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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)
August 7, 2025
 
 
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 August 7, 2025, Good Times Restaurants Inc. issued a press release announcing earnings and other financial results for the fiscal 2025 third quarter ended July 1, 2025, and that management would review these results in a conference call on August 7, 2025, 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 7, 2025
     
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 7, 2025 By:  
      Ryan M. Zink
      Chief Executive Officer

 

 

2

 

 

 

EX-99.1 2 ex99_1.htm EXHIBIT 99.1

 

Exhibit 99.1

  

FOR IMMEDIATE RELEASE  
August 7, 2025 Nasdaq Capital Markets - GTIM

 

GOOD TIMES RESTAURANTS REPORTS RESULTS FOR
THE FISCAL 2025 THIRD QUARTER ENDED JULY 1, 2025

 

(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 2025 third quarter.

 

Key highlights of the Company’s financial results include:

 

· Total Revenues for the quarter decreased 2.4% to $37.0 million compared to the fiscal 2024 third quarter

 

· Same store sales1 for company-owned Bad Daddy’s restaurants decreased 1.4% and Good Times restaurants decreased 9.0% for the quarter compared to the fiscal 2024 third quarter. Same store sales decreased 1.2% and 4.4% year-to-date for our Bad Daddy’s and Good Times brands, respectively

 

· Net Income Attributable to Common Shareholders was $1.5 million for the quarter

 

· Adjusted EBITDA2 (a non-GAAP measure) was $2.2 million for the quarter

 

· The Company ended the quarter with $3.1 million in cash and $2.3 million of long-term debt

 

Ryan M. Zink, the Company’s Chief Executive Officer, said, “Our sales results this quarter were disappointing at both brands, with our Good Times brand missing last year’s comparable quarter sales by a wide margin. After a soft April, Bad Daddy’s sales improved in May and June, and bottom line results were strengthened by good controls at the Bad Daddy’s brand and reductions in general and administrative costs.”

 

Mr. Zink continued, “We are revisiting our strategy to address sales declines and as a part of that endeavor we have hired Jason Murphy, previously with Buffalo Wild Wings, as our new Senior Director of Marketing. Jason will oversee all aspects of marketing, including brand, advertising, and promotion at both concepts. Later this month, we will launch our new brand campaign at Good Times entitled ‘Colorado Native Burgers’ which will focus heavily on our Colorado roots. The new campaign will include various advertising elements, including outdoor, social, and streaming video advertising components, along with a fresh website and matching mobile app redesign. The outdoor public transit advertising, will launch in late August, with the other campaign elements following in September. In addition to advertising, Jason will be reviewing all of our in-restaurant merchandising and promotions, including menu, point of purchase materials, and our online ordering experience.”

 

“Addressing traffic trends at both brands is our priority; additionally, we are focused on improving unit level economics and ensuring reasonable overhead costs as evidenced by this quarter’s profitability in spite of the reduced sales. We remain committed to delivering a great guest experience while taking swift action to reduce restaurant-level costs, however we will continue to make those choices with balance, evaluating any impacts felt by our guests.” Zink concluded.

 

Conference Call: Management will host a conference call to discuss its fiscal 2025 third quarter financial results on Thursday, August 7, 2025 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 Senior Vice President of Finance and Accounting.

 

The conference call can be accessed live over the phone by dialing (888) 210-2831, participant code 3024033. The conference call will also be webcast live from the Company's corporate website www.goodtimesburgers.com. An archive of the webcast will be available at the same location on the corporate website shortly after the call has concluded.

 

                                                                          

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  

 

About Good Times Restaurants Inc.: Good Times Restaurants Inc. owns, operates, and licenses 40 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.

 

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 impact of tariffs, 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 our share repurchase program, 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 24, 2024 filed with the SEC, and other 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

 

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Good Times Restaurants Inc.

