STOCK TITAN
  1. Home
  2. Sec-filings
  3. GTIM
  4. [8-K] Good Times Restaurants Inc. Reports Material Event

Good Times Restaurants (NASDAQ: GTIM) grows Q3 2026 earnings on lower sales

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Good Times Restaurants Inc. reported fiscal 2026 third quarter net revenues of $35,167 (in thousands), down from $37,025 (in thousands) a year earlier, as cost controls lifted profitability. Income from operations rose to $1,767 (in thousands), with net income attributable to common shareholders increasing to $1,907 (in thousands), or $0.18 per diluted share, compared with $0.14 in the prior-year quarter.

Restaurant-level operating profit was $5,061 (in thousands), essentially flat versus $5,142 (in thousands), while Adjusted EBITDA improved to $2,454 (in thousands) from $2,071 (in thousands). Management noted that Good Times same store sales have turned positive and that this trend has continued into the fourth quarter, supported by the $2 Bambino campaign. Bad Daddy’s Burger Bar continues to face sales headwinds, and value-oriented promotions are being tested. Cash and cash equivalents were $3,597 (in thousands) and shareholders’ equity was $36,137 (in thousands) as of June 30, 2026. Management stated it expects total overall company profitability in the fiscal 2026 fourth quarter to improve year over year due to cost management and stronger Good Times brand sales.

Positive

  • Quarterly net income attributable to common shareholders rose to $1,907 (in thousands) from $1,487 (in thousands), with diluted EPS up to $0.18 from $0.14, and Adjusted EBITDA increased to $2,454 (in thousands) from $2,071 (in thousands), indicating stronger profitability despite lower revenues.

Negative

  • None.

Filing Explained

One Bad Daddy’s and two Good Times locations closed during the quarter, while brand-level operating results diverged.

The detailed operating tables in the August 6 Form 8-K show that, at June 30, 2026, company-owned locations stood at 36 Bad Daddy’s and 25 Good Times, after one and two closures, respectively, with no openings; the operating footprint contracted during the quarter.

By brand, Bad Daddy’s restaurant sales were $24,889 thousand and restaurant-level operating profit was $3,595 thousand, versus $26,513 thousand and $3,811 thousand in the comparable prior-year quarter; Good Times sales were $10,131 thousand and profit was $1,316 thousand, versus $10,356 thousand and $1,193 thousand.

The filing defines restaurant-level operating profit as restaurant revenues minus restaurant-level operating costs, excluding restaurant closures and impairment costs, and identifies it as a non-GAAP measure rather than a GAAP profit figure.

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.
Total net revenues $35,167 (in thousands) Fiscal 2026 third quarter, versus $37,025 (in thousands) in the fiscal 2025 third quarter
Net income attributable to common shareholders $1,907 (in thousands) Fiscal 2026 third quarter, compared with $1,487 (in thousands) a year earlier
Diluted EPS $0.18 Fiscal 2026 third quarter, versus $0.14 in the fiscal 2025 third quarter
Adjusted EBITDA $2,454 (in thousands) Fiscal 2026 third quarter, up from $2,071 (in thousands) in the prior-year quarter
Restaurant-level operating profit $5,061 (in thousands) Fiscal 2026 third quarter, with a 14.5% margin on total restaurant sales
Cash and cash equivalents $3,597 (in thousands) Balance as of June 30, 2026, versus $2,605 (in thousands) at September 30, 2025
Shareholders’ equity $36,137 (in thousands) As of June 30, 2026, compared with $33,811 (in thousands) at September 30, 2025
Company-owned restaurant counts 36 Bad Daddy’s, 25 Good Times Restaurants open at period end for fiscal 2026 third quarter
Same store sales financial
"Same store sales are a metric used in evaluating the performance of established restaurants"
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.
Restaurant-level operating profit financial
"Reconciliation of Income from Operations to Non-GAAP Restaurant-Level Operating Profit"
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.
Adjusted EBITDA financial
"Reconciliation of Net Income (Loss) to Non-GAAP 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.
Impairment of long-lived assets and ROU assets financial
"Impairment of long-lived assets and ROU assets | | | 18"
Non-controlling interests financial
"Income attributable to non-controlling interests | | | (48"
An ownership stake in a subsidiary held by outside shareholders rather than the parent company, representing the portion of that subsidiary’s assets and profits the parent does not control. For investors, it shows what part of consolidated earnings and equity belongs to others — like a roommate who owns part of a house — which affects how much value and profit per share are truly attributable to the parent company’s shareholders.
Net revenues $35,167 (in thousands) vs $37,025 (in thousands) in the fiscal 2025 third quarter
Net income attributable to common shareholders $1,907 (in thousands) vs $1,487 (in thousands) in the fiscal 2025 third quarter
Diluted EPS $0.18 vs $0.14 in the fiscal 2025 third quarter
Adjusted EBITDA $2,454 (in thousands) vs $2,071 (in thousands) in the fiscal 2025 third quarter
Guidance

