Good Times Restaurants Inc. Q2 FY2025 earnings call

• Leadership Changes: Good Times had a senior vice president of operations depart, with Craig Soto promoted to director of operations. Bad Daddy's supply chain leader retiring, replaced internally by a former regional director.
• Product Changes: Good Times testing new burger builds, new bun, menu condensation; Bad Daddy's launched Smash and Stack, overhauled beverage menu.
• Marketing Shifts: Good Times shifting spend from radio to social/digital media, connected TV, outdoor, digital display, search.
• Cost Controls: Bad Daddy's had solid cost controls; Good Times facing elevated costs due to various factors.

Bad Daddy's

• Total restaurant sales decreased $1.6 million to $24.8 million. Same-store sales decreased 3.7%. Food and beverage costs were 30.7% (up 30 basis points from prior year). Labor cost was 34.3% (down 40 basis points from prior year). Restaurant level operating profit was approximately $3.4 million, or 13.6% of sales.

Good Times

• Total restaurant sales increased approximately $0.5 million to $9.3 million. Same-store sales decreased 3.6%. Food and packaging costs were 30.7% (up 160 basis points from prior year). Labor cost was 35.6% (up 50 basis points from prior year). Restaurant level operating profit decreased to $700,000, or 8% of sales. Net loss was $600,000 or $0.06 per share. Adjusted EBITDA was $1 million compared to $1.5 million in Q2 2024.

• Expect challenging operating environment in Q3.
• Focus on initiatives to drive long-term sales, traffic, profitability.
• Paused share repurchases, redirecting cash to cash accumulation, debt repayment, and remodels.

• Challenging operating environment, supply chain constraints, inflation, staffing, competition, economic conditions, regulatory changes, share repurchase/acquisition risks, cash flows, capital availability, menu price sensitivity, commodity cost increases.

Q: A: Q: A: No questions were raised during the call