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    Earnings call· Jun 2026(Q3 FY26)

    Good Times Restaurants Q3 FY26 earnings call GTIM

    Aug 6, 2026 Source

    Executive summary

    Good Times Restaurants Inc. Q3 FY26 — Positive Same-Store Sales at Good Times, Bambino Promotion Success

    Good Times Restaurants reported a mixed quarter, with its namesake brand achieving positive same-store sales driven by a successful Bambino promotion, which management is considering extending. The Bad Daddy's brand, however, continued to face headwinds with declining sales and negative same-store sales, despite a successful limited-time burger offering. The company ended the quarter with a strong cash balance and improved profitability metrics, while actively evaluating capital allocation strategies.

    Highlights

    5

    • Good Times same-store sales shifted to positive year-over-year, increasing 0.6% for the quarter.

    • Good Times restaurant-level operating profit increased $0.1 million to $1.3 million, representing 13% of sales (up 150 bps YoY).

    • Company-wide net income to common shareholders was $1.9 million, or $0.18 per share, up from $1.5 million ($0.14 per share) YoY.

    • Adjusted EBITDA was $2.5 million, up from $2.1 million YoY.

    • Bad Daddy's Smashadia burger was the best-selling individual limited-time burger ever launched.

    Concerns

    3

    • Bad Daddy's total restaurant sales decreased $1.6 million to $24.9 million.

    • Bad Daddy's same-store sales decreased 2.3% for the quarter and were negative 1.5% year-to-date.

    • Bad Daddy's other operating costs increased 70 bps to 15.3% primarily due to increased customer delivery and travel expenses.

    Guidance & targets

    1
    CategoryTargetConfidence
    General and administrative costs as % of total revenues
    6-7%
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Bad Daddy's
    Sales decrease due to fewer operating weeks and reduced customer traffic, partially offset by menu price increases. Restaurant-level operating profit remained steady as a percentage of sales.
    Same store sales: -2.3%Same store sales YTD: -1.5%Comp base restaurants: 36Average menu price increase: 2.5%Food and packaging costs: 30.3% (down 30 bps YoY)Labor costs: 33.6% (down 70 bps YoY)Occupancy costs: 6.3% (up 20 bps YoY)Other operating costs: 15.3% (up 70 bps YoY)
    		$24.9 milliondecreased $1.6 million—$3.6 million (14.4% of sales)
    Good Times
    Same-store sales increased, driven by the Bambino promotion. Restaurant-level operating profit improved significantly as a percentage of sales.
    Same store sales: +0.6%Comp base restaurants: 25Average menu price increase: 1.7%Food and packaging costs: 31.2% (down 30 bps YoY)Labor costs: 33% (down 120 bps YoY)Occupancy costs: 9.1% (up 50 bps YoY)Other operating costs: 13.7% (down 50 bps YoY)
    		$10.1 milliondecreased $0.2 million—$1.3 million (13% of sales)

    Operational metrics

    11
    Total Revenues
    $35.2 milliondecreased
    Q3 FY26

    Total revenues decreased approximately for the quarter.

    Net Income to Common Shareholders
    $1.9 millionvs $1.5 million in Q3 FY25
    Q3 FY26

    GAAP measure.

    Adjusted EBITDA
    $2.5 millionvs $2.1 million in Q3 FY25
    Q3 FY26

    Non-GAAP measure.

    Cash and Equivalents
    $3.6 million
    Q3 FY26

    Ended the quarter with a strong cash balance.

    Long-term Debt
    $0.3 million
    Q3 FY26

    Paid down the balance of revolving credit facility.

    General and Administrative Expenses
    $2.0 milliondecreased 30 bps as % of total revenues
    Q3 FY26

    Primarily related to decreased multi-unit supervision costs and legal and professional fees.

    Income Tax Benefit
    $0.2 millionvs $0.4 million in Q3 FY25
    Q3 FY26

    Recorded during the quarter.

    Bambino Promotion Same-Store Sales
    mid-single digits
    June FY26

    Experienced system-wide during the June fiscal month.

    Bambino Promotion Impact
    —
    June and July FY26

    On a same-store basis.

    Average Menu Price Increase
    1.7%YoY
    Q3 FY26

    No further price increases planned for the balance of the year.

    Average Menu Price Increase
    2.5%YoY
    Q3 FY26

    Impacted sales decrease.

    Industry KPIs

    1
    MetricValueDetails
    Comparable sales compsGood Times: +0.6%; Bad Daddy's: -2.3%%

    Product announcements

    4
    ProductTypeDetails
    Smashadia burgerlaunch
    Big Dill burgerlaunch
    Sampler Platterlaunch
    Power Bowl with Ahi Tunalaunch

    Deals & partnerships

    1
    sellerAcquisition of one Good Times restaurant.$0.3 million

    Related to the June 2024 acquisition of one Good Times restaurant.

