Good Times Restaurants Inc. Q3 2025 Earnings Call Transcript

Good Times Restaurants Inc. (GTIM) reported Q3 2025 earnings with a focus on forward-looking statements, risks, and uncertainties. The company discussed market risks, staffing constraints, supply chain issues, inflation, and economic uncertainties. The conference call highlighted the impact of pandemics, public health emergencies, and increased competition on the business.

Good Times Restaurants Inc. (NASDAQ: GTIM) reported its Q3 2025 earnings, showcasing a mixed performance with notable sequential improvements in same-store sales at Bad Daddy's and a 10 basis point improvement in restaurant level operating profit. However, the company faced challenges, particularly at its Good Times brand, where same-store sales and profitability declined sequentially compared to the second quarter.

The earnings call highlighted several forward-looking statements and risks, including market price volatility, supply chain disruptions, inflation, and increased competition. The company also noted the impact of staffing constraints and public health emergencies on its operations. Additionally, the company announced the hiring of a new marketing leader, Jason Murphy, to enhance advertising and promotion strategies.

Bad Daddy's, one of the company's concepts, experienced mid-single-digit negative comps during July, followed by a recent modest improvement. The company attributed this to the success of its Smash Patty burgers and the impact of beef prices. Despite these challenges, Bad Daddy's maintained strong cost controls, resulting in a restaurant-level operating profit of approximately $3.8 million for the quarter.

Good Times, on the other hand, saw a 9% decrease in same-store sales and a decline in profitability. The company attributed this to reduced customer traffic and a negative mix shift, partially offset by menu price increases. The average menu price remained approximately the same as the prior year quarter.

The company also discussed its strategy to offset input cost inflation by considering incremental menu price increases. Additionally, the company will launch a new campaign centered around Colorado Native Burgers to drive incremental sales and traffic.

In summary, Good Times Restaurants Inc. reported mixed performance in Q3 2025, facing various market risks and uncertainties. The company's strategic efforts to enhance marketing and cost controls may help mitigate these challenges moving forward.

References:
[1] https://seekingalpha.com/article/4811833-good-times-restaurants-inc-gtim-q3-2025-earnings-call-transcript