Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 29, 2021 | Aug. 09, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Entity Central Index Key | 0000825324 | |
Document Period End Date | Jun. 29, 2021 | |
Current Fiscal Year End Date | --09-28 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-18590 | |
Entity Registrant Name | Good Times Restaurants Inc. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 84-1133368 | |
Entity Address, Address Line One | 651 CORPORATE CIRCLE | |
Entity Address, Address Line Two | SUITE 200 | |
Entity Address, City or Town | GOLDEN | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80401 | |
City Area Code | 303 | |
Local Phone Number | 384-1400 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock $.001 par value | |
Trading Symbol | GTIM | |
Name of Exchange on which Security is Registered | NASDAQ | |
Entity Common Stock, Shares Outstanding | 12,829,267 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 29, 2021 | Sep. 29, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 10,301 | $ 11,454 |
Receivables, net of allowance for doubtful accounts of $0 | 377 | 656 |
Prepaid expenses and other | 488 | 275 |
Inventories | 1,195 | 1,093 |
Notes receivable | 13 | |
Total current assets | 12,361 | 13,491 |
PROPERTY AND EQUIPMENT: | ||
Land and building | 4,704 | 4,704 |
Leasehold improvements | 34,435 | 33,280 |
Fixtures and equipment | 29,936 | 28,593 |
Total property and equipment | 69,075 | 66,577 |
Less accumulated depreciation and amortization | (41,786) | (38,908) |
Total net property and equipment | 27,289 | 27,669 |
OTHER ASSETS: | ||
Operating lease right-of-use assets, net | 46,678 | 49,252 |
Deposits and other assets | 225 | 209 |
Trademarks | 3,900 | 3,900 |
Other intangibles, net | 10 | 22 |
Goodwill | 5,150 | 5,150 |
Total other assets | 55,963 | 58,533 |
TOTAL ASSETS: | 95,613 | 99,693 |
CURRENT LIABILITIES: | ||
Current maturities of long-term debt | 6,242 | |
Accounts payable | 2,163 | 2,581 |
Deferred income | 65 | 69 |
Operating lease liabilities, current | 4,857 | 4,689 |
Other accrued liabilities | 6,491 | 5,055 |
Total current liabilities | 13,576 | 18,636 |
LONG-TERM LIABILITIES: | ||
Maturities of long-term debt due after one year | 10,903 | |
Operating lease liabilities, net of current portion | 50,698 | 53,731 |
Deferred and other liabilities | 234 | 1,440 |
Total long-term liabilities | 50,932 | 66,074 |
Good Times Restaurants Inc. stockholders' equity: | ||
Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of 6/29/21 and 9/29/20 | ||
Common stock, $.001 par value; 50,000,000 shares authorized, 12,830,879 and 12,612,852 shares issued and outstanding as of 6/29/21 and 9/29/20, respectively | 13 | 13 |
Capital contributed in excess of par value | 58,953 | 58,219 |
Treasury stock-at cost; 43,110 shares | (75) | (75) |
Accumulated deficit | (28,934) | (44,467) |
Total Good Times Restaurants Inc. stockholders' equity | 29,957 | 13,690 |
Non-controlling interests | 1,148 | 1,293 |
Total stockholders' equity | 31,105 | 14,983 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 95,613 | $ 99,693 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 29, 2021 | Sep. 29, 2020 |
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 | 12,830,879 | 12,612,852 |
Common stock, shares outstanding | 12,830,879 | 12,612,852 |
Treasury stock at cost, shares | 43,110 | 43,110 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2021 | Jun. 30, 2020 | Jun. 29, 2021 | Jun. 30, 2020 | |
NET REVENUES: | ||||
Total net revenues | $ 33,946 | $ 24,357 | $ 90,434 | $ 81,353 |
RESTAURANT OPERATING COSTS: | ||||
Food and packaging costs | 9,989 | 7,046 | 26,037 | 24,249 |
Payroll and other employee benefit costs | 11,261 | 7,397 | 29,787 | 29,297 |
Restaurant occupancy costs | 2,183 | 2,089 | 6,533 | 6,739 |
Other restaurant operating costs | 3,730 | 2,840 | 10,841 | 8,799 |
Preopening costs | 301 | 31 | 420 | 992 |
Depreciation and amortization | 938 | 983 | 2,797 | 3,175 |
Total restaurant operating costs | 28,402 | 20,386 | 76,415 | 73,251 |
General and administrative costs | 2,505 | 1,683 | 7,097 | 5,324 |
