Good Times Restaurants (GTIM) 10-Q 9 Feb 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 26, 2017	Feb. 09, 2018
Document And Entity Information
Entity Registrant Name	Good Times Restaurants Inc.
Entity Central Index Key	825,324
Document Type	10-Q
Document Period End Date	Dec. 26, 2017
Amendment Flag	false
Current Fiscal Year End Date	--09-27
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,468,326
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 26, 2017	Sep. 26, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 3,299	$ 4,337
Receivables, net of allowance for doubtful accounts of $0	643	573
Prepaid expenses and other	216	296
Inventories	882	847
Notes receivable	13	13
Total current assets	5,053	6,066
PROPERTY AND EQUIPMENT:
Land and building	5,002	5,001
Leasehold improvements	22,053	21,159
Fixtures and equipment	21,535	20,945
Total property and equipment	48,590	47,105
Less accumulated depreciation and amortization	(19,520)	(18,636)
Total net property and equipment	29,070	28,469
Assets held for sale	0	1,221
OTHER ASSETS:
Notes receivable, net of current portion	43	46
Deposits and other assets	224	240
Trademarks	3,900	3,900
Other intangibles, net	53	61
Goodwill	15,150	15,150
Total other assets	19,370	19,397
TOTAL ASSETS:	53,493	55,153
CURRENT LIABILITIES:
Current maturities of long-term debt and capital lease obligations	17	17
Accounts payable	2,733	3,311
Deferred income	46	41
Other accrued liabilities	2,995	3,547
Total current liabilities	5,791	6,916
LONG-TERM LIABILITIES:
Maturities of long-term debt and capital lease obligations due after one year	4,835	5,339
Deferred and other liabilities	6,131	5,614
Total long-term liabilities	10,966	10,953
Good Times Restaurants Inc. stockholders' equity:
Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of 12/26/17 and 09/26/17	0	0
Common stock, $.001 par value; 50,000,000 shares authorized, 12,468,325 and 12,427,280 shares issued and outstanding as of 12/26/17 and 09/26/17, respectively	12	12
Capital contributed in excess of par value	59,057	58,939
Accumulated deficit	(24,963)	(24,380)
Total Good Times Restaurants Inc. stockholders' equity	34,106	34,571
Non-controlling interests	2,630	2,713
Total stockholders' equity	36,736	37,284
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 53,493	$ 55,153

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 26, 2017	Sep. 26, 2017
Statement of Financial Position [Abstract]
Receivables, allowance for doubtful accounts	$ 0	$ 0
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	12,468,325	12,427,280
Common stock, shares outstanding	12,468,325	12,427,280

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 26, 2017	Dec. 27, 2016
NET REVENUES:
Restaurant sales	$ 22,597	$ 16,386
Franchise royalties	163	169
Total net revenues	22,760	16,555
RESTAURANT OPERATING COSTS:
Food and packaging costs	7,203	5,155
Payroll and other employee benefit costs	8,279	5,995
Restaurant occupancy costs	1,640	1,294
Other restaurant operating costs	2,116	1,528
Preopening costs	577	351
Depreciation and amortization	846	630
Total restaurant operating costs	20,661	14,953
General and administrative costs	1,917	1,645
Advertising costs	507	412
Franchise costs	10	24
Gain on restaurant asset sales	(8)	(6)
LOSS FROM OPERATIONS	(327)	(473)
OTHER INCOME (EXPENSES):
Interest income (expense), net	(83)	(20)
Total other income (expenses), net	(83)	(20)
NET LOSS	(410)	(493)
Income attributable to non-controlling interests	(173)	(140)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (583)	$ (633)
BASIC AND DILUTED LOSS PER SHARE:
Net loss attributable to common shareholders	$ (0.05)	$ (0.05)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted	12,444,748	12,288,365

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 26, 2017	Dec. 27, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (410)	$ (493)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	908	673
Accretion of deferred rent	113	120
Amortization of lease incentive obligation	(95)	(62)
Stock-based compensation expense	118	199
Recognition of deferred gain on sale of restaurant building	(8)	(6)
Change in:
Receivables and prepaids	(70)	(140)
Inventories	(35)	(16)
Deposits and other assets	80	(47)
Change in:
Accounts payable	(122)	(354)
Deferred liabilities	353	278
Accrued and other liabilities	(563)	(504)
Net cash provided by (used in) operating activities	269	(352)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for the purchase of property and equipment	(1,947)	(2,425)
Proceeds from sale leaseback transaction	1,397	0
Payments received from franchisees and others	3	3
Net cash used in investing activities	(547)	(2,422)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on notes payable and long-term debt	900	0
Principal payments on notes payable and long-term debt	(1,404)	(7)
Net contributions (distributions) paid to non-controlling interests	(256)	(32)
Net cash used in financing activities	(760)	(39)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(1,038)	(2,813)
CASH AND CASH EQUIVALENTS, beginning of period	4,337	6,330
CASH AND CASH EQUIVALENTS, end of period	3,299	3,517
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	68	1
Change in accounts payable attributable to the purchase of property and equipment	$ (456)	$ 1,844

