Good Times Restaurants Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
View on SEC.govAbout this filing
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.
Mar 31, 2026 · Filed May 7, 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 2025-12-30; filed 2026-02-05.
0001214659-26-001242
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001214659-26-005726
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 77 previous paragraphs and 121 current paragraphs.
38 unchanged; 34 reworded; 40 added; 5 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 23 previous and 31 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 (40)
Current report
*Includes one Good Times restaurant that is temporarily closed for lease negotiation.
Current report
Franchise and other revenues decreased $31,000 to $108,000 in the quarter ended March 31, 2026 compared to $139,000 in the quarter ended April 1, 2025. This decrease is primarily due to reduced gift card breakage.
Current report
Bad Daddy’s food and packaging costs were $7,092,000 (29.6% of restaurant sales) for the quarter ended March 31, 2026, down from $7,619,000 (30.7% of restaurant sales) for the quarter ended April 1, 2025. The decrease as a percentage of sales is primarily attributable to reduced waste and improved chicken pricing, partially offset by higher beef and bacon purchase prices compared to the prior-year quarter.
Current report
Good Times food and packaging costs were $2,736,000 (29.7% of restaurant sales) for the quarter ended March 31, 2026, down from $2,858,000 (30.7% of restaurant sales) for the quarter ended April 1, 2025. The decrease as a percentage of sales is primarily attributable to reduced waste partially offset by higher beef and bacon prices compared to the prior-year quarter.
Current report
Bad Daddy’s payroll and other employee benefit costs were $8,168,000 (34.1% of restaurant sales) for the quarter ended March 31, 2026, down from $8,510,000 (34.3% of restaurant sales) in the same prior year period. As a percentage of sales, payroll and employee benefits costs decreased by 0.2% primarily attributable to lower employee benefit costs, partially offset by higher average wage rates.
Current report
Good Times other operating costs were $1,400,000 (15.2% of restaurant sales) for the quarter ended March 31, 2026, down from $1,407,000 (15.1% 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.
Current report
Bad Daddy’s advertising costs were $479,000 (2.0% of total revenues) in the quarter ended March 31, 2026 compared to $494,000 (2.0% of total revenues) in the same prior year period.
Current report
Impairment of Long-lived Assets and ROU Assets. There were $227,000 of costs associated with impairments for the quarter ended March 31, 2026. There were $494,000 of impairment costs for the quarter ended April 1, 2025. The current quarter impairment costs are attributable to the temporary closure of one Good Times restaurant. Impairment costs in the prior year quarter relate 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
Net Income (Loss). Net income was $159,000 for the quarter ended March 31, 2026 compared to a net loss of $627,000 in the quarter ended April 1, 2025.
Current report
*Net Revenues.*Net revenues for the two quarters ended March 31, 2026 decreased $4,674,000, or 6.6%, to $65,938,000 from $70,612,000 for the two quarters ended April 1, 2025. Bad Daddy’s concept revenues decreased $3,823,000 and our Good Times concept revenues decreased $851,000.
Current report
Bad Daddy’s restaurant sales decreased $3,772,000 to $47,123,000 for the two quarters ended March 31, 2026 from $50,895,000 for the two quarters ended April 1, 2025. This decrease is due to an additional week in the prior year period versus the current year period, the fourth fiscal quarter 2025 closure of one Bad Daddy’s restaurant, the first fiscal quarter 2026 closure of one Bad Daddy’s restaurant and decreased guest traffic, partially offset by menu price increases. The average menu price increase for the two quarters ended March 31, 2026 over the same prior year quarters was approximately 1.0%.
Current report
Good Times restaurant sales decreased $836,000 to $18,374,000 for the two quarters ended March 31, 2026 from $19,210,000 for the two quarters ended April 1, 2025. This decrease is due to an additional week in the prior year period versus the current year period and the current quarter temporary closure of one Good Times restaurant, partially offset by increases in menu price. The average menu price increase for the two quarters ended March 31, 2026 over the same prior year quarters was approximately 0.9%.
Current report
Franchise and other revenues decreased $66,000 to $441,000 in the two quarters ended March 31, 2026 compared to $507,000 in the two quarters ended April 1, 2025. This decrease is primarily due to lower license and royalty fees as well as a decrease in gift card breakage.
Current report
Same Store Sales
Current report
Good Times same store restaurant sales decreased 1.9% during the two quarters ended March 31, 2026 compared to the same two quarters ended April 1, 2025, primarily driven by reduced guest traffic and promotional discounts, partially offset by menu price increases. There were twenty-six 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 March 31, 2026 decreased $2,171,000 to $19,669,000 (30.0% of restaurant sales) from $21,840,000 (31.2% of restaurant sales) for the two quarters ended April 1, 2025.
