Good Times Restaurants (NASDAQ: GTIM) returns to profit in Q2 2026

Rhea-AI Filing Summary

Good Times Restaurants Inc. reported fiscal 2026 second-quarter net revenues of $33.2 million, down slightly from $34.3 million a year earlier, but it moved to a small profit. Net income attributable to common shareholders was $149,000, or $0.01 per diluted share, compared with a loss of $624,000, or $(0.06) per share, in the prior-year quarter.

Restaurant-level operating profit rose to $4.4 million with a 13.4% margin, up from $4.3 million and a 12.7% margin. Adjusted EBITDA increased to $1.4 million from $1.0 million. Management highlighted sequential improvements in same store sales and Adjusted EBITDA at both Bad Daddy’s Burger Bar and Good Times, stronger restaurant-level operating profit at the Good Times brand, and stable margins at Bad Daddy’s. The company also reduced debt and improved liquidity to enhance financial flexibility.

Insights

Restaurant sector equity analyst

Good Times posted modest Q2 profit and stronger operating metrics despite softer sales.

Good Times Restaurants generated Q2 2026 net revenues of $33.2M, slightly below $34.3M last year, but shifted from a net loss to net income of $149K. Basic EPS improved from $(0.06) to $0.01, indicating better cost discipline and margin control.

Restaurant-level operating profit reached $4.4M with a 13.4% margin, up from $4.3M and 12.7%. Adjusted EBITDA rose to $1.37M from $1.02M, and management noted sequential gains in same store sales and EBITDA at both concepts. These trends, combined with reduced debt and improved liquidity, suggest healthier operations within a competitive, cost-pressured segment.

Future performance will depend on execution of new marketing initiatives, including the Good Times brand campaigns planned for late Q3 2026 and Bad Daddy’s Monthly Drops promotion, as well as maintaining restaurant-level margins amid continued labor and food cost pressures.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 net revenues: $33.23M Q2 2026 net income attributable to common shareholders: $149K Q2 2026 diluted EPS: $0.01 per share +5 more

8 metrics

Q2 2026 net revenues $33.23M Quarter ended March 31, 2026 vs $34.28M prior-year quarter

Q2 2026 net income attributable to common shareholders $149K Quarter ended March 31, 2026 vs $(624)K prior-year quarter

Q2 2026 diluted EPS $0.01 per share Versus $(0.06) per share in prior-year quarter

Q2 2026 Adjusted EBITDA $1.37M Quarter ended March 31, 2026 vs $1.02M prior-year quarter

Q2 2026 restaurant-level operating profit $4.43M 13.4% of total revenues vs $4.34M and 12.7% prior-year

Cash and cash equivalents $2.75M Balance at March 31, 2026 vs $2.61M at September 30, 2025

Year-to-date 2026 net revenues $65.94M 26 weeks ended March 31, 2026 vs $70.61M prior-year period

Year-to-date 2026 net income attributable to common shareholders $330K 26 weeks ended March 31, 2026 vs $(460)K prior-year period

Key Terms

Same store sales, Adjusted EBITDA, Restaurant-level operating profit, non-GAAP, +2 more

6 terms

Same store sales financial

"“Same store sales improved sequentially from the prior quarter at both concepts..."

Same store sales measure the change in revenue generated by stores that have been open for at least a year, comparing current sales to past periods. It helps investors see how well a business is growing from its existing locations, without the influence of new store openings or closures. This metric provides a clearer picture of ongoing performance and customer demand.

Adjusted EBITDA financial

"Same store sales improved sequentially from the prior quarter at both concepts as did Adjusted EBITDA..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Restaurant-level operating profit financial

"I am pleased at the improvements in restaurant level operating profit2 (a non-GAAP measure)..."

Restaurant-level operating profit is the money a single restaurant keeps after paying the costs directly tied to running that location—things like food and drink, hourly staff, and local utilities—but before corporate overhead, rent or interest and major one-time charges. It matters to investors because it shows the basic health and cash-generating ability of each outlet, like a shopkeeper’s takings after daily expenses, and helps judge whether the business model can scale profitably.

non-GAAP financial

"Restaurant level operating profit2 (a non-GAAP measure)..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

Impairment of long-lived assets financial

"Impairment of long-lived assets | | | 227 | | | | 494..."

