Q2 2025 Good Times Restaurants Inc Earnings Call
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Operator: Good afternoon, ladies and gentlemen, and welcome to the Good Times Restaurant Zink fiscal 2025 second quarter earnings call.
Speaker Change: Good afternoon, ladies and gentlemen, and welcome to the good times restaurants, Inc. Fiscal 'twenty 'twenty five second quarter earnings call I am curious the company's senior Vice President of finance and accounting.
Keri August: I am Keri August, the company's Senior Vice President of Finance and Accounting. By now, everyone should have access to the company's earnings release, which is available in the investor section of the company's website. As a reminder, a part of today's discussion will include forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not guarantees of future performance and therefore you should not put undue reliance on them. 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.
Speaker Change: By now everyone should have access to the company's earnings release, which is available on the investors section of the company's website.
Speaker Change: As a reminder, part of today's discussion will include forward looking statements within the meaning of federal Securities laws.
Speaker Change: These forward looking statements are not guarantees of future performance and therefore, you should not put undue reliance on them.
Speaker Change: 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.
Speaker Change: Such risks and uncertainties include among other things the market price of the Companys stock prevailing from time to time.
Speaker Change: The nature of other investment opportunities presented to the company.
Speaker Change: The disruption to our business from pandemic and other public health emergencies.
Keri August: the impact of staffing constraints at our restaurants, the impact of supply chain constraints and inflation, 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 ingredient shortages. General Economic and Operating Conditions risks associated with our share repurchase program. risks associated with the acquisition of additional restaurants, 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 our restaurants, including wage and tip credit regulations.
Speaker Change: Impact of staffing constraints at our restaurants.
Speaker Change: The impact of supply chain constraints and inflation.
Speaker Change: Uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants.
Speaker Change: Delays in developing and opening new restaurants, because of weather local permitting or other reasons.
Speaker Change: Increased competition cost increases or ingredient shortages gender.
Speaker Change: General economic and operating conditions.
Speaker Change: Risks associated with our share repurchase program.
Speaker Change: Risks associated with the acquisition of additional restaurants adequacy of cash flows and the cost and availability of capital or credit facility borrowings to provide liquidity.
Speaker Change: Changes in federal state or local laws and regulations affecting our restaurants, including wage and tip credit regulations.
Keri August: 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, and other reports filed with the SEC.
Speaker Change: Other matters discussed under the risk factors section of good times annual report on Form 10-K for the fiscal year ended September 24th 2024.
Speaker Change: And other reports filed with the SEC.
Keri August: During today's call, we will discuss non-GATT measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP and reconciliation to comparable GAAP measures available in our earnings release.
Speaker Change: During today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance.
Speaker Change: of the Substitute for Results Prepared in accordance with GAP and Reconciliation to Comparable GAT measures available in our earnings release.
Ryan Zink: And now I would like to turn the call over to our Chief Executive Officer, Ryan Zink. Thank you, Keri, and thank you all for joining us today. Results during our second fiscal quarter were certainly disappointing for both brands, with same-store sales down slightly more than three and a half points at each brand. Our results are indicative of the challenging operating environment, as has been reported on by other concepts operating in our segment. We are seeing a much more value-oriented customer, which is not surprising, and we've been aligning our menu and promotions to provide everyday value for our guests, though we have not resorted to the types of deep discounting that we have seen most specifically with our QSR competitors.
Speaker Change: and now I would like to turn the call over to our Chief Executive Officer, Ryan Zink.
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Speaker Change: Thank you, Keri, and thank you all for joining us today.
Speaker Change: Results during our second fiscal quarter were certainly disappointing for both brands, with same-store sales down slightly more than three and a half points at each brand. Our results are indicative of the challenging operating environment, as has been reported on by other concepts operating in our segments.
Speaker Change: We are seeing a much more value-oriented customer which is not surprising and we've been aligning our menu and promotions to provide everyday value for our guests that we have not resorted to the types of deep discounting that we have seen most specifically with our QSR competitors.
Ryan Zink: With that as the backdrop for the quarter, I want to focus on our strategy for driving sales and long-term profitability at both of our brands. At Good Times, we previously reported the departure of Mr. Stack, our Senior Vice President of Operations, for this branch. Mr. Stack's tenure will end at the end of this month, though Craig Soto, a longtime regional manager, has already been promoted to the newly created role of Director of Operations, and the transition of leadership is substantially complete. Craig brings to the role a long-term history with the brand, including knowledge of what has worked and not worked previously, but with a drive for change and a true passion for the Good Times brand.