Current report
Bad Daddy’s food and packaging costs were $14,107,000 (29.9% of restaurant sales) for the two quarters ended March 31, 2026, down from $15,834,000 (31.1% of restaurant sales) for the two quarters ended April 1, 2025. The decrease as a percentage of sales is primarily attributable to reduced waste and favorability in dairy and chicken input prices as well as the impact of a 1.0% average increase in menu pricing, partially offset by higher beef and bacon purchase prices compared to the prior year period.
Current report
Good Times food and packaging costs were $5,562,000 (30.3% of restaurant sales) for the two quarters ended March 31, 2026, down from $6,006,000 (31.3% of restaurant sales) for the two quarters ended April 1, 2025. The decrease as a percentage of sales is primarily attributable to reduced waste and the impact of a 0.9% average increase in menu pricing compared to the prior year-to-date period, partially offset by higher beef and bacon prices.
Current report
Payroll and Other Employee Benefit Costs. Payroll and other employee benefit costs for the two quarters ended March 31, 2026 decreased $2,012,000 to $22,597,000 (34.5% of restaurant sales) from $24,609,000 (35.1% of restaurant sales) for the two quarters ended April 1, 2025.
Current report
Bad Daddy’s payroll and other employee benefit costs were $16,169,000 (34.3% of restaurant sales) for the two quarters ended March 31, 2026 down from $17,667,000 (34.7% of restaurant sales) for the two quarters ended April 1, 2025. As a percentage of sales, payroll and employee benefits costs decreased by 0.4% primarily attributable to reduced salary costs and incentive compensation, partially offset by decreased labor productivity and higher average wage rates.
Current report
Good Times payroll and other employee benefit costs were $6,428,000 (35.0% of restaurant sales) in the two quarters ended March 31, 2026, down from 6,942,000 (36.1% of restaurant sales) in the same prior year period. As a percentage of sales, payroll and employee benefits costs decreased by 1.1% primarily attributable to increased labor efficiency partially offset by higher average wage rates.
Current report
Occupancy Costs. Occupancy costs for the two quarters ended March 31, 2026 decreased $233,000 to $5,033,000 (7.7% of restaurant sales) from $5,266,000 (7.5% of restaurant sales) for the two quarters ended April 1, 2025.
Current report
Bad Daddy’s occupancy costs were $3,241,000 (6.9% of restaurant sales) for the two quarters ended March 31, 2026, down from $3,418,000 (6.7% of restaurant sales) for the two quarters ended April 1, 2025. The decrease was primarily due to the fourth fiscal quarter 2025 closure of one Bad Daddy’s restaurant and the first fiscal quarter 2026 closure of one Bad Daddy’s restaurant.
Current report
Good Times occupancy costs were $1,835,000 (10.0% of restaurant sales) in the two quarters ended March 31, 2026, down from $1,888,000 (9.8% of restaurant sales) in the two quarters ended April 1, 2025. This was primarily due to a decrease in property taxes between the two periods.
Current report
Other Operating Costs. Other operating costs for the two quarters ended March 31, 2026, decreased $146,000 to $9,513,000 (14.5% of restaurant sales) from $9,659,000 (13.8% of restaurant sales) for the two quarters ended April 1, 2025.
Current report
Bad Daddy’s other operating costs were $7,123,000 (15.1% of restaurant sales) for the two quarters ended March 31, 2026 down from $7,159,000 (14.1% of restaurant sales) for the two quarters ended April 1, 2025. As a percentage of sales, the increase is primarily due to increases in customer delivery and repair and maintenance expenses.
Current report
Good Times other operating costs were $2,679,000 (14.6% of restaurant sales) in the two quarters ended March 31, 2026, up from $2,668,000 (13.9% of restaurant sales) in the two quarters ended April 1, 2025. As a percentage of sales, the increase is primarily due to increases in customer delivery expenses.
Current report
Depreciation and Amortization Costs. Depreciation and amortization costs for the two quarters ended March 31, 2026, decreased $196,000 to $1,818,000 from $2,014,000 ended for the two quarters ended April 1, 2025.
Current report
Bad Daddy’s depreciation and amortization costs for the two quarters ended March 31, 2026 decreased $208,000 to $1,306,000 from $1,514,000 in the two quarters ended April 1, 2025. The decrease is primarily due to assets performing past their estimated useful lives.
Current report
Good Times depreciation and amortization costs for the two quarters ended March 31, 2026 increased $9,000 to $490,000 from $481,000 in the two quarters ended April 1, 2025.
