BBQ Holdings, Inc.

Third quarter GAAP net loss per share was $0.26 versus a loss of $0.34 a year ago; adjusted net loss per share was $0.01 versus $0.02. Total revenue from continuing operations fell to $21.9 million from $25.4 million, mainly due to the net closure of 12 company-owned and 10 franchise-operated restaurants and a 2.1% decline in franchise comparable sales. Restaurant-level operating margin at company-owned locations improved to 7.0% from 3.8%. Adjusted EBITDA was $1.4 million, up about $50,000 year over year. G&A expense declined about $600,000, or 14%. Cash from continuing operations was about $2.3 million versus $1.7 million last year, and the company ended the quarter with $7.4 million in cash and cash equivalents and about $1.9 million in net debt. Looking ahead, management said it is targeting a G&A expense run rate of approximately $8 million within the next 90 days and expects considerably lower G&A next year, but it did not provide revenue or EPS guidance.

Mike Lister framed the quarter as evidence that the turnaround is taking hold, especially through restaurant optimization, re-franchising and sales initiatives tied to off-premise, online ordering and menu innovation. He emphasized that company-owned comps turned positive for the first time in four years and said the brand is seeing encouraging early results from delivery, catering and the rollout of a signature cocktail program. His tone was confident and transition-oriented, saying the company is positioned for the next phase under incoming CEO Jeff Crivello.

Dexter Newman focused on the financial reset: GAAP net loss per share improved to $0.26 from $0.34, adjusted net loss per share was $0.01, and revenue declined to $21.9 million from $25.4 million. He highlighted margin improvement at company-owned stores to 7.0% from 3.8%, driven by occupancy, ad timing and better food and labor efficiency, partly offset by wage inflation and higher fixed labor costs. He also pointed to roughly $2.3 million in cash from operations, $7.4 million in cash and cash equivalents, and net debt of about $1.9 million, while signaling further G&A reductions and a target run rate of approximately $8 million within 90 days.

There was no analyst Q&A in the transcript, so no external concerns were raised on the call. Management instead focused on explaining the sales recovery, the impact of hurricanes on franchise comps, and the mechanics of the re-franchising and G&A restructuring plan. They also reiterated that quarter-to-quarter results will include one-time costs tied to restructuring and closures.