Good Times Restaurants Reports $174,000 Net Income, 9.6% Revenue Growth for Fiscal Quarter Ending December 31, 2024

Good Times Restaurants Inc. reported a net income of $174,000 for the fiscal quarter ending December 31, 2024, a significant improvement from a net loss of $483,000 in the same quarter of the previous year. The company’s total net revenues increased by 9.6% to $36.3 million, up from $33.2 million, driven by higher sales in both its Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard brands. Bad Daddy’s sales rose to $26.1 million, while Good Times sales reached $9.9 million, reflecting increases of 8.1% and 12.0%, respectively. The increase in revenues was attributed to an additional week in the current fiscal quarter and menu price increases, although it was partially offset by closures of certain locations.

In terms of operational metrics, Good Times Restaurants experienced a same-store sales increase of 1.5% for Bad Daddy’s, while Good Times remained flat. The company also expanded its footprint by acquiring two Good Times restaurants from franchisees during the quarter. As of December 31, 2024, the company operated a total of 40 Bad Daddy’s and 30 Good Times locations, compared to 39 and 27, respectively, in the previous year. The total number of restaurants increased from 65 to 66 year-over-year.

The company’s operating costs also saw an increase, with total restaurant operating costs rising to $32.9 million from $30.1 million. Food and packaging costs accounted for a significant portion of this increase, rising to $11.4 million, or 31.6% of restaurant sales, compared to 31.3% in the prior year. Payroll and employee benefit costs also increased to $12.8 million, representing 35.5% of restaurant sales, up from 35.3%. The rise in costs was attributed to higher sales volumes, an additional week in the current quarter, and increased food purchase prices.

Looking ahead, Good Times Restaurants expressed optimism about growth opportunities, particularly in increasing customer traffic and brand awareness. The company plans to adopt a more conservative approach to unit growth and leverage in light of current economic conditions, including inflationary pressures on food and labor costs. The company anticipates that its existing cash reserves and future borrowings will be sufficient to meet its working capital and capital expenditure needs for fiscal 2025. However, it remains cautious about the potential impact of inflation and competitive pricing pressures on its profitability.