Advertising costs | 597 | 515 | 1,616 | 1,571 |
Franchise costs | 5 | 6 | 22 | 14 |
Impairment of goodwill | 10,000 | |||
Impairment of long-lived assets | 932 | 5,291 | ||
Gain on restaurant asset sale | (9) | (8) | (28) | (36) |
INCOME (LOSS) FROM OPERATIONS: | 2,446 | 843 | 5,312 | (14,062) |
Other income (expense): | ||||
Interest expense, net | (66) | (202) | (244) | (638) |
Gain on debt extinguishment | 11,778 | 11,778 | ||
Total other income (expense), net | 11,712 | (202) | 11,534 | (638) |
NET INCOME (LOSS): | 14,158 | 641 | 16,846 | (14,700) |
Income attributable to non-controlling interests | (524) | (352) | (1,313) | (738) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 13,634 | $ 289 | $ 15,533 | $ (15,438) |
NET INCOME (LOSS) PER SHARE, ATTRIBUTABLE TO COMMON SHAREHOLDERS: | ||||
Basic | $ 1.07 | $ 0.02 | $ 1.22 | $ (1.23) |
Diluted | $ 1.04 | $ 0.02 | $ 1.21 | $ (1.23) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic | 12,787,390 | 12,591,079 | 12,689,587 | 12,593,137 |
Diluted | 13,076,635 | 12,696,028 | 12,793,915 | 12,593,137 |
Restaurant sales [Member] | ||||
NET REVENUES: | ||||
Total net revenues | $ 33,701 | $ 24,190 | $ 89,777 | $ 80,781 |
Franchise revenues [Member] | ||||
NET REVENUES: | ||||
Total net revenues | $ 245 | $ 167 | $ 657 | $ 572 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Treasury Stock | Common Stock [Member] | Capital Contributed in Excess of Par Value [Member] | Non-Controlling Interest In Partnerships [Member] | Accumulated Deficit [Member] | Total |
BALANCES at Sep. 24, 2019 | $ 13 | $ 57,936 | $ 1,522 | $ (30,551) | $ 28,920 | |
BALANCES, shares at Sep. 24, 2019 | 12,541,082 | |||||
Stock-based compensation cost | 74 | 74 | ||||
Stock option exercises, shares | 2,413 | |||||
Restricted stock unit vesting | ||||||
Restricted stock unit vesting, shares | 76,643 | |||||
Treasury shares purchased | $ (75) | (75) | ||||
Treasury shares purchased, shares | 43,110 | (43,110) | ||||
Non-controlling interests: | ||||||
Income | 212 | 212 | ||||
Contributions | 22 | 22 | ||||
Distributions | (291) | (291) | ||||
Net Income (Loss) attributable to Good Times Restaurants Inc and comprehensive loss | (811) | (811) | ||||
BALANCES at Dec. 31, 2019 | $ (75) | $ 13 | 58,010 | 1,465 | (31,362) | 28,051 |
BALANCES, shares at Dec. 31, 2019 | 43,110 | 12,577,028 | ||||
Stock-based compensation cost | 75 | 75 | ||||
Restricted stock unit vesting | ||||||
Restricted stock unit vesting, shares | 14,000 | |||||
Non-controlling interests: | ||||||
Income | 174 | 174 | ||||
Distributions | (95) | (95) | ||||
Net Income (Loss) attributable to Good Times Restaurants Inc and comprehensive loss | (14,916) | (14,916) | ||||
BALANCES at Mar. 31, 2020 | $ (75) | $ 13 | 58,085 | 1,544 | (46,278) | 13,289 |
BALANCES, shares at Mar. 31, 2020 | 43,110 | 12,591,028 | ||||
Stock-based compensation cost | 74 | 74 | ||||
Restricted stock unit vesting | ||||||
Restricted stock unit vesting, shares | 4,626 | |||||
Non-controlling interests: | ||||||
Income | 352 | 352 | ||||
Distributions | (494) | (494) | ||||
Net Income (Loss) attributable to Good Times Restaurants Inc and comprehensive loss | 289 | 289 | ||||
BALANCES at Jun. 30, 2020 | $ (75) | $ 13 | 58,159 | 1,402 | (45,989) | 13,510 |
BALANCES, shares at Jun. 30, 2020 | 43,110 | 12,595,654 | ||||
BALANCES at Sep. 29, 2020 | $ (75) | $ 13 | 58,219 | 1,293 | (44,467) | 14,983 |
BALANCES, shares at Sep. 29, 2020 | 43,110 | 12,612,852 | ||||
Stock-based compensation cost | 61 | 61 | ||||
Stock option exercises | 13 | 13 | ||||
Stock option exercises, shares | 7,984 | |||||
Restricted stock unit vesting | ||||||
Restricted stock unit vesting, shares | 16,548 | |||||
Non-controlling interests: | ||||||
Income | 363 | 363 | ||||
Distributions | (319) | (319) | ||||
Net Income (Loss) attributable to Good Times Restaurants Inc and comprehensive loss | 802 | 802 | ||||
BALANCES at Dec. 29, 2020 | $ (75) | $ 13 | 58,293 | 1,337 | (43,665) | 15,903 |
BALANCES, shares at Dec. 29, 2020 | 43,110 | 12,637,384 | ||||
BALANCES at Sep. 29, 2020 | $ (75) | $ 13 | 58,219 | 1,293 | (44,467) | $ 14,983 |
