Good Times Restaurants reports Q1 EPS 6c vs. (4c) last year

Reports Q1 revenue $34.3M vs. $35.4M last year. Same Store Sales for company-owned Bad Daddy’s restaurants decreased 3.7% and Good Times restaurants (GTIM) decreased 3.6% for the quarter compared to the fiscal 2024 second quarter and are -1.1% and -1.9% year-to-date for our Bad Daddy’s and Good Times brands, respectively. Ryan M. Zink, the Company’s Chief Executive Officer, said, “The second fiscal quarter was disappointing, though sales improved sequentially throughout the quarter; however, during the fiscal month of March same store sales declined approximately 2.2% for our Bad Daddy’s brand and declined approximately 0.4% for our Good Times brand. I am impressed with our ability to control costs at our Bad Daddy’s brand as our 13.6% Restaurant Level Operating Profit 2 margin matched the prior year despite the deleveraging pressure of lower average unit volumes. On Monday, we reintroduced our Birria Burger, an item we pioneered a year ago, which was a perfect fit to launch on Cinco de Mayo and to kick off National Burger Month. This burger, as well as our new Elote Street Corn Dip and Churro Shake, will continue through the middle of August. Additionally, during this same period, we are featuring our signature Bad Ass Margarita at a promotional price of eight dollars. In April, we introduced the Smash n’ Stack burger, the newest addition to our lineup of smashed-patty burgers, a value-oriented bacon double cheeseburger at a price of $11.95, a substantial value for a half-pound burger. Nearly five years ago, we moved to an a la carte model, separating sides from the prices of our burgers and sandwiches; however, we have recently conducted experiments to restructure the menu around a side-included pricing model with strong initial results and expect to roll this model to all stores prior to the end of the June quarter. Finally, during the quarter, we tested connected TV and streaming video advertising in our northern Colorado market and in the far northern suburbs of Atlanta, with promising results. We are expanding this advertising during the remainder of the June quarter as we continue to evaluate the effectiveness of this previously untried advertising medium for the Bad Daddy’s brand.”