Good Times Restaurants (GTIM) Q3 2025 earnings summary

Executive summary

• Net revenues for the quarter declined 2.4% year-over-year to $37.0 million, with both Bad Daddy's and Good Times experiencing lower sales due to reduced customer traffic and prior closures, partially offset by menu price increases and acquisitions.

• Net income attributable to common shareholders was $1.5 million ($0.14 per share), up from $1.3 million ($0.12 per share) in the prior year quarter.

• Adjusted EBITDA for the quarter was $2.2 million, down from $2.4 million in the prior year quarter.

• Same store sales declined 1.4% for Bad Daddy's and 9.0% for Good Times in the quarter, primarily due to reduced customer traffic.

• Strategic marketing initiatives, including a new leadership hire and brand campaigns, are being launched to address sales declines and improve brand communication.

Financial highlights

• Restaurant sales for the quarter were $36.9 million, down from $37.7 million year-over-year; franchise and other revenues were $156,000, down from $208,000.

• Restaurant-level operating profit margin was 13.5% for the quarter, down from 14.9% last year.

• Bad Daddy's restaurant-level operating profit was $3.8 million (14.4% of sales); Good Times was $1.2 million (11.2% of sales).

• Cash and cash equivalents at quarter end were $3.1 million, with $2.3 million in long-term debt.

• Net income per share was $0.14 basic and diluted, compared to $0.12 in the prior year.

Outlook and guidance

• Management expects continued inflationary pressures on food and labor costs, especially ground beef and wages in Colorado, and plans to use menu price increases to offset cost pressures where possible.

• General and administrative expenses projected to run between 6% and 7% of total revenues for fiscal 2025.

• Share repurchase activity to be significantly reduced in the near term, with a focus on cash accumulation; potential acceleration of repurchases in fiscal 2026.

• Sufficient capital is anticipated to meet working capital and recurring capital expenditure needs for fiscal 2025, with funding from cash and the Cadence Credit Facility.

• New marketing leadership and campaigns are expected to drive traffic and brand engagement in upcoming quarters.