BALANCES, shares at Sep. 29, 2020 | 43,110 | 12,612,852 | ||||
Stock option exercises, shares | 170,248 | |||||
Non-controlling interests: | ||||||
Income | $ 1,313 | |||||
Contributions | 14 | |||||
Distributions | (1,472) | |||||
Net Income (Loss) attributable to Good Times Restaurants Inc and comprehensive loss | 15,533 | |||||
BALANCES at Jun. 29, 2021 | $ (75) | $ 13 | 58,953 | 1,148 | (28,934) | 31,105 |
BALANCES, shares at Jun. 29, 2021 | 43,110 | 12,830,879 | ||||
BALANCES at Dec. 29, 2020 | $ (75) | $ 13 | 58,293 | 1,337 | (43,665) | 15,903 |
BALANCES, shares at Dec. 29, 2020 | 43,110 | 12,637,384 | ||||
Stock-based compensation cost | 215 | 215 | ||||
Common stock granted, shares | 12,948 | |||||
Performance shares granted, shares | 10,000 | |||||
Stock option exercises | 83 | 83 | ||||
Stock option exercises, shares | 35,346 | |||||
Non-controlling interests: | ||||||
Income | 426 | 426 | ||||
Distributions | (536) | (536) | ||||
Net Income (Loss) attributable to Good Times Restaurants Inc and comprehensive loss | 1,097 | 1,097 | ||||
BALANCES at Mar. 30, 2021 | $ (75) | $ 13 | 58,591 | 1,227 | (42,568) | 17,188 |
BALANCES, shares at Mar. 30, 2021 | 43,110 | 12,695,678 | ||||
Stock-based compensation cost | 51 | 51 | ||||
Stock option exercises | 311 | 311 | ||||
Stock option exercises, shares | 126,918 | |||||
Restricted stock unit vesting | ||||||
Restricted stock unit vesting, shares | 8,283 | |||||
Non-controlling interests: | ||||||
Income | 524 | 524 | ||||
Contributions | 14 | 14 | ||||
Distributions | (617) | (617) | ||||
Net Income (Loss) attributable to Good Times Restaurants Inc and comprehensive loss | 13,634 | 13,634 | ||||
BALANCES at Jun. 29, 2021 | $ (75) | $ 13 | $ 58,953 | $ 1,148 | $ (28,934) | $ 31,105 |
BALANCES, shares at Jun. 29, 2021 | 43,110 | 12,830,879 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 29, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 16,846 | $ (14,700) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 2,920 | 3,313 |
Amortization of operating lease assets | 2,631 | 3,100 |
Impairment of goodwill | 10,000 | |
Impairment of long-lived assets | 5,291 | |
Stock-based compensation expense | 327 | 223 |
Gain on loan extinguishment | (11,778) | |
Recognition of deferred gain on sale of restaurant building | (28) | (36) |
Changes in operating assets and liabilities: | ||
Receivables and other | 280 | 443 |
Inventories | (102) | 41 |
Deposits and other | (260) | (986) |
Accounts payable | (820) | 47 |
Operating lease liabilities | (2,922) | (2,730) |
Deferred liabilities | (4) | |
Accrued and other liabilities | 296 | 382 |
Net cash provided by operating activities | 7,386 | 4,388 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payments for the purchase of property and equipment | (2,098) | (2,294) |
Payments for the purchase of treasury stock | (75) | |
Proceeds from the sale of fixed assets | 55 | |
Payments received from franchisees and others | 13 | 9 |
Net cash used in investing activities | (2,085) | (2,305) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings on notes payable and long-term debt | 16,945 | |
Principal payments on notes payable and long-term debt | (5,500) | (8,250) |
Proceeds from stock option exercise | 407 | |
Contributions from non-controlling interests | 14 | 22 |
Distributions to non-controlling interests | (1,375) | (880) |
Net cash (used in) provided by financing activities | (6,454) | 7,837 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (1,153) | 9,920 |
CASH AND CASH EQUIVALENTS, beginning of period | 11,454 | 2,745 |
CASH AND CASH EQUIVALENTS, end of period | 10,301 | 12,665 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 33 | 625 |
Change in accounts payable attributable to the purchase of property and equipment | $ 500 | $ (805) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 29, 2021 | |