Speaker Change: At Good Times, we previously reported the departure of Mr. Stack, our Senior Vice President of Operations, for this brand.
Speaker Change: Craig brings to the role a long-term history with the brand, including knowledge of what has worked and not worked previously, but with a drive for change and a true passion for the Good Times brand.
Ryan Zink: While we have been remodeling our restaurants, our operations have not seen the same transformation. Craig's mission is to deliver upon his vision for improved kitchen execution, greater consistency, and higher quality products, all underscored by the top grading of talent throughout the organization. Profitability at Good Times declined at a greater rate than did sales, and this is due in part to the leveraging impact of the reduced sales, but further reduced by costs associated with implementing certain initiatives that I will discuss shortly. Labor costs in particular were higher than the year-ago quarter, and we expect labor costs to be higher into the third fiscal quarter as we continue to expect higher new and existing employee training costs.
Speaker Change: While we have been remodeling our restaurants, our operations have not seen the same transformation.
Speaker Change: Profitability at Good Times declined to the greater rate than did sales, and this is due in part to the leveraging impact of the reduced sales, but further reduced by costs associated with implementing certain initiatives that I will discuss shortly.
Speaker Change: Labor costs in particular were higher than the year ago quarter, and we expect labor costs to be higher into the third fiscal quarter as we continue to expect higher new and existing employee training costs.
Ryan Zink: Labor productivity is not where it needs to be, but addressing labor productivity is a second-tier priority compared to improving the quality of restaurant operations.
Speaker Change: Labor productivity is not where it needs to be, but addressing labor productivity as a second-tier priority compared to improving the quality of restaurant operations.
Ryan Zink: From a product perspective, we are making several changes to our products, as I have discussed on prior calls. During the quarter we have tested and are now in the process of rolling out new burger builds across all of our restaurants, with these new burger builds being complete in all restaurants by the end of May. This new build has a change in lettuce procedure at its core, with the move from full-leaf lettuce to shredded lettuce. We executed the leaf lettuce procedure extremely poorly and it led to a poor eating experience. But rather than buying pre-shredded lettuce, we continue to bring in fresh, whole produce and shred the lettuce by shift in restaurants.
Speaker Change: From a product perspective, we are making several changes to our products as I have discussed on prior calls.
Speaker Change: During the quarter we have tested and are now in the process of rolling out new burger builds across all of our restaurants with these new burger builds being complete in all restaurants by the end of May. This new build has a change in lettuce procedure at its core with the move from full leaf lettuce to shredded lettuce.
Ryan Zink: Further, we now have in test at one restaurant, with a second one starting next week, a new burger process, where instead of cooking pre-formed patties, we're smashing patties with newer versions of our existing automated clamshell grill. This process will bring us closer to true cook to order, but with our differentiating factor being that we are able to maintain our current lane times, an important factor in a segment that prioritizes convenience and speed. Concurrent with this new patty test is the introduction of a new bun that is softer and more flavorful than our current hamburger bun.
Speaker Change: Further, we now have in test at one restaurant, with a second one starting next week, a new burger process, where instead of cooking pre-formed patties, we're smashing patties with newer versions of our existing automated clamshell grills.
Speaker Change: This process will bring us closer to true cook to order, but with our differencing factor being that we are able to maintain our current lane times an important factor in a segment that prioritizes convenience and speed.
Speaker Change: Concurrent with this new paddy test is the introduction of a new bun that is softer and more flavorful than our current hamburger bun.
Ryan Zink: The purpose of these changes is not specifically to latch on to the smashed burger trend, but rather to improve the value perception of the product by increasing bun coverage and visibility of the beef, which has historically been underwhelming compared to our more premium competitors.
Speaker Change: The purpose of these changes is not specifically to latch on to the smashed burger trend, but rather to improve the value perception of the product by increasing bun coverage and visibility of the beef, which has historically been underwhelming compared to our more premium competitors.
Ryan Zink: We are also condensing our menu, eliminating several underperforming items with a focus of getting back to our core of burgers, fries, and frozen custard. On the custard side, we continue to improve that product and have designed a new custard base that will launch this summer with greater vanilla flavor. We have already moved to much smaller batches of custard produced more frequently. deliver a smoother, creamier product.
