Good Times Restaurants Inc. (GTIM, Financial) announced a decrease in its first-quarter revenue, posting $34.3 million compared to $35.4 million in the previous year. The company saw a drop in same store sales for both its brands, with Bad Daddy’s restaurants experiencing a 3.7% decline and Good Times restaurants seeing a 3.6% decrease compared to the second quarter of fiscal 2024. Year-to-date, sales have fallen 1.1% for Bad Daddy’s and 1.9% for Good Times.
The company's CEO commented on the disappointing second fiscal quarter but noted sequential improvements in sales. During March, same store sales fell by 2.2% for Bad Daddy’s and 0.4% for Good Times. Despite challenges, Bad Daddy’s maintained a 13.6% Restaurant Level Operating Profit margin, consistent with the prior year. In efforts to boost sales, GTIM reintroduced its Birria Burger and new menu items like the Elote Street Corn Dip and Churro Shake. Additionally, promotional pricing strategies and a new menu structure are being tested.
Marketing efforts include trials of connected TV and streaming video advertisements in select markets, showing promising initial results. These strategies are being expanded in the June quarter for further evaluation.