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, Bad Daddy’s International, LLC (“BDI”), BD of Colorado, LLC (“BDC”), Bad Daddy’s Franchise Development, LLC (“BDFD”), and Good Times Drive Thru, Inc. (“Drive Thru”), (together referred to as the “Company”, “we” or “us”). All significant intercompany balances and transactions have been eliminated in consolidation. BDC was formed by Good Times Restaurants Inc. in 2013 to develop Bad Daddy’s Burger Bar restaurants in the state of Colorado. Subsequently, BDI and BDFD were acquired by Good Times Restaurants Inc. on May 7, 2015. Combined, these entities compose our Bad Daddy’s operating segment, which as of June 29, 2021, operates thirty-three Company-owned and five joint-venture full-service small-box casual dining restaurants under the name Bad Daddy’s Burger Bar, primarily located in Colorado and in the Southeast region of the United States, franchises one restaurant in South Carolina, and licenses the Bad Daddy’s brand for use at an airport Bad Daddy’s restaurant under third-party operations and ownership. Drive Thru commenced operations in 1986 and as of June 29, 2021, operates seventeen Company-owned and seven joint-venture drive-thru fast food hamburger restaurants under the name Good Times Burgers & Frozen Custard, all of which are located in Colorado. In addition, Drive Thru has eight franchisee-owned restaurants, with six operating in Colorado and two in Wyoming. 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 June 29, 2021 and the results of its operations and its cash flows for the three fiscal quarters ended June 29, 2021 and June 30, 2020. Operating results for the three fiscal quarters ended June 29, 2021 are not necessarily indicative of the results that may be expected for the year ending September 28, 2021. The condensed consolidated balance sheet as of September 29, 2020 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 29, 2020. Fiscal Year Advertising Costs Reclassification COVID-19 The global crisis resulting from the spread of COVID-19 had a substantial impact on our restaurant operations for the three fiscal quarters ended June 29, 2021 and June 30, 2020. During portions of the month of March 2020 through late May 2020, all of the Company’s Bad Daddy’s Burger Bar restaurants were open only for delivery and carry-out service, with dining rooms closed by government orders. Although our dining rooms were re-opened in early June 2020, all continued to operate at some reduction of capacity, whether driven by explicit capacity reductions under government orders, or due to social distancing protocols that were either mandated by the same government orders or followed our own internal protocols designed to maintain a safe foodservice environment, both for our employees and for our customers, until May 2021. 8 Table of Contents During portions of the month of November 2020 through early January 2021, all of the Company’s Bad Daddy’s Burger Bar restaurants in Colorado were open only for limited outdoor dining, delivery and carry-out service, with indoor dining rooms once again closed by government orders. In early January 2021, we re-opened these dining rooms, with limited occupancy, as local regulations allowed. Our dining rooms in all other states in which Bad Daddy’s has operations were open, at reduced capacity, during this time. Presently, all of our Bad Daddy’s restaurants are allowed to operate at full capacity. Our operating results substantially depend upon our ability to drive traffic to our restaurants, and for our Bad Daddy’s Burger Bar restaurants, to serve guests in our dining rooms. We cannot currently estimate the duration of the impact of the COVID-19 pandemic on our business, including the recent acceleration of the spread of the Delta variant of COVID-19; neither are we able to predict how the pandemic will evolve nor how various government entities will respond to its evolution. Should additional dining room closures occur, our business would be adversely affected. Even without government orders, customers may choose to reduce or eliminate in-restaurant dining because of increasing numbers of COVID-19 cases, hospitalizations, or deaths. Furthermore, although certain available vaccines may reduce the risk of further government restrictions, there