The following is a summary of the Good Times Restaurants Inc. (GTIM) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Good Times Restaurants' total revenues were approximately $33.1 million for the quarter, a decrease of 0.8% year-over-year.

• Company-owned Good Times restaurants saw an increase in sales by approximately $0.8 million to $8.8 million.

• Bad Daddy's Restaurants sales decreased by $1.1 million to $24.1 million due to reduced customer traffic and a restaurant closure.

• Operating profit at Bad Daddy's was $2.6 million for the quarter, a decrease from last year's $3.2 million.

• The company reported a net loss to common shareholders for the quarter of $0.6 million or loss of $0.05 per share.

• Cost of sales at Bad Daddy's were 31.5% for the quarter, a 20 basis point decrease from last year's quarter, though an increase in food prices is expected in the second half of fiscal 2024.

• Bad Daddy's labor cost increased by 100 basis points compared to the prior year quarter to 35.8% due to higher wage rates and the decrease in sales.

Business Progress:

• The company has experienced sales growth and strong unit level margins and achieved exceptional sales results at several Bad Daddy's stores in the start of Q2.

• The company has invested in digital transformation, with digital boards installed at walk-up windows that could enable real-time adjustments in pricing and merchandising strategies.

• Various strategic initiatives, including menu expansion, loyalty platform adoption, restaurant remodeling, and new pricing strategies, underscore the company's commitment to service quality and customer experience.

• Expansion in Birmingham and Charlotte is being explored, with lease negotiations and other opportunities under examination.

More details: Good Times Restaurants IR

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