Good Times Restaurants (GTIM) investor relations material

Executive summary

• Quarterly revenues decreased 2.4% year-over-year to $37.0M, with both Bad Daddy's and Good Times experiencing lower sales due to reduced traffic and prior closures, partially offset by menu price increases and acquisitions.

• Net income attributable to common shareholders was $1.5M ($0.14/share), up from $1.3M ($0.12/share) in the prior year quarter.

• Adjusted EBITDA for the quarter was $2.2M, down from $2.4M year-over-year.

• Same store sales declined 1.4% for Bad Daddy's and 9.0% for Good Times, mainly due to reduced customer traffic.

• Strategic marketing initiatives and leadership changes are being implemented to address sales declines, including new product launches and menu adjustments.

Financial highlights

• Restaurant sales for the quarter were $36.9M, down from $37.7M year-over-year; franchise and other revenues were $156K, down from $208K.

• Operating income for the quarter was $1.2M, nearly flat year-over-year.

• Cash and cash equivalents at quarter end were $3.1M; long-term debt was $2.3M.

• Basic and diluted EPS for the quarter were $0.14, up from $0.12 year-over-year.

• Adjusted EBITDA margin was approximately 5.9% of total revenues for the quarter.

Outlook and guidance

• Management expects continued inflationary pressures on food and labor costs, especially ground beef and wages in Colorado, and plans to use selective menu price increases to offset cost pressures.

• Focus remains on improving unit-level economics, controlling overhead costs, and monitoring the impact of price increases on traffic.

• Sufficient capital is anticipated to meet working capital and recurring CapEx needs for fiscal 2025, with funding from cash and the Cadence Credit Facility.

• Share repurchases will be significantly reduced as focus shifts to cash accumulation; acceleration possible in fiscal 2026.

• General and administrative expenses expected to run between 6-7% of revenues for the full year.