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 26, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Good Times Restaurants Inc. and its wholly-owned subsidiaries, Good Times Drive Thru, Inc. (“Drive Thru”), BD of Colorado, LLC (“BD of Colo”), Bad Daddy’s Franchise Development, LLC (“BDFD”) and Bad Daddy’s International, LLC (“BDI”) (together referred to as the “Company”, “we” or “us”). All significant intercompany balances and transactions have been eliminated in consolidation. Drive Thru is engaged in the business of developing, owning, operating and franchising hamburger-oriented drive-through restaurants under the name Good Times Burgers & Frozen Custard. Most of our Good Times restaurants are located in the front-range communities of Colorado, but we also have franchised restaurants in Wyoming. BD of Colo, BDI and BDFD are engaged in the business of licensing, owning and operating full-service hamburger-oriented restaurants under the name Bad Daddy’s Burger Bar. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles and practices of the United States of America (“GAAP”) for interim financial information. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all of the normal recurring adjustments necessary to present fairly the financial position of the Company as of December 26, 2017 and the results of its operations and its cash flows for the fiscal quarters ended December 26, 2017 and December 27, 2016. Operating results for the fiscal quarter ended December 26, 2017 are not necessarily indicative of the results that may be expected for the year ending September 25, 2018. The condensed consolidated balance sheet as of September 26, 2017 is derived from the audited financial statements, but does not include all disclosures required by generally accepted accounting principles. As a result, these condensed consolidated financial statements should be read in conjunction with the Company's Form 10-K for the fiscal year ended September 26, 2017. Fiscal Year – The Company’s fiscal year is a 52/53-week year ending on the last Tuesday of September. In a 52-week fiscal year, each of the Company’s quarterly periods comprise 13 weeks. The additional week in a 53-week fiscal year is added to the first quarter, making such quarter consist of 14 weeks. Advertising Costs – We utilize Advertising Funds to administer certain advertising programs for both the Good Times and Bad Daddy’s brands that benefit both us and our franchisees. We and our franchisees are required to contribute a percentage of gross sales to the fund. As the contributions to these funds are designated and segregated for advertising, we act as an agent for the franchisees with regard to these contributions. We consolidate the Advertising Funds into our financial statements on a net basis, whereby contributions from franchisees, when received, are recorded as offsets to reported advertising expenses. Contributions to the Advertising Funds from our franchisees were $87,000 in each of the first fiscal quarters of 2018 and 2017.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Dec. 26, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Note 2. Goodwill and Intangible Assets The following table presents goodwill and intangible assets as of December 26, 2017 and September 26, 2017 (in thousands): December 26, 2017 September 26, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization Franchise rights 116 (64 ) 52 116 (57 ) 59 Non-compete agreements 15 (14 ) 1 15 (13 ) 2 $ 131 $ (78 ) $ 53 $ 131 $ (70 ) $ 61 Indefinite-lived intangible assets: Trademarks $ 3,900 $ 0 $ 3,900 $ 3,900 $ 0 $ 3,900 Intangible assets, net $ 4,031 $ (78 ) $ 3,953 $ 4,031 $ (70 ) $ 3,961 Goodwill $ 15,150 $ 0 $ 15,150 $ 15,150 $ 0 $ 15,150 The Company had no goodwill impairment losses in the periods presented in the above table or any prior periods. There were no impairments to intangible assets during the quarter ended December 26, 2017. The aggregate amortization expense related to these intangible assets subject to amortization was $7,000 for the quarter ended December 26, 2017. The estimated aggregate future amortization expense as of December 26, 2017 is as follows (in thousands): Remainder of 2018 $ 18 2019 23 2020 12 $ 53

