, 2025, down from $24,156,000 (31.0% of restaurant sales) for the three quarters ended June 25, 2024. This decrease is primarily attributable to the closure of one Bad Daddy’s restaurant during the fourth quarter of fiscal 2024, lower average unit volumes, and lower purchase prices, primarily for chicken wings and potatoes, partially offset by an additional week in the first fiscal quarter versus the prior year first fiscal quarter and increased ground beef costs. The decrease as a percent of sales is primarily attributable to lower purchase prices, primarily for chicken wings and potatoes, partially offset by increased ground beef costs as well as the impact of the 4.3% increase in menu pricing compared to the prior year-to-date period.
Previous report
Good Times food and packaging costs were $9,265,000 (31.3% of restaurant sales) for the three quarters ended July 1, 2025, up from $8,468,000 (30.2% of restaurant sales) for the three quarters ended June 25, 2024. This increase is driven by the first quarter 2025 acquisition of two Good Times restaurants, the third quarter 2024 acquisition of one Good Times restaurant, previously owned by franchisees, the third quarter 2024 temporary closure of one Good Times restaurant for remodel, an additional week in the first fiscal quarter versus the prior year first fiscal quarter, partially offset by the fourth quarter 2024 closure of one Good Times restaurant as well as the first quarter 2025 temporary closure of one Good Times restaurant for remodel. The increase as a percent of sales is primarily attributable to higher purchase prices on ground beef and eggs, partially offset by savings in chicken wing and potato pricing and the impact of the 1.3% increase in menu pricing compared to the prior year-to-date period..
Previous report
Payroll and Other Employee Benefit Costs. Payroll and other employee benefit costs for the three quarters ended July 1, 2025 increased $731,000 to $37,256,000 (34.8% of restaurant sales) from $36,525,000 (34.5% of restaurant sales for the three quarters ended June 25, 2024.
Previous report
Occupancy Costs. Occupancy costs for the three quarters ended July 1, 2025 increased $60,000 to $7,758,000 (7.3% of restaurant sales) from $7,698,000 (7.3% of restaurant sales) for the three quarters ended June 25, 2024.
Previous report
Good Times occupancy costs were $2,778,000 (9.4% of restaurant sales) in the three quarters ended July 1, 2025, up from $2,510,000 (8.9% of restaurant sales) in the three quarters ended June 25, 2024. The increase was primarily due to the first quarter 2025 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 fourth quarter 2024 closure of one Good Times restaurant.
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Other Operating Costs. Other operating costs for the three quarters ended July 1, 2025, increased $508,000 to $15,536,000 (14.5% of restaurant sales) from $15,028,000 (14.2% of restaurant sales) for the three quarters ended June 25, 2024.
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Bad Daddy’s other operating costs were $11,253,000 (14.5% of restaurant sales) for the three quarters ended July 1, 2025 down from $11,421,000 (14.7% of restaurant sales) for the three quarters ended June 25, 2024. The $168,000 decrease is primarily attributable to the 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 week in the first fiscal quarter versus the prior year first fiscal quarter as well as higher utility expenses.
Previous report
Good Times other operating costs were $4,283,000 (14.5% of restaurant sales) in the three quarters ended July 1, 2025, up from $3,607,000 (12.9% of restaurant sales) in the three quarters ended June 25, 2024. The increase is primarily attributable to the first quarter 2025 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, technology and utility expenses, partially offset by the fourth quarter 2024 closure of one Good Times restaurant.
Previous report
Depreciation and Amortization Costs. Depreciation and amortization costs for the three quarters ended July 1, 2025, increased $183,000 to $2,996,000 from $2,813,000 in the three quarters ended June 25, 2024.
Previous report
Bad Daddy’s depreciation and amortization costs for the three quarters ended July 1, 2025 increased $35,000 to $2,275,000 from $2,240,000 in the three quarters ended June 25, 2024.
Previous report
Good Times depreciation and amortization costs for the three quarters ended July 1, 2025 increased $148,000 to $721,000 from $573,000 in the three quarters ended June 25, 2024. This increase is primarily due to additional depreciation on newly acquired assets.
