Good Times Restaurants Inc. (Nasdaq: GTIM), operator ofBad Daddy’s Burger Bar Good Times Burgers & Frozen Custard

Highlights of the Company’s financial results include:

Ryan M. Zink, the Company’s Chief Executive Officer, said, “The second half of the 2025 fiscal year marked weakness in sales at both brands though Bad Daddy’s exhibited greater resilience in markets outside of Colorado, where for both the year and the quarter same store sales performed better than the consolidated results by nearly 100 basis points and better than the Colorado results by nearly 300 basis points. We have seen sequential Same Store Sales improvement during the first quarter of fiscal 2026 at both concepts, and at Bad Daddy’s, most specifically in the Colorado restaurants. Our Good Times team is laser-focused on increasing Same Store Sales while at the same time improving restaurant-level margins, which we expect both in food and beverage cost as well as in restaurant labor costs.”

“We have adjusted our advertising and promotional strategies at both brands and will continue to fine-tune those to better reach our guests and drive improved traffic to our restaurants. Most notably, we have included streaming video advertising in the media mix at both brands and launched a new branding campaign for Good Times,Colorado Native Burgers

Mr. Zink concluded, “I am optimistic that fiscal 2026 will see improved performance for both brands after a difficult 2025. Our leadership teams are committed to delivering better results that we believe starts with understanding our guests’ interactions with our brands while taking swift action to meet their changing needs and communicate the superior food, beverage, and service that both of our brands provide compared to our competitors.”

Conference Call

Management will host a conference call to discuss its fiscal fourth quarter and year ended September 30, 2025, financial results on Tuesday, December 23, 2025, at 5:00 p.m. ET. Hosting the call will be Ryan M. Zink, its Chief Executive Officer and Keri A. August, its Senior Vice President of Finance and Accounting.

The conference call can be accessed live over the phone by dialing 888-210-2831, access code 3024033. The conference call will also be webcast live from the Company's corporate websitewww.goodtimesburgers.com

Good Times Restaurants Inc. (Nasdaq: GTIM)

Good Times Restaurants Inc. owns, operates, and licenses 38 Bad Daddy’s Burger Bar restaurants through its wholly owned subsidiaries. Bad Daddy’s Burger Bar is a full-service “small box” restaurant concept featuring a chef-driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar and a focus on a selection of craft beers in a high-energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly owned subsidiaries, Good Times Restaurants Inc. owns, operates and franchises 30 Good Times Burgers & Frozen Custard restaurants primarily in Colorado. Good Times is a regional quick-service concept featuring 100% all-natural burgers and chicken sandwiches, signature wild fries, green chili breakfast burritos and fresh frozen custard desserts.

Forward Looking Statements

This press release contains forward looking statements within the meaning of federal securities laws. The words “intend,” “may,” “believe,” “will,” “should,” “anticipate,” “expect,” “seek”, “plan” and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from results expressed or implied by the forward-looking statements. Such risks and uncertainties include, among other things, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company, the disruption to our business from pandemics and other public health emergencies, the impact and duration of staffing constraints at our restaurants, the impact of supply chain constraints and the current inflationary environment, the uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants, delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, other general economic and operating conditions, risks associated with the acquisition of additional restaurants, the adequacy of cash flows and the cost and availability of capital or credit facility borrowings to provide liquidity, changes in federal, state, or local laws and regulations affecting the operation of our restaurants, including minimum wage and tip credit regulations, and other matters discussed under the Risk Factors section of Good Times’ Annual Report on Form 10-K for the fiscal year ended September 24, 2024 filed with the SEC, and other filings with the SEC.

