Good Times(GTIM) - 2025 Q1 - Quarterly Report

Revenue Performance - Net revenues for the quarter ended December 31, 2024 increased by $3,176,000 or 9.6% to$ 36,333,000 from $33,157,000 for the quarter ended December 26, 2023[77]. - Bad Daddy's restaurant sales increased by$ 1,958,000 to $26,078,000 for the quarter ended December 31, 2024, with an average menu price increase of approximately 4.5%[78]. - Good Times restaurant sales increased by$ 1,061,000 to $9,887,000 for the quarter ended December 31, 2024, with an average menu price increase of approximately 3.9%[79]. - Same store sales for Bad Daddy's increased by 1.5% during the fiscal quarter ended December 31, 2024, with 38 restaurants included in the same store sales base[82]. - Same store sales for Good Times remained unchanged during the quarter ended December 31, 2024, with 27 restaurants included in the same store sales base[83]. Cost and Expense Analysis - Food and packaging costs for the quarter ended December 31, 2024 increased by$ 1,036,000 to $11,363,000, representing 31.6% of restaurant sales[84]. - Payroll and other employee benefit costs increased by$ 1,159,000 to $12,783,000, representing 35.5% of restaurant sales[87]. - Occupancy costs increased by$ 178,000 to $2,683,000, representing 7.5% of restaurant sales[90]. - Depreciation and amortization costs increased by$ 91,000 to $1,018,000 for the quarter ended December 31, 2024, from$ 927,000 in the prior year[95]. - General and administrative costs rose by $250,000 to$ 2,588,000, maintaining 7.1% of total revenues for both quarters[97]. - Advertising costs decreased by $228,000 to$ 864,000, representing 2.4% of total revenues for the quarter ended December 31, 2024, down from 3.3%[98]. Profitability Metrics - Net income for the quarter ended December 31, 2024, was $174,000, a significant improvement from a net loss of$ 483,000 in the same quarter of 2023[105]. - Adjusted EBITDA for the quarter ended December 31, 2024, was $1,209,000, compared to$ 510,000 for the quarter ended December 26, 2023[111]. Cash Flow and Capital Management - Net cash used in operating activities was $(518,000) for the quarter ended December 31, 2024, compared to$ (252,000) in the prior year[117]. - Net cash used in investing activities increased to $(1,846,000) for the quarter ended December 31, 2024, from$ (448,000) in the same quarter of 2023[119]. - The working capital deficit as of December 31, 2024, was $9,223,000, influenced by short-term lease liabilities[114]. - The company anticipates sufficient capital to meet working capital and recurring capital expenditure needs in fiscal 2025[114]. Growth and Expansion - The company acquired two Denver metro area Good Times restaurants from a franchisee during the quarter ended December 31, 2024[76]. - The company continues to pursue unit growth opportunities with a more conservative approach to leverage due to higher costs and volatile inflation[72]. - Preopening costs for the quarter ended December 31, 2024, were$ 8,000, compared to no preopening costs for the same quarter in 2023[95].