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General and Administrative Costs. General and administrative costs for the three quarters ended July 1, 2025, decreased $484,000 to $7,340,000 (6.8% of total revenues) from $7,824,000 (7.3% of total revenues) for the three quarters ended June 25, 2024.
Previous report
Advertising Costs. Advertising costs for the three quarters ended July 1, 2025, decreased to $2,310,000 (2.1% of total revenues) from $2,665,000 (2.5% of total revenues) for the three quarters ended June 25, 2024.
Previous report
Bad Daddy’s advertising costs were $1,351,000 (1.7% of total revenues) for the three quarters ended July 1, 2025 compared to $1,715,000 (2.2% of total revenues) for the three quarters ended June 25, 2024. The $364,000 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 report
Impairment of Long-Lived Assets Costs. The were $494,000 of costs associated with impairments for the three quarters ended July 1, 2025, compared to $199,000 for the three quarters ended June 25, 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.
Previous report
(Gain) Loss on Restaurant Asset and Equipment Sales. The net gain on restaurant asset sales and equipment disposals for the three quarters ended July 1, 2025 was $55,000, which is composed of a $13,000 gain on lease termination related to a closed Bad Daddy’s restaurant, $11,000 of deferred gain recognition, and a net gain of $31,000 on disposal of miscellaneous assets, compared to a net loss of $12,000 for the three quarters ended June 25, 2024.
Previous report
Litigation Contingency Costs. There were no litigation contingency costs during the three quarters ended July 1, 2025, compared to $332,000 of income related to the adjustment of the Company’s litigation contingency reserve in the three quarters ended June 25, 2024.
Previous report
Income from Operations. Income from operations was $796,000 in the three quarters ended July 1, 2025 compared to income from operations of $1,498,000 in the three quarters ended June 25, 2024.
Showing the first 40 of 54 passages. Open the source sections for the rest.
Reworded paragraphs (42)
Previous 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”).
Current 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”).
Previous wording
Growth Strategies and Outlook. We believe there are significant opportunities to grow customer traffic and increase awareness of our brands, leading to organic sales growth. We also believe there are unit growth opportunities for both of our concepts though we continue to execute unit growth with increased scrutiny surrounding real estate selection and a more conservative approach to leverage than we previously took, in light of the higher costs and volatile inflation present in the current operating environment.
Current wording
Growth Strategies and Outlook. We believe there are significant opportunities to grow customer traffic and increase awareness of our brands, leading to organic sales growth. We also believe there are unit growth opportunities for both of our concepts though we continue to execute unit growth with increased scrutiny surrounding real estate selection and a more conservative approach to leverage than we previously took, considering the higher costs and volatile inflation present in the current operating environment.
Previous wording
**Restaurant Locations.**As of July 1, 2025, we operated, franchised, or licensed a total of forty Bad Daddy’s and thirty Good Times. The following table presents the number of restaurants operating at the end of the fiscal quarters ended July 1, 2025 and June 25, 2024.
Current wording
Restaurant locations. As of December 30, 2025, we operated, franchised, or licensed a total of thirty-eight 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 30, 2025 and December 31, 2024.
Previous wording
***Net Revenues.***Net revenues for the fiscal quarter ended July 1, 2025 decreased $925,000 or 2.4% to $37,025,000 from $37,950,000 for the fiscal quarter ended June 25, 2024. Bad Daddy’s concept revenues decreased $795,000 and our Good Times concept revenues decreased $130,000 compared to the same prior year period.
Current wording
*Net Revenues.*Net revenues for the quarter ended December 30, 2025 decreased $3,627,000 or 10.0% to $32,706,000 from $36,333,000 for the quarter ended December 31, 2024. Bad Daddy’s concept revenues decreased $2,894,000 while our Good Times concept revenues decreased $733,000 compared to the same prior-year quarter.
Previous wording
Bad Daddy’s restaurant sales decreased $814,000 to $26,513,000 for the fiscal quarter ended July 1, 2025 from $27,327,000 for the quarter ended June 25, 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 July 1, 2025 over the same prior year quarter was approximately 3.8%.