is no guarantee that the vaccine will be effective in eradicating the virus, additional mutations or variants of the virus may be resistant to any vaccine, and the length of the ongoing pandemic may change consumer behavior such that potential customers may still choose to reduce or eliminate in-restaurant dining. Additionally, in connection with spread of COVID-19, there have been disruptions in various food supply chains in the United States. Our operating results substantially depend upon our ability to obtain sufficient quantities of products such as beef, bacon, and other products used in the production of items served and sold to our guests. Ongoing impacts of the COVID-19 pandemic could result in product shortages and in-turn could require us to serve a limited menu, restrict the number of items purchased per guest, or close some or all of our restaurants for an indeterminate period of time. Ongoing material adverse impacts from the COVID-19 pandemic, including recent industry-wide labor shortages, the impact and duration of which are uncertain, could result in reduced revenue and cash flow and could affect our assessments of impairment of intangible assets, long-lived assets, or goodwill. We took extraordinary actions to increase our liquidity in response to COVID-19 during fiscal 2020, including temporarily reducing employee pay, reductions in workforce, and obtaining Paycheck Protection Program (the “PPP”) loans. The PPP is sponsored by the Small Business Administration (the “SBA”). The PPP is part of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). We have since significantly increased employment levels and restored pay to employees. Although we currently have a meaningful cash balance and generated significant cash flow from operations during the first three quarters of fiscal 2021, we currently intend to use a significant portion of this cash balance to repurchase Company stock by means of a tender offer. While we believe that we will continue to have adequate working capital to meet our current needs after the tender offer, should business decline significantly as a result of the pandemic or otherwise, we would not likely choose to, and we may not be able to, take some of the same actions as we took during fiscal 2020 to increase our liquidity as they would negatively impact the long-term performance of the business, and because there is no assurance that funds such as the PPP loans will be made available to us in the future. Furthermore, the COVID-19 pandemic is adversely affecting the availability of liquidity generally in the credit markets, and there can be no guarantee that additional liquidity will be available on favorable terms, or at all, especially the longer the COVID-19 pandemic lasts. We applied for full forgiveness of our PPP loans, including those of our subsidiaries, on April 30, 2020 and received confirmation of full forgiveness of all such loans during June 2021. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jun. 29, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements ASU No. 2019-12, Simplifying the Accounting for Income Taxes The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on the Company’s consolidated financial statements. |
Revenue
Revenue | 9 Months Ended |
Jun. 29, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3. Revenue Revenue Recognition Revenues consist primarily of sales from restaurant operations and franchise revenue, which includes franchisee contributions to Advertising Funds. Revenues associated with gift card breakage are immaterial to our financials. The Company recognizes revenue, pursuant to the new and updated standards, when it satisfies a performance obligation by transferring control over a product or service to a customer, typically a restaurant customer or a franchisee/licensee. 