Speaker Change: On the custard side, we continue to improve that product and have designed a new custard base that will launch this summer with greater vanilla flavor.
Speaker Change: We have already moved to much smaller batches of custard, produced more frequently to to deliver a smoother, creamier product.
Ryan Zink: Most importantly, in June, we're launching an all-new product on a limited time basis with the introduction of fried ice. This is a scoop of our frozen custard coated in a sugar and cinnamon seasoned crumble topped with whipped topping and a cherry. The team's intense study of our custard product over the past several months has revealed many changes made over the past 15 years that have resulted in the deterioration of the quality of that product, including substitution of syrups for real fruit toppings, the elimination of certain toppings because of the difficulty of their operations, and other choices made purely to reduce costs but at significant expense to the guest experience.
Speaker Change: Most importantly in June , we're launching an all-new product on a limited time basis with the introduction of fried ice cream. This is a scoop of our frozen custard coated in a sugar and cinnamon seasoned crumble topped with whipped topping and a cherry.
Speaker Change: including substitution of syrups for real-fruit toppings, the elimination of certain toppings because of the difficulty of their operations, and other choices made purely to reduce costs, but it's significant expense to the guest experience.
Ryan Zink: Our vision is to undo many of these changes to deliver an exceptional sweet treat occasion opportunity for our guests.
Speaker Change: Our vision is to undo many of these changes to deliver an exceptional sweet treat occasion opportunity for our guests.
Ryan Zink: I will discuss our marketing program shortly, but first, with respect to Bad Daddy's operations, I'm pleased with our controls during the quarter, with profitability at Bad Daddy's much less affected by the reduced sales. In part, this has been delivered by Menu Engineering and the success of our Classic Smash and Steakhouse Smash menu items. In April, we launched our latest addition to this lineup called the Smash and Stack, which is a bacon-double cheeseburger made with our aggressively smashed quarter-pound patty. This menu item immediately rocketed to the fourth position in our product mix, succeeded only by our CYO Burger, our Beaty's American Staple Cheeseburger, and our signature Bacon Cheeseburger on steroids.
Speaker Change: I will discuss our marketing program shortly, but first with respect to bad daddy's operations and pleased with our controls during the quarter with profitability of bad daddy's much less affected by the reduced sales.
Speaker Change: In part, this has been delivered by menu engineering and the success of our classic smash and steakhouse smash menu items. In April , we launched our latest edition to this lineup called the Smash and Stack, which is a bacon double cheeseburger made with our aggressively smashed quarter pound patties.
Speaker Change: This menu item immediately rocketed to the fourth position in our product mix, exceeded only by our CYO burger, our Beaties American staple cheeseburger, and our signature bacon cheeseburger on steroids.
Ryan Zink: While we are only a couple of weeks into this new item, makeshift has been exactly as we modeled, with it delivering better margin and cost percent compared to the items from where trade-out is occurring. Additionally, on May 5th, we ran a single-day promotion with a deeply discounted $4 price point on our Badass Margarita. and the return of the limited-time Beria Bird. Cinco de Mayo is typically a soft day for our concept as certain of our guests choose to dine at Mexican-themed restaurants. Our sales for Zinko this year were exceptionally strong, which we believe is due primarily to these promotions, and the significant unpaid media exposure our PR team was able to generate for them.
Speaker Change: While we are only a couple of weeks into this new item, makeshift has been exactly as we modeled with a delivering better margin and cost percent compared to the items from where trade-out is occurring.
Speaker Change: Additionally, on May 5th, we ran a single day promotion with a deeply discounted $4 dollar price point on our badass Margarita.
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and the return of the limited-time Beria Burger.
Speaker Change: Cinco de Mayo is typically a soft day for our concept as certain of our guests choose to to die in at Mexican themed restaurants.
Speaker Change: Our sales for Zinko this year were exceptionally strong which we believe is due primarily to these promotions and the significant unpaid media exposure our PR team was able to generate for them.
Ryan Zink: Concurrent with the launch of this promotion, we've completely overhauled our beverage menu, headlined by the $8 all day, every day price of that same badass margarita, and supplemented by the introduction of zero-proof cocktails. I'm excited about the traction we have gained here and looking forward to the results these changes will generate. Sales improved sequentially throughout the quarter at both brands, though April has also been softer for both brands. This seems to be heavily influenced by Colorado-specific trends, as we've seen marked differences in trends between the Colorado and non-Colorado Bad Daddies, with the Colorado Bad Daddy sales performance more aligned with Good Times performance than the rest of the Bad Daddy system.