An impairment of long-lived assets occurs when a company concludes that a physical or intangible asset—like a building, equipment, or a patent—is worth less than its recorded value on the books, so the company writes down that asset to its recoverable amount. For investors this matters because such write-downs reduce reported profits and company net worth, signaling potential problems with future cash flow or that management overpaid for assets; think of it like recognizing that a car you bought has lost more value than you expected.

Forward looking statements regulatory

"This press release contains forward looking statements within the meaning of federal securities laws."

Statements about a company’s expected future performance, plans, goals, or projections that are not historical facts and involve assumptions and estimates. Investors care because these are predictions that guide decisions but can be wrong; like a weather forecast, they help set expectations and risk — if circumstances change, actual results may differ significantly, so investors should weigh them alongside hard data and risk factors.

Earnings Snapshot

Net revenues: $33.23M

Fiscal 2026 second quarter

Net revenues $33.23M vs $34.28M in prior-year quarter

Net income attributable to common shareholders $149K vs $(624)K in prior-year quarter

Diluted EPS $0.01 vs $(0.06) in prior-year quarter

Adjusted EBITDA $1.37M vs $1.02M in prior-year quarter

Understanding 8-K Material Events →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

May 7, 2026

Good Times Restaurants Inc.

(Exact name of registrant as specified in its charter)

Nevada		000-18590		84-1133368
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

651 Corporate Circle, Suite 200, Golden, CO 80401

(Address of principal executive offices including zip code)

Registrant’s telephone number, including area code: (303) 384-1400

Not applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.001 par value		GTIM		Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On May 7, 2026, Good Times Restaurants Inc. issued a press release announcing earnings and other financial results for the fiscal 2026 second quarter ended March 31, 2026, and that management would review these results in a conference call on May 7, 2026, at 5:00 p.m. ET.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. The following exhibits are filed as part of this report.

Exhibit Number		Description
99.1		Press Release dated May 7, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		GOOD TIMES RESTAURANTS INC.
Date:	May 7, 2026	By:
			Ryan M. Zink
			Chief Executive Officer

2

Exhibit 99.1

FOR IMMEDIATE RELEASE

May 7, 2026 Nasdaq Capital Markets - GTIM     

GOOD TIMES RESTAURANTS REPORTS RESULTS FOR
THE FISCAL 2026 SECOND QUARTER ENDED MARCH 31, 2026

(DENVER, CO) Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard restaurant brands, today reported financial results for the fiscal 2026 second quarter.

Key highlights of the Company’s financial results include:

· Total Revenues for the quarter decreased 3.1% to $33.2 million compared to the fiscal 2025 second quarter

· Same Store Sales¹ for Company-owned Bad Daddy’s restaurants decreased 0.8% and Good Times restaurants decreased 0.8% for the quarter compared to the fiscal 2025 second quarter and are -1.0% and -1.9% year-to-date for our Bad Daddy’s and Good Times brands, respectively.

· Net Income Attributable to Common Shareholders was $0.1 million for the quarter

· Adjusted EBITDA² (a non-GAAP measure) was $1.4 million for the quarter

· The Company ended the quarter with $2.7 million in cash and $1.0 million of long-term debt

“We have engaged a new creative agency for our Good Times brand and expect new campaigns to begin late in the third fiscal quarter, which will include the return of cheese curds, a side item that has been heavily requested from our guests since its elimination last May, and a competitively priced special for our Bambinos, our guest-favorite cheeseburger sliders. Bad Daddy’s began its Monthly Drops promotion at Bad Daddy’s in March, which is a reimagined version of our prior LTO program designed to create value on our core menu while creating both employee and guest excitement with more frequent burger introductions that are check-average and margin accretive.” Ryan M. Zink, the Company’s Chief Executive Officer, said.

Mr. Zink continued, “Same store sales improved sequentially from the prior quarter at both concepts as did Adjusted EBITDA, operating in a segment with intensifying competition and cost pressures. I am pleased at the improvements in restaurant level operating profit² (a non-GAAP measure) at our Good Times brand and our stable restaurant level operating profit as a percent-of-sales at our Bad Daddy’s brand, compared to the second quarter of fiscal 2025. We have reduced our debt position and improved liquidity which is intended to provide greater financial flexibility and optionality to create value for shareholders.”