Common Stock

Common Stock	3 Months Ended
	Dec. 26, 2017
Stockholders' Equity Note [Abstract]
Common Stock	Note 3. Common Stock On January 26, 2015, the Company filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission ("SEC") which was declared effective by the SEC on March 25, 2015. The registration statement allows the Company to issue common stock from time to time up to an aggregate amount of $75 million, of which $22,688,052 has been issued.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 26, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Note 4. Stock-Based Compensation Stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period of the grant). The company recognizes the impact of forfeitures as forfeitures occur. Our net loss for the quarters ended December 26, 2017 and December 27, 2016 includes $118,000 and $199,000, respectively, of compensation costs related to our stock-based compensation arrangements. Stock Option awards The Company measures the compensation cost associated with stock option awards by estimating the fair value of the award as of the grant date using the Black-Scholes pricing model. The Company believes that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair values of the Company’s stock options and stock awards granted during the first fiscal quarter ended December 26, 2017. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by the employees who receive equity awards. During the quarter ended December 26, 2017, the Company granted a total of 12,963 incentive stock options, from available shares under its 2008 Plan, as amended, with an exercise price of $2.70 and a per-share weighted average fair value of $1.95. During the quarter ended December 27, 2016, the Company granted a total of 149,899 incentive stock options, from available shares under its 2008 Plan, as amended, with exercise prices between of $3.05 and $3.15 and per-share weighted average fair values between $2.17 and $2.30. In addition to the exercise and grant date prices of the stock option awards, certain weighted average assumptions that were used to estimate the fair value of stock option grants are listed in the following table: Quarter Ended 12/26/17 Quarter Ended 12/27/16 Incentive and Expected term (years) 7.5 6.5 to 7.5 Expected volatility 75.67% 75.66% to 80.70% Risk-free interest rate 2.17% 1.49% to 2.40% Expected dividends 0 0 We estimate expected volatility based on historical weekly price changes of our common stock for a period equal to the current expected term of the options. The risk-free interest rate is based on the United States treasury yields in effect at the time of grant corresponding with the expected term of the options. The expected option term is the number of years we estimate that options will be outstanding prior to exercise considering vesting schedules and our historical exercise patterns. The following table summarizes stock option activity for the quarter ended December 26, 2017 under all plans: Shares Weighted Weighted Avg. Outstanding-at beginning of year 681,922 $ 4.25 Options granted 12,963 $ 2.70 Options exercised 0 Forfeited (2,970 ) $ 4.04 Expired (2,933 ) $ 17.25 Outstanding December 26, 2017 688,982 $ 4.17 6.5 Exercisable December 26, 2017 467,207 $ 3.94 5.7 As of December 26, 2017, the aggregate intrinsic value of the outstanding and exercisable options was $58,000 and $58,000, respectively. Only options whose exercise price is below the current market price of the underlying stock are included in the intrinsic value calculation. As of December 26, 2017, the total remaining unrecognized compensation cost related to non-vested stock options was $485,000 and is expected to be recognized over a weighted average period of approximately 1.8 years. There were no stock options exercised during the quarters ended December 26, 2017 and December 27, 2016. Restricted Stock Grants During the quarter ended December 26, 2017, the Company granted a total of 37,037 shares of restricted stock from available shares under its 2008 Plan, as amended. The shares were issued with a grant date fair market value of $2.70 which is equal to the closing price of the stock on the date of the grant. The restricted stock grant vests over three years following the grant date. During the quarter ended December 27, 2016, the Company granted a total of 101,094 shares of restricted stock from available shares under its 2008 Plan, as amended. The shares were issued with a grant date fair market value of $3.15 which is equal to the closing price of the stock on the date of the grant. The restricted stock grant vests over three years following the grant date. A summary of the status of non-vested restricted stock as of December 26, 2017 is presented below. Shares Grant Date Fair Non-vested shares at beg of year 115,039 $ 3.15 to $8.60 Granted 37,037 $ 2.70 Vested (41,038 ) $ 3.15 to $4.18 Non-vested shares at December 26, 2017 111,038 $ 2.70 to $8.60 As of December 26, 2017, there was $314,000 of total unrecognized compensation cost related to non-vested restricted stock. This cost is expected to be recognized over a weighted average period of approximately 1.4 years.

Notes Payable and Long-Term Deb

Notes Payable and Long-Term Debt	3 Months Ended
	Dec. 26, 2017
Debt Disclosure [Abstract]
Notes Payable and Long-Term Debt	Note 5. Notes Payable and Long-Term Debt Cadence Credit Facility On September 8, 2016, the Company entered into a credit agreement with Cadence Bank (“Cadence”) pursuant to which Cadence agreed to loan the Company up to $9,000,000 (the “Cadence Credit Facility”). On September 11, 2017, the Cadence Credit Facility was amended to increase the loan maximum to $12,000,000 and extend the maturity date to December 31, 2020. The Cadence Credit Facility accrues commitment fees on the daily unused balance of the facility at a rate of 0.25%. All borrowings under the Cadence Credit Facility bear interest at a variable rate based upon the Company’s election of (i) 3.0% plus the base rate, which is the highest of the (a) Federal Funds Rate plus 0.5%, (b) the Cadence bank publicly-announced prime rate, and (c) LIBOR plus 1.0%, or (ii) LIBOR, with a 0.125% floor, plus 4.0%. Interest is due at the end of each calendar quarter if the Company selects to pay interest based on the base rate and at the end of each LIBOR period if it selects to pay interest based on LIBOR. As of December 26, 2017, the weighted average interest rate applicable to borrowings under the Cadence Credit Facility was 5.6456%. The Cadence Credit Facility contains certain affirmative and negative covenants and events of default that the Company considers customary for an agreement of this type, including covenants setting a maximum leverage ratio of 5.35:1, a minimum fixed charge coverage ratio of 1.25:1 and minimum liquidity of $2,500,000. As of December 26, 2017, the Company was in compliance with its covenants. As a result of entering into the Cadence Credit Facility and the amendment, the Company paid loan origination costs including professional fees of approximately $197,000 and will amortize these costs over the term of the credit agreement. The obligations under the Cadence Credit Facility are collateralized by a first priority lien on substantially all of the Company’s assets. As of December 26, 2017, the outstanding balance on the facility was $4,800,000.