Current wording
Bad Daddy’s restaurant sales decreased $2,876,000 to $23,202,000 for the quarter ended December 30, 2025 from $26,078,000 for the quarter ended December 31, 2024. This decrease is due to an additional week in the prior fiscal quarter versus the current year fiscal quarter, the fourth fiscal quarter 2025 closure of one Bad Daddy’s restaurant and the current quarter closure of one Bad Daddy’s restaurant, partially offset by menu price increases. The average menu price increase for the quarter ended December 30, 2025 over the same prior-year quarter was approximately 1.7%.
Previous wording
Franchise and other revenues decreased $52,000 to $156,000 in the quarter ended July 1, 2025 compared to $208,000 in the quarter ended June 25, 2024. This decrease is primarily due to reduced royalties earned and collected due to the previously mentioned Good Times restaurant acquisitions from franchisees.
Current wording
Franchise and other revenues decreased $35,000 to $333,000 in the quarter ended December 30, 2025 compared to $368,000 in the quarter ended December 31, 2024. This decrease is primarily due to reduced royalties earned and collected due to the aforementioned Good Times restaurant acquisitions from franchisees in the prior year quarter as well as reduced sales for one franchised Good Times restaurant.
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
Bad Daddy’s same store restaurant sales decreased 1.4% during the quarter ended July 1, 2025 compared to the same thirteen-week period ended June 25, 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 wording
Bad Daddy’s same store restaurant sales decreased 1.2% during the fiscal quarter ended December 30, 2025 compared to the fiscal quarter ended December 31, 2024, primarily driven by discounts provided through included sides and drink specials along with a decrease in demand across the sector for alcoholic beverages, as well as reduced customer traffic in several key markets, partially offset by menu price increases. There were thirty-seven restaurants included in the same store sales base at the end of the quarter.
Previous wording
Good Times same store restaurant sales decreased 9.0% during the quarter ended July 1, 2025 compared to the same thirteen-week period ended June 25, 2024, primarily due to reduced customer traffic. There were twenty-seven restaurants included in the same store sales base at the end of the current quarter.
Current wording
Good Times same store restaurant sales decreased 3.1% during the quarter ended December 30, 2025 compared to the fiscal quarter ended December 31, 2024, primarily driven by reduced customer traffic impacted by increased competitive restaurant openings in close proximity to several of our locations, partially offset by a menu price increase and favorable weather. 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 July 1, 2025 decreased $340,000 to $11,358,000 (30.8% of restaurant sales) from $11,698,000 (31.0% of restaurant sales) for the fiscal quarter ended June 25, 2024.
Current wording
Food and Packaging Costs. Food and packaging costs for the fiscal quarter ended December 30, 2025 decreased $1,522,000 to $9,841,000 (30.4% of restaurant sales) from $11,363,000 (31.6% of restaurant sales) for the quarter ended December 31, 2024.
Previous wording
Payroll and Other Employee Benefit Costs. Payroll and other employee benefit costs for the quarter ended July 1, 2025 increased $12,000 to $12,647,000 (34.3% of restaurant sales) from $12,635,000 (33.5% of restaurant sales) for the quarter ended June 25, 2024.
Current wording
Payroll and Other Employee Benefit Costs. Payroll and other employee benefit costs for the quarter ended December 30, 2025 decreased $1,573,000 to $11,210,000 (34.6% of restaurant sales) from $12,783,000 (35.5% of restaurant sales) for the quarter ended December 31, 2024.
Previous wording
Bad Daddy’s payroll and other employee benefit costs were $26,770,000 (34.6% of restaurant sales) for the three quarters ended July 1, 2025 down from $27,040,000 (34.7% of restaurant sales) for the three quarters ended June 25, 2024. The $270,000 decrease is primarily attributable to the fourth fiscal quarter 2024 closure of one Bad Daddy’s restaurant, as well as decreased manager salaries and restaurant-level incentive compensation, partially offset by an additional week in the first fiscal quarter versus the prior year first fiscal quarter as well as decreased labor productivity. As a percent of sales, payroll and employee benefits costs decreased by 0.1% primarily attributable to decreased manager salaries and incentive compensation as well as the impact ofthe 4.3% increase in average menu pricing.