Conference Call: Management will host a conference call to discuss its fiscal 2026 second quarter financial results on Thursday, May 7, 2026 at 3:00 p.m. MT/5:00 p.m. ET. Hosting the call will be Ryan M. Zink, its Chief Executive Officer and Keri A. August, its Chief Accounting Officer.

The conference call can be accessed by registering online at Q2 2026 GTIM Earnings Call and you will be provided with dial in details. The live webcast will be accessible from the Company's investor relations website on the Events page. An archive of the webcast will be available at the same location on the corporate website shortly after the call has concluded.

About Good Times Restaurants Inc.: Good Times Restaurants Inc. owns, operates, and licenses 38 Bad Daddy’s Burger Bar restaurants through its wholly owned subsidiaries. Bad Daddy’s Burger Bar is a full-service “small box” restaurant concept featuring a chef-driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar and a focus on a selection of craft beers in a high-energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly owned subsidiaries, Good Times Restaurants Inc. owns, operates and franchises 30 Good Times Burgers & Frozen Custard restaurants primarily in Colorado. Good Times is a regional quick-service concept featuring 100% all-natural burgers and chicken sandwiches, signature wild fries, green chili breakfast burritos and fresh frozen custard desserts.

¹ Same store sales are a metric used in evaluating the performance of established restaurants and is a commonly used metric in the restaurant industry. Same store sales for our brands are calculated using all units open for at least 18 full fiscal months and use the comparable operating weeks from the prior year to the current year quarter’s operating weeks.

² For a reconciliation of Adjusted EBITDA and Restaurant Level Operating Profit to the most directly comparable financial measures presented in accordance with GAAP and a discussion of why the Company considers them useful, see the financial information schedules accompanying this release.

1

Forward Looking Statements: This press release contains forward looking statements within the meaning of federal securities laws. The words “intend,” “may,” “believe,” “will,” “should,” “anticipate,” “expect,” “seek”, “plan” and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from results expressed or implied by the forward-looking statements. Such risks and uncertainties include, among other things, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company, the disruption to our business from pandemics and other public health emergencies, the impact and duration of staffing constraints at our restaurants, the impact of supply chain constraints and the current inflationary environment, the uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants, delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, other general economic and operating conditions, risks associated with the acquisition of additional restaurants, the adequacy of cash flows and the cost and availability of capital or credit facility borrowings to provide liquidity, changes in federal, state, or local laws and regulations affecting the operation of our restaurants, including minimum wage and tip credit regulations, and other matters discussed under the Risk Factors section of Good Times’ Annual Report on Form 10-K for the fiscal year ended September 30, 2025 filed with the SEC, and other subsequent filings with the SEC.

Good Times Restaurants Inc. CONTACTS:

Ryan M. Zink, Chief Executive Officer (303) 384-1432

Christi Pennington (303) 384-1440

Category: Financial

2

Good Times Restaurants Inc.

Unaudited Supplemental Information

(In thousands, except per share amounts)

		Fiscal Second Quarter								Year-to-Date
		March 31, 2026 (13 Weeks)				April 1, 2025 (13 Weeks)				March 31, 2026 (26 Weeks)				April 1, 2025 (27 Weeks)
NET REVENUES:
Restaurant sales		$	33,124			$	34,140			$	65,497			$	70,105
Franchise and other revenues			108				139				441				507
Total net revenues			33,232				34,279				65,938				70,612
RESTAURANT OPERATING COSTS:
Food and packaging costs			9,828				10,477				19,669				21,840
Payroll and other employee benefit costs			11,387				11,826				22.597				24,609
Restaurant occupancy costs			2,524				2,583				5,033				5,266
Other restaurant operating costs			4,951				4,918				9,513				9,659
Preopening costs			-				-				-				8
Depreciation and amortization			878				996				1,818				2,014
Total restaurant operating costs			29,568				30,800				58,630				63,396
General and administrative costs			2,196				2,578				4,251				5,166
Advertising costs			984				915				2,259				2,044
Impairment of long-lived assets			227				494				227				494
Loss (gain) on asset disposals			85				6				99				(51	)
Total costs and expenses			33,060				34,793				65,466				71,049
INCOME (LOSS) FROM OPERATIONS			172				(514	)			472				(437	)
OTHER (EXPENSE) INCOME:
Interest and other expense, net			(36	)			(56	)			(87	)			(102	)
Other income			-				-				-				140
Total other (expense) income			(36	)			(56	)			(87	)			38
NET INCOME (LOSS) BEFORE INCOME TAXES			136				(570	)			385				(399	)
Provision for income taxes			23				(57	)			(28	)			(54	)
NET INCOME (LOSS)		$	159			$	(627	)		$	357			$	(453	)
(Income) loss attributable to non-controlling interests			(10	)			3				(27	)			(7	)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS		$	149			$	(624	)		$	330			$	(460	)
NET INCOME (LOSS) PER SHARE, ATTRIBUTABLE TO COMMON SHAREHOLDERS:
Basic		$	0.01			$	(0.06	)		$	0.03			$	(0.04	)
Diluted		$	0.01			$	(0.06	)		$	0.03			$	(0.04	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic			10,557,896				10,628,318				10.556,006				10.656.481
Diluted			10,650,896				10,628,318				10,649,006				10,656,481