Management expects total overall company profitability in the fiscal 2026 fourth quarter to improve year over year from fiscal 2025 due to improved cost management and better sales performance at the Good Times brand.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →

FAQ

What were Good Times Restaurants (GTIM) net revenues in the fiscal 2026 third quarter?
Good Times Restaurants reported net revenues of $35,167 (in thousands) for the fiscal 2026 third quarter, compared with $37,025 (in thousands) in the prior-year third quarter, reflecting lower restaurant sales but improved profitability metrics.

How profitable was Good Times Restaurants (GTIM) in Q3 fiscal 2026?
Net income attributable to common shareholders was $1,907 (in thousands), or $0.18 per diluted share, versus $1,487 (in thousands) and $0.14 a year earlier, as income from operations rose to $1,767 (in thousands).

What was Good Times Restaurants (GTIM) Adjusted EBITDA in Q3 2026?
Adjusted EBITDA for the fiscal 2026 third quarter was $2,454 (in thousands), up from $2,071 (in thousands) in the prior-year quarter, reflecting stronger operating performance after adjustments for depreciation, taxes, interest, and other non-cash items.

How did Good Times Restaurants (GTIM) restaurant-level operating profit perform?
Restaurant-level operating profit was $5,061 (in thousands) for Q3 fiscal 2026, compared with $5,142 (in thousands) a year earlier. Margin was 14.5% versus 13.9%, with Bad Daddy’s and Good Times brands contributing segment-level restaurant profits.

What is Good Times Restaurants (GTIM) balance sheet position as of June 30, 2026?
As of June 30, 2026, cash and cash equivalents were $3,597 (in thousands), total assets were $80,185 (in thousands), current liabilities were $14,317 (in thousands), and shareholders’ equity stood at $36,137 (in thousands).

Did Good Times Restaurants (GTIM) provide any outlook for future profitability?
Management stated it expects total overall company profitability in the fourth quarter of fiscal 2026 to improve year over year from fiscal 2025, citing improved cost management and better sales performance at the Good Times brand.
false 0000825324 0000825324 2026-08-06 2026-08-06 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 
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)
August 6, 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 2.02Results of Operations and Financial Condition.

 

On August 6, 2026, Good Times Restaurants Inc. issued a press release announcing earnings and other financial results for the fiscal 2026 third quarter ended June 30, 2026, and that management would review these results in a conference call on August 6, 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 August 6, 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: August 6, 2026 By:
      Ryan M. Zink
      Chief Executive Officer

 

 

2

 

 

 

 

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

August 6, 2026 Nasdaq Capital Markets - GTIM

 

GOOD TIMES RESTAURANTS REPORTS RESULTS FOR
THE FISCAL 2026 THIRD QUARTER ENDED JUNE 30, 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 third quarter.

 

Key highlights of the Company’s financial results include:

 

·Total Revenues for the quarter decreased 5.0% to $35.2 million compared to the fiscal 2025 third quarter

 

·Same Store Sales1 for company-owned Bad Daddy’s restaurants decreased 2.3% and Good Times restaurants increased 0.6% for the quarter compared to the fiscal 2025 third quarter and decreased 1.5% and 1.0% year-to-date for our Bad Daddy’s and Good Times restaurants, respectively.

 

·Net Income Attributable to Common Shareholders was $1.9 million for the quarter

 

·Adjusted EBITDA2 (a non-GAAP measure) was $2.5 million for the quarter

 

·The Company ended the quarter with $3.6 million in cash and $0.3 million of long-term debt

 

“I am excited to report that Good Times same stores have turned positive, a trend that has continued into the fourth quarter. We launched our $2 Bambino campaign systemwide in June after testing in select restaurants beginning early in the third quarter and saw immediate opt-in to the offer with a corresponding lift in same store sales.” Ryan M. Zink, the Company’s Chief Executive Officer, said.

 

Mr. Zink continued, “Bad Daddy’s sales continue to see headwinds and we are testing several value-oriented promotions to turn around traffic trends at that brand. Notwithstanding the top line performance at Bad Daddy’s, we expect total overall company profitability in the fourth quarter to improve on a year-over-year basis from fiscal 2025 due to improved cost management and the improved sales performance at our Good Times brand.”