Current wording
Bad Daddy’s payroll and other employee benefit costs were $8,000,000 (34.5% of restaurant sales) for the quarter ended December 30, 2025 down from $9,156,000 (35.1% of restaurant sales) in the same prior year period. The $1,156,000 decrease is primarily attributable toan additional week in the prior year fiscal quarter versus the current year fiscal quarter, the fourth fiscal quarter 2025 closure of one Bad Daddy’s restaurant, the current quarter closure of one Bad Daddy’s restaurant and reduced incentive compensation and other employee benefit costs, partially offset by reduced labor productivity andhigher average pay rates. As a percent of sales, payroll and employee benefits costs decreased by 0.6% primarily attributable to reduced incentive compensation and other employee benefit costs, partially offset by decreased labor productivity resulting from the deleveraging impact of lower sales and higher average wage rates paid to attract qualified employees.
Previous wording
Good Times payroll and other employee benefit costs were $10,486,000 (35.5% of restaurant sales) in the three quarters ended July 1, 2025, up from $9,485,000 (33.8% of restaurant sales) in the same prior year period. The $1,001,000 increase is primarily attributable to the first quarter 2025 acquisition of two Good Times restaurants, and the third fiscal quarter 2024 acquisition of one Good Times restaurant, previously owned by franchisees, the third quarter 2024 temporary closure of one Good Times restaurant for remodel, an additional week in the first fiscal quarter versus the prior year first fiscal quarter and decreased labor productivity, partially offset by the fourth quarter 2024 closure of one Good Times restaurant as well as the first quarter 2025 temporary closure of one Good Times restaurant for remodel. As a percent of sales, payroll and employee benefits costs increased by 1.7% primarily attributable to higher average wage rates and decreased labor productivity resulting from the de-leveraging impact of lower sales, partially offset by decreased incentive compensation.
Current wording
Good Times payroll and other employee benefit costs were $3,210,000 (35.0% of restaurant sales) in the quarter ended December 30, 2025, down from $3,627,000 (36.7% of restaurant sales) in the same prior year period. The $417,000 decrease is attributable to an additional week in the prior year fiscal quarter versus the current year fiscal quarter, increased labor productivity, and a revised in-store management structure, partially offset by costs related to the acquisition of two Good Times restaurants from a franchisee in the prior year quarter, the prior year quarter temporary closure of one Good Times restaurant for remodel, and higher minimum wage rates which inflate the average wage of all positions. As a percent of sales, payroll and employee benefits costs decreased by 1.7% primarily attributable to increased labor efficiency partially offset by higher average wage rates.
Previous wording
Occupancy Costs. Occupancy costs for the quarter ended July 1, 2025 decreased $88,000 to $2,492,000 (6.8% of restaurant sales) from $2,580,000 (6.8% of restaurant sales) for the quarter ended June 25, 2024.
Current wording
Occupancy Costs. Occupancy costs for the quarter ended December 30, 2025 decreased $174,000 to $2,509,000 (7.8% of restaurant sales) from $2,683,000 (7.5% of restaurant sales) for the quarter ended December 31, 2024.
Previous wording
Bad Daddy’s occupancy costs were $4,980,000 (6.4% of restaurant sales) for the three quarters ended July 1, 2025, down from $5,188,000 (6.7% of restaurant salesfor the three quarters ended June 25, 2024. The decrease was primarily theresult of the fourth fiscal quarter 2024 closure of one Bad Daddy’s restaurant, as well as decreases in non-cash rent for the Bad Daddy’s locations with impaired right-of-use lease assets.
Current wording
Bad Daddy’s occupancy costs were $1,615,000 (7.0% of restaurant sales) for the quarter ended December 30, 2025, down from $1,752,000 (6.7% of restaurant sales) in the same prior year period. The decrease was primarily duethe fourth fiscal quarter 2025 closure of one Bad Daddy’s restaurant.