    Risks & headwinds

    5
    Reduced customer traffic (Bad Daddy's)Q3 FY26

    Contributed to $1.6 million decrease in total restaurant sales for Bad Daddy's.

    Mitigation: Developing new menu items, team member training, new learning management system.

    Higher produce costs and fuel surcharges (Bad Daddy's)Q3 FY26

    Partially offset 30 bps decrease in food and packaging costs.

    Mitigation: Improved non-beef protein costs, menu price increases.

    Increased customer delivery and travel expenses (Bad Daddy's)Q3 FY26

    Increased other operating costs by 70 bps to 15.3%.

    Mitigation: Partially offset by decreased repair and maintenance expenses.

    Higher property taxes (Good Times)Q3 FY26

    Increased occupancy costs by 50 bps to 9.1%.

    Higher average wage rates (Good Times)Q3 FY26

    Partially offset 120 bps decrease in total labor costs.

    Mitigation: Increased labor efficiency. Due to market forces and inflation-indexed minimum wage rates in Denver and Colorado.

    What to watch in Q4 FY26

    4

    Bambino Promotion Length

    Next quarter
    CurrentOriginally planned as a summer promotion
    TargetExtended beyond original end

    Why it matters

    Extension indicates continued positive sales momentum and value proposition for the Good Times brand.

    Although the promotion was originally planned to be a summer promotion, its success has resulted in us considering expanding the length of the $2 pricing beyond its originally intended end.

    Q&A highlights

    1

    Given strong earnings, balance sheet, no long-term debt, cash, share repurchase program, low P/E, and low market price to book value, would the company consider initiating a cash dividend?

    Management stated that the board continually evaluates the best ways to create shareholder value, and a cash dividend, along with other alternatives, is under consideration. The CEO will share the analyst's perspective on expanding the shareholder base with the board.

    “I mean, I think our board continually evaluates the best way to create create value for shareholders and ensure that shareholders receive value for their stock. I will say that that as well as many other alternatives are in the consideration set our board very good my my thinking is by becoming a cash dividend pay-in equity, the number of potential shareholders out there both individuals and institutions that are that are looking for or need an income producing item we automatically become on their list too so it expands the possibility of uh of uh shareholders out there. I will take that information under consideration and as a board, I will share that with them as well.”

    asked by Steven Stern · answered by Ryan Zink

    2 min read5 chapters

    Detailed Narrative

    01

    Good Times Brand Performance

    Good Times achieved positive same-store sales growth of 0.6% for the quarter, a significant shift from prior trends. This was largely attributed to the success of the $2 Bambino promotion, which drove mid-single-digit same-store sales in June and continued positive trends into Q4 FY26. The promotion led to growth in sales, average check, and transactions, with Bambinos becoming the largest single burger item purchased, indicating successful upselling of other items.

    02

    Bad Daddy's Brand Performance

    In contrast, Bad Daddy's experienced a decrease in total restaurant sales by $1.6 million to $24.9 million, with same-store sales declining 2.3% for the quarter and 1.5% year-to-date. Despite this, the brand saw success with its Smashadia burger, which was its best-selling limited-time offering. Management is focusing on new menu items and team member training to improve sales and traffic.

    03

    Cost and Profitability Trends

    Good Times improved its restaurant-level operating profit by 150 basis points to 13% of sales, driven by reduced waste and labor efficiency. Bad Daddy's maintained its restaurant-level operating profit at 14.4% of sales, despite increased customer delivery and travel expenses. Company-wide, general and administrative expenses decreased to 5.6% of total revenues, with a full-year target of 6-7%.

    04

    Financial Position and Capital Allocation

    The company reported a net income of $1.9 million ($0.18 per share) and adjusted EBITDA of $2.5 million for the quarter. It ended the quarter with $3.6 million in cash and minimal long-term debt ($0.3 million in seller finance debt). Management indicated that the board is continually evaluating capital allocation strategies, including the potential for a cash dividend, in light of the strong balance sheet and share repurchase program.

    05

    Menu Innovation and Operational Focus

    Both brands are actively pursuing menu innovation. Good Times is considering extending its successful Bambino promotion, while Bad Daddy's has monthly menu drops planned, including the Big Dill burger, and will add a sampler platter and reintroduce ahi tuna to its core menu in Q1 FY27. The company is also investing in team member training through a new learning management system to enhance salesmanship and guest experience.

    AI-generated summary of the company’s earnings call. Not investment advice.