Good Times Restaurants (GTIM) Q2 2025 earnings summary

Executive summary

• Total revenues for Q2 2025 decreased 3.3% year-over-year to $34.3M, with Bad Daddy's down and Good Times up due to acquisitions.

• Net loss for the quarter was $627K (loss of $0.06/share), compared to net income of $680K ($0.06/share) in the prior year quarter, driven by lower sales and higher impairment costs.

• Same-store sales declined 3.7% at Bad Daddy's and 3.6% at Good Times, mainly due to reduced customer traffic, unfavorable weather, and value-oriented consumer behavior.

• Leadership transitions occurred at both the operations and supply chain levels, aiming to drive operational improvements and cost efficiencies.

• Strategic focus is on improving product quality, menu simplification, and marketing channel shifts to drive long-term sales and profitability.

Financial highlights

• Bad Daddy's total restaurant sales decreased $1.6M to $24.8M, mainly due to a restaurant closure and reduced traffic, partially offset by menu price increases.

• Good Times company-owned restaurant sales increased $0.5M to $9.3M, but same-store sales declined 3.6%.

• Net loss was $627K versus net income of $680K in Q2 2024.

• Adjusted EBITDA was $1.0M, down from $1.5M year-over-year.

• Cash and cash equivalents at quarter end were $2.7M; long-term debt was $2.6M.

Outlook and guidance

• Labor costs at Good Times expected to remain elevated into the third quarter due to training and wage pressures.

• Ground beef costs anticipated to continue rising throughout fiscal 2025 for both brands.

• General and administrative costs projected at 6%-7% of total revenues for the full year.

• Menu restructuring to a side-included pricing model is expected to roll out systemwide by end of June quarter.

• Sufficient capital is expected to meet working capital and capital expenditure needs for fiscal 2025.