Financial Data and Key Metrics Changes - Same store sales decreased slightly more than 3.5 points at each brand, indicating a challenging operating environment [4] - Total restaurant sales for Bad Daddy's decreased by 24.8 million for the quarter, primarily due to reduced customer traffic and a negative mix shift [17] - Good Times total restaurant sales increased by approximately 9.3 million for the quarter, with same store sales decreasing by 3.6% [20] - Net loss to common shareholders for the quarter was 600,000 in the same quarter last year [24] Business Line Data and Key Metrics Changes - Bad Daddy's average menu price increased by 4.7% compared to Q2 of the previous year, while same store sales decreased by 3.7% [18] - Good Times experienced a 30.7% food and beverage cost for the quarter, an increase of 160 basis points compared to the prior year [21] - Good Times restaurant level operating profit decreased by 700,000, with a profit margin of 8% [24] Market Data and Key Metrics Changes - The company noted a shift towards a more value-oriented customer, aligning menu and promotions accordingly [4] - Colorado-specific trends negatively affected sales performance, particularly for Bad Daddy's in Colorado [12] Company Strategy and Development Direction - The company is focusing on improving kitchen execution, consistency, and product quality, with a new Director of Operations for Good Times [5][6] - Menu changes include rolling out new burger builds and condensing the menu to focus on core items [8][9] - Marketing efforts are shifting towards social and digital media, with promising results from Connected TV and video streaming tests [13][14] Management Comments on Operating Environment and Future Outlook - Management acknowledged a tough quarter and expects the operating environment in the third fiscal quarter to remain challenging [29] - The focus is on improving execution and value perception through quality and service, aiming for long-term sales and profitability gains [29] Other Important Information - The company has temporarily paused share repurchases to redirect cash flow towards cash accumulation, debt repayment, and remodels [25] - A new supply chain leader will be appointed, expected to enhance leadership and cost reduction [15] Q&A Session Summary Question: Are there any questions today? - There were no questions during the call, and the session was handed back for closing remarks [28]
Good Times(GTIM) - 2025 Q2 - Earnings Call Transcript