Speaker Change: Concurrent with the launch of this promotion, we have completely overhauled our beverage menu, headlined by the $8 all day everyday price of that same badass margarita and supplemented by the introduction of zero proof cocktails.
Speaker Change: I'm excited about the traction we have gained here and looking forward to the results, these changes will generate.
Speaker Change: Sales improves sequentially throughout the quarter at both brands, though April has also been softer for both brands.
Speaker Change: This seems to be heavily influenced by Colorado-specific trends, as we've seen marked differences in trends between the Colorado and non-Colorado bad-detties. With the Colorado-bad-dettie sales performance more aligned with Good Times performance than the rest of the bad-dettie system.
Ryan Zink: We believe there's some geographic-specific factors. affecting both brands in Colorado.
Speaker Change: We believe there's some geographic specific factors affecting both brands and Colorado negatively.
Ryan Zink: To that end, our marketing and advertising is shifting at Good Times. As we have concluded after a few months of testing. Changing weights of radio promotion that this medium has run its course with Good Times. Certainly we'll be shifting spend into social and digital media, but we have also seen promising results with connected TV and video streaming, which we have tested on a limited time basis at both brands and see its potential for driving traffic. Those tests began late in the second quarter and continue on into the third quarter. We expect to expand testing during this quarter.
Speaker Change: To that end, our marketing and advertising is shifting at good times. As we have concluded after a few months of testing,
Speaker Change: Those tests began late in the second quarter and continue on into the third quarter. We expect to expand testing during this quarter.
Ryan Zink: Further, we're exploring certain outdoor advertising opportunities in the Denver market with potential for both brands, and are increasing our weights of spending on digital display and search advertising at both brands, with certain customer data being used to target these buys with great precision.
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Speaker Change: Further, we're exploring certain outdoor advertising opportunities in the Denver market with potential for both brands and our increasing our weight of spending on digital display and search advertising at both brands with certain customer data being used to target these buys with great precision.
Ryan Zink: I expect to be able to report more information on these changes next quarter.
Speaker Change: I expect to be able to report more information on these changes next quarter.
Ryan Zink: Finally, in addition to the leadership change at the Good Times brand, our supply chain leader will be retiring at the end of the quarter, who will be replaced internally by a former regional director at Bad Dad. This benefits us by providing tightened leadership through fewer multi-unit leaders at that brand. company by the cost reduction associated with that.
Speaker Change: Finally, in addition to the leadership change at the Good Times brand, our supply chain leader will be retiring at the end of the quarter, who will be replaced internally by a former regional director at Bad Daddy's.
Speaker Change: This benefits us by providing tightened leadership through fewer multi-unit leaders at that brand.
a company by the cost reduction associated with that.
Ryan Zink: However, Dave Wallman, our new purchasing and supply chain leader, brings with him an extreme attention to detail with an impressive balance between bulldog negotiating skills and a partnership orientation that make him the perfect fit to succeed Nick Biegel in this role.
Speaker Change: However Dave Walman, our new purchasing and supply chain leader, brings with him an extreme attention to detail with an impressive balance between bulldog negotiating skills and a partnership orientation that may give him the perfect fit to succeed Nick Beagle in this role.
Ryan Zink: I want to express my thanks to Nick for his multiple decades of service to our brands and I wish him a truly fulfilling retirement.
Speaker Change: I want to express my thanks to Nick for his multiple decades of service to our brands and I wish him a truly fulfilling retirement.
Keri August: I'll now turn the call over to Keri for a review of our performance during the quarter and some perspective on the company's financial initiative. Thank you, Ryan. I'll now review this quarter's results.
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Keri August: Thank you, Ryan. I'll now review this quarter's results. We'll start with bad daddy's results.
Keri August: We'll start with Bad Daddy's results. Total restaurant sales decreased $1.6 million to $24.8 million for the quarter. The sales decrease is primarily due to the fourth fiscal quarter 2024 closure of one Bad Daddy's restaurant, reduced customer traffic, and a negative mix shift attributable to the success of our Smash Patty burgers, partially offset by menu price increases. Our average menu price during the quarter was 4.7% higher than Q2 of 2024, although these menu price increases were targeted towards items with less price sensitivity, and as just described, offset by the introduction of the lower-priced Classic Smash and Steakhouse Smash new menu items. Fame Store sales decreased 3.7% for the quarter, with 39 Bad Daddies in the comp base at quarter end.