 

Conference Call: Management will host a conference call to discuss its fiscal 2026 third quarter financial results on Thursday, August 6, 2026 at 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 Q3 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 Events. 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. currently owns, operates, and licenses 37 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. currently owns, operates and franchises 28 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 Third Quarter   Year-to-Date 
   June 30, 2026
(13 Weeks)		   July 1, 2025
(13 Weeks)		   June 30, 2026
(39 Weeks)		   July 1, 2025
(40 Weeks)		 
NET REVENUES:                    
Restaurant sales  $35,020   $36,869   $100,517   $106,974 
Franchise and other revenues   147    156    588    663 
Total net revenues   35,167    37,025    101,105    107,637 
                     
RESTAURANT OPERATING COSTS:                    
Food and packaging costs   10,711    11,358    30,380    33,198 
Payroll and other employee benefit costs   11,702    12,647    34,299    37,256 
Restaurant occupancy costs   2,477    2,492    7,510    7,758 
Other restaurant operating costs   5,069    5,230    14,582    14,889 
Preopening costs   -    -    -    8 
Depreciation and amortization   917    982    2,735    2,996 
Total restaurant operating costs   30,876    32,709    89,506    96,105 
                     
General and administrative costs   1,986    2,174    6,237    7,340 
Advertising costs   1,009    913    3,268    2,957 
Impairment of long-lived assets and ROU assets   18    -    245    494 
Gain on lease terminations and asset disposals   (489)   (4)   (390)   (55)
Total costs and expenses   33,400    35,792    98,866    106,841 
                     
INCOME FROM OPERATIONS   1,767    1,233    2,239    796 
                     
OTHER (EXPENSE) INCOME:                    
Interest and other expense, net   (24)   (51)   (111)   (153)
Other income   -    -    -    140 
Total other (expense) income   (24)   (51)   (111)   (13)
                     
NET INCOME BEFORE INCOME TAXES   1,743    1,182    2,128    783 
                     
Provision for income taxes   212    363    184    309 
                     
NET INCOME  $1,955   $1,545   $2,312   $1,092 
Income attributable to non-controlling interests   (48)   (58)   (75)   (65)
                     
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS  $1,907   $1,487   $2,237   $1,027 
                     
NET INCOME PER SHARE, ATTRIBUTABLE TO COMMON SHAREHOLDERS:                    
Basic  $0.18   $0.14   $0.21   $0.10 
Diluted  $0.18   $0.14   $0.21   $0.10 
                     
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                    
Basic   10,557,896    10,582,491    10,556,636    10.632,434 
Diluted   10,650,896    10,661,491    10,649,636    10,711,434 

 

 3 
 

 

Good Times Restaurants Inc.

Unaudited Supplemental Information

(In thousands)

 

Selected Balance Sheet Data  June 30, 2026   September 30, 2025 
         
Cash and cash equivalents  $3,597   $2,605 
           
Current assets  $6,668   $5,254 
           
Total assets  $80,185   $83,807 
           
Current liabilities  $14,317   $14,378 
           
Shareholders’ equity  $36,137   $33,811 

 

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

 

   Bad Daddy’s   Good Times 
   Fiscal Third Quarter   Year-to-Date   Fiscal Third Quarter   Year-to-Date 
   2026   2025   2026   2025   2026   2025   2026   2025 
   (13 weeks)   (13 weeks)   (39 weeks)   (40 weeks)   (13 weeks)   (13 weeks)   (39 weeks)   (40 weeks) 
                                 
Restaurant sales  $24,889   $26,513   $72,011   $77,408   $10,131   $10,356   $28,506   $29,566 
Restaurants open at beginning of period   37    39    38    39    26    27    27    25 
Restaurants opened or acquired during period   -    -    -    -    -    -    -    2 
Restaurants closed during period   1    -    2    -    1    -    2    - 
Restaurants open at period end   36    39    36    39    25    27    25    27 
                                         
Restaurant operating weeks   474.0    507.0    1,437.0    1,560.0    337.0    351.0    1,036.5    1,067.5 
                                         
Average weekly sales per restaurant  $52.5   $52.3   $50.1   $49.6   $30.1   $29.5   $27.5   $27.7 

 

 4 
 

 

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

 

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

 

   Fiscal Third Quarter   Year-to-Date 
   2026   2025   2026   2025 
   (13 weeks)   (13 weeks)1   (39 weeks)   (40 weeks)1 
                 
