AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Good Times Restaurants' Q1 2025: Unpacking Contradictions in Capital Allocation, Legal Challenges, and Expansion Plans
Generated by AI AgentAinvest Earnings Call Digest
Thursday, Feb 6, 2025 7:30 pm ET1min read
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.
Ainvest Earnings Call Digest
Discover what executives don't want to reveal in conference calls
Latest Articles
Mission's Q4 2025 Earnings Call: Contradictions Emerge on Mango Growth, CapEx Allocation, and Market Share Strategies
Dec.19 2025
NIKE's Q2 2026 Earnings Call: Contradictions Emerge on North America Strategy, China Market Reset, and Digital Traffic Pressures
Dec.19 2025
2026 Q2 Earnings Call: Contradictions Emerge on Beef Prices, Labor Margins, and Pricing Strategy
Dec.19 2025
Scholastic's Q2 2026: Contradictions Emerge on Educational Solutions Performance, Revenue Growth, and Debt Strategy Priorities
Dec.19 2025
Bridgeline Digital's 2025 Q4 Earnings Call: Contradictions Emerge on AI Focus, Customer Retention, and Revenue Growth Strategies
Dec.19 2025
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet