Good Times(GTIM) - 2025 Q2 - Quarterly Report

Revenue Performance - Net revenues for the quarter ended April 1, 2025 decreased by $1,169,000 or 3.3% to$ 34,279,000 from $35,448,000 for the quarter ended March 26, 2024[81]. - Net revenues for the two quarters ended April 1, 2025 increased by$ 2,007,000, or 2.9%, to $70,612,000 from$ 68,605,000 for the two quarters ended March 26, 2024[114]. Restaurant Sales - Bad Daddy's restaurant sales decreased by $1,631,000 to$ 24,817,000 for the quarter ended April 1, 2025, primarily due to reduced customer traffic and the closure of one restaurant[82]. - Good Times restaurant sales increased by $506,000 to$ 9,323,000 for the quarter ended April 1, 2025, driven by the acquisition of two restaurants[83]. - Bad Daddy's restaurant sales increased by $327,000 to$ 50,895,000 for the two quarters ended April 1, 2025, from $50,568,000 for the two quarters ended March 26, 2024[115]. - Good Times restaurant sales increased by$ 1,567,000 to $19,210,000 for the two quarters ended April 1, 2025, from$ 17,643,000 for the two quarters ended March 26, 2024[117]. Same Store Sales - Same store sales for Bad Daddy's decreased by 3.7% during the quarter ended April 1, 2025, primarily due to reduced customer traffic[86]. - Same store sales for Good Times decreased by 3.6% during the quarter ended April 1, 2025, primarily due to unfavorable weather conditions[87]. - Same store sales for Bad Daddy's decreased by 1.1% during the two quarters ended April 1, 2025, compared to the same two quarters ended March 26, 2024[120]. - Same store sales for Good Times decreased by 1.9% during the two quarters ended April 1, 2025, compared to the same two quarters ended March 26, 2024[121]. Costs and Expenses - Food and packaging costs for the quarter ended April 1, 2025 decreased by $122,000 to$ 10,477,000, representing 30.7% of restaurant sales[89]. - Payroll and other employee benefit costs decreased by $440,000 to$ 11,826,000, representing 34.6% of restaurant sales[92]. - General and administrative costs increased by $14,000 to$ 2,578,000, representing 7.5% of total revenues[101]. - Advertising costs decreased by $119,000 to$ 705,000, representing 2.1% of total revenues[103]. - Food and packaging costs for the two quarters ended April 1, 2025 increased by $914,000 to$ 21,840,000 (31.2% of restaurant sales) from $20,926,000 (30.7% of restaurant sales) for the two quarters ended March 26, 2024[122]. - Payroll and other employee benefit costs for the two quarters ended April 1, 2025 increased by$ 719,000 to $24,609,000 (35.1% of restaurant sales) from$ 23,890,000 (35.0% of restaurant sales) for the two quarters ended March 26, 2024[125]. Advertising Costs - Bad Daddy's advertising costs decreased to $336,000 (1.3% of total revenues) for the quarter ended April 1, 2025, down from$ 539,000 (2.0% of total revenues) for the quarter ended March 26, 2024[104]. - Good Times advertising costs increased to $369,000 (3.9% of total revenues) for the quarter ended April 1, 2025, compared to$ 285,000 (3.2% of total revenues) for the quarter ended March 26, 2024[105]. - Bad Daddy's advertising costs decreased to $957,000 (1.9% of total revenues) for the two quarters ended April 1, 2025, down from$ 1,269,000 (2.5% of total revenues) for the same period in 2024[138]. - Good Times advertising costs were $612,000 (3.2% of total revenues) for the two quarters ended April 1, 2025, compared to$ 647,000 (3.6% of total revenues) for the two quarters ended March 26, 2024[140]. Net Income and Loss - Net loss was $627,000 for the quarter ended April 1, 2025, compared to net income of$ 680,000 in the quarter ended March 26, 2024[110]. - Net loss was $453,000 for the two quarters ended April 1, 2025, compared to net income of$ 197,000 for the two quarters ended March 26, 2024[147]. - Adjusted EBITDA for the two quarters ended April 1, 2025, was $1,021,000, compared to$ 1,458,000 for the two quarters ended March 26, 2024[155]. Cash Flow - Net cash provided by operating activities decreased by $1,319,000 to$ 196,000 for the year-to-date period ended April 1, 2025, compared to $1,515,000 for the same period in 2024[162]. - Net cash used in investing activities increased to$ 2,662,000 for the two quarters ended April 1, 2025, from $1,063,000 for the same period in 2024[163]. - Net cash provided by financing activities was$ 1,325,000 for the two quarters ended April 1, 2025, compared to net cash used of $634,000 for the same period in 2024[164]. Operational Overview - The company operates a total of 40 Bad Daddy's restaurants and 30 Good Times restaurants as of April 1, 2025[77]. - The working capital deficit as of April 1, 2025, was$ 9,504,000, influenced by short-term lease liabilities and payment terms with vendors[158]. - The company anticipates that ground beef costs will continue to increase throughout fiscal year 2025 due to tightening supply and inflationary pressures[166].