Good Times Restaurants Inc.
Key Highlights
- Total sales decreased by 0.5% to $141.63 million in fiscal 2025, despite an extra week, indicating lower weekly sales.
- Both Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard experienced same store sales declines of 2.1% and 5.0% respectively.
- The company ended fiscal 2025 with $2.6 million in cash, slightly exceeding its $2.3 million in long-term debt.
Financial Analysis
Good Times Restaurants Inc. Annual Report - How They Did This Year
Good Times Restaurants Inc. operates two distinct restaurant chains: Bad Daddy’s Burger Bar, a full-service establishment known for its specialty burgers, and Good Times Burgers & Frozen Custard, a quick drive-thru option focusing on natural burgers, fries, and frozen custard.
The past fiscal year, which concluded on September 30, 2025 (referred to as fiscal 2025), spanned 53 weeks, one week longer than the 52 weeks in the previous year (fiscal 2024).
Business Performance: A Mixed Bag
Overall Sales: Total sales, or "net revenues," for fiscal 2025 were $141.63 million. This represents a $750,000, or 0.5%, decrease from the $142.38 million reported in fiscal 2024. Despite the extra week in fiscal 2025, sales per week were lower than the previous year.
Performance at Existing Restaurants (Same Store Sales): Same store sales, a measure of how established locations performed compared to the prior year, showed declines for both brands:
- Bad Daddy’s Burger Bar: Sales at established Bad Daddy's locations decreased by 2.1% in fiscal 2025.
- Good Times Burgers & Frozen Custard: Established Good Times restaurants experienced a larger drop, with sales decreasing by 5.0% in fiscal 2025.
Restaurant Footprint: As of the end of fiscal 2025, the company operated:
- Bad Daddy’s: 38 restaurants across seven states (North Carolina, Colorado, Georgia, South Carolina, Alabama, Tennessee, and Oklahoma). Most are company-owned, with one licensed location in the Charlotte Douglas International Airport.
- Good Times: 30 restaurants, primarily in Colorado (28 locations). This includes two franchised "dual brand" restaurants in Wyoming that also feature Taco John's.
Financial Health Check
At the close of fiscal 2025, Good Times Restaurants Inc. held $2.6 million in cash on hand and had $2.3 million in long-term debt. This indicates the company had slightly more cash than long-term debt.
What's Affecting Business
The company identified several challenges impacting its performance:
- Economic Headwinds: The overall economy remains unpredictable. The company expressed concern that if costs rise again, they might struggle to increase menu prices sufficiently without deterring customers. The restaurant industry, particularly casual dining and quick-service burger segments, has recently experienced weaker sales and fewer customers, with competitors engaging in aggressive price cutting.
- Supply Chain & Rising Costs: Global events continue to affect supply chains, potentially leading to product availability issues and increased costs for food and packaging. Additionally, recent changes in trade policies, such as tariffs, have already raised the cost of some ingredients and supplies.
These factors point to a challenging operating environment for the company, making it more difficult to grow sales and manage expenses.
Key Takeaways for Investors:
- Sales Decline: Despite an extra week in the fiscal year, total sales decreased by 0.5%, indicating lower weekly sales performance.
- Same-Store Sales Weakness: Both Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard saw declines in sales at their established locations (2.1% and 5.0% respectively).
- Financial Position: The company ended fiscal 2025 with $2.6 million in cash, slightly exceeding its $2.3 million in long-term debt.
- Operating Challenges: The company faces ongoing challenges from economic uncertainty, potential cost increases, supply chain disruptions, and competitive pricing pressures within the restaurant industry.
Risk Factors
- Economic headwinds, including potential cost increases and competitive price cutting, are impacting sales and customer traffic.
- Supply chain disruptions, rising costs for food and packaging, and recent tariffs are increasing operational expenses.
Why This Matters
This annual report is crucial for investors as it highlights a concerning trend in Good Times Restaurants Inc.'s core business. Despite an extra week in fiscal 2025, total sales decreased, signaling a decline in weekly revenue generation. More critically, both Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard experienced same-store sales declines. This metric is a vital indicator of a restaurant chain's health, as it reflects the performance of established locations. Consistent declines here suggest underlying issues with customer traffic, pricing power, or competitive pressures, rather than just a lack of new store openings.
While the company's cash position ($2.6 million) slightly exceeds its long-term debt ($2.3 million), this modest financial buffer might be tested by the significant operational challenges outlined. Economic uncertainty, persistent supply chain disruptions, and rising costs for food and packaging directly threaten profit margins. The aggressive price cutting by competitors further exacerbates these pressures, making it difficult for Good Times Restaurants to maintain market share and profitability. For investors, this report signals a challenging operating environment where growth is stalled and margins are under threat, requiring careful consideration of the company's ability to adapt.
What Usually Happens Next
Following the release of this 10-K annual report, investors should anticipate a period of analysis from financial institutions and market commentators. The company will likely hold an earnings call in the coming weeks or months to discuss these results in greater detail, provide forward-looking guidance, and address questions from analysts. This call will be a critical opportunity for management to elaborate on their strategies to combat declining sales, rising costs, and competitive pressures. The next significant financial disclosure will be the fiscal 2026 first-quarter 10-Q report, which will offer the first glimpse into whether the negative trends from fiscal 2025 are persisting or showing signs of improvement.
Beyond the immediate financial reports, investors should closely monitor several key areas. Firstly, pay attention to any announcements regarding menu innovations, marketing campaigns, or operational efficiencies aimed at boosting same-store sales and attracting more customers to both Bad Daddy’s and Good Times locations. Secondly, observe how the company manages its cost structure in the face of ongoing supply chain issues and inflation; successful cost control will be vital for protecting margins. Finally, keep an eye on the broader restaurant industry trends, especially in the casual dining and quick-service burger segments, to gauge the competitive landscape and the effectiveness of Good Times Restaurants' strategies relative to its peers.
Financial Metrics
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Document Information
SEC Filing
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December 30, 2025 at 08:53 AM
This AI-generated analysis is for informational purposes only and does not constitute financial or investment advice. Always consult with qualified professionals and conduct your own research before making investment decisions.