Current report
General and Administrative Costs. General and administrative costs for the two quarters ended March 31, 2026, decreased $915,000 to $4,251,000 (6.4% of total revenues) from $5,166,000 (7.3% of total revenues) for the two quarters ended April 1, 2025.
Current report
Advertising Costs. Advertising costs for the two quarters ended March 31, 2026, increased to $2,259,000 (3.4% of total revenues) from $2,044,000 (2.9% of total revenues) for the two quarters ended April 1, 2025.
Current report
Good Times advertising costs were $1,062,000 (5.8% of total revenues) in the two quarters ended March 31, 2026 compared to $720,000 (3.7% of total revenues) in the two quarters ended April 1, 2025. The increase is primarily due to increased advertising campaigns including video streaming, promotional campaigns on third-party delivery platforms, and celebrity and influencer partnerships, partially offset by reduced radio media. Good Times advertising costs consist primarily of third-party delivery promotions, video streaming, social media, sponsorships and email marketing. Advertising costs are presented gross, with franchisee contributions to the fund being recognized as a component of franchise revenues.
Current report
Impairment of Long-lived Assets and ROU Assets. There were $227,000 of costs associated with impairments for the two quarters ended March 31, 2026. There were $494,000 of impairment costs for the two quarters ended April 1, 2025. The current year impairment costs are attributable to the temporary closure of one Good Times restaurant. Impairment costs in the prior year relate 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
Income (Loss) from Operations. Income from operations was $472,000 in the two quarters ended March 31, 2026 compared to loss from operations of $437,000 in the two quarters ended April 1, 2025.
Current report
The change in the income (loss) from operations for the two quarters ended March 31, 2026 is primarily due to matters discussed in the relevant sections above.
Current report
*Interest Expense.*Interest expense was $87,000 during the two quarters ended March 31, 2026, compared with $102,000 during the two quarters ended April 1, 2025.
Current report
Provision for Income Taxes. The benefit from income taxes was $28,000 for the two quarters ended March 31, 2026, compared to expense of $54,000 for the two quarters ended April 1, 2025.
Current report
For the two quarters ended March 31, 2026, the income attributable to non-controlling interests was $27,000 compared to $7,000 for the two quarters ended April 1, 2025. The $20,000 increase is due to increased profitability during the two quarters of the restaurants involved in the partnership.
Removed paragraphs (5)
Previous report
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 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.
Previous 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.
Previous report
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 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.
Reworded paragraphs (34)
Previous 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.
Current wording
*Net Revenues.*Net revenues for the quarter ended March 31, 2026 decreased $1,047,000 or 3.1% to $33,232,000 from $34,279,000 for the quarter ended April 1, 2025. Bad Daddy’s concept revenues decreased $930,000 while our Good Times concept revenues decreased $117,000 compared to the same prior-year quarter.
Previous 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%.
Current wording
Bad Daddy’s restaurant sales decreased $897,000 to $23,920,000 for the quarter ended March 31, 2026 from $24,817,000 for the quarter ended April 1, 2025. This decrease is primarily due to the fourth fiscal quarter 2025 closure of one Bad Daddy’s restaurant, the first fiscal quarter 2026 closure of one Bad Daddy’s restaurant and decreased guest traffic, partially offset by menu price increases. The average menu price increase for the quarter ended March 31, 2026 over the same prior-year quarter was approximately 0.2%.
Previous wording
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 wording
Good Times restaurant sales decreased $119,000 to $9,204,000 for the quarter ended March 31, 2026 from $9,323,000 for the quarter ended April 1, 2025. This decrease is driven by the current quarter temporary closure of one Good Times restaurant, partially offset by increases in menu price. The average menu price increase for the quarter ended March 31, 2026 over the same prior-year quarter was approximately 1.0%.
Previous 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.
Current wording
Bad Daddy’s same store restaurant sales decreased 0.8% during the fiscal quarter ended March 31, 2026 compared to the fiscal quarter ended April 1, 2025, 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, 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 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.
Current wording
Good Times same store restaurant sales decreased 0.8% during the quarter ended March 31, 2026 compared to the fiscal quarter ended April 1, 2025, primarily driven by promotional discounts along with lost revenue from exited items and category declines, partially offset by a menu price increase. There were twenty-six 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 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.
Current wording
Food and Packaging Costs. Food and packaging costs for the fiscal quarter ended March 31, 2026 decreased $649,000 to $9,828,000 (29.7% of restaurant sales) from $10,477,000 (30.7% of restaurant sales) for the quarter ended April 1, 2025.
Previous 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.
