Q1 2025 Good Times Restaurants Inc Earnings Call Transcript
Key Points
- Good Times Restaurants Inc (GTIM) reported a 1.5% increase in same-store sales for Bad Daddy's, indicating positive growth in that segment.
- The introduction of smash patty burgers has been successful, contributing to improved restaurant-level margins and better food and beverage costs.
- The company has implemented a back-to-basics approach at Bad Daddy's, aligning compensation with performance metrics, which has improved labor controls.
- GTIM successfully reopened two Good Times restaurants in Denver after acquiring them from a former franchisee, showing potential for growth and expansion.
- Adjusted EBITDA for the quarter increased to $1.2 million from $0.5 million in the previous year, reflecting improved financial performance.
- Good Times brand faced challenges with higher costs, particularly in labor, and intense discounting by competitors, leading to flat same-store sales.
- Weather conditions negatively impacted sales, with significant snow and cold temperatures affecting restaurant operations in January.
- Labor costs increased due to higher average wage rates and decreased labor productivity, impacting overall profitability.
- Occupancy costs rose due to lease extensions, rent escalations, and increased property taxes, adding pressure on margins.
- The company experienced a negative mix shift due to the success of smash patty burgers, which offset some of the benefits of menu price increases.
Good afternoon, ladies and gentlemen, and welcome to the Good Times Restaurants Inc. Fiscal 2025 First Quarter Earnings Call. I am Keri August, the company's Senior Vice President of Finance and Accounting. By now, everyone should have access to the company's earnings release, which is available in the Investors section of the company's website.
As a reminder, part of today's discussion will include forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not guarantees of future performance and therefore you should not put undue reliance on them.
These statements involve known and unknown risks which may cause the company's actual results to differ materially from results expressed or implied by the forward-looking statements. Such risks and uncertainties include among other things, the market price of the company's stock prevailing from time to time.
The nature of other investment opportunities presented to the company. The
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