Speaker Change: Total restaurant sales decreased $1.6 million to $24.8 million for the quarter. The sales decrease is primarily due to the 4th physical quarter 2024 closure of one bad daddy's restaurant, reduced customer traffic and a negative mix ship attributable to the success of our smash patty burgers, partially offset by menu price increases.
Speaker Change: Our average menu price during the quarter was 4.7% higher than Q2 of 2024. Although these menu price increases were targeted towards items with less price sensitivity and is just described offset by the introduction of the lower price classic smash and stakeout smash new menu items.
Speaker Change: Same-store sales decreased 3.7% for the quarter, with 39 bad daddies in the comp base at quarter-end.
Keri August: Food and beverage costs were 30.7% for the quarter, an increase of 30 basis points from last year's quarter. The increase is primarily attributable to higher purchase prices, mainly in ground beef, although throughout the commodity basket, compared to the prior year quarter. partially offset by the impact of a 4.7% increase in menu pricing. Beef prices increased sequentially during the quarter and costs were significantly elevated over the prior year. Due to the continued tightening of beef supply, we anticipate ground beef costs will continue to increase throughout fiscal year 2025. Labor costs decreased by 40 basis points compared to the prior year quarter to 34.3 percent.
Speaker Change: Food and beverage costs were 30.7% for the quarter, and the increase of 30 basis points from last year's quarter. The increase is primarily attributable to higher purchase prices, mainly in ground beef, although throughout the commodity basket, compared to the prior year quarter.
Speaker Change: Partially offset by the impact of a 4.7% increase in menu pricing.
Speaker Change: Beep prices increase sequentially during the quarter and costs were significantly elevated over the prior year.
Speaker Change: Due to the continued tightening of beef supply, we anticipate ground beef costs will continue to increase throughout fiscal year 2025.
Speaker Change: Labor costs decreased by 40 basis points compared to the prior year quarter to 34.3%. This decrease is primarily attributable to the decreased manager salaries and restaurant level incentive compensation, as well as the impact of a 4.7% increase in menu pricing.
Keri August: This decrease is primarily attributable to the decreased manager salaries and restaurant-level incentive compensation, as well as the impact of a 4.7% increase in menu pricing. We expect to run similar labor costs a prior year as a percent of sales for the balance of fiscal 2025. Overall, restaurant-level operating profit, a non-gap measure for Bad Daddies, was approximately $3.4 million for the quarter, or 13.6% of sales, compared to $3.6 million, or 13.6% last year, due to solid cost controls throughout the quarter.
Speaker Change: We expect to run similar labor costs to prior year as a percent of sales for the balance of fiscal 2025.
Speaker Change: Overall, restaurant-level operating profit and non-GAAP measure for bad debtes was approximately 3.4 million for the quarter, or 13.6% of sales, compared to 3.6 million, or 13.6% last year due to solid cost controls throughout the quarter.
Keri August: Moving over to Good Times. Total restaurant sales for company-owned restaurants increased approximately $0.5 million to $9.3 million for the quarter compared to the prior year's second quarter. Same store sales decreased 3.6% for the quarter with 27 Good Times restaurants in the comp base at quarter end. The average menu price for the quarter was the same as the prior year quarter. Discounting activity continues in the QSR business, and in particular, the burger QSR segment.
Speaker Change: Moving over to Good Times, total restaurant sales for company owned restaurants increased to approximately 0.5 million to 9.3 million for the quarter, compared to the prior year
Speaker Change: Same-store sales decreased 3.6% for the quarter, with 27 good times restaurants in the comp-basic quarter-end.
Speaker Change: The average menu price for the quarter was the same as the prior year quarter.
Speaker Change: Discounting activity continues in the QSR business, and in particular the Burger QSR segment. But recent pricing surveys have indicated that our most direct competitors in Colorado have begun to increase prices on non-discounted items, potentially providing some flexibility for limited price increases during the last half of the fiscal year.