9 Table of Contents The Company recognizes revenues in the form of restaurant sales at the time of the sale when payment is made by the customer, as the Company has completed its performance obligation, namely the provision of food and beverage, and the accompanying customer service, during the customer’s visit to the restaurant. The Company sells gift cards to customers and recognizes revenue from gift cards primarily in the form of restaurant revenue. Gift Card breakage, which is recognized when the likelihood of a gift card being redeemed is remote, is determined based upon the Company’s historic redemption patterns, and is immaterial to our overall financial statements. Revenues we receive from our franchise and license agreements include sales-based royalties, and from our franchise agreements also may include advertising fund contributions, area development fees, and franchisee fees. We recognize sales-based royalties from franchisees and licensees as the underlying sales occur. We similarly recognize advertising fund contributions from franchisees as the underlying sales occur. The Company also provides its franchisees with services associated with opening new restaurants and operating them under franchise and development agreements in exchange for area development and franchise fees. The Company would capitalize these fees upon receipt from the franchisee and then would amortize those over the contracted franchise term as the services comprising the performance obligations are satisfied. We have not received material development or franchise fees in the years presented, and the primary performance obligations under existing franchise and development agreements have been satisfied prior to the earliest period presented in our financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Jun. 29, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 4. Goodwill and Intangible Assets The following table presents goodwill and intangible assets as of June 29, 2021 and September 29, 2020 (in thousands): June 29, 2021 September 29, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Non-compete agreements $ 50 $ (40 ) $ 10 $ 50 $ (28 ) $ 22 Indefinite-lived intangible assets: Trademarks 3,900 - 3,900 3,900 - 3,900 Intangible assets, net $ 3,950 $ (40 ) $ 3,910 $ 3,950 $ (28 ) $ 3,922 Goodwill $ 5,150 $ - $ 5,150 $ 5,150 $ - $ 5,150 The Company had no goodwill impairment losses in the year-to-date period ended June 29, 2021. The Company recorded a $10,000,000 impairment to goodwill in the second fiscal quarter of 2020 related to its Bad Daddy’s reporting unit. The aggregate amortization expense related to these intangible assets subject to amortization was $12,000 for the three fiscal quarters ended June 29, 2021. The estimated aggregate future amortization expense as of June 29, 2021 is $10,000, including $4,000 in the remainder of fiscal 2021 and $6,000 during fiscal 2022. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 29, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 5. Stock-Based Compensation The Company has traditionally maintained incentive compensation plans that include provision for the issuance of equity-based awards. The Company established the 2008 Omnibus Equity Incentive Compensation Plan in 2008 (the “2008 Plan”) and has outstanding awards that were issued under the 2008 Plan. Subsequently, the 2008 Plan expired in 2018 and the Company established a new plan, the 2018 Omnibus Equity Incentive Plan, which was amended effective February 9, 2021 (the “2018 Plan”). All future awards will be issued under the 2018 plan. 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 income (loss) for the three quarters ended June 29, 2021 and June 30, 2020 includes $327,000 and $223,000, 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 three quarters ended June 29, 2021. 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 three quarters ended June 29, 2021, the Company granted 90,000 incentive stock options to its Chief Executive Officer, from available shares under its 2018 Plan, with an exercise price of $2.33 per share and a per share weighted average fair value of $1.22. These options were granted pursuant to the Chief Executive Officer’s Second Amended and Restated Employment Agreement dated December 24, 2020. These options became fully vested on April 6, 2021 pursuant to the terms of the employment agreement and related stock option grant agreement. During the three quarters ended June 30, 2020, there were no incentive stock options granted. 