Current wording
Payroll and Other Employee Benefit Costs. Payroll and other employee benefit costs for the quarter ended March 31, 2026 decreased $439,000 to $11,387,000 (34.4% of restaurant sales) from $11,826,000 (34.6% of restaurant sales) for the quarter ended April 1, 2025.
Previous 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.
Current wording
Good Times payroll and other employee benefit costs were $3,219,000 (35.0% of restaurant sales) in the quarter ended March 31, 2026, down from $3,316,000 (35.6% of restaurant sales) in the same prior year period. As a percentage of sales, payroll and employee benefits costs decreased by 0.6% primarily attributable to increased labor efficiency, partially offset by higher average wage rates.
Previous 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.
Current wording
Occupancy Costs. Occupancy costs for the quarter ended March 31, 2026 decreased $59,000 to $2,524,000 (7.6% of restaurant sales) from $2,583,000 (7.6% of restaurant sales) for the quarter ended April 1, 2025.
Previous 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.
Current wording
Bad Daddy’s occupancy costs were $1,625,000 (6.8% of restaurant sales) for the quarter ended March 31, 2026, down from $1,665,000 (6.7% of restaurant sales) in the same prior year period. The decrease was primarily due to the fourth fiscal quarter 2025 closure of one Bad Daddy’s restaurant and the first fiscal quarter 2026 closure of one Bad Daddy’s restaurant.
Previous wording
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 wording
Good Times occupancy costs were $920,000 (10.0% of restaurant sales) in the quarter ended March 31, 2026, down from $939,000 (10.1% of restaurant sales) in the same prior year period. This was primarily due to a decrease in property taxes between the quarterly periods.
Previous 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.
Current wording
Other Operating Costs. Other operating costs for the quarter ended March 31, 2026, increased $33,000 to $4,951,000 (14.9% of restaurant sales) from $4,918,000 (14.4% of restaurant sales) for the quarter ended April 1, 2025.
Previous wording
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 wording
Bad Daddy’s other operating costs were $3,739,000 (15.6% of restaurant sales) for the quarter ended March 31, 2026, up from $3,591,000 (14.5% of restaurant sales) in the same prior year period. As a percentage of sales, the increase is primarily due to increases in customer delivery and repair and maintenance expenses.
Previous 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.
Current wording
Depreciation and Amortization Costs. Depreciation and amortization costs for the quarter ended March 31, 2026 decreased $118,000 to $878,000 from $996,000 in the quarter ended April 1, 2025.
Previous 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.
Current wording
Bad Daddy’s depreciation and amortization costs for the quarter ended March 31, 2026 decreased $127,000 to $621,000 from $748,000 in the quarter ended April 1, 2025. 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 December 30 2025 decreased $1,000 to $244,000 from $245,000 in the quarter ended December 31, 2024.
Current wording
Good Times depreciation and amortization costs for the quarter ended March 31, 2026 increased $8,000 to $246,000 from $238,000 in the quarter ended April 1, 2025.
Previous 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.
Current wording
General and Administrative Costs. General and administrative costs for the quarter ended March 31, 2026, decreased $382,000 to $2,196,000 (6.6% of total revenues) from $2,578,000 (7.5% of total revenues) for the quarter ended April 1, 2025.
Previous 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.
Current wording
Advertising Costs. Advertising costs for the quarter ended March 31, 2026 increased $69,000 to $984,000 (3.0% of total revenues) from $915,000 (2.7% of total revenues) for the quarter ended April 1, 2025.
Previous 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.
Current wording
Good Times advertising costs were $488,000 (5.3% of total revenues) in the quarter ended March 31, 2026 compared to $424,000 (4.5% of total revenues) in the same prior year period. The increase is primarily due to increased advertising campaigns including video streaming, promotional campaigns on third-party delivery platforms, and celebrity and influencer partnerships, partially offset by reduced radio media. Good Times advertising costs consist primarily of social media, third-party delivery promotions and video streaming advertising. Advertising costs are presented gross, with franchisee contributions to the fund being recognized as a component of franchise revenues.
Previous 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.
Current wording
Loss (Gain) on Asset Disposals. The net loss on asset disposals for the fiscal quarter ended March 31, 2026 was $85,000, which is composed of a loss of $88,000 on disposal of miscellaneous assets, and $3,000 of deferred gain recognition, compared to a net loss of $6,000 for the fiscal quarter ended April 1, 2025. The net loss in the prior year fiscal quarter was primarily due to disposal of miscellaneous assets, partially offset by deferred gain recognition.
Previous 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.
Current wording
Income (Loss) from Operations. Income from operations was $172,000 in the quarter ended March 31, 2026 compared to a loss of $514,000 in the quarter ended April 1, 2025.
Previous 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.