Keri August: But recent pricing surveys have indicated that our most direct competitors in Colorado have begun to increase prices on non-discounted items, potentially providing some flexibility for limited price increases during the last half of the fiscal year. Food and packaging costs were 30.7% for the quarter, an increase of 160 basis points compared to last year's quarter. The increase is primarily attributable to higher purchase prices on food and paper goods, primarily in ground beef costs, compared to the prior year quarter, without the benefit of any price increase. As is the case with Bad Daddies, based upon current commodity forecasts, we expect ground beef costs to continue to increase throughout the remainder of fiscal year 2025.
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Speaker Change: Food and packaging costs were 30.7% for the quarter, an increase of 160 basis points compared to last year's quarter.
Speaker Change: The increase is primarily attributable to higher purchase prices on food and paper goods, primarily in ground beef costs compared to the prior year quarter, without the benefit of any price increase.
Speaker Change: As is the case with bad daddies, based upon current commodity forecasts, we expect ground beef costs to continue to increase throughout the remainder of fiscal year 2025.
Keri August: After an extreme spike in the mid-month of the quarter, the cost of eggs, which are a component of each of our breakfast entrees, has begun to decline, but prices are still well above prior year.
Speaker Change: After an extreme spike in the mid-month of the quarter, the cost of eggs, which are a component of each of our breakfast entrees, has begun to decline, but prices are still well above prior year.
Keri August: Macroeconomic and political forces continue to cloud visibility into the magnitude and direction of commodities further into the future. Total labor cost increased to 35.6%, a 50 basis point increase from the 35.1% we ran during last year's quarter, mostly due to higher average wage rates resulting from market forces and the CPI indexed minimum wage in Denver and the state of Colorado, as well as decreased productivity resulting from the deleveraging impact of lower sales. This was partially offset by reduced restaurant-level incentive compensation. Occupancy costs were 10.1%, an increase of 20 basis points from the prior year quarter, driven by the deleveraging impact of the sales decline on fixed costs.
Speaker Change: Macroeconomic and political forces continue to cloud visibility into the magnitude and direction of commodities further into the future.
Keri August, Ryan Zink
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Speaker Change: A total labor cost increased to 35.6%, a 50 basis point increase from the 35.1% we ran during last year's quarter. Mostly due to higher average wage rates resulting from market forces and the CPI index minimum wage in Denver and the state of Colorado, as well as decreased productivity resulting from the de-leveraging impact of lower sales.
This was partially offset by reduced restaurant level incentive compensation.
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Speaker Change: Occupancy costs were 10.1%, an increase of 20 basis points from the prior year quarter, driven by the de-leveraging impact of the sales decline on fixed costs.
Keri August: Other operating costs were 15.7% for the quarter, an increase of 200 basis points, primarily due to increased repair and maintenance, utilities, and technology-related fees. Good Times restaurant-level operating profit decreased by $0.3 million for the quarter to $0.7 million. As a percent of sales, restaurant-level operating profit decreased by 420 basis points versus last year to 8% due to elevated costs throughout the P&L. Combined, general and administrative expenses were $2.6 million during the quarter, or 7.5% of total revenues, which increased 30 basis points from the prior year quarter. We expect to run between 6% and 7% general and administrative costs on a full year basis for fiscal 2025.
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Speaker Change: Other operating costs were 15.7% for the quarter, an increase of 200 basis points, primarily due to increased repair and maintenance, utilities, and technology related fees.
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Speaker Change: restaurant-level operating profit decreased by 0.3 million for the quarter to 0.7 million.
Speaker Change: As a percent of sales, restaurant-level operating profit decreased by 420 basis points versus last year to 8% due to elevated costs throughout the PNL.
Speaker Change: Combined general and administrative expenses were 2.6 million during the quarter or 7.5% of total revenues, which increased 30 basis points from the prior year quarter.
Speaker Change: We expect to run between six and seven percent general and administrative costs on a full-year basis for fiscal 2025.
Keri August: Our net loss to common shareholders for the quarter was $0.6 million, or loss of $0.6 per share, versus net income of $0.6 million, $0.6 per share, in the second quarter last year. There was income tax expense of approximately $0.1 million recorded during the current quarter versus an income tax benefit of $0.1 million in the prior year quarter. Adjusted EBITDA for the quarter was $1 million, compared to $1.5 million for the second quarter of 2024. We finished the quarter with $2.7 million in cash and $2.6 million of long-term debt. We repurchased 54,835 shares during the quarter under our Share Repurchase Program.