10 Table of Contents 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: Three Quarters Ended June 29, 2021 Incentive and Non-Qualified Stock Options Expected term (years) 3.63 Expected volatility 74.62 % Risk-free interest rate 0.24 % Expected dividends - 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 three quarters ended June 29, 2021 under all plans: Shares Weighted Average Exercise Price Weighted Avg. Remaining Contractual Life (Yrs.) Outstanding at beginning of year 630,268 $ 3.56 Options granted 90,000 $ 2.33 Options exercised (170,248 ) $ 2.39 Forfeited (14,309 ) $ 3.76 Expired (20,629 ) $ 1.56 Outstanding June 29, 2021 515,082 $ 3.81 5.7 Exercisable June 29, 2021 421,862 $ 3.73 5.4 As of June 29, 2021, the aggregate intrinsic value of the outstanding and exercisable options was $358,000 and $331,000, 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 June 29, 2021, the total remaining unrecognized compensation cost related to non-vested stock options was $110,000 and is expected to be recognized over a weighted average period of approximately 1.5 years. There were 170,248 stock options exercised during the three quarters ended June 29, 2021 with proceeds of approximately $407,000. There were 15,646 stock options exercised that resulted in an issuance of 2,413 shares during the three quarters ended June 30, 2020 with no proceeds in conjunction with the termination of the Company’s CEO pursuant to a severance and separation agreement. Common Stock and Performance Share Grants During the three quarters ended June 29, 2021, the Company granted its Directors 12,948 shares of common stock and its Chief Executive Officer 10,000 performance shares from available shares under its 2018 Plan. The shares were issued with a grant date fair market value of $2.78 and $2.77, respectively, which is equal to the closing price of the stock on the date of grants. The performance shares granted to the Chief Executive Officer became fully vested on April 6, 2021 pursuant to the vesting provisions set forth in the grant notice. No common stock or performance shares were granted during the three quarters ended June 30, 2020. Restricted Stock Units No restricted stock units were granted during the three quarters ended June 29, 2021. During the three quarters ended June 30, 2020 the Company granted a total of 60,336 restricted stock units from available shares under its 2018 Plan. 46,336 shares were issued with a grant date fair market value of $1.54 which is equal to the closing price of the stock on the date of the grant, these restricted stock units vest three years following the grant date. 14,000 shares were issued with a grant date fair market value of $1.67 which is equal to the closing price of the stock on the date of the grant, these restricted stock units vested on their grant date. 11 Table of Contents A summary of the status of non-vested restricted stock as of June 29, 2021 is presented below. Shares Grant Date Fair Value Per Share Non-vested shares at beginning of year 92,604 $1.54 to $3.95 Vested (26,894 ) $2.52 to $3.95 Forfeited (1,935 ) $2.30 to $2.68 Non-vested shares at June 29, 2021 63,775 $1.54 to $3.95 As of June 29, 2021, there was $60,000 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 0.4 years. |
Other Accrued Liabilities
Other Accrued Liabilities | 9 Months Ended |
Jun. 29, 2021 | |
Other Accrued Liabilities | |
Other Accrued Liabilities | Note 6. Other Accrued Liabilities Other accrued liabilities consist of the following as of: June 29, 2021 June 30, 2020 Accrued salaries and wages $ 1,201 $ 557 Accrued incentive compensation 1,295 885 Sales taxes payable 773 712 Accrued paid time off 520 443 Property taxes payable 357 324 Accrued other 2,345 2,134 $ 6,491 $ 5,055 |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 9 Months Ended |
