Good Times Restaurants (GTIM) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 total revenues declined 0.5% to $141.6 million year-over-year, with Good Times contributing $39.2 million and Bad Daddy's $101.4 million.

• Fourth quarter was challenging, with soft sales and elevated costs, especially ground beef, impacting profitability; same-store sales at Good Times declined 6.6% but improved sequentially by 240 basis points from Q3.

• Net loss attributable to common shareholders was $3,000 for Q4 (0 cents/share), while net income for the year was $1.0 million.

• Both brands experienced sales weakness in the second half of 2025, but Bad Daddy's performed better outside Colorado.

• Operational improvements include enhanced training, realigned management schedules, and targeted value promotions, with a focus on maintaining menu price competitiveness.

Financial highlights

• Total revenues decreased 5.1% for the quarter to $34 million and 0.5% for the year to $141.6 million compared to record fiscal 2024 sales.

• Q4 company-owned restaurant sales decreased $2.0 million to $33.6 million year-over-year; annual sales decreased $0.9 million to $140.6 million.

• Bad Daddy's Q4 sales fell $1.7 million to $24 million; full-year sales dropped $2.2 million to $101.4 million; same-store sales down 4.6%.

• Good Times Q4 sales decreased $0.3 million to $9.7 million; full-year sales increased $1.2 million to $39.2 million; same-store sales down 6.6%.

• Adjusted EBITDA for the quarter was negative $74,000, down from $1.3 million in Q4 2024; for the year, Adjusted EBITDA was $4.3 million.

Outlook and guidance

• Sequential same-store sales improvement observed in Q1 fiscal 2026 at both brands, especially at Bad Daddy's in Colorado.

• Expect average price increase of 1.7% for Bad Daddy's in Q1 2026; no significant price hikes planned for next six months.

• General and administrative costs anticipated at 6%-7% of revenues in fiscal 2026.

• New advertising strategies, including streaming video and a Colorado-focused campaign, are being implemented.

• Menu innovation planned for 2026, such as value-oriented items and a Burger of the Month platform.