Good Times Restaurants Inc. (GTIM) reported a 3.1% drop in total revenues for the second quarter of fiscal 2026, totaling $33.2 million, compared to $34.3 million in the same period last year. This decline is attributed to reduced sales at its brands, Bad Daddy’s and Good Times, which fell 3.6% and 1.3%, respectively. Despite these challenges, the company achieved a net income of $0.1 million, or $0.01 per share, a recovery from a loss of $0.6 million, or $0.06 per share, during the same quarter last year. Adjusted EBITDA increased 33.3% year-over-year to $1.4 million.
Key metrics showed a same-store sales decline of 0.8% across both brands, influenced by restaurant closures and reduced customer traffic. However, improvements in restaurant-level operating profit were noted, rising to 10.1% of sales, driven by enhanced labor efficiency. Good Times Restaurants also reported a reduction in various costs, including a 3.7% decrease in payroll and benefits and a 6.2% cut in food and packaging costs.
Looking ahead, management is focused on stabilizing sales through promotional efforts, including a new $2 Bambino slider and the reintroduction of cheese curds, aiming to boost traffic and strengthen customer engagement. The GT Rewards program has also seen increased participation, now accounting for 7% of sales.
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