Income from operations  $1,767   $1,233   $2,239   $796 
Less:                    
Franchise and other revenues   147    156    588    663 
Add:                    
General and administrative   1,986    2,174    6,237    7,340 
Depreciation and amortization   917    982    2,735    2,996 
Advertising costs   1,009    913    3,268    2,957 
Impairment of long-lived assets   18    -    245    494 
Gain on lease terminations and asset disposals   (489)   (4)   (390)   (55)
Preopening costs   -    -    -    8 
Restaurant-level operating profit  $5,061   $5,142   $13,746   $13,873 

 

1Certain 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 third fiscal quarter 2025 and year-to-date third fiscal quarter 2025 of approximately $0.2 million and $0.6 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 
   June 30, 2026
(13 Weeks)		  

July 1, 2025

(13 Weeks)1

   June 30, 2026
(39 Weeks)		  

July 1, 2025

(40 Weeks)1

 
Bad Daddy’s Burger Bar2:                                        
Restaurant sales  $24,889    100.0%  $26,513    100.0%  $72,011    100.0%  $77,408    100.0%
Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):                                        
Food and packaging costs   7,546    30.3%   8,100    30.6%   21,653    30.1%   23,933    30.9%
Payroll and benefits costs   8,361    33.6%   9,103    34.3%   24,530    34.1%   26,770    34.6%
Restaurant occupancy costs   1,578    6.3%   1,623    6.1%   4,818    6.7%   5,041    6.5%
Other restaurant operating costs   3,809    15.3%   3,876    14.6%   10,933    15.2%   11,035    14.3%
Restaurant-level operating profit (a non-GAAP measure)  $3,595    14.4%  $3,811    14.4%  $10,077    14.0%  $10,629    13.7%
                                         
Good Times Burgers & Frozen Custard:                                        
Restaurant sales  $10,131    100.0%  $10,356    100.0%  $28,506    100.0%  $29,566    100.0%
Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):                                        
Food and packaging costs   3,165    31.2%   3,258    31.5%   8,727    30.6%   9,265    31.3%
Payroll and benefits costs   3,341    33.0%   3,544    34.2%   9,769    34.3%   10,486    35.5%
Restaurant occupancy costs   920    9.1%   890    8.6%   2,756    9.7%   2,778    9.4%
Other restaurant operating costs   1,389    13.7%   1,471    14.2%   4,067    14.3%   4,139    14.0%
Restaurant-level operating profit (a non-GAAP measure)  $1,316    13.0%  $1,193    11.5%  $3,187    11.2%  $2,898    9.8%
                                         
Other2:                                        
Restaurant occupancy costs  $(21)       $(21)       $(64)       $(61)     
Other restaurant operating costs   (129)        (117)        (418)        (285)     
Restaurant-level operating profit (a non-GAAP measure)  $150        $138        $482        $346      
                                         
Total restaurant-level operating profit (a non-GAAP measure)  $5,061    14.5%  $5,142    13.9%  $13,746    13.7%  $13,873    13.0%

 

1Certain 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 third fiscal quarter 2025 and year-to-date third fiscal quarter 2025 of approximately $0.2 million and $0.6 million, respectively.
   

2Prior 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)

 

   Quarter Ended   Year-to-Date 
   June 30, 2026   July 1, 2025   June 30, 2026   July 1, 2025 
   (13 weeks)   (13 weeks)   (39 weeks)   (40 weeks) 
Adjusted EBITDA:                    
Net income attributable to common shareholders, as reported  $1,907   $1,487   $2,237   $1,027 
Depreciation and amortization   922    1,000    2,783    3,071 
Depreciation and amortization attributable to non-controlling interest   (28)   (24)   (81)   (74)
Provision for income taxes   (212)   (363)   (184)   (309)
Interest expense, net   24    51    111    153 
EBITDA   2,613    2,151    4,866    3,868 
Preopening expense1   -    -    -    8 
Non-cash stock-based compensation2   21    25    66    90 
Asset impairment3   18    -    245    494 
Non cash gain on lease terminations and asset disposals4   (198)   (105)   (96)   (99)
Non-cash loss on asset disposals attributable to non-controlling interests4   -    -    -    (3)
Adjusted EBITDA  $2,454   $2,071   $5,081   $4,358 

 

1Represents expenses directly associated with the opening of new or acquired restaurants, including preopening rent.
2Represents non-cash stock-based compensation as described in Note 13 to the unaudited condensed consolidated financial statements.
3Represents costs recognized in connection with the asset impairment charges described in Note 11 to the unaudited condensed consolidated financial statements.
4Represents deferred gains on previous sale-leaseback transactions on two Good Times restaurants, gains on lease terminations, as well as (gains) losses on 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 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 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

 

 

 

 

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

4 documents

Press Releases

Other Documents