Sequential Same-Store Sales Improvement
Good Times same-store sales declined 6.6% in Q4 but represented a 240 basis point sequential improvement from Q3; through the first 11 weeks of Q1 Good Times comps improved to down ~3.6% year-over-year. Bad Daddy's same-store sales were down 4.6% in Q4 but have improved sequentially into Q1 and are down ~1.6% through the first 11 weeks.
Operational Improvements Underway
Management implemented targeted operational changes — GM schedule realignment, improved restaurant-level training, and a rollout plan for cook-to-order for burgers — intended to improve execution, speed of service, and guest experience.
Successful Product Promotions and Menu Pipeline
Bad Daddy's promotions (giant Bavarian pretzel, in-house chocolate cookie cheesecake) performed well with potential to join the core menu; plan to move to a burger-of-the-month platform to simplify messaging and focus execution.
Modest Menu Pricing and Pricing Discipline
Company has taken limited menu price increases (approximately 1% since Jan 2024 system-wide references; Bad Daddy's blended YoY price increase <1% in Q4) and expects an average year-over-year price increase of ~1.7% for Q1 2026, signaling measured pricing to address value perceptions.
Full-Year Revenue Nearly Flat
Total fiscal year revenue was $141.6 million, a decline of only ~0.5% versus the prior-year all-time record, indicating annual resilience despite a weak Q4.
Improved Cost Trends into Q1
Management reported that record-high input costs (notably ground beef) have decreased into the first quarter and expect food and beverage costs as a percent of sales to improve quarter-over-quarter.
Conservative Balance Sheet Metrics
Company finished Q4 with $2.6 million in cash and $2.3 million of long-term debt, and reduced combined G&A to 7% of revenues (down 70 basis points), with guidance for 6%–7% G&A in fiscal 2026.