3

Good Times Restaurants Inc.

Unaudited Supplemental Information

(In thousands)

Selected Balance Sheet Data		March 31, 2026				September 30, 2025
Cash and cash equivalents		$	2,749			$	2,605
Current assets		$	5,844			$	5,254
Total assets		$	81,041			$	83,807
Current liabilities		$	14,732			$	14,378
Shareholders’ equity		$	34,195			$	33,811

Supplemental Information for Company-Owned Restaurants (dollars in thousands):

		Bad Daddy’s																Good Times
		Fiscal Second Quarter								Year-to-Date								Fiscal Second Quarter								Year-to-Date
		2026				2025				2026				2025				2026				2025				2026				2025
		(13 weeks)				(13 weeks)				(26 weeks)				(27 weeks)				(13 weeks)				(13 weeks)				(26 weeks)				(27 weeks)
Restaurant sales		$	23,920			$	24,817			$	47,123			$	50,895			$	9,204			$	9,323			$	18,374			$	19,210
Restaurants open at beginning of period			37				39				38				39				27				27				27				25
Restaurants opened or acquired during period			-				-				-				-				-				-				-				2
Restaurants closed during period							-				1				-				1				-				1				-
Restaurants open at period end			37				39				37				39				26				27				26				27
Restaurant operating weeks			481.0				507.0				963.0				1,053.0				348.5				351.0				699.5				716.5
Average weekly sales per restaurant		$	49.7			$	48.9			$	48.9			$	48.3			$	26.4			$	26.6			$	26.3			$	26.8

4

Reconciliation of U.S. GAAP Results to Non-GAAP Measurements

Reconciliation of Income (Loss) from Operations to Non-GAAP Restaurant-Level Operating Profit (In thousands):

		Fiscal Second Quarter								Year-to-Date
		2026				2025				2026				2025
		(13 weeks)				(13 weeks)1				(26 weeks)				(27 weeks)1
Income (loss) from operations		$	172			$	(514	)		$	472			$	(437	)
Less:
Franchise and other revenues			108				139				441				507
Add:
General and administrative			2,196				2,578				4,251				5,166
Depreciation and amortization			878				996				1,818				2,014
Advertising costs			984				915				2,259				2,044
Impairment of long-lived assets			227				494				227				494
Loss (gain) on asset disposals			85				6				99				(51	)
Preopening costs			-				-				-				8
Restaurant-level operating profit		$	4,434			$	4,336			$	8,685			$	8,731

¹ Certain prior year activity has been reclassified from Other restaurant operating costs to Advertising costs to conform to the current year’s presentation. Such reclassification resulted in an increase to Advertising costs and Restaurant-level operating profit (a non-GAAP measure) for the second fiscal quarter 2025 and year-to-date second fiscal quarter 2025 of approximately $0.2 million and $0.5 million, respectively.