Previous wording
Other Operating Costs. Other operating costs for the quarter ended July 1, 2025, increased $207,000 to $5,402,000 (14.7% of restaurant sales) from $5,195,000 (13.8% of restaurant sales) for the quarter ended June 25, 2024.
Current wording
Other Operating Costs. Other operating costs for the quarter ended December 30, 2025, decreased $179,000 to $4,562,000 (14.1% of restaurant sales) from $4,741,000 (13.2% of restaurant sales) for the quarter ended December 31, 2024.
Previous wording
New Store Preopening Costs. For the three quarters ended July 1, 2025, preopening costs were $8,000 compared to no preopening costs for the three quarters ended June 25, 2024. The current fiscal year costs primarily relate to training costs incurred as part of our two Good Times restaurant acquisitions.
Current wording
New Store Preopening Costs. There were no preopening costs in the fiscal quarter ended December 30, 2025, compared to $8,000 preopening costs for the fiscal quarter ended December 31, 2024. The prior year costs related to training incurred as part of the two Good Times restaurant acquisitions in the fiscal quarter ended December 31, 2024.
Previous wording
Depreciation and Amortization Costs. Depreciation and amortization costs for the quarter ended July 1, 2025, increased $22,000 to $982,000 from $960,000 in the quarter ended June 25, 2024.
Current wording
Depreciation and Amortization Costs. Depreciation and amortization costs for the quarter ended December 30, 2025 decreased $78,000 to $940,000 from $1,018,000 in the quarter ended December 31, 2024.
Previous wording
Bad Daddy’s depreciation and amortization costs for the quarter ended July 1, 2025 decreased $7,000 to $742,000 from $749,000 in the quarter ended June 25, 2024.
Current wording
Bad Daddy’s depreciation and amortization costs for the quarter ended December 30, 2025 decreased $79,000 to $685,000 from $764,000 in the quarter ended December 31, 2024. The decrease is primarily due to assets performing past their estimated usable lives.
Previous wording
Good Times depreciation and amortization costs for the quarter ended July 1, 2025 increased $29,000 to $240,000 from $211,000 in the quarter ended June 25, 2024 primarily resulting from additional depreciation of newly acquired assets.
Current wording
Good Times depreciation and amortization costs for the quarter ended December 30 2025 decreased $1,000 to $244,000 from $245,000 in the quarter ended December 31, 2024.
Previous wording
General and Administrative Costs. General and administrative costs for the quarter ended July 1, 2025, decreased $514,000 to $2,174,000 (5.9% of total revenues) from $2,688,000 (7.1% of total revenues) for the quarter ended June 25, 2024.
Current wording
General and Administrative Costs. General and administrative costs for the quarter ended December 30, 2025, decreased $533,000 to $2,055,000 (6.3% of total revenues) from $2,588,000 (7.1% of total revenues) for the quarter ended December 31, 2024.
Previous wording
This decrease in general and administrative expenses in the quarter ended July 1, 2025 is primarily attributable to:
Current wording
This decrease in general and administrative expenses for the quarter ended December 30, 2025 is attributable to:
Previous wording
Advertising Costs. Advertising costs for the quarter ended July 1, 2025, decreased $8,000 to $741,000 (2.0% of total revenues) from $749,000 (2.0% of total revenues) for the quarter ended June 25, 2024.
Current wording
Advertising Costs. Advertising costs for the quarter ended December 30, 2025 increased $146,000 to $1,275,000 (3.9% of total revenues) from $1,129,000 (3.1% of total revenues) for the quarter ended December 31, 2024.
Previous wording
Bad Daddy’s advertising costs were $395,000 (1.5% of total revenues) in the quarter ended July 1, 2025 compared to $448,000 (1.6% of total revenues) for the quarter ended June 25, 2024. The decrease is primarily due to decreases in third party gift card commissions, social media and local store marketing expenses, partially offset by an increase in print production. 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 $694,000 (3.0% of total revenues) in the quarter ended December 30, 2025 compared to $836,000 (3.2% of total revenues) in the same prior year period. The decrease primarily relates to a reduction in third-party delivery promotions and local store marketing, as well as an increase in rebates. Bad Daddy’s advertising costs consist primarily of third-party gift card commissions, third-party delivery promotions, menu development, printing costs, local store marketing and social media.
