Good Times Restaurants Inc.

Total revenues decreased to $35.2 million in the quarter. Bad Daddy’s total restaurant sales fell $1.6 million to $24.9 million, with same-store sales down 2.3% and year-to-date same-store sales down 1.5%; there were 36 Bad Daddy’s restaurants in the comp base. Good Times company-owned restaurant sales decreased about $0.2 million to $10.1 million, while same-store sales increased 0.6% and there were 25 restaurants in the comp base. Net income to common shareholders was $1.9 million, or $0.18 per share, versus $1.5 million, or $0.14 per share, last year; adjusted EBITDA was $2.5 million versus $2.1 million last year. Bad Daddy’s restaurant-level operating profit was $3.6 million, flat at 14.4% of sales, while Good Times restaurant-level operating profit was $1.3 million, up $0.1 million and 13.0% of sales. Guidance/comments: management expects full-year G&A of 6% to 7% of revenues for fiscal 2026, does not currently plan additional Good Times price increases for the rest of the year, and said it is considering whether to extend the $2 Bambinos promotion beyond its original summer window.

Ryan Zink’s tone was upbeat, centered on the return to positive same-store sales at Good Times and the strength of the Bambinos test. He said the promotion has real value appeal, drove mid-single-digit same-store sales in June, and led to continued sales, check, and transaction growth in June and July. He also emphasized ongoing menu development at Bad Daddy’s, continued operational execution, and more training through a learning management system to improve salesmanship and hospitality.

Keri August highlighted the quarter’s financial mix: total revenues of $35.2 million, net income of $1.9 million, EPS of $0.18, and adjusted EBITDA of $2.5 million. She cited margin support from lower food costs at both concepts, lower labor as a percentage of sales at Good Times, and modest G&A of $2 million, or 5.6% of revenue, and said full-year G&A should run 6% to 7%. She also noted the company finished with $3.6 million in cash and $0.3 million of long-term debt, while Ryan added that the revolver was paid down and about $300,000 of seller-financed debt remained.

The only analyst question asked whether Good Times should initiate a cash dividend given the cash balance, low leverage, and stock valuation. Ryan Zink said the board continually evaluates ways to create shareholder value and that a dividend, along with other alternatives, is in the board’s consideration set. No capital-allocation decision was announced, and management did not provide timing.