The Company believes that restaurant-level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. The Company defines restaurant-level operating profit to be restaurant revenues minus restaurant-level operating costs, excluding restaurant closures and impairment costs. The measure includes restaurant-level occupancy costs, which include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance and other property costs, but excludes depreciation. The measure excludes depreciation and amortization expense, substantially all of which is related to restaurant level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes selling, general and administrative costs, and therefore excludes occupancy costs associated with selling, general and administrative functions, and preopening costs. The Company excludes restaurant closure costs as they do not represent a component of the efficiency of continuing operations. Restaurant impairment costs are excluded, because, like depreciation and amortization, they represent a non-cash charge for the Company’s investment in its restaurants and not a component of the efficiency of restaurant operations. Restaurant-level operating profit is not a measurement determined in accordance with generally accepted accounting principles (“GAAP”) and should not be considered in isolation, or as an alternative, to income from operations or net income as indicators of financial performance. Restaurant-level operating profit as presented may not be comparable to other similarly titled measures of other companies. The tables set forth in this section certain unaudited information for the current and prior year fiscal quarters for fiscal 2026 and 2025, expressed as a percentage of total revenues, except for the components of restaurant operating costs, which are expressed as a percentage of restaurant revenues.

5

Margin Analysis:

		Quarter Ended																Year-to-Date Period Ended
		March 31, 2026 (13 Weeks)								April 1, 2025 (13 Weeks)1								March 31, 2026 (26 Weeks)								April 1, 2025 (27 Weeks)1
Bad Daddy’s Burger Bar2:
Restaurant sales		$	23,920				100.0	%		$	24,817				100.0	%		$	47,123				100.0	%		$	50,895				100.0	%
Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):
Food and packaging costs			7,092				29.6	%			7,619				30.7	%			14,107				29.9	%			15,834				31.1	%
Payroll and benefits costs			8,168				34.1	%			8,510				34.3	%			16,169				34.3	%			17,667				34.7	%
Restaurant occupancy costs			1,625				6.8	%			1,665				6.7	%			3,241				6.9	%			3,418				6.7	%
Other restaurant operating costs			3,739				15.6	%			3,591				14.5	%			7,123				15.1	%			7,159				14.1	%
Restaurant-level operating profit (a non-GAAP measure)		$	3,296				13.8	%		$	3,432				13.8	%		$	6,483				13.8	%		$	6,817				13.4	%
Good Times Burgers & Frozen Custard:
Restaurant sales		$	9,204				100.0	%		$	9,323				100.0	%		$	18,374				100.0	%		$	19,210				100.0	%
Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):
Food and packaging costs			2,736				29.7	%			2,858				30.7	%			5,562				30.3	%			6,006				31.3	%
Payroll and benefits costs			3,219				35.0	%			3,316				35.6	%			6,428				35.0	%			6,942				36.1	%
Restaurant occupancy costs			920				10.0	%			939				10.1	%			1,835				10.0	%			1,888				9.8	%
Other restaurant operating costs			1,400				15.2	%			1,407				15.1	%			2,679				14.6	%			2,668				13.9	%
Restaurant-level operating profit (a non-GAAP measure)		$	929				10.1	%		$	803				8.6	%		$	1,870				10.2	%		$	1,706				8.9	%
Other2:
Restaurant occupancy costs		$	(21	)						$	(21	)						$	(43	)						$	(40	)
Other restaurant operating costs			(188	)							(80	)							(289	)							(168	)
Restaurant-level operating profit (a non-GAAP measure)		$	209							$	101							$	332							$	208
Total restaurant-level operating profit (a non-GAAP measure)		$	4,434				13.4	%		$	4,336				12.7	%		$	8,685				13.3	%		$	8,731				12.5	%

¹ Certain prior year activity has been reclassified from Other restaurant operating costs to Advertising costs to conform to the current year’s presentation. Such reclassification resulted in an increase to Restaurant-level operating profit (a non-GAAP measure) for the second fiscal quarter 2025 and year-to-date second fiscal quarter 2025 of approximately $0.2 million and $0.5 million, respectively.

² Prior to fourth quarter 2025, certain general and administrative activity now included in Other was combined and reported with the Bad Daddy's segment. In order to better align with our internal reporting and provide a better representation of restaurant-level operations, beginning with fourth quarter 2025, this activity has been removed from the Bad Daddy's segment. Fiscal 2025 figures have been recast for comparability.

Certain percentage amounts in the table above do not total due to rounding.