Net Income (Loss) per Common Sh

Net Income (Loss) per Common Share	3 Months Ended
	Dec. 26, 2017
Earnings Per Share [Abstract]
Net Income (Loss) per Common Share	Note 6. Net Income (Loss) per Common Share Our basic earnings per share calculation is computed based on the weighted-average number of common shares outstanding. Our diluted earnings per share calculation is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive securities for this calculation consist of in-the-money outstanding stock options, restricted stock grants and warrants (which were assumed to have been exercised at the average market price of the common shares during the reporting period). The treasury stock method is used to measure the dilutive impact of in-the-money stock options. Options and restricted stock grants for 800,020 and 984,718 shares of common stock were not included in computing diluted EPS for the quarters ended December 26, 2017 and December 27, 2016, respectively, because their effects were anti-dilutive.

Contingent Liabilities and Liqu

Contingent Liabilities and Liquidity	3 Months Ended
	Dec. 26, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingent Liabilities and Liquidity	Note 7. Contingent Liabilities and Liquidity We remain contingently liable on various leases underlying restaurants that were previously sold to franchisees. We have never experienced any losses related to these contingent lease liabilities, however if a franchisee defaults on the payments under the leases, we would be liable for the lease payments as the assignor or sub-lessor of the lease. Currently we have not been notified nor are we aware of any leases in default by the franchisees, however there can be no assurance that there will not be in the future which could have a material effect on our future operating results.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets and Goodwill	3 Months Ended
	Dec. 26, 2017
Goodwill and Intangible Asset Impairment [Abstract]
Impairment of Long-Lived Assets and Goodwill	Note 8. Impairment of Long-Lived Assets and Goodwill Long-Lived Assets. Given the results of our impairment analysis at December 26, 2017, there are no restaurants which are impaired. Trademarks. Goodwill.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 26, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes We account for income taxes using the liability method, whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The deferred tax assets are reviewed periodically for recoverability and valuation allowances are adjusted as necessary. The Company has significant net operating loss carry-forwards from prior years and incurred additional net operating losses during the quarters ended December 26, 2017 and December 27, 2016. These losses resulted in an increase in the related deferred tax assets; however, valuation allowances were provided which reduced these deferred tax assets to zero; therefore, no income tax provision or benefit was recognized for the quarters ended December 26, 2017 and December 27, 2016 resulting in an effective income tax rate of 0% for both periods. The Company is subject to taxation in various jurisdictions. The Company continues to remain subject to examination by U.S. federal authorities for the years 2014 through 2017. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company’s financial condition, results of operations, or cash flows. Therefore, no reserves for uncertain income tax positions have been recorded. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. No accrual for interest and penalties was considered necessary as of December 26, 2017.