Category: Financial

The Company believes that restaurant-level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. The Company defines restaurant-level operating profit to be restaurant revenues minus restaurant-level operating costs, excluding restaurant closures and impairment costs. The measure includes restaurant-level occupancy costs, which include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance and other property costs, but excludes depreciation. The measure excludes depreciation and amortization expense, substantially all of which is related to restaurant level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes selling, general and administrative costs, and therefore excludes occupancy costs associated with selling, general and administrative functions, and pre-opening costs. The Company excludes restaurant closure costs as they do not represent a component of the efficiency of continuing operations. Restaurant impairment costs are excluded because, like depreciation and amortization, they represent a non-cash charge for the Company’s investment in its restaurants and not a component of the efficiency of restaurant operations. Restaurant-level operating profit is not a measurement determined in accordance with generally accepted accounting principles (“GAAP”) and should not be considered in isolation, or as an alternative, to income (loss) from operations or net income (loss) as indicators of financial performance. Restaurant-level operating profit as presented may not be comparable to other similarly titled measures of other companies. The tables above set forth certain unaudited information for the current and prior year fiscal quarters and year-to-date periods for fiscal 2025 and fiscal 2024, expressed as a percentage of total revenues, except for the components of restaurant operating costs, which are expressed as a percentage of restaurant revenues.

Adjusted EBITDA is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income (loss) or cash flow from operations, as determined by GAAP, and our calculation thereof may not be comparable to that reported by other companies. This measure is presented because we believe that investors' understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for evaluating our ongoing results of operations.

Adjusted EBITDA is calculated as net income (loss) before interest expense, provision for income taxes and depreciation and amortization and further adjustments to reflect the additions and eliminations presented in the table above.

Adjusted EBITDA is presented because: (i) we believe it is a useful measure for investors to assess the operating performance of our business without the effect of non-cash charges such as depreciation and amortization expenses and asset disposals, closure costs and restaurant impairments, and (ii) we use adjusted EBITDA internally as a benchmark for certain of our cash incentive plans and to evaluate our operating performance or compare our performance to that of our competitors. The use of adjusted EBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based on our GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. Companies within our industry exhibit significant variations with respect to capital structures and cost of capital (which affect interest expense and income tax rates) and differences in book depreciation of property, plant and equipment (which affect relative depreciation expense), including significant differences in the depreciable lives of similar assets among various companies. Our management believes that Adjusted EBITDA facilitates company-to-company comparisons within our industry by eliminating some of these foregoing variations. Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies, and our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by excluded or unusual items.

View source version on businesswire.com:https://www.businesswire.com/news/home/20251223527810/en/

Good Times Restaurants Inc. Unaudited Supplemental Information (In thousands, except per share amounts)

	Fiscal Quarter Ended						Fiscal Year Ended
	13 Weeks			13 Weeks			53 Weeks			52 Weeks
	September 30, 2025			September 24, 2024			September 30, 2025			September 24, 2024
NET REVENUES:
Restaurant sales	$	33,640		$	35,602		$	140,614		$	141,555
Franchise and other revenues		353			224			1,016			825
Total net revenues		33,993			35,826			141,630			142,380

RESTAURANT OPERATING COSTS:
Food and packaging costs		10,689			11,080			43,887			43,704
Payroll and other employee benefit costs		12,021			12,164			49,277			48,689
Restaurant occupancy costs		2,472			2,389			10,230			10,087
Other restaurant operating costs		5,201			5,260			20,737			20,288
Preopening costs		-			-			8			-
Depreciation and amortization		958			942			3,954			3,755
Total restaurant operating costs		31,341			31,835			128,093			126,523

General and administrative costs		2,394			2,757			9,734			10,581
Advertising costs		1,005			863			3,315			3,528
Impairment of long-lived assets		133			499			627			698
(Gain) loss on lease terminations and asset disposals		(414	)		(10	)		(469	)		2
Litigation contingencies		-			-			-			(332	)

(LOSS) INCOME FROM OPERATIONS:		(466	)		(118	)		330			1,380

OTHER INCOME (EXPENSES):
Interest and other expense, net		(43	)		(24	)		(196	)		(125	)
Other income		-			-			140			-
Total other income (expenses)		(43	)		(24	)		(56	)		(125	)

NET (LOSS) INCOME BEFORE INCOME TAXES:		(509	)		(142	)		274			1,255
Provision for income taxes		515			426			824			624

NET INCOME:	$	6		$	284		$	1,098		$	1,879
Income attributable to non-controlling interests		(9	)		(54	)		(74	)		(266	)

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(3	)	$	230		$	1,024		$	1,613

NET (LOSS) INCOME PER SHARE, ATTRIBUTABLE TO COMMON SHAREHOLDERS:
Basic	$	(0.00	)	$	0.02		$	0.10		$	0.15
Diluted	$	(0.00	)	$	0.02		$	0.10		$	0.14

