Good Times Restaurants' Q1 2025: Unpacking Contradictions in Capital Allocation, Legal Challenges, and Expansion Plans
Generado por agente de IAAinvest Earnings Call Digest
jueves, 6 de febrero de 2025, 7:30 pm ET1 min de lectura
GTIM--
These are the key contradictions discussed in Good Times Restaurants Inc.'s latest 2025Q1 earnings call, specifically including: Share Repurchase Program and Capital Allocation, Legal Case Update, Menu Pricing Strategy, and Bad Daddy's Expansion Plans:
Bad Daddy's Sales and Menu Engineering:
- Bad Daddy's posted 1.5% same store sales increase in Q1 2025, driven by successful seasonal specials like the classic smash and smokehouse smash burgers.
- The introduction of smashed patty burgers helped offset roughly half of the year-over-year menu price increase of 4.5%.
Labor Cost Control and Productivity:
- Bad Daddy's labor costs decreased by 70 basis points to 35.1%, driven by higher sales leveraging fixed labor costs, increased menu pricing, and improved labor productivity.
- The increase in menu pricing was not sufficient to cover the impact of Colorado's minimum wage increase, which may affect year-over-year labor costs in the second quarter.
Good Times Sales and Cost Challenges:
- Good Times same store sales remained flat year-over-year, with an average menu price increase of 3.9% not adequately covering cost increases.
- Elevated costs, including food, packaging, occupancy, and other operating costs, led to a decrease in restaurant level operating profit as a percent of sales to 8.6%.
Weather and Sales Impact:
- January 2025 sales were significantly reduced due to severe weather, particularly in Colorado and the southeastern US, impacting Bad Daddy's and Good Times sales.
- Bad Daddy's experienced a 5.5% same store sales decline during the first four weeks of the quarter, while Good Times saw a decline of over 7%.
Capital Allocation and Franchise Strategy:
- The company continues to explore new Bad Daddy's locations but remains selective due to rent and economic considerations.
- The company has slowed its franchise repurchases, instead focusing on renovating the Good Times brand and maintaining its share repurchase program.
Bad Daddy's Sales and Menu Engineering:
- Bad Daddy's posted 1.5% same store sales increase in Q1 2025, driven by successful seasonal specials like the classic smash and smokehouse smash burgers.
- The introduction of smashed patty burgers helped offset roughly half of the year-over-year menu price increase of 4.5%.
Labor Cost Control and Productivity:
- Bad Daddy's labor costs decreased by 70 basis points to 35.1%, driven by higher sales leveraging fixed labor costs, increased menu pricing, and improved labor productivity.
- The increase in menu pricing was not sufficient to cover the impact of Colorado's minimum wage increase, which may affect year-over-year labor costs in the second quarter.
Good Times Sales and Cost Challenges:
- Good Times same store sales remained flat year-over-year, with an average menu price increase of 3.9% not adequately covering cost increases.
- Elevated costs, including food, packaging, occupancy, and other operating costs, led to a decrease in restaurant level operating profit as a percent of sales to 8.6%.
Weather and Sales Impact:
- January 2025 sales were significantly reduced due to severe weather, particularly in Colorado and the southeastern US, impacting Bad Daddy's and Good Times sales.
- Bad Daddy's experienced a 5.5% same store sales decline during the first four weeks of the quarter, while Good Times saw a decline of over 7%.
Capital Allocation and Franchise Strategy:
- The company continues to explore new Bad Daddy's locations but remains selective due to rent and economic considerations.
- The company has slowed its franchise repurchases, instead focusing on renovating the Good Times brand and maintaining its share repurchase program.
Divulgación editorial y transparencia de la IA: Ainvest News utiliza tecnología avanzada de Modelos de Lenguaje Largo (LLM) para sintetizar y analizar datos de mercado en tiempo real. Para garantizar los más altos estándares de integridad, cada artículo se somete a un riguroso proceso de verificación con participación humana.
Mientras la IA asiste en el procesamiento de datos y la redacción inicial, un miembro editorial profesional de Ainvest revisa, verifica y aprueba de forma independiente todo el contenido para garantizar su precisión y cumplimiento con los estándares editoriales de Ainvest Fintech Inc. Esta supervisión humana está diseñada para mitigar las alucinaciones de la IA y garantizar el contexto financiero.
Advertencia sobre inversiones: Este contenido se proporciona únicamente con fines informativos y no constituye asesoramiento profesional de inversión, legal o financiero. Los mercados conllevan riesgos inherentes. Se recomienda a los usuarios que realicen una investigación independiente o consulten a un asesor financiero certificado antes de tomar cualquier decisión. Ainvest Fintech Inc. se exime de toda responsabilidad por las acciones tomadas con base en esta información. ¿Encontró un error? Reportar un problema
SOBRE NOSOTROS
Nuestra historiaAutores de noticiasBase de conocimientosPolítica de privacidadTérmino de usoDescargo de responsabilidad de corretaje de tercerosTérminos de uso de AIMEDivulgaciones de riesgos de AInvest AICarrerasCONTÁCTENOS
Email: support@ainvest.com
Address: 330 7th Ave, Suite 902, New York, NY 10001, US
Copyright 2026 AInvest Fintech Inc. All rights reserved.
Comentarios
Aún no hay comentarios