Non-controlling Interests

Non-controlling Interests	3 Months Ended
	Dec. 26, 2017
Noncontrolling Interest [Abstract]
Non-controlling Interests	Note 10. Non-controlling Interests Non-controlling interests are presented as a separate item in the stockholders’ equity section of the condensed consolidated balance sheet. The amount of consolidated net income or loss attributable to non-controlling interests is presented on the face of the condensed consolidated statement of operations. Changes in a parent’s ownership interest in a subsidiary that do not result in deconsolidation are equity transactions, while changes in ownership interest that do result in deconsolidation of a subsidiary require gain or loss recognition based on the fair value on the deconsolidation date. The equity interests of the unrelated limited partners and members are shown on the accompanying consolidated balance sheet in the stockholders’ equity section as a non-controlling interest and is adjusted each period to reflect the limited partners’ and members’ share of the net income or loss as well as any cash contributions or distributions to or from the limited partners and members for the period. The limited partners’ and members’ share of the net income or loss in the subsidiary is shown as non-controlling interest income or expense in the accompanying consolidated statement of operations. All inter-company accounts and transactions are eliminated. The following table summarizes the activity in non-controlling interests during the quarter ended December 26, 2017 (in thousands): Good Times Bad Daddy’s Total Balance at September 26, 2017 $ 434 $ 2,279 $ 2,713 Income 79 94 173 Distributions (94 ) (162 ) (256 ) Balance at December 26, 2017 $ 419 $ 2,211 $ 2,630 Our non-controlling interests consist of one joint venture partnership involving seven Good Times restaurants and six joint venture partnerships involving six Bad Daddy’s restaurants. Three of the six Bad Daddy’s joint venture partnerships were established in fiscal 2016 and fiscal 2017 to fund the construction of Bad Daddy’s restaurants in North Carolina. Two of the restaurants opened in fiscal 2017 and one opened in October 2017.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Dec. 26, 2017
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 11. Recent Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” (ASU 2016-09). ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The areas for simplification include income tax consequences, forfeitures, classification of awards as either equity or liabilities and classification on the statement of cash flows. In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting.” This pronouncement provides clarity in guidance in the instance of a change in the terms or conditions of a share-based payment award. Both pronouncements are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016 and early adoption is permitted for financial statements that have not been previously issued. The Company adopted both ASUs effective with its 2018 fiscal year; such adoption did not have material impact on our financial position or results from operations. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This update was issued to replace the current revenue recognition guidance, creating a more comprehensive five-step model. In March 2016, the FASB issued No. ASU 2016-04, “Liabilities – Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products.” This pronouncement provides guidance for the derecognition of prepaid stored-value product liabilities, consistent with the breakage guidance in Topic 606. These amendments are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. We do not expect that the adoption of these new standards will have a material impact to our revenue recognition related to company-owned restaurant sales, recognition of royalty fees from our franchise agreement, or impact from recognition of gift card breakage. In February 2016, the Financial Accounting Standards Board (“FASB”) FASB issued Accounting Standards Update No. ASU No. 2016-02, “Leases (Topic 842)”, (ASU 2016-02), which replaces the existing guidance in Accounting Standard Codification 840, Leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. ASU 2016-02 This pronouncement requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. The Company is currently assessing the impact that adoption of ASU 2016-02 will have on its consolidated financial position or results of operations, but expect that it will result in a significant increase in our long-term assets and liabilities given we have a significant number of leases. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment,” which eliminates Step 2 from the impairment test applied to goodwill. Under the new standard, goodwill impairment tests will compare the fair value of a reporting unit with its carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill. This pronouncement is effective for annual and interim periods beginning after December 15, 2019 and should be applied on a prospective basis. We do not expect that the adoption of this standard will have a material impact on our financial position or results from operations.

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 26, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 12. Subsequent Events On January 30, 2018 the Company closed one Good Times restaurant in Aurora, Colorado. A non-cash impairment charge of $219,000 related to this restaurant was previously taken in the fiscal year ended September 26, 2017 and no additional loss from disposal of assets is expected. The Company is currently analyzing subleasing opportunities to offset the remaining lease costs over the approximate 17 remaining years of the lease.

Segment Reporting

Segment Reporting	3 Months Ended
	Dec. 26, 2017
Segment Reporting [Abstract]
Segment Reporting	Note 13. Segment Reporting All of our Good Times Burgers and Frozen Custard restaurants (Good Times) compete in the quick-service drive-through dining industry while our Bad Daddy’s Burger Bar restaurants (Bad Daddy’s) compete in the full-service upscale casual dining industry. We believe that providing this additional financial information for each of our brands will provide a better understanding of our overall operating results. Income (loss) from operations represents revenues less restaurant operating costs and expenses, directly allocable general and administrative expenses, and other restaurant-level expenses directly associated with each brand including depreciation and amortization, pre-opening costs and losses or gains on disposal of property and equipment. Unallocated corporate capital expenditures are presented below as reconciling items to the amounts presented in the consolidated financial statements. The following tables present information about our reportable segments for the respective periods (in thousands): Quarter Ended Dec 26, 2017 Dec 27, 2016 Revenues Good Times $ 7,688 $ 6,952 Bad Daddy’s 15,072 9,603 $ 22,760 $ 16,555 Loss from operations Good Times $ (19 ) $ (111 ) Bad Daddy’s (190 ) (190 ) Corporate (118 ) (172 ) $ (327 ) $ (473 ) Capital expenditures Good Times $ 20 $ 953 Bad Daddy’s 1,926 1,441 Corporate 1 31 $ 1,947 $ 2,425 Dec 26, 2017 Sep 26, 2017 Property and equipment, net Good Times $ 5,635 $ 7,061 Bad Daddy’s 22,961 22,133 Corporate 474 496 $ 29,070 $ 29,690

