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
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.