Good Times Restaurants Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brian London - - Analyst : Yes. I asked a question, a while back about seasonality and obviously you guys are getting hit with bad weather, in January, as you mentioned. I'm just wondering if you've gotten a better beat on, with that, that's being a bigger part of the business. If you've gotten a better beat on seasonality going forward. Ryan Zink - Good Times Restaurants Inc - President, Chief Executive Officer, Interim Principal Financial Officer, Director Well, I think, the thing that's been challenging off and on over the past three years has been, there, there have been some really interesting weather patterns in the southeast and this one was more significant than, than, really, I think we've ever seen before. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 06, 2025 / 10:00PM, GTIM.OQ - Q1 2025 Good Times Restaurants Inc Earnings Call And you saw, you may have seen rather the snow in the French quarter of New Orleans snow on the beach in Florida. We actually had snow and ice in our summer store, which is our highest volume restaurant, as in conjunction with that same store. We closed that store early one day. We're closed an entire day and opened late the following day as the highways, around us were closed. And so, I say that to just say that, weather patterns have somewhat changed a bit and seem to be a little more, you know, temperamental throughout the country and particularly in January. I do, I would say, although I'm not a meteorologist, I suspect that, February will be better throughout most of the country. But, but in Colorado, we can have, we can have snow. It's really, quite unpredictable in February, March and sometimes even as late as may. You know, we in our, in our earnings, or in our quarterly filings, we talk about seasonality and it's really November, December, January, February that tend to be a difficult month seasonally for bad daddies. That's really the same. December tends to be better whether or not withstanding. But November and January are the, are typically the slowest months of the year for that brand. And March through June really is the peak quarter in terms of just seasonal performance.

Question: Brian London - - Analyst : Got it. Okay. Yes. That's very helpful. I appreciate it. Thank you very much.

Question: David Swartz - Morningstar, Inc - Analyst : Hi, thanks for taking my question. I was wondering if you're planning to do anything with the menu or anything else that the good times brand offset some of the increases in occupancy and other costs that you discussed earlier? Ryan Zink - Good Times Restaurants Inc - President, Chief Executive Officer, Interim Principal Financial Officer, Director So, we have, as I discussed in my prepared remarks where we're really taking, having a focus on product quality. We have some experiments in the works with either product rationalization ie getting rid of some products to, to make our menu a little more clear and to engineer the menu to drive purchasing behavior into better margin products. We have traditionally resisted discounting, and we continue to do so. You know, I think we, I think our products are engineered quite well. The issue at good times really comes to, we don't have the purchasing scale that some of the major Qsrs do. And so we tend to stay away from discounting to preserve margin at a cost of sales line. But I think really leveraging to, to, to make improvements on occupancy and other fixed costs, we really have to drive the sales up, which is why we're experimenting with, different types of media. And additionally, why we are trying to we're trying to look at many rationalizations to try and attract track more customers through or attract greater frequency through clear menu and through really trying to make the ordering process simple and improve the product while at the same time delivering on the speed expectations of the QSR user.

Question: David Swartz - Morningstar, Inc - Analyst : Okay. Yes. you're right. Certainly, it has sort of gone away in recent years, but I do think that investors like to see it anyway. But thanks for taking my questions. Ryan Zink - Good Times Restaurants Inc - President, Chief Executive Officer, Interim Principal Financial Officer, Director Absolutely, thanks and that and that's fair feedback and I'll take that under consideration. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 06, 2025 / 10:00PM, GTIM.OQ - Q1 2025 Good Times Restaurants Inc Earnings Call