Unaudited Supplemental Information

(In thousands, except per share amounts)

 

    Fiscal Third Quarter     Year-to-Date  
    July 1, 2025
(13 Weeks)
    June 25, 2024
(13 Weeks)
    July 1, 2025
(40 Weeks)
    June 25, 2024
(39 Weeks)
 
NET REVENUES:                                
Restaurant sales   $ 36,869     $ 37,742     $ 106,974     $ 105,953  
Franchise and other revenues     156       208       663       601  
Total net revenues     37,025       37,950       107,637       106,554  
                                 
RESTAURANT OPERATING COSTS:                                
Food and packaging costs     11,358       11,698       33,198       32,624  
Payroll and other employee benefit costs     12,647       12,635       37,256       36,525  
Restaurant occupancy costs     2,492       2,580       7,758       7,698  
Other restaurant operating costs     5,402       5,195       15,536       15,028  
Preopening costs     -       -       8       -  
Depreciation and amortization     982       960       2,996       2,813  
Total restaurant operating costs     32,881       33,068       96,752       94,688  
                                 
General and administrative costs     2,174       2,688       7,340       7,824  
Advertising costs     741       749       2,310       2,665  
Impairment of long-lived assets     -       199       494       199  
(Loss) gain on restaurant and equipment asset sales     (4 )     18       (55 )     12  
Litigation contingencies     -       -       -       (332 )
Total costs and expenses     35,792       36,722       106,841       105,056  
                                 
INCOME FROM OPERATIONS     1,233       1,228       796       1,498  
                                 
OTHER (EXPENSE) INCOME:                                
Interest and other expense, net     (51 )     (27 )     (153 )     (101 )
Other income     -       -       140       -  
Total other (expense) income     (51 )     (27 )     (13 )     (101 )
                                 
NET INCOME BEFORE INCOME TAXES     1,182       1,201       783       1,397  
                                 
Provision for income taxes     363       197       309       198  
                                 
NET INCOME   $ 1,545     $ 1,398     $ 1,092     $ 1,595  
Income attributable to non-controlling interests     (58 )     (77 )     (65 )     (212 )
                                 
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS   $ 1,487     $ 1,321     $ 1,027     $ 1,383  
                                 
NET INCOME PER SHARE, ATTRIBUTABLE TO COMMON SHAREHOLDERS:                                
Basic   $ 0.14     $ 0.12     $ 0.10     $ 0.12  
Diluted   $ 0.14     $ 0.12     $ 0.10     $ 0.12  
                                 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                                
Basic     10,582,491       10,933,758       10.632,434       11,149,181  
Diluted     10,661,491       11,034,487       10,711,434       11,246,353  

 

  3  

 

Good Times Restaurants Inc.

Unaudited Supplemental Information

(In thousands)

 

Selected Balance Sheet Data   July 1, 2025     September 24, 2024  
Cash and cash equivalents   $ 3,138     $ 3,853  
                 
Current assets   $ 6,499     $ 6,557  
                 
Total assets   $ 85,750     $ 87,118  
                 
Current liabilities   $ 14,956     $ 15,687  
                 
Shareholders’ equity   $ 33,810     $ 33,088  

 

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

 

    Bad Daddy’s Burger Bar     Good Times Burgers & Frozen Custard  
    Fiscal Third Quarter     Year-to-Date     Fiscal Third Quarter     Year-to-Date  
    2025     2024     2025     2024     2025     2024     2025     2024  
    (13 weeks)     (13 weeks)     (40 weeks)     (39 weeks)     (13 weeks)     (13 weeks)     (40 weeks)     (39 weeks)  
                                                 
Restaurant sales   $ 26,513     $ 27,327     $ 77,408     $ 77,896     $ 10,356     $ 10,415     $ 29,566     $ 28,057  
Restaurants open at beginning of period     39       40       39       40       27       25       25       25  
Restaurants opened or acquired during period     -       -       -       -       -       1       2       1  
Restaurants closed during period     -       -       -       -       -       -       -       -  
Restaurants open at period end     39       40       39       40       27       26       27       26  
                                                                 
Restaurant operating weeks     507.0       520.0       1560.0       1560.0       351.0       324.5       1,067.5       974.5  
                                                                 
Average weekly sales per restaurant   $ 52.3     $ 52.6     $ 49.6     $ 49.9     $ 29.5     $ 32.1     $ 27.7     $ 28.8  

 

  4  

 

Margin Analysis:

 

    Quarter Ended     Year-to-Date  
   

July 1, 2025

(13 Weeks)

   

June 25, 2024

(13 Weeks)

   

July 1, 2025

(40 Weeks)

   

June 25, 2024

(39 Weeks)