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		10,582			10,741			10,612			11,047
Diluted		10,582			10,851			10,703			11,148

Good Times Restaurants Inc. Unaudited Supplemental Information (In thousands)

	53 Weeks		52 Weeks
	September 30, 2025		September 24, 2024
Selected Balance Sheet Data:
Cash and Cash Equivalents		$ 2,605		$ 3,853

Current Assets		$ 5,254		$ 6,557

Total Assets		$ 83,807		$ 87,118

Current Liabilities		$ 14,378		$ 15,687

Shareholders’ Equity		$ 33,811		$ 33,088

Supplemental Information for Company-Owned Restaurants (dollars in thousands):

	Bad Daddy’s Burger Bar								Good Times Burgers & Frozen Custard
	Fourth Fiscal Quarter				Fiscal Year				Fourth Fiscal Quarter				Fiscal Year
	13 weeks		13 weeks		53 weeks		52 weeks		13 weeks		13 weeks		53 weeks		52 weeks
		2025		2024		2025		2024		2025		2024		2025		2024
Restaurant sales	$	23,977	$	25,644	$	101,385	$	103,539	$	9,663	$	9,958	$	39,229	$	38,016

Restaurants open at beginning of period		39		40		39		40		27		26		25		25

Restaurants opened or acquired during period		-		-		-		-		-		-		2		1

Restaurants closed during period		1		1		1		1		-		1		-		1
Restaurants open at period end		38		39		38		39		27		25		27		25

Restaurant operating weeks		506		514		2,065		2,074		351		335		1,418		1,309

Average weekly sales per restaurant	$	47.4	$	49.8	$	49.1	$	49.9	$	27.5	$	29.7	$	27.7	$	29.0

Margin Analysis:

	Quarter Ended										Year-to-Date Period Ended
	13 Weeks					13 Weeks					53 Weeks					52 Weeks
	September 30, 2025					September 24, 2024					September 30, 2025					September 24, 2024
Bad Daddy’s Burger Bar¹
Restaurant sales	$	23,977		100.0	%	$	25,644		100.0	%	$	101,385		100.0	%	$	103,539		100.0	%
Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):
Food and packaging costs		7,586		31.6	%		7,999		31.2	%		31,520		31.1	%		32,155		31.1	%
Payroll and benefits costs		8,555		35.7	%		8,791		34.3	%		35,325		34.8	%		35,831		34.6	%
Restaurant occupancy costs		1,617		6.7	%		1,580		6.2	%		6,658		6.6	%		6,796		6.6	%
Other restaurant operating costs		3,836		16.0	%		3,895		15.2	%		15,373		15.2	%		15,364		14.8	%
Restaurant-level operating profit (a non-GAAP measure)	$	2,383		9.9	%	$	3,379		13.2	%	$	12,509		12.3	%	$	13,393		12.9	%
Good Times Burgers & Frozen Custard:
Restaurant sales	$	9,663		100.0	%	$	9,958		100.0	%	$	39,229		100.0	%	$	38,016		100.0	%
Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):
Food and packaging costs		3,103		32.1	%		3,081		30.9	%		12,367		31.5	%		11,549		30.4	%
Payroll and benefits costs		3,466		35.9	%		3,373		33.9	%		13,952		35.6	%		12,858		33.8	%
Restaurant occupancy costs		876		9.1	%		901		9.0	%		3,655		9.3	%		3,411		9.0	%
Other restaurant operating costs		1,446		15.0	%		1,385		13.9	%		5,730		14.6	%		4,992		13.1	%
Restaurant-level operating profit (a non-GAAP measure)	$	772		8.0	%	$	1,218		12.2	%	$	3,525		9.0	%	$	5,206		13.7	%
Other¹
Restaurant occupancy costs	$	(21	)	(0.0	%)	$	(92	)	(0.3	%)	$	(83	)	(0.0	%)	$	(120	)	(0.0	%)
Other restaurant operating costs		(81	)	(0.2	%)		(20	)	(0.0	%)		(366	)	(0.3	%)		(68	)	0.0	%
Restaurant-level operating profit (a non-GAAP measure)	$	102		0.3	%	$	112		0.3	%	$	449		0.3	%	$	188		0.1	%
Total restaurant-level operating profit (a non-GAAP measure)	$	3,257		9.7	%	$	4,709		13.2	%	$	16,483		11.7	%	$	18,787		13.3	%