Current wording
The change in the income (loss) from operations for the quarter ended March 31, 2026 from the quarter ended April 1, 2025 is primarily attributable to matters discussed in the relevant sections above.
Previous 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.
Current wording
*Interest Expense.*Interest expense was $36,000 during the quarter ended March 31, 2026 compared with $56,000 during the quarter ended April 1, 2025.
Previous 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.
Current wording
Provision for Income Taxes. There was a $23,000 benefit from income taxes for the quarter ended March 31, 2026, compared to $57,000 of expense for the quarter ended April 1, 2025.
Previous 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.
Current wording
For the quarter ended March 31, 2026, the income attributable to non-controlling interests was $10,000 compared to a loss of $3,000 for the quarter ended April 1, 2025. The $13,000 increase is due to increased profitability of the restaurants involved in the limited partnership with a non-controlling partner.
Previous 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.
Current wording
New Store Preopening Costs. There were no preopening costs for the two quarters ended March 31, 2026, compared to $8,000 for the two quarters ended April 1, 2025. The prior fiscal year costs primarily relate to training costs incurred as part of our two Good Times restaurant acquisitions.
Previous 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.
Current wording
Bad Daddy’s advertising costs were $1,173,000 (2.5% of total revenues) for the two quarters ended March 31, 2026 compared to $1,331,000 (2.6% of total revenues) for the two quarters ended April 1, 2025. The decrease is primarily due to a reduction in promotional campaigns on third-party delivery platforms and local store marketing expenses. Bad Daddy’s advertising costs consist primarily of third-party gift card commissions, promotional campaigns on third-party delivery platforms and social media.
Previous 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.
Current wording
*Other Income.*There was no other income for the two quarters ended March 31, 2026, compared to $140,000 of other income in the two quarters ended April 1, 2025, which 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
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.
Current wording
Net Income (Loss). Net income was $357,000 for the two quarters ended March 31, 2026 compared to net loss of $453,000 in the two quarters ended April 1, 2025.
Previous 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.
Current wording
As of March 31, 2026, we had a working capital deficit of $8,888,000. 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
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.
Current wording
Net cash from operating activities increased by $1,738,000 as of the fiscal year-to-date period ended March 31, 2026 compared to the fiscal year-to-date period ended April 1, 2025. The increase is primarily attributable to an increase in net income and the net change in ROU assets and lease liabilities between the comparable periods. Additionally, there was decreased cash usage for accounts payable, accrued liabilities and prepaid expenses, as presented on the Condensed Consolidated Statements of Cash Flows.
Previous 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.
Current wording
Net cash used in investing activities for the two quarters ended March 31, 2026 and April 1, 2025 were $507,000 and $2,662,000, respectively, which primarily reflect the purchases of property and equipment in each period as well as the acquisition in the prior year fiscal period of two Good Times restaurants previously owned by a franchisee.
Previous wording
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 wording
Net cash used in financing activities for the two quarters ended March 31, 2026 was $1,283,000, which includes proceeds from long-term debt of $500,000, $1,765,000 of payments on long-term debt, cash usage for restricted stock unit vesting of $15,000, and distributions to non-controlling interests of $3,000.
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 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.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
New Store Preopening Costs. There were no preopening costs in the fiscal quarters ended March 31, 2026 and April 1, 2025
Current report — wording carried from elsewhere
Other Income. There was no other income for the quarters ended March 31, 2026 or April 1, 2025.
Current report — wording carried from elsewhere
Income (Loss) Attributable to Non-Controlling Interests. The non-controlling interest represents the limited partner’s share of income in the Good Times joint-venture restaurants.
Current report — wording carried from elsewhere
Fiscal two quarters ended March 31, 2026 (26 weeks) compared to fiscal two quarters ended April 1, 2025 (27 weeks):
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
Bad Daddy’s same store restaurant sales decreased 1.0% during the two quarters ended March 31, 2026 compared to the same two quarters ended April 1, 2025, 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, partially offset by menu price increases. There were thirty-seven restaurants included in the same store sales base at the end of the current quarter.
Current report — wording carried from elsewhere
This decrease in general and administrative expenses in the two quarters ended March 31, 2026 is primarily attributable to:
Current report — wording carried from elsewhere
Loss (Gain) on Asset Disposals. The net loss on asset disposals for the two quarters ended March 31, 2026 was $99,000, which is composed of a net loss of $105,000 on disposal of miscellaneous assets and $6,000 of deferred gain recognition, compared to a net gain of $51,000 for the two quarters ended April 1, 2025, which is composed of a net gain of $43,000 on disposal of miscellaneous assets and $8,000 of deferred gain recognition.
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.