v3.26.1
Segment Reporting
 9 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting
Note 14. Segment Reporting

 

Our chief operating decision maker (“CODM”) is the President and Chief Executive Officer. The CODM assesses performance, makes key decisions, and allocates resources at the concept level and has identified Good Times and Bad Daddy's as our separate operating and reportable segments. The Good Times segment includes the results of our Company-owned Good Times Burgers & Frozen Custard restaurants, which are located in the United States and operate within the quick-service restaurant segment of the industry. It also includes royalties and other fees from our franchised locations in the United States. The Bad Daddy’s segment includes the results of our Company-owned Bad Daddy’s Burger Bar restaurants, which are located in the United States and operate within the full-service dining restaurant segment of the industry. It also includes license fees from one licensed location in the United States. Unallocated costs such as human resources, finance, purchasing, restaurant development and administration are recorded at the corporate level and are included in Other. The amounts reported for each operating segment contain allocations from Corporate for items such as technology support, repair and maintenance, marketing and restaurant accounting. In addition, Corporate collects rent from the Good Times segment related to one restaurant for which the real estate is included in corporate assets. There are no material transactions between the Good Times and Bad Daddy’s segments.

 

Restaurant sales for each operating segment include revenues generated by the operation of Company-owned restaurants, which include food and beverage sales, net of discounts. Franchise and other revenues for each operating segment include franchisee royalties and contributions to advertising funds, license fees, and other service fees, as well as gift card breakage.

 

Our CODM uses Restaurant-level operating profit as the measure for assessing performance and allocating resources for our segments. Restaurant-level operating profit is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. The Company defines restaurant-level operating profit to be restaurant revenues minus restaurant-level operating costs, excluding restaurant closures and impairment costs. The measure includes restaurant-level occupancy costs, which include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance and other property costs, but excludes depreciation.

 

We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our operating segments are located in the United States.

 

Prior to fourth quarter 2025, certain general and administrative expenses now included in Other were combined and reported with our Bad Daddy's segment. In order to better align with our internal reporting and provide a better representation of restaurant-level operating profit, these expenses have been removed from the Bad Daddy's segment and are now stated separately in Other. Fiscal 2025 figures have been recast for comparability.

 

 

The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP (in thousands):

 

    Thirteen-Week Period Ended June 30, 2026  
    Good Times     Bad Daddy's     Other     Consolidated  
Restaurant sales   $ 10,131     $ 24,889     $ -     $ 35,020  
Restaurant operating costs:                                
Food and packaging costs     3,165       7,546       -       10,711  
Payroll and other employee benefit costs     3,341       8,361       -       11,702  
Restaurant occupancy costs     920       1,578       (21 )     2,477  
Other restaurant operating costs     1,389       3,809       (129 )     5,069  
Restaurant-level operating profit   $ 1,316     $ 3,595     $ 150     $ 5,061  
Reconciliation of Restaurant-level operating profit to Net income before income taxes                          
Add:                                
Franchise and other revenues                             147  
Less:                                
Restaurant depreciation and amortization                             917  
Advertising costs                             1,009  
General and administrative                             1,986  
Impairment of long-lived assets and ROU assets                             18  
Gain on lease terminations and asset disposals                             (489 )
Income from operations                             1,767  
Less:                                
Interest and other expense, net                             24  
Net income before income taxes                           $ 1,743  
                                 
Reconciliation of revenue                                
Restaurant sales   $ 10,131     $ 24,889     $ -     $ 35,020  
Franchise and other revenues     47       100       -       147  
Total consolidated net revenues   $ 10,178     $ 24,989     $ -     $ 35,167  
Other segment disclosures                                
Restaurant depreciation and amortization   $ 240     $ 668     $ 9     $ 917  
Impairment of long-lived assets and ROU assets   $ -     $ 18     $ -     $ 18  
Capital expenditures   $ 83     $ 255     $ 44     $ 382  

 

 

    Thirteen-Week Period Ended July 1, 2025  
    Good Times     Bad Daddy's     Other     Consolidated  
Restaurant sales   $ 10,356     $ 26,513     $ -     $ 36,869  
Restaurant operating costs:                                
Food and packaging costs     3,258       8,100       -       11,358  
Payroll and other employee benefit costs     3,544       9,103       -       12,647  
Restaurant occupancy costs     890       1,623       (21 )     2,492  
Other restaurant operating costs     1,471       3,876       (117 )     5,230  
Restaurant-level operating profit   $ 1,193     $ 3,811     $ 138     $ 5,142  
Reconciliation of Restaurant-level operating profit to Net income before income taxes                          
Add:                                
Franchise and other revenues                             156  
Less:                                
Restaurant depreciation and amortization                             982  
Advertising costs                             913  
General and administrative                             2,174  
Gain on asset disposals                             (4 )
Income from operations                             1,233  
Less:                                
Interest and other expense, net                             51  
Net income before income taxes                           $ 1,182  
                                 
