Good Times Restaurants (GTIM) investor relations material

Executive summary

• Total revenues for the quarter decreased 3.1% year-over-year to $33.2 million, with both Bad Daddy's and Good Times experiencing lower sales due to restaurant closures and reduced guest traffic, partially offset by menu price increases.

• Net income attributable to common shareholders was $0.1 million ($0.01 per share), reversing a net loss of $0.6 million ($0.06 per share) in the prior year, driven by lower operating costs and improved margins.

• Adjusted EBITDA rose to $1.4 million from $1.0 million year-over-year.

• Same-store sales for both brands declined 0.8% for the quarter, reflecting sector-wide demand softness and promotional discounting, but improved sequentially from the previous quarter.

• Profitability improved year-over-year due to better cost management in food, beverage, and labor.

Financial highlights

• Restaurant sales were $33.1 million for the quarter, down from $34.1 million year-over-year.

• Net income per share was $0.01 (basic and diluted), compared to a loss of $0.06 per share last year.

• Restaurant-level operating profit was $4.4 million, representing 13.4% of total revenues, up from 12.7% last year.

• Operating cash flow for the year-to-date period increased by $1.7 million to $1.9 million.

• Cash at quarter end was $2.7 million, with $1 million in long-term debt.

Outlook and guidance

• No additional menu price increases planned for the remainder of the year due to market competitiveness.

• Management expects continued inflationary pressures on food and labor costs, particularly beef, and is cautious about the ability to pass these costs to customers without impacting demand.

• Expectation of higher ground beef costs in the second half of the fiscal year due to supply constraints.

• General and administrative expenses anticipated at 6%-7% of total revenues for fiscal 2026.

• The company plans to pursue unit growth for both brands but with increased scrutiny on real estate and a conservative approach to leverage.