Good Times Restaurants shares fall 10.77% intraday after Q4 earnings show 5.1% revenue drop, same-store sales declines, and rising food/labor costs.

Good Times Restaurants Inc. fell 10.77% intraday after reporting Q4 2025 earnings marked by a 5.1% revenue decline to $34 million, a net loss of $3,000, and negative adjusted EBITDA of $74,000. The earnings call highlighted worsening same-store sales declines (6.6% for Good Times, 4.6% for Bad Daddy’s), record-high beef prices, rising labor costs (35.7% for Bad Daddy’s, 35.9% for Good Times), and operational challenges from reduced traffic and a closed location. While management cited sequential sales improvements and strategic initiatives like menu pricing and cook-to-order processes, the results underscored structural margin pressures from inflation and competitive pricing. The stock’s sharp intraday drop reflects investor skepticism about the company’s ability to offset cost inflation and restore profitability amid a challenging quick-service burger sector.