Good Times Restaurants anticipates a 1.7% average menu price hike at Bad Daddy's in Q1 2026, focusing on value promotions.
Management Insights: Good Times Restaurants Inc. faced challenges in Q4 2025, with soft sales and increased costs, particularly from high ground beef prices. Despite a 6.6% decline in same-store sales at Good Times, there was a sequential improvement noted, and operational changes are being implemented to enhance performance.
Financial Performance: Total revenues decreased by 5.1% to $34 million in Q4, with Bad Daddy’s and Good Times both experiencing declines in same-store sales. The company reported a net loss of $3,000 for the quarter, contrasting with a profit in the same period last year.
Outlook and Strategy: Management is optimistic about early Q1 trends, focusing on operational improvements and targeted promotions rather than broad discounting. They anticipate modest price increases and are committed to enhancing the customer experience through initiatives like a cook-to-order process and a refreshed mobile app.
Risks and Challenges: The company faces several risks, including market price volatility, staffing constraints, and inflationary pressures. Management is cautious about large-scale discounting and is instead focusing on targeted promotions to maintain value perception in a competitive market.
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- Sales Growth Trend: Despite ongoing negative comps, both Good Times and Bad Daddy's reported sequential improvement in same-store sales, with Ryan Zink noting a slight year-over-year increase in net income, indicating business resilience even with one less week in the fiscal calendar.
- Cost Control Effectiveness: Keri August highlighted that food and beverage costs decreased to 30.2%, a 130 basis point drop from last year, while menu price increases and cost controls improved margins, reflecting the company's adaptability in challenging conditions.
- Loyalty Program Enhancement: The newly launched loyalty program increased attachment rates from 3%-4% to over 7%, with top-performing restaurants exceeding 10%, which not only enhances customer loyalty but also lays a foundation for future sales growth.
- Future Outlook: Management expects continued improvement in same-store sales trends into Q2, planning a 1.1% menu price increase at Bad Daddy's, demonstrating the company's keen responsiveness to market dynamics and flexible pricing strategies.
- Earnings Performance: Good Times Restaurants reported a GAAP EPS of $0.02 for Q1, with revenue at $32.7 million, reflecting a 10% year-over-year decline, indicating resilience amidst market challenges.
- Stock Price Reaction: Following the earnings report, Good Times Restaurants' shares rose by 5.93%, demonstrating investor confidence in the company's future growth potential despite the revenue decline.
- Menu Price Adjustment: The company anticipates an average menu price increase of 1.7% at Bad Daddy's in Q1 2026 while targeting value promotions to attract customers and boost sales.
- Future Outlook: Despite the revenue drop in Q1, Good Times Restaurants is actively adjusting its strategies to respond to market changes, aiming to restore growth through price adjustments and promotional activities.

- Sales Weakness: Good Times Restaurants Inc. reported a net income of only $6 for FY 2025, reflecting a decline from the previous year and indicating overall sales weakness across both Bad Daddy's and Good Times brands, particularly in the Colorado market.
- Same Store Sales Improvement: Despite the overall sales decline, Bad Daddy's demonstrated greater resilience in markets outside Colorado, with same-store sales outperforming consolidated results by nearly 100 basis points for FY 2025, highlighting the brand's potential in other markets.
- Advertising Strategy Adjustment: The company is adjusting its advertising and promotional strategies, including launching a new branding campaign aimed at effectively reaching customers to drive improved traffic and sales at its restaurants.
- Optimistic Future Outlook: CEO Ryan M. Zink expressed optimism for FY 2026 performance despite the challenges faced in FY 2025, planning to enhance brand competitiveness by better understanding customer needs and swiftly adapting to meet them.

Management Insights: Good Times Restaurants Inc. faced challenges in Q4 2025, with soft sales and increased costs, particularly from high ground beef prices. Despite a 6.6% decline in same-store sales at Good Times, there was a sequential improvement noted, and operational changes are being implemented to enhance performance.
Financial Performance: Total revenues decreased by 5.1% to $34 million in Q4, with Bad Daddy’s and Good Times both experiencing declines in same-store sales. The company reported a net loss of $3,000 for the quarter, contrasting with a profit in the same period last year.
Outlook and Strategy: Management is optimistic about early Q1 trends, focusing on operational improvements and targeted promotions rather than broad discounting. They anticipate modest price increases and are committed to enhancing the customer experience through initiatives like a cook-to-order process and a refreshed mobile app.
Risks and Challenges: The company faces several risks, including market price volatility, staffing constraints, and inflationary pressures. Management is cautious about large-scale discounting and is instead focusing on targeted promotions to maintain value perception in a competitive market.
- Market Sentiment Improvement: The CNN Money Fear & Greed Index rose to 56 on Monday, entering the 'Greed' zone, indicating increased investor confidence that could drive further stock market gains.
- Strong Stock Market Performance: The Dow Jones index gained approximately 228 points on Monday, closing at 48,362.68, while the S&P 500 rose 0.64% for the third consecutive trading day, reflecting a positive overall market trend.
- Acquisition Proposal Revealed: UniFirst Corp. received a cash acquisition proposal from Cintas Corp. at $275 per share, a price that may prompt a reevaluation of UniFirst's future value in the market.
- Economic Data Update: The Chicago Fed National Activity Index improved from -0.31 to -0.21 in September, suggesting a slight uptick in economic activity that could support the market and bolster investor confidence.








