Good Times Restaurants Inc. reported a slight decline in net revenues for fiscal year 2025, totaling $141.6 million, down 0.5% from $142.4 million in fiscal 2024. The decrease was primarily driven by a $2.2 million drop in sales from the Bad Daddy’s Burger Bar segment, which reported revenues of $101.4 million, while the Good Times Burgers & Frozen Custard segment saw an increase of $1.2 million, reaching $39.2 million. The company experienced a decrease in same-store sales of 2.1% for Bad Daddy’s and 5.0% for Good Times, attributed to reduced customer traffic and competitive pricing pressures.
In terms of operational changes, Good Times Restaurants closed two Bad Daddy’s locations during fiscal 2025, both of which had underperformed since their openings. The company also acquired three Good Times restaurants previously owned by franchisees, which contributed to the revenue increase in that segment. The average sales per Bad Daddy’s restaurant were approximately $2.6 million, although this figure represented a decline from the previous year. The company ended the fiscal year with $2.6 million in cash and $2.3 million in long-term debt.
The company’s operational costs reflected a mixed trend, with food and packaging costs rising to $43.9 million, representing 31.2% of restaurant sales, compared to 30.9% in the prior year. Payroll and employee benefit costs also increased to $49.3 million, accounting for 35% of restaurant sales, driven by higher wage rates and the acquisition of additional restaurants. General and administrative costs decreased to $9.7 million, primarily due to reduced legal fees and the insourcing of accounting functions.
Looking ahead, Good Times Restaurants aims to focus on organic sales growth and disciplined unit expansion, particularly for the Bad Daddy’s brand. The company plans to enhance its menu offerings and operational efficiencies while managing costs amid ongoing inflationary pressures. The Cadence Credit Facility, which allows for up to $8 million in loans, will support future growth initiatives, although the company remains cautious about the economic environment and its potential impact on consumer spending. The management expressed optimism about the long-term growth potential of both brands, despite the challenges faced in the current fiscal year.
About Good Times Restaurants Inc.
Good Times Restaurants Inc. operates two restaurant brands: Bad Daddy’s Burger Bar, a full-service gourmet burger concept, and Good Times Burgers & Frozen Custard, a quick-service drive-thru offering all-natural burgers and frozen custard. The company focuses on high-quality ingredients, customization, and guest experience across its markets in the U.S., leveraging operational excellence, brand differentiation, and disciplined growth strategies in the casual dining and fast-food segments.
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