In This Article:
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Total Revenue: Increased 6.5% to $37.9 million for the quarter.
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Bad Daddy's Restaurant Sales: Increased by $1.2 million to $27.3 million.
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Good Times Restaurant Sales: Increased by $1.1 million to $10.4 million.
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Bad Daddy's Same-Store Sales: Increased 1.2% for the quarter.
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Good Times Same-Store Sales: Increased 5.8% for the quarter.
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Bad Daddy's Cost of Sales: 31.2%, a 10 basis point increase from last year.
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Bad Daddy's Labor Costs: Decreased by 90 basis points to 33.8%.
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Bad Daddy's Operating Profit: Approximately $3.9 million or 14.3% of sales.
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Good Times Food and Packaging Costs: 30.5%, a 20 basis point increase.
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Good Times Labor Costs: Increased to 32.7%, a 160 basis point increase.
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Good Times Operating Profit: Decreased by $0.1 million to $1.7 million, 16.5% of sales.
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Net Income: $1.3 million or $0.12 per share.
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Adjusted EBITDA: $2.1 million, unchanged from the previous year.
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Cash Position: $4.8 million at the end of the quarter.
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Long Term Debt: $1.1 million.
Release Date: August 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Good Times Restaurants Inc (NASDAQ:GTIM) reported a same-store sales growth of 5.8% for Good Times and 1.2% for Bad Daddy's, indicating positive sales momentum.
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The company successfully launched new menu items, such as the Classic Smash and Steakhouse Smash burgers, which have been well-received and are expected to become permanent menu items.
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The Madison, Alabama restaurant continues to perform well, ranking in the top quartile for sales performance.
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The company completed successful remodels of certain locations, leading to significant sales turnarounds, such as the Good Times in Lakewood, Colorado.
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Good Times Restaurants Inc (NASDAQ:GTIM) repurchased shares under its share repurchase program, indicating confidence in the company's valuation and future prospects.
Negative Points
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Labor costs remain a challenge, with ongoing wage and salary pressures requiring higher starting wages to attract skilled employees.
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The company faces elevated costs in its commodity basket, particularly with wholesale ground beef prices reaching all-time highs.
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Some restaurants in the portfolio continue to underperform, leading to potential closures of low-performing locations.
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The company is experiencing slower-than-desired growth in member activity for its loyalty program, particularly in drive-through concepts.
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Increased competition and promotional activity from competitors have impacted same-store sales performance, particularly with the prevalence of $5 value meals.