Good Times Restaurants Inc. Q4 FY2024 earnings call

• Bad Daddy's: Implemented back-to-basics approach, redesigned standards reviews tied to performance metrics, added smash patty burgers to permanent menu, seasonal promotions like bratwurst burger and roast beef burger with strong sales.
• Good Times: Faced same-store sales challenges due to competitor discounting, shifted marketing spend to digital, consolidated franchises, planned remodels, and experimented with advertising by reducing audio-based ads and shifting to digital.

Bad Daddy's

• Total restaurant sales: Q4 2024 increased to $25.6 million (+$1 million) and full year to $103.8 million (+$1.3 million).
• Same-store sales: Increased 3.2% for the quarter.
• Food and beverage costs: 31.2% for Q4, a 60 basis point decrease from last year, primarily due to 5.3% average menu price increase, partially offset by higher protein prices.
• Labor costs: 34.3% for Q4, a 200 basis point decrease from last year, due to higher team member productivity.
• Restaurant-level operating profit: Approximately $3.5 million for Q4, 13.6% of sales compared to $2.6 million (10.6%) last year.

Good Times

• Total restaurant sales: Company-owned Q4 2024 increased to $10 million (+$0.5 million) and full year to $38 million (+$3 million).
• Same-store sales: Decreased 0.1% for the quarter.
• Food and packaging costs: 30.9% for Q4, a 40 basis point increase from last year, due to higher purchase prices on food and paper goods.
• Labor costs: 33.9% for Q4, an 80 basis point increase from last year, due to higher average wage rates.
• Occupancy costs: 9% for Q4, an 80 basis point increase from prior year, due to real property tax increases.
• Other operating costs: 13.9% for Q4, a 190 basis point increase, primarily due to increased repair and maintenance and utility expenses.
• Restaurant-level operating profit: Decreased by $0.3 million to $1.2 million for Q4, 12.2% of sales (-400 basis points vs. last year).

• Bad Daddy's: Expect food and beverage costs to rise sequentially; no further price increases expected soon.
• Good Times: Will monitor competitor pricing in January; expect general and administrative costs to normalize to ~7% in 2025; expanded share repurchase program with an additional $2 million of authorized share repurchases.

• Market price of stock volatility.
• Disruptions from pandemics and public health emergencies.
• Staffing constraints at restaurants.
• Supply chain constraints and inflation.
• Intense competition leading to discounting.
• General economic and operating conditions.
• Risks associated with share repurchase program.
• Risks associated with acquisitions.
• Changes in federal, state, or local laws and regulations affecting restaurants.

Q: No questions at this time A: Okay. The future is bright for both the Bad Daddy's and the Good Times concepts. Our product and promotional roadmap at both concepts is more complete than it has been at any time since the pandemic. The experiments we are conducting with advertising and promotion activity at Good Times will provide learning that we can leverage across both concepts. Further, we have expanded much of our back-to-basics approach that we implemented last year at Bad Daddy's into Good Times this year. Which should continue to drive operating improvements translating into great guest experiences. The leaders and team members in our restaurants and our support center do the hard work that creates value for our guests, and ultimately our shareholders. I extend my sincere thanks to them for their passion, commitment to operations excellence to our brands, and to exceptional guest experiences. Finally, thank you all for joining us today.