6

Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA (Thousands of US Dollars)

		Fiscal Second Quarter								Year-to-Date
		March 31, 2026				April 1, 2025				March 31, 2026				April 1, 2025
		(13 weeks)				(13 weeks)				(26 weeks)				(27 weeks)
Calculation of Adjusted EBITDA:
Net income (loss) attributable to common shareholders, as reported		$	149			$	(624	)		$	330			$	(460	)
Depreciation and amortization			896				1,029				1,862				2,071
Depreciation and amortization attributable to non-controlling interest			(28	)			(24	)			(54	)			(50	)
Provision for income taxes			(23	)			57				28				54
Interest expense, net			36				56				87				102
EBITDA			1,030				494				2,253				1,717
Preopening expense 1			-				-				-				8
Non-cash stock-based compensation 2			22				30				45				65
Asset impairment 3			227				494				227				494
Non-cash loss on asset disposals 4			86				9				101				5
Non-cash gain on asset disposals attributable to non-controlling interest 4			-				(3	)			-				(3	)
Adjusted EBITDA		$	1,365			$	1,024			$	2,626			$	2,286

¹ Represents expenses directly associated with the opening of new or acquired restaurants, including preopening rent.

² Represents non-cash stock-based compensation as described in Note 13 to the unaudited condensed consolidated financial statements.

³ Represents costs recognized in connection with the asset impairment charges described in Note 11 to the unaudited condensed consolidated financial statements.

⁴ Represents deferred gains on previous sale-leaseback transactions on two Good Times restaurants as well as (gains) losses on miscellaneous asset disposals.

Adjusted EBITDA is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income (loss) or cash flow from operations, as determined by GAAP, and our calculation thereof may not be comparable to that reported by other companies. This measure is presented because we believe that investors' understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for evaluating our ongoing results of operations.

Adjusted EBITDA is calculated as net income (loss) before interest expense, provision for income taxes and depreciation and amortization and further adjustments to reflect the additions and eliminations presented in the table above.

Adjusted EBITDA is presented because: (i) we believe it is a useful measure for investors to assess the operating performance of our business without the effect of non-cash charges such as depreciation and amortization expenses and asset disposals, closure costs and restaurant impairments, and (ii) we use Adjusted EBITDA internally as a benchmark for certain of our cash incentive plans and to evaluate our operating performance or compare our performance to that of our competitors. The use of Adjusted EBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based on our GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. Companies within our industry exhibit significant variations with respect to capital structures and cost of capital (which affect interest expense and income tax rates) and differences in book depreciation of property, plant and equipment (which affect relative depreciation expense), including significant differences in the depreciable lives of similar assets among various companies. Our management believes that Adjusted EBITDA facilitates company-to-company comparisons within our industry by eliminating some of these foregoing variations. Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies, and our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by excluded or unusual items.

7

FAQ

How did Good Times Restaurants (GTIM) perform in fiscal Q2 2026?

Good Times Restaurants reported net revenues of $33.2 million and net income attributable to common shareholders of $149,000 in fiscal Q2 2026, compared with a $624,000 loss a year earlier, reflecting improved profitability despite slightly lower sales.

What were Good Times Restaurants’ revenues and earnings year-to-date 2026?

For the first 26 weeks of fiscal 2026, Good Times Restaurants generated $65.9 million in net revenues and net income attributable to common shareholders of $330,000, compared with $70.6 million in revenues and a $460,000 loss in the prior-year period.

How did Adjusted EBITDA change for Good Times Restaurants in Q2 2026?

Adjusted EBITDA for Good Times Restaurants increased to $1.37 million in fiscal Q2 2026 from $1.02 million in the prior-year quarter. Year-to-date Adjusted EBITDA rose to $2.63 million from $2.29 million, showing stronger underlying operating performance.

What were Good Times Restaurants’ restaurant-level operating profits in Q2 2026?

Restaurant-level operating profit reached $4.43 million in fiscal Q2 2026, up from $4.34 million a year earlier. The total restaurant-level operating profit margin improved to 13.4% of total revenues from 12.7%, reflecting better restaurant operating efficiency.

How are Bad Daddy’s Burger Bar and Good Times segments performing?

In Q2 2026, Bad Daddy’s generated restaurant sales of $23.9 million with a restaurant-level operating profit of $3.30 million and a 13.8% margin. Good Times produced $9.20 million in restaurant sales and $929,000 restaurant-level profit, improving its margin to 10.1% from 8.6%.

What is Good Times Restaurants’ cash and balance sheet position as of March 31, 2026?

As of March 31, 2026, Good Times Restaurants held $2.75 million in cash and cash equivalents, with total assets of $81.0 million, current liabilities of $14.7 million, and shareholders’ equity of $34.2 million, indicating a modestly strengthened equity position versus September 2025.

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