Reconciliation of revenue                                
Restaurant sales   $ 10,356     $ 26,513     $ -     $ 36,869  
Franchise and other revenues     46       110       -       156  
Total consolidated net revenues   $ 10,402     $ 26,623     $ -     $ 37,025  
Other segment disclosures                                
Restaurant depreciation and amortization   $ 240     $ 732     $ 10     $ 982  
Capital expenditures   $ 395     $ 80     $ (6 )   $ 469  

 

    Thirty-Nine-Week Period Ended June 30, 2026  
    Good Times     Bad Daddy's     Other     Consolidated  
Restaurant sales   $ 28,506     $ 72,011     $ -     $ 100,517  
Restaurant operating costs:                                
Food and packaging costs     8,727       21,653       -       30,380  
Payroll and other employee benefit costs     9,769       24,530       -       34,299  
Restaurant occupancy costs     2,756       4,818       (64 )     7,510  
Other restaurant operating costs     4,067       10,933       (418 )     14,582  
Restaurant-level operating profit   $ 3,187     $ 10,077     $ 482     $ 13,746  
Reconciliation of Restaurant-level operating profit to Net income before income taxes                          
Add:                                
Franchise and other revenues                             588  
Less:                                
Restaurant depreciation and amortization                             2,735  
Advertising costs                             3,268  
General and administrative                             6,237  
Impairment of long-lived assets and ROU assets                             245  
Gain on lease terminations and asset disposals                             (390 )
Income from operations                             2,239  
Less:                                
Interest and other expense, net                             111  
Net income before income taxes                           $ 2,128  
                                 
Reconciliation of revenue                                
Restaurant sales   $ 28,506     $ 72,011     $ -     $ 100,517  
Franchise and other revenues     130       458       -       588  
Total consolidated net revenues   $ 28,636     $ 72,469     $ -     $ 101,105  
Other segment disclosures                                
Restaurant depreciation and amortization   $ 730     $ 1,974     $ 31     $ 2,735  
Impairment of long-lived assets and ROU assets   $ 227     $ 18     $ -     $ 245  
Capital expenditures   $ 364     $ 456     $ 151     $ 971  

 

 

    Forty-Week Period Ended July 1, 2025  
    Good Times     Bad Daddy's     Other     Consolidated  
Restaurant sales   $ 29,566     $ 77,408     $ -     $ 106,974  
Restaurant operating costs:                                
Food and packaging costs     9,265       23,933       -       33,198  
Payroll and other employee benefit costs     10,486       26,770       -       37,256  
Restaurant occupancy costs     2,778       5,041       (61 )     7,758  
Other restaurant operating costs     4,139       11,035       (285 )     14,889  
Restaurant-level operating profit   $ 2,898     $ 10,629     $ 346     $ 13,873  
Reconciliation of Restaurant-level operating profit to Net income before income taxes                          
Add:                                
Franchise and other revenues                             663  
Less:                                
Restaurant depreciation and amortization                             2,996  
Advertising costs                             2,957  
General and administrative                             7,340  
Impairment of long-lived assets and ROU assets                             494  
Gain on asset disposals                             (55 )
Preopening costs                             8  
Income from operations                             796  
Less:                                
Interest and other expense, net                             153  
Add:                                
Other income                             140  
Net income before income taxes                           $ 783  
                                 
Reconciliation of revenue                                
Restaurant sales   $ 29,566     $ 77,408     $ -     $ 106,974  
Franchise and other revenues     144       519       -       663  
Total consolidated net revenues   $ 29,710     $ 77,927     $ -     $ 107,637  
Other segment disclosures                                
Restaurant depreciation and amortization   $ 721     $ 2,246     $ 29     $ 2,996  
Impairment of long-lived assets and ROU assets   $ 31     $ 463     $ -     $ 494  
Capital expenditures   $ 2,200     $ 792     $ 136     $ 3,128  

 

    June 30, 2026     September 30, 2025  
Property and equipment, net:                
Good Times   $ 7,032     $ 7,577  
Bad Daddy’s     12,460       14,048  
Other     191       243  
Consolidated   $ 19,683     $ 21,868  
                 
Right-of-use assets, net:                
Good Times   $ 11,456     $ 12,078  
Bad Daddy’s     18,313       20,515  
Other     903       1,025  
Consolidated   $ 30,672     $ 33,618  
                 
Total assets:                
Good Times   $ 20,519     $ 20,859  
Bad Daddy’s     44,598       47,508  
Other     15,068       15,440  
Consolidated   $ 80,185     $ 83,807