Previous wording
Good Times advertising costs were $959,000 (3.2% of total revenues) in the three quarters ended July 1, 2025 compared to $950,000 (3.3% of total revenues) in the three quarters ended June 25, 2024. The increase is primarily due to increased social media expenses, partially offset by decreased radio and 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.
Current wording
Good Times advertising costs were $574,000 (6.2% of total revenues) in the quarter ended December 30, 2025 compared to $298,000 (3.0% of total revenues) in the same prior year period. The increase is primarily due to increased advertising campaigns including national cable placements, promotional campaigns on third-party delivery platforms, celebrity and influencer partnerships and targeted email marketing. Good Times advertising costs consist primarily of TV advertising, third-party delivery promotions, sponsorships andsocial media. Advertising costs are presented gross, with franchisee contributions to the fund being recognized as a component of franchise revenues.
Previous wording
(Gain) Loss on Restaurant Asset and Equipment Sales. The net gain on restaurant asset sales and equipment disposals for the quarter ended July 1, 2025 was $4,000, which is composed of a $13,000 gain on lease termination related to a closed Bad Daddy’s restaurant, $3,000 of deferred gain recognition, and a loss of $12,000 on disposal of miscellaneous assets, compared to a net loss of $18,000 for the quarter ended June 25, 2024.
Current wording
Loss (Gain) on Restaurant Asset Disposals. The net loss on restaurant asset disposals for the fiscal quarter ended December 30, 2025 was $14,000, which is composed of a loss of $17,000 on disposal of miscellaneous assets, and $3,000 of deferred gain recognition, compared to a net gain of $57,000 for the fiscal quarter ended December 31, 2024. The net gain in the prior year fiscal quarter was primarily due to fixed asset retirements subject to insurance claims, partially offset by deferred gain recognition.
Previous wording
Income from Operations. Income from operations was $1,233,000 in the quarter ended July 1, 2025 compared to income from operations of $1,228,000 in the quarter ended June 25, 2024.
Current wording
Income from Operations. Income from operations was $300,000 in the quarter ended December 30, 2025 compared to $77,000 in the quarter ended December 31, 2024.
Previous wording
The change in the income from operations for the fiscal quarter ended July 1, 2025 is primarily due to matters discussed in the relevant sections above.
Current wording
The change in the income from operations for the quarter ended December 30, 2025 from the quarter ended December 31, 2024 is primarily attributable tomatters discussed in the relevant sections above.
Previous wording
***Interest Expense.***Interest expense was $51,000 during the quarter ended July 1, 2025, compared with $27,000 during the quarter ended June 25, 2024.
Current wording
*Interest Expense.*Interest expense was $51,000 during the quarter ended December 30, 2025 compared with $46,000 during the quarter ended December 31, 2024.
Previous wording
Other Income: There was $140,000 of other income for the three quarters ended July 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 three quarters ended June 25, 2024.
Current wording
Other Income. There was no other income for the quarter ended December 30, 2025 compared with $140,000 during the quarter ended December 31, 2024. The prior year quarter’s other income 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.
Previous wording
Provision for Income Taxes. There was a $363,000 benefit from income taxes for the quarter ended July 1, 2025, compared to a $197,000 benefit for the fiscal quarter ended June 25, 2024.
Current wording
Provision for Income Taxes. There was $51,000 provision for income taxes for the quarter ended December 30, 2025, compared to ($3,000) for the quarter ended December 31, 2024.
Previous wording
Net Income. Net income was $1,545,000 for the quarter ended July 1, 2025, compared to net income of $1,398,000 in the quarter ended June 25, 2024.
Current wording
Net Income. Net income was $198,000 for the quarter ended December 30, 2025 compared to net income of $174,000 in the quarter ended December 31, 2024.