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Dec. 26, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill and Intangible Assets	The following table presents goodwill and intangible assets as of December 26, 2017 and September 26, 2017 (in thousands): December 26, 2017 September 26, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization Franchise rights 116 (64 ) 52 116 (57 ) 59 Non-compete agreements 15 (14 ) 1 15 (13 ) 2 $ 131 $ (78 ) $ 53 $ 131 $ (70 ) $ 61 Indefinite-lived intangible assets: Trademarks $ 3,900 $ 0 $ 3,900 $ 3,900 $ 0 $ 3,900 Intangible assets, net $ 4,031 $ (78 ) $ 3,953 $ 4,031 $ (70 ) $ 3,961 Goodwill $ 15,150 $ 0 $ 15,150 $ 15,150 $ 0 $ 15,150
Schedule of Estimated Aggregate Future Amortization Expense For Finite-Lived Intangible Assets	The estimated aggregate future amortization expense as of December 26, 2017 is as follows (in thousands): Remainder of 2018 $ 18 2019 23 2020 12 $ 53

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 26, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted Average Assumptions Used to Estimate Fair Value of Stock Option Grants	In addition to the exercise and grant date prices of the stock option awards, certain weighted average assumptions that were used to estimate the fair value of stock option grants are listed in the following table: Quarter Ended 12/26/17 Quarter Ended 12/27/16 Incentive and Expected term (years) 7.5 6.5 to 7.5 Expected volatility 75.67% 75.66% to 80.70% Risk-free interest rate 2.17% 1.49% to 2.40% Expected dividends 0 0
Summary of Stock Option Activity under Share Based Compensation Plan	The following table summarizes stock option activity for the quarter ended December 26, 2017 under all plans: Shares Weighted Weighted Avg. Outstanding-at beginning of year 681,922 $ 4.25 Options granted 12,963 $ 2.70 Options exercised 0 Forfeited (2,970 ) $ 4.04 Expired (2,933 ) $ 17.25 Outstanding December 26, 2017 688,982 $ 4.17 6.5 Exercisable December 26, 2017 467,207 $ 3.94 5.7
Schedule of Non-vested Restricted Stock Activity	A summary of the status of non-vested restricted stock as of December 26, 2017 is presented below. Shares Grant Date Fair Non-vested shares at beg of year 115,039 $ 3.15 to $8.60 Granted 37,037 $ 2.70 Vested (41,038 ) $ 3.15 to $4.18 Non-vested shares at December 26, 2017 111,038 $ 2.70 to $8.60

Non-controlling Interests (Tabl

Non-controlling Interests (Tables)	3 Months Ended
	Dec. 26, 2017
Noncontrolling Interest [Abstract]
Schedule of Noncontrolling Interest	The following table summarizes the activity in non-controlling interests during the quarter ended December 26, 2017 (in thousands): Good Times Bad Daddy’s Total Balance at September 26, 2017 $ 434 $ 2,279 $ 2,713 Income 79 94 173 Distributions (94 ) (162 ) (256 ) Balance at December 26, 2017 $ 419 $ 2,211 $ 2,630

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Dec. 26, 2017
Segment Reporting [Abstract]
Schedule of Reportable Segments	The following tables present information about our reportable segments for the respective periods (in thousands): Quarter Ended Dec 26, 2017 Dec 27, 2016 Revenues Good Times $ 7,688 $ 6,952 Bad Daddy’s 15,072 9,603 $ 22,760 $ 16,555 Loss from operations Good Times $ (19 ) $ (111 ) Bad Daddy’s (190 ) (190 ) Corporate (118 ) (172 ) $ (327 ) $ (473 ) Capital expenditures Good Times $ 20 $ 953 Bad Daddy’s 1,926 1,441 Corporate 1 31 $ 1,947 $ 2,425 Dec 26, 2017 Sep 26, 2017 Property and equipment, net Good Times $ 5,635 $ 7,061 Bad Daddy’s 22,961 22,133 Corporate 474 496 $ 29,070 $ 29,690

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($)	3 Months Ended
	Dec. 26, 2017	Dec. 27, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Advertising Costs	$ 87,000	$ 87,000

Goodwill and Intangible Asset24

Goodwill and Intangible Assets (Narrative) (Details) $ in Thousands	3 Months Ended
	Dec. 26, 2017USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 7

Goodwill and Intangible Asset25

Goodwill and Intangible Assets (Intangible Assets Subject to Amortization) (Details) - USD ($) $ in Thousands	Dec. 26, 2017	Sep. 26, 2017
Gross Carrying Amount	$ 131	$ 131
Accumulated Amortization	(78)	(70)
Net Carrying Amount	53	61
Franchise rights [Member]
Gross Carrying Amount	116	116
Accumulated Amortization	(64)	(57)
Net Carrying Amount	52	59
Non-compete agreements [Member]
Gross Carrying Amount	15	15
Accumulated Amortization	(14)	(13)
Net Carrying Amount	$ 1	$ 2