 
Bad Daddy’s Burger Bar:                                                                
Restaurant sales   $ 26,513       100.0 %   $ 27,327       100.0 %   $ 77,408       100.0 %   $ 77,896       100.0 %
Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):                                                                
Food and packaging costs     8,100       30.6 %     8,517       31.2 %     23,933       30.9 %     24,156       31.0 %
Payroll and benefits costs     9,103       34.3 %     9,227       33.8 %     26,770       34.6 %     27,040       34.7 %
Restaurant occupancy costs     1,602       6.0 %     1,727       6.3 %     4,980       6.4 %     5,188       6.7 %
Other restaurant operating costs     3,895       14.7 %     3,945       14.4 %     11,253       14.5 %     11,421       14.7 %
Restaurant-level operating profit (a non-GAAP measure)   $ 3,813       14.4 %   $ 3,911       14.3 %   $ 10,472       13.5 %   $ 10,091       13.0 %
                                                                 
Good Times Burgers & Frozen Custard:                                                                
Restaurant sales   $ 10,356       100.0 %   $ 10,415       100.0 %   $ 29,566       100.0 %   $ 28,057       100.0 %
Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):                                                                
Food and packaging costs     3,258       31.5 %     3,181       30.5 %     9,265       31.3 %     8,468       30.2 %
Payroll and benefits costs     3,544       34.2 %     3,408       32.7 %     10,486       35.5 %     9,485       33.8 %
Restaurant occupancy costs     890       8.6 %     853       8.2 %     2,778       9.4 %     2,510       8.9 %
Other restaurant operating costs     1,507       14.6 %     1,250       12.0 %     4,283       14.5 %     3,607       12.9 %
Restaurant-level operating profit (a non-GAAP measure)   $ 1,157       11.2 %   $ 1,723       16.5 %   $ 2,754       9.3 %   $ 3,987       14.2 %
                                                                 
Total restaurant-level operating profit (a non-GAAP measure)   $ 4,970       13.5 %   $ 5,634       14.9 %   $ 13,226       12.4 %   $ 14,078       13.3 %

  

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

 

  5  

 

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

 

Reconciliation of Income from Operations to Non-GAAP Restaurant-Level Operating Profit

(In thousands)

 

    Third Quarter     Year-to-Date  
    2025     2024     2025     2024  
    (13 weeks)     (13 weeks)     (40 weeks)     (39 weeks)  
Income from operations   $ 1,233     $ 1,228     $ 796     $ 1,498  
Less:                                
Franchise and other revenues     156       208       663       601  
Add:                                
General and administrative     2,174       2,688       7,340       7,824  
Depreciation and amortization     982       960       2,996       2,813  
Advertising costs     741       749       2,310       2,665  
Litigation contingencies     -       -       -       (332 )
Impairment of long-lived assets     -       199       494       199  
(Gain) loss on restaurant asset
equipment sales
    (4 )     18       (55 )     12  
Preopening costs     -       -       8       -  
Restaurant-level operating profit   $ 4,970     $ 5,634     $ 13,226     $ 14,078  

 

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 above set forth certain unaudited information for the current and prior year fiscal quarters for fiscal 2025 and fiscal 2024, expressed as a percentage of total revenues, except for the components of restaurant operating costs, which are expressed as a percentage of restaurant revenues.

 

  6  

 

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

 

    Fiscal Third Quarter     Year-to-Date  
    July 1, 2025     June 25, 2024     July 1, 2025     June 25, 2024  
    (13 weeks)     (13 weeks)     (40 weeks)     (39 weeks)  
Calculation of Adjusted EBITDA:                        
Net Income, as reported   $ 1,487     $ 1,321     $ 1,027     $ 1,383  
Depreciation and amortization3     976       959       2,997       2,817  
Interest expense, net     51       27       153       101  
Provision for income taxes     (363 )     (197 )     (309 )     (198 )
EBITDA     2,151       2,110       3,868       4,103  
Non-cash stock-based compensation     25       28       90       106  
Preopening expense     -       -       8       -  
Asset impairment     -       199       494       199  
(Gain) loss on restaurant and equipment asset sales3     (5 )     18       (58 )     12  
Litigation contingencies     -       -       -       (332 )
Adjusted EBITDA   $ 2,171     $ 2,355     $ 4,402     $ 4,088  

 

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.

 

 

                                                                          

3 Depreciation and amortization and (gain) loss on restaurant and equipment asset sales have been adjusted for any amounts attributable to non-controlling interests.

 

 

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