Keri August, Ryan Zink
Speaker Change: Our net loss to common shareholders for the quarter was 0.6 million or loss of 6 cents per share versus net income of 0.6 million 6 cents per share and the second quarter last year.
Speaker Change: There was income tax expense of approximately 0.1 million recorded during the current quarter, versus an income tax benefit of 0.1 million in the prior year quarter.
Speaker Change: Adjusted EBITDAF at the quarter was 1 million, compared to 1.5 million for the second quarter of 2024.
Speaker Change: We repurchase 54,835 shares during the Porter and or Share Repurchase Program.
Keri August: We have temporarily paused our share repurchases and will redirect cash flow toward cash accumulation and debt repayment, as well as the Good Times restaurant remodels and signage for the remainder of the third quarter. We continue to budget approximately 1% of sales for ongoing maintenance CapEx, and we incurred $0.3 million of CapEx during the second fiscal quarter related to our Good Times remodel and signage projects, as well as our newly remodeled patio at our Norman, Oklahoma, Bad Daddies restaurant.
Speaker Change: We have temporarily paused our share repurchases and we'll redirect cashflow toward cash accumulation and debt repayment, as well as the Good Times restaurant remodels and signage for the remainder of the third quarter.
Speaker Change: We continue to budget approximately 1% of sales for ongoing maintenance capex, and we incurred 3.3 million of capex during the second fiscal quarter related to our Good Times remodel and signage projects, as well as our newly remodeled patio at our Norman, Oklahoma bad daddy's restaurant.
Ryan Zink: And now I will turn the call back to Ryan. Thank you, Keri, for that commentary.
and now I will turn this all back to Ryan.
Ryan Zink: Thank you, Keri, for that commentary. Lisa, we can now open the call for any questions.
Operator: Lisa, we can now open the call for any questions. Thank you, sir. And everyone, if you would like to ask a question today, please press star one on your telephone keypad. Once again, it is star one. If you have a question and we'll pause for just a moment. At this time, no one has signaled, but again, everyone, star one for questions.
Speaker Change: Thank you, sir. And everyone, if you would like to ask a question today, please press star one on your telephone keypad. Once again, it is star one. If you have a question and we'll pause for just a moment.
Keri August, Ryan Zink
Keri August, Ryan Zink
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Speaker Change: At this time no one has signaled but again everyone's star one for questions.
Keri August, Ryan Zink
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Operator: And Ryan, there appear to be no questions today.
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Speaker Change: and Ryan, there appear to be no questions today. I'll hand the call back to you for any additional or closing remarks.
Ryan Zink: I'll hand the call back to you for any additional or closing remarks. Thank you, Lisa. I have to acknowledge that this was a tough quarter, and I expect that the operating environment in the third fiscal quarter will be equally challenging. Our team is focused on the right initiatives to drive long-term sales, traffic, and profitability gains. Improved execution and value perception, not just by price, but by quality and service at both brands reflects our focus on a guest-first mindset and creating truly memorable guest experiences. We have extremely passionate leaders throughout our organization. Indeed, I've never seen a group of people so committed to their brands and to their team members.
Thank you Lisa.
Ryan Zink: I have to acknowledge that this was a tough quarter and I expect that the operating environment in the third fiscal quarter will be equally challenging.
Ryan Zink: Our team is focused on the right initiatives to drive long-term sales, traffic, and profitability gains.
Ryan Zink: Improved Execution and Value Perception, not just by price, but by quality and service at both brands, reflects our focus on a guest-first mindset and creating truly memorable guest experiences.
Ryan Zink: We have extremely passionate leaders throughout our organization. Indeed, I've never seen a group of people so committed to their brands and to their team members.
Ryan Zink: I sincerely thank all of these leaders and their team members for their discipline, work ethic, and commitment to change for the benefit of our brands and for our guests.
Ryan Zink: I sincerely thank all of these leaders and their team members for their discipline, work ethic, and commitment to change for the benefit of our brands and for our guests.
Ryan Zink: I also thank you all for joining us today. And once again, everyone, that does conclude today's conference. We would like to thank you all for your participation. You may now disconnect.
I also thank you all for joining us today.
Ryan Zink: And once again, everyone that does conclude today's conference, we would like to thank you all for your participation. You may now disconnect.
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Ryan Zink: Okay.