Good Times' Q4 2025: Contradictions Emerge on Cash Accumulation vs. Share Repurchases, Operational Performance, and Sales & Earnings Improvement Expectations

Date of Call: December 23, 2025

Financials Results

• Revenue: $34.0M for Q4, down ~5.1% YOY; FY 2025 revenue $141.6M, down ~0.5% vs FY2024
• EPS: $0.00 per share net loss (approximately $3,000) in Q4, versus $0.02 EPS in prior-year quarter

Guidance:

• Q1 FY2026 expected to show sequential improvement in same-store sales and adjusted EBITDA.
• Average year-over-year menu price increase of ~1.7% expected for Q1; no significant across-the-board price increases planned in next 6 months.
• Expect food & beverage costs as a percent of sales to improve quarter-over-quarter as input costs have decreased into Q1.
• Anticipate general & administrative expenses of ~6%–7% of revenues in fiscal 2026.

Business Commentary:

* Challenges in Q4 and Early Q1 Performance: - Good Times Restaurants reported a 5.1% decrease in total revenues for Q4 2025, with fiscal year 2025 sales down 0.5% compared to the record year 2024. - The decline was primarily due to soft sales and higher costs, especially the significantly elevated cost of ground beef.

• Same-Store Sales Trends:
• Same-store sales at Good Times decreased by 6.6% in Q4 2025, though this represented a 240 basis point sequential improvement from Q3.

• Bad Daddy's same-store sales were down 4.6% in Q4, but improved in Q1 2026, with a 1.6% decline through the first 11 weeks compared to the prior year.

• Operational Improvements and Cost Management:

• The company is addressing cost increases by implementing cook-to-order processes and realigning general manager schedules to better align with peak revenue periods.

• They are also focusing on improving restaurant-level training and driving operational efficiencies to mitigate the impact of higher input costs.

• Pricing Strategy and Promotional Activities:

• The company has taken minimal menu price increases, with only a 1% increase at Good Times since January 2024, and a blended year-over-year price increase of less than 1% for Bad Daddy's.

• They are introducing targeted value promotions and loyalty program enhancements to address value concerns and differentiate themselves from competitors.

• Financial Performance and Outlook:

• Although Q4 2025 saw a $74,000 negative adjusted EBITDA, the company anticipates improvement in same-store sales and adjusted EBITDA for Q1 2026.
• The improvement outlook is based on a robust product and promotional roadmap, operating improvements, and a focus on delivering memorable guest experiences.

Sentiment Analysis:

Overall Tone: Neutral

• Management called Q4 "a challenging" quarter with "record high ground beef prices" pressuring profitability, but said they are "committed to immediate improvement" and that Q1 is "shaping to mark improvement in same-store sales and in adjusted EBITDA."

Contradiction Point 1

Cash Accumulation and Share Repurchases

It involves the company's financial strategy, specifically regarding cash accumulation and share repurchases, which are critical for investors and stakeholders.

Are there any questions at this time? - Operator

2025Q4: We are being reserved on special project CapEx to accumulate more cash. We have interest in share repurchases at the current low stock price, but our priority is building cash reserves. - Ryan Zink(CEO)

Given your focus on cash accumulation, do you have a timeline for accelerating share repurchases at the current share price? - Unknown Analyst (Indiscernible)

2025Q3: We will continue to selectively buy shares. If we accelerate repurchases, it will likely be in fiscal 2026 and possibly the second quarter of fiscal 2026. This is subject to change based on macro factors and internal forecasting. - Ryan Zink(CEO)

Contradiction Point 2

Operational Performance and Strategic Focus

It involves the company's operational performance and strategic focus, which are crucial for investors and stakeholders to gauge the company's progress and future outlook.

No questions at this time? - Operator

2025Q4: Although the fourth quarter was a difficult one for our concepts, the first quarter of fiscal 2026 is shaping to mark improvement in same-store sales and in adjusted EBITDA. - Ryan Zink(CEO)

Can you explain the underperformance of the Good Times concept in Q3? What specific issues were identified, and what caused them? - Unknown Analyst (Indiscernible)

2025Q3: The third quarter of fiscal year 2025 saw our same-store sales at Good Times improve by 4.2% and adjusted EBITDA of $2.2 million. - Ryan Zink(CEO)

Contradiction Point 3

Sales and Traffic Improvement Expectations

It involves differing expectations regarding sales and traffic improvement, which are critical indicators for investor expectations and company growth prospects.

And we have no questions at this time. - Operator

2025Q4: Although the fourth quarter was a difficult one for our concepts, the first quarter of fiscal 2026 is shaping to mark improvement in same-store sales and in adjusted EBITDA. - Ryan Zink(CEO)

What are your closing remarks? - Operator

2025Q2: This was a tough quarter, and I expect that the operating environment in the third fiscal quarter will be equally challenging. - Ryan Zink(CEO)

Contradiction Point 4

Sales and Earnings Improvement Expectations

It involves differing expectations for the improvement in sales and adjusted EBITDA, which are key performance indicators for investors.

Are there any questions at this time? - Operator

2025Q4: The first quarter of fiscal 2026 is shaping to mark improvement in same-store sales and in adjusted EBITDA. - Ryan Zink(CEO)

Are there plans for new Bad Daddy's locations and when can we expect them to open? - Unidentified Analyst

2025Q1: Fiscal 2025's guidance assumes sales of $220 million to $224 million. - Ryan Zink(CEO)