Goodwill and Intangible Asset26

Goodwill and Intangible Assets (Indefinite-lived Intangible Assets) (Details) - USD ($) $ in Thousands	Dec. 26, 2017	Sep. 26, 2017
Trademarks and Trade Names [Member]
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 3,900	$ 3,900

Goodwill and Intangible Asset27

Goodwill and Intangible Assets (Schedule of Goodwill and Intangible Assets) (Details) - USD ($) $ in Thousands	Dec. 26, 2017	Sep. 26, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, gross carrying amount	$ 4,031	$ 4,031
Accumulated Amortization	(78)	(70)
Intangible Assets, net carrying amount	3,953	3,961
Goodwill, gross carrying amount	15,150	15,150
Goodwill, Accumulated Amortization	0	0
Goodwill, net carrying amount	$ 15,150	$ 15,150

Goodwill and Intangible Asset28

Goodwill and Intangible Assets (Estimated Aggregate Future Amortization Expense) (Details) - USD ($) $ in Thousands	Dec. 26, 2017	Sep. 26, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2018	$ 18
2,019	23
2,020	12
Net Carrying Amount	$ 53	$ 61

Common Stock (Details)

Common Stock (Details) - USD ($)	May 07, 2015	Dec. 27, 2015
Stockholders' Equity Note [Abstract]
Aggregate amount of stock value authorized by SEC to be issued	$ 75,000,000
Aggregate amount of stock value issued under S-3		$ 22,688,052

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 26, 2017	Dec. 27, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 118	$ 199
Stock options granted, shares	12,963
Stock options granted, exercise price	$ 2.70
Incentive Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted, shares	12,963	149,899
Stock options granted, exercise price	$ 2.70
Stock options granted, per-share weighted average fair value	$ 1.95
Incentive Stock Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted, exercise price		$ 3.05
Stock options granted, per-share weighted average fair value		2.17
Incentive Stock Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted, exercise price		3.15
Stock options granted, per-share weighted average fair value		$ 2.30
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate Intrinsic Value, Outstanding	$ 58
Aggregate Intrinsic Value, Exercisable	58
Remaining total unrecognized compensation cost related to unvested stock-based arrangements	$ 485
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition	1 year 9 months 18 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted, shares	37,037	101,094
Restricted stock granted, weighted average grant date fair value per share	$ 2.70	$ 3.15
Vesting period	3 years	3 years
Remaining total unrecognized compensation cost related to unvested stock-based arrangements	$ 314
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition	1 year 4 months 24 days

Stock-Based Compensation (Weigh

Stock-Based Compensation (Weighted Average Assumptions Used to Estimate Fair Value of Stock Option Grants) (Details) - Incentive and Non-Statutory Stock Options [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 26, 2017	Sep. 26, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	7 years 6 months
Expected volatility	75.67%
Expected volatility, minimum		75.66%
Expected volatility, maximum		80.70%
Risk-free interest rate	2.17%
Risk-free interest rate, minimum		1.49%
Risk-free interest rate, maximum		2.40%
Expected dividends	$ 0	$ 0
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		6 years 6 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		7 years 6 months

Stock-Based Compensation (Summa

Stock-Based Compensation (Summary of Stock Option Activity under Share Based Compensation Plan) (Details)	3 Months Ended
	Dec. 26, 2017$ / sharesshares
Shares
Outstanding-at beginning of year	688,982
Options granted	12,963
Options exercised	0
Forfeited	(2,970)
Expired	(2,933)
Outstanding December 26, 2017	688,982
Exercisable December 26, 2017	467,207
Weighted Average Exercise Price
Outstanding-at beginning of year | $ / shares	$ 4.25
Options granted | $ / shares	2.70
Forfeited | $ / shares	4.04
Expired | $ / shares	17.25
Outstanding December 26, 2017 | $ / shares	4.17
Exercisable December 26, 2017 | $ / shares	$ 3.94
Weighted Avg. Remaining Contractual Life (Yrs.)
Outstanding December 26, 2017	6 years 6 months
Exercisable December 26, 2017	5 years 8 months 12 days