Previous wording
For the quarter ended July 1, 2025, the income attributable to non-controlling interests was $58,000 compared to $77,000 for the quarter ended June 25, 2024. This $19,000 decrease is due to decreased profitability of the restaurants involved in the limited partnership with a non-controlling partner.
Current wording
For the quarter ended December 30, 2025, the income attributable to non-controlling interests was $17,000 compared to $10,000 for the quarter ended December 31, 2024. The $7,000 increase is due toincreased profitability of the restaurants involved in the limited partnership with a non-controlling partner.
Previous wording
EBITDA is defined as net (loss) income before interest, income taxes and depreciation and amortization.
Current wording
EBITDA is defined as net 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, 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.
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
***Cash and Working Capital.***As of July 1, 2025, we had a working capital deficit of $8,457,000. 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 $6,268,000 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
As of December 30, 2025, we had a working capital deficit of $8,247,000. 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 2026. We anticipate any commitments in fiscal 2026 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 7 of 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 7 to the unaudited condensed consolidated financial statements included in this report.
Previous wording
***Operating Cash Flows.***Net cash from operating activities decreased by $3,275,000 as of the fiscal period ended July 1, 2025 compared to the fiscal period ended June 25, 2024. Operating cash flows were negatively impacted by additional pre-paid rent included in ROU assets resulting from the full payment of July rent (compared to the prior year during which rent had been paid through the end of June) as well as reductions in accounts payable and accrued and other liabilities, as presented on the Condensed Consolidated Statements of Cash Flows.
Current wording
Net cash from operating activities increased by $1,939,000 as of the fiscal period ended December 30, 2025 compared to the fiscal period ended December 31, 2024. Operating cash flows were positively impacted by reduced prepaid rent included in ROU assets as of December 30, 2025 compared to December 31, 2024. During the first quarter of fiscal 2025, rent had been paid through the month of January, whereas rent had been paid through the month of December during first quarter fiscal 2026. Additionally, there was decreased cash usage for accounts payable and prepaid expenses, partially offset by increased cash usage for other accrued liabilities, 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 July 1, 2025 and June 25, 2024 were $3,192,000 and $2,802,000, respectively, which primarily reflect the purchases of property and equipment in each period as well as the acquisitions of Good Times restaurants previously owned by franchisees.
Current wording
Net cash used in investing activities for the quarters ended December 30, 2025 and December 31, 2024 were $187,000 and $1,846,000, respectively, which primarily reflect the purchases of property and equipment in each quarter as well as the acquisition in the prior year fiscal quarter of two Good Times restaurants previously owned by a franchisee.
Previous wording
***Financing Cash Flows.***Net cash provided by financing activities for the three quarters ended July 1, 2025 was $1,016,000, which includes proceeds from long-term debt of $2,250,000, payments of long-term debt of $774,000, net distributions to non-controlling interests of $38,000, cash settlement of restricted stock units of $58,000, and $364,000 of payments for the repurchase of common stock under the Company’s share repurchase program.
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.
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Current report — wording carried from elsewhere
In addition to food cost inflation, we have also experienced the need to meaningfully increase wages to attract restaurant employees. While we are hopeful that wage rate inflation moderates as overall inflation, as evidenced by the Consumer Price Index (CPI-U), has moderated the persistent shortage of qualified workers, and in Colorado inflation-indexed statutory wage rate increases continue to place upward pressure on wages.
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
New Store Preopening Costs. There were no preopening costs in the quarters ended July 1, 2025 or June 25, 2024.
Previous report — wording carried elsewhere
Good Times advertising costs consist primarily of radio, streaming and 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
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
Bad Daddy’s same store restaurant sales decreased 1.2% during the three quarters ended July 1, 2025 compared to the same three quarters ended June 25, 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.
Previous report — wording carried elsewhere
This decrease in general and administrative expenses in the three quarters ended July 1, 2025 is primarily attributable to:
Previous report — wording carried elsewhere
The change in the income from operations for the three quarters ended July 1, 2025 is primarily due to matters discussed in the relevant sections above.
Previous report — wording carried elsewhere
The change from the three quarters ended July 1, 2025 to the three quarters ended June 25, 2024 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.