¹		Prior to fourth quarter 2025, certain general and administrative activity now included in Other was combined and reported with the Bad Daddy's segment. In order to better align with our internal reporting and provide a better representation of restaurant-level operations, beginning with fourth quarter 2025, this activity has been removed from the Bad Daddy's segment. Fiscal 2024 figures have been recast for comparability.

Certain percentage amounts in the table above do not total due to rounding as well as the fact that restaurant operating costs are expressed as a percentage of restaurant revenues (as opposed to total revenues).

Reconciliation of U.S. GAAP Results to Non-GAAP Measurements


Reconciliation of (Loss) Income from Operations to Non-GAAP Restaurant-Level Operating Profit (In thousands)

	Quarter Ended						Year-to-Date Period Ended
	13 Weeks			13 Weeks			53 Weeks			52 Weeks
	September 30, 2025			September 24, 2024			September 30, 2025			September 24, 2024
(Loss) income from operations	$	(466	)	$	(118	)	$	330		$	1,380
Less:
Franchise and other revenues		353			224			1,016			825
Add:
General and administrative		2,394			2,757			9,734			10,581
Depreciation and amortization		958			942			3,954			3,755
Advertising costs		1,005			863			3,315			3,528
Impairment of long-lived assets		133			499			627			698
Litigation contingencies		-			-			-			(332	)
(Gain) loss on lease terminations and asset disposals		(414	)		(10	)		(469	)		2
Pre-opening costs		-			-			8			-
Restaurant-level operating profit	$	3,257		$	4,709		$	16,483		$	18,787

	Quarter Ended						Fiscal Year Ended
	13 Weeks			13 Weeks			53 Weeks			52 Weeks
	Sept. 30, 2025			Sept. 24, 2024			Sept. 30, 2025			Sept. 24, 2024
Calculation of Adjusted EBITDA
Net (loss) income attributable to common shareholders, as reported	$	(3	)	$	230		$	1,024		$	1,613
Depreciation and amortization		977			966			4,049			3,849
Depreciation and amortization attributable to non-controlling interest		(26	)		(26	)		(101	)		(92	)
Interest expense, net		43			24			196			125
Provision for income taxes		(515	)		(426	)		(824	)		(624	)
EBITDA		476			768			4,344			4,871
Preopening expense		-			-			8			-
Non-cash stock-based compensation		25			28			112			134
Asset impairment		133			499			627			698
Non-cash gain on lease terminations and asset disposals		(708	)		(20	)		(763	)		2
Non-cash gain on disposal of assets attributable to non-controlling interest		-			-			(3	)		(10	)
Litigation contingencies		-			-			-			(332	)
Adjusted EBITDA	$	(74	)	$	1,275		$	4,325		$	5,363

________________________

¹		Same store sales are a metric used in evaluating the performance of established restaurants and is a commonly used metric in the restaurant industry. Same store sales for our brands are calculated using all company-owned units open for at least 18 full fiscal months and use the comparable operating weeks from the prior year to the current year period’s operating weeks.

²		For a reconciliation of Adjusted EBITDA to the most directly comparable financial measures presented in accordance with GAAP and a discussion of why the Company considers them useful, see the financial information schedules accompanying this release.

Total Revenues decreased 0.5% to $141.6 million for the year compared to the previous fiscal year. Total Restaurant Sales for Good Times restaurants were $39.2 million for the year and for Bad Daddy’s restaurants were $101.4 million for the year.
Total Restaurant Sales for company-owned restaurants decreased $2.0 million to $33.6 million for the fourth quarter compared to the same prior year fourth quarter and decreased $0.9 million to $140.6 million for the year compared to the previous fiscal year.
Same Store Sales¹
Same Store Sales¹
Net Loss Attributable to Common Shareholders was $3 thousand for the fourth quarter. Net Income Attributable to Common Shareholders was $1.0 million for the fiscal year.
Adjusted EBITDA²