Stock-Based Compensation (Sum33

Stock-Based Compensation (Summary of Non-vested Restricted Stock Activity) (Details) - Restricted Stock [Member] - $ / shares	3 Months Ended
	Dec. 26, 2017	Dec. 27, 2016
Shares
Non-vested shares at beg of year	115,039
Granted	37,037	101,094
Vested	(41,038)
Non-vested shares at December 26, 2017	111,038
Grant Date Fair Value Per Share
Granted	$ 2.70	$ 3.15
Minimum [Member]
Grant Date Fair Value Per Share
Non-vested shares	3.15
Vested	3.15
Non-vested shares at December 26, 2017	2.70
Maximum [Member]
Grant Date Fair Value Per Share
Non-vested shares	8.60
Vested	4.18
Non-vested shares at December 26, 2017	$ 8.60

Notes Payable and Long-Term D34

Notes Payable and Long-Term Debt (Details) - Cadence Credit Facility [Member] - Good Times Drive Thru Inc. [Member] - USD ($) $ in Thousands	Sep. 11, 2017	Sep. 08, 2016	Dec. 26, 2017
Debt Instrument [Line Items]
Loan Agreement, amount	$ 12,000	$ 9,000
Interest rate		0.25%	5.6456%
Maturity date	Dec. 31, 2020
Interest rate description		All borrowings under the Cadence Credit Facility bear interest at a variable rate based upon the Company’s election of (i) 3.0% plus the base rate, which is the highest of the (a) Federal Funds Rate plus 0.5%, (b) the Cadence bank publicly-announced prime rate, and (c) LIBOR plus 1.0%, or (ii) LIBOR, with a 0.125% floor, plus 4.0%.
Payment of debt issuance costs		$ 197
Minimum liquidity of credit facility			$ 2,500
Outstanding balance on credit			$ 4,800

Net Income (Loss) per Common 35

Net Income (Loss) per Common Share (Details) - shares	3 Months Ended
	Dec. 26, 2017	Dec. 27, 2016
Earnings Per Share [Abstract]
Antidilutive securities excluded from diluted EPS computation	800,020	984,718

Impairment of Long-Lived Asse36

Impairment of Long-Lived Assets and Goodwill (Details) $ in Thousands	3 Months Ended
	Dec. 26, 2017USD ($)restaurants	Sep. 26, 2017USD ($)
Impaired Long-Lived Assets Held and Used [Line Items]
Number of restaurants impaired | restaurants	0
Goodwill	$ 15,150	$ 15,150
Good Times Drive Thru Inc. [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Goodwill	96
Bad Daddy's Franchise Development, LLC [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Goodwill	$ 15,054

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 26, 2017	Dec. 27, 2016
Income Tax Examination [Line Items]
Deferred tax assets	$ 0	$ 0
Income tax provision or benefit	$ 0	$ 0
Effective income tax rate	0.00%	0.00%
Reserves for uncertain tax positions	$ 0
Accrual for interest and penalties	$ 0
Minimum [Member]
Income Tax Examination [Line Items]
Years subject to income tax examination	2,014
Maximum [Member]
Income Tax Examination [Line Items]
Years subject to income tax examination	2,017

Non-controlling Interests (Deta

Non-controlling Interests (Details) $ in Thousands	3 Months Ended
	Dec. 26, 2017USD ($)restaurants
Noncontrolling Interest [Line Items]
Balance at September 26, 2017	$ 2,713
Income	173
Distributions	(256)
Balance at December 26, 2017	2,630
Good Times Drive Thru Inc. [Member]
Noncontrolling Interest [Line Items]
Balance at September 26, 2017	434
Income	79
Distributions	(94)
Balance at December 26, 2017	$ 419
Number of restaurants | restaurants	7
Bad Daddy's International, LLC [Member]
Noncontrolling Interest [Line Items]
Balance at September 26, 2017	$ 2,279
Income	94
Distributions	(162)
Balance at December 26, 2017	$ 2,211
Number of restaurants | restaurants	6

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] $ in Thousands	Jan. 30, 2018USD ($)
Non-cash impairment charge	$ 219
Loss from disposal of assets	$ 0

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 26, 2017	Dec. 27, 2016	Sep. 26, 2017
Segment Reporting Information [Line Items]
Revenues	$ 22,760	$ 16,555
Loss from operations	(327)	(473)
Capital expenditures	1,947	2,425
Property and equipment, net	29,070		$ 29,690
Good Times Burgers And Frozen Custard Restaurants [Member]
Segment Reporting Information [Line Items]
Revenues	7,688	6,952
Loss from operations	(19)	(111)
Capital expenditures	20	953
Property and equipment, net	5,635		7,061
Bad Daddys Burger Bar Restaurant [Member]
Segment Reporting Information [Line Items]
Revenues	15,072	9,603
Loss from operations	(190)	(190)
Capital expenditures	1,926	1,441
Property and equipment, net	22,961		22,133
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Loss from operations	(118)	(172)
Capital expenditures	1	$ 31
Property and equipment, net	$ 474		$ 496