Good Times Restaurants Reports $627,000 Net Loss and Revenue Decline for Fiscal Quarter Ending April 1, 2025

Good Times Restaurants Inc. reported a net loss of $627,000 for the fiscal quarter ending April 1, 2025, a significant decline from a net income of $680,000 during the same period in the previous year. Total net revenues decreased by 3.3% to $34.3 million, down from $35.4 million, primarily due to a $1.6 million drop in sales from the Bad Daddy’s brand, which was partially offset by a $506,000 increase in sales from the Good Times brand. The company attributed the decline in Bad Daddy’s sales to reduced customer traffic and the closure of one restaurant, while Good Times benefited from the acquisition of two restaurants previously owned by franchisees.

In terms of operational metrics, same-store sales for Bad Daddy’s decreased by 3.7%, while Good Times saw a 3.6% decline, both attributed to reduced customer traffic and adverse weather conditions. The company operated a total of 40 Bad Daddy’s and 30 Good Times restaurants as of April 1, 2025, reflecting a slight increase in the number of Good Times locations due to recent acquisitions. The average menu price increase for the quarter was approximately 4.7% for Bad Daddy’s, while Good Times maintained stable pricing.

Good Times Restaurants also reported a total revenue increase of 2.9% for the year-to-date period, totaling $70.6 million compared to $68.6 million in the previous year. This growth was driven by a combination of increased sales from both brands, with Bad Daddy’s sales rising by $581,000 and Good Times by $1.4 million. However, the company faced rising operational costs, including a $914,000 increase in food and packaging costs, which accounted for 31.2% of restaurant sales, and a $719,000 increase in payroll and employee benefits, which represented 35.1% of sales.

The company’s financial position showed a working capital deficit of $9.5 million as of April 1, 2025, influenced by short-term lease liabilities. Good Times Restaurants has indicated that it expects to meet its working capital needs through existing cash and future borrowings against its credit facility. The company has also noted ongoing challenges related to inflation, particularly in food and labor costs, which may impact profitability moving forward. Despite these challenges, Good Times Restaurants remains focused on growth opportunities, including potential unit expansion and increased customer traffic.