Good Times Restaurants (GTIM) Q4 2024 earnings summary

Executive summary

• Total revenues reached $142.3 million for fiscal 2024, up 3% year-over-year, with Q4 revenues up 4.3% to $35.8 million.

• Net income attributable to common shareholders was $0.2 million for Q4 and $1.6 million for the year.

• Adjusted EBITDA was $1.3 million for Q4 and $5.4 million for the year.

• Bad Daddy's posted strong same-store sales growth and margin improvement in Q4, outperforming industry benchmarks, while Good Times saw a slight same-store sales decline of 0.1% in Q4 amid competitive discounting.

• Operational improvements and menu innovation drove Bad Daddy's performance; Good Times focused on value and product innovation.

Financial highlights

• Q4 total net revenues were $35.8 million, up from $34.3 million in Q4 2023; full-year revenues were $142.3 million, up from $138.2 million.

• Q4 net income to common shareholders was $0.2 million ($0.02 per share), compared to a net loss of $0.3 million last year.

• Full-year net income attributable to common shareholders was $1.6 million, down from $11.1 million in 2023.

• Adjusted EBITDA for the year was $5.4 million, compared to $6.2 million in 2023.

• Ended Q4 with $3.9 million in cash and $0.8 million in long-term debt.

Outlook and guidance

• No further menu price increases expected in the near term for either brand; monitoring competitor pricing.

• Food and beverage costs expected to remain elevated due to high protein prices, with some relief anticipated in later quarters.

• General and administrative costs expected to normalize to about 7% of revenues in 2025.

• Continued focus on remodels, digital marketing, and operational excellence, with ongoing brand evolution at Good Times.

• Management plans to continue the back-to-basics strategy at Bad Daddy's and implement similar improvements at Good Times.