Good Times Restaurants Inc.

What they do

Good Times Restaurants Inc. operates Bad Daddy's Burger Bar, a full-service specialty burger bar concept, and Good Times Burgers & Frozen Custard, a quick-service drive-thru concept focused on all-natural burgers, fries, and frozen custard. As of June 30, 2026, the company operated, franchised, or licensed 37 Bad Daddy's restaurants and 28 Good Times restaurants, primarily in Colorado for the Good Times brand and across seven states for Bad Daddy's. The company also licenses the Bad Daddy's brand to a third-party operator at Charlotte Douglas International Airport.

Revenue drivers

• Bad Daddy's Burger Bar — Full-service specialty burger bar segment with company-owned restaurants and one licensed airport location; fiscal 2025 same store sales decreased 2.1%.
• Good Times Burgers & Frozen Custard — Quick-service drive-thru concept with company-owned and franchised restaurants, primarily in Colorado; fiscal 2025 same store sales decreased 5.0%, though fiscal 2026 third quarter same store sales increased 0.6%.
• Franchise and licensing — The company franchises Good Times restaurants and licenses the Bad Daddy's brand to a third-party airport operator; specific revenue contribution is not disclosed in the excerpts.

Recent performance

For the fiscal 2026 third quarter ended June 30, 2026, total revenues decreased 5.0% to $35.2 million compared to the fiscal 2025 third quarter. Same store sales for company-owned Bad Daddy's restaurants decreased 2.3% and Good Times restaurants increased 0.6% for the quarter; year-to-date, same store sales decreased 1.5% at Bad Daddy's and 1.0% at Good Times. Net income attributable to common shareholders was $1.9 million for the quarter, and Adjusted EBITDA was $2.5 million. The company ended the quarter with $3.6 million in cash and $0.3 million of long-term debt. For fiscal 2025, net revenues decreased 0.5% to $141.6 million, and net income was $1.0 million.

Strategy

The company believes there are unit growth opportunities for both concepts but is executing growth with increased scrutiny on real estate selection and a more conservative approach to leverage. At Good Times, the company launched a $2 Bambino campaign systemwide in June 2026 after testing, which management said drove immediate opt-in and a lift in same store sales. At Bad Daddy's, management is testing several value-oriented promotions to turn around traffic trends. The company expects total overall profitability in the fourth quarter of fiscal 2026 to improve year-over-year due to improved cost management and improved sales performance at Good Times.

Risks

• Same store sales declines — Bad Daddy's same store sales decreased 2.1% in fiscal 2025 and 2.3% in the fiscal 2026 third quarter, while Good Times decreased 5.0% in fiscal 2025.
• Competitive discounting — Competitors in the QSR burger segment have been aggressively discounting, and continued discounting may adversely affect revenues and profitability.
• Inflation and cost pressures — Inflation has negatively affected labor and product input costs, and the company may not be able to pass along higher costs through menu price increases without hurting consumer demand.
• Supply chain and tariffs — Worldwide product supply chains have been impacted by international conflicts, and tariffs implemented or threatened could result in higher costs for products sourced outside the United States.

Outlook

Management expects total overall company profitability in the fourth quarter of fiscal 2026 to improve on a year-over-year basis from fiscal 2025 due to improved cost management and improved sales performance at the Good Times brand. The company said Good Times same stores have turned positive, a trend that continued into the fourth quarter, while Bad Daddy's sales continue to see headwinds. Management is testing value-oriented promotions at Bad Daddy's to turn around traffic trends.