Financial Data and Key Metrics Changes - Total revenues increased approximately 4.3% for the quarter to 142.3 million, marking a new all-time record for the company [31][91] - Net income to common shareholders for the quarter was 0.02 per share versus a net loss of 0.02 per share in the fourth quarter last year [52][110] - Adjusted EBITDA for the quarter was 1.4 million for the fourth quarter of 2023 [53][111] Business Line Data and Key Metrics Changes Bad Daddy's - Total restaurant sales increased 25.6 million for the quarter and increased 103.8 million for the full year, primarily driven by additional sales from the Madison, Alabama restaurant [32][91] - Same-store sales increased 3.2% for the quarter with 38 Bad Daddy's in the comp base at quarter end [34][93] - Overall restaurant-level operating profit for Bad Daddy's was approximately 2.6 million or 10.6% last year [41][100] Good Times - Total restaurant sales for company-owned restaurants increased approximately 10 million for the quarter and increased 38 million for the year compared to the 2023 fiscal year [42][101] - Same-store sales decreased 0.1% for the quarter with 25 Good Times restaurants in the comp base at quarter end [43][102] - Good Times restaurant-level operating profit decreased by 1.2 million, with a decrease in profit margin to 12.2% due to elevated costs [49][108] Market Data and Key Metrics Changes - The company experienced negative same-store sales in the Good Times brand, attributed to intense discounting by competitors and escalating beef prices [5][16] - Labor costs for Good Times increased to 33.9%, an 80 basis point increase from the prior year quarter due to higher average wage rates [47][106] - Food and packaging costs for Good Times were 30.9% for the quarter, an increase of 40 basis points compared to last year's quarter [45][104] Company Strategy and Development Direction - The company is focusing on product improvement and innovation rather than deep discounting, with new menu items and seasonal promotions planned [20][79] - The company has remodeled one Good Times location and purchased two others, aiming to ensure operational excellence and continuity of brand presence [82][83] - Future investments will focus on remodels, signage, and opportunistic limited new unit development as franchisee consolidation is nearly complete [86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Bad Daddy's brand despite challenges faced by Good Times, emphasizing operational improvements and a focus on guest experience [5][62] - The company is monitoring competitive pricing and plans to respond rapidly based on market actions [44][102] - Management highlighted the importance of engaging with a new generation of customers through increased digital and social initiatives [29][89] Other Important Information - The company announced an expansion of its share repurchase program, providing an additional $2 million of authorized share repurchases [55][113] - The company has been experimenting with a shift in marketing spend from traditional audio-based advertising to digital initiatives [27][88] Q&A Session Summary Question: Are there any questions from the audience? - There were no questions from the audience during the Q&A session [116] Closing Remarks - Management expressed optimism about the future for both Bad Daddy's and Good Times, highlighting the importance of operational excellence and guest experience [117][119]
Good Times(GTIM) - 2024 Q4 - Earnings Call Transcript