Jun. 29, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Note 7. Notes Payable and Long-Term Debt Cadence Credit Facility The Company maintains a credit agreement with Cadence Bank (“Cadence”) pursuant to which, as amended, Cadence agreed to loan the Company up to $11,000,000 with a maturity date of January 31, 2023 (the “Cadence Credit Facility”). On February 21, 2019, the Cadence Credit Facility was amended, in connection with the repurchase of minority interests related to three Bad Daddy’s restaurants, to retroactively attribute EBITDA previously attributed to non-controlling interests to the Company for purposes of certain financial covenants. On December 9, 2019 the Cadence Credit Facility was amended in connection with the separation of the Company’s former CEO, to amend the definition of “Consolidated EBITDA” for the purposes of financial covenants, to require certain installment payments, and to permit the company to make certain “Restricted Payments” (as defined in the Cadence Credit Facility). On January 8, 2021, the Cadence Credit Facility was amended to eliminate certain installment payments; reduce the commitment immediately to $11.0 million with reductions to $10.0 million and $8.0 million on March 31, 2021, and July 1, 2021, respectively; revise certain financial covenants; provide a mechanism for a transition from LIBOR to an alternate benchmark rate; and extend the maturity date to January 31, 2023. As amended by the various amendments, the Cadence Credit Facility accrues commitment fees on the daily unused balance of the facility at a rate of 0.25%. As of June 29, 2021, any borrowings under the Cadence Credit Facility, as amended, bear interest at a variable rate based upon the Company’s election of (i) 2.5% 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 0.250% floor, plus 3.5%. 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. During the three fiscal quarters ended June 29, 2021, the weighted average interest rate applicable to borrowings under the Cadence Credit Facility was 3.75%. As of June 29, 2021, the Cadence Credit Facility, as amended, 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 5.15:1, a minimum pre-distribution fixed charge coverage ratio of 1.25:1, a minimum post-distribution fixed charge coverage ratio of 1.10:1 and minimum liquidity of $2.0 million. As of June 29, 2021, the Company was in compliance with all financial covenants under the Cadence Credit Facility. As a result of entering into the Cadence Credit Facility and the various amendments, the Company paid loan origination costs including professional fees of approximately $308,500 and is amortizing 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 June 29, 2021, there were no outstanding borrowings against the facility. Availability of the Cadence Credit Facility for borrowings is reduced by the outstanding face value of any letters of credit issued under the facility. As of June 29, 2021, the outstanding face value of such letters of credit was $157,500. Paycheck Protection Program Loans On May 7, 2020, Good Times and three of its wholly-owned subsidiaries, BDI, Drive Thru, and BDC (each a “Borrower”), entered into unsecured loans in the aggregate principal amount of $11,645,000 (the “Loans”) with Cadence Bank, N.A. (the “Lender”) pursuant to the PPP. In June 2021, the SBA approved forgiveness in full of the Company’s Loan as well as the Loans of the Company’s subsidiaries, including accrued interest, in the aggregate amount of $11,778,226, which was recognized as gain on debt extinguishment in the fiscal quarter ended June 29, 2021. The principal and accrued interest balance on each of these Loans is now zero, as of the forgiveness date specific to each of the Company’s and its subsidiaries’ Loans. |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share | 9 Months Ended |
Jun. 29, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Common Share | Note 8. 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 units 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. The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding: Quarter Ended Year-to-Date June 29, 2021 June 30, 2020 June 29, 2021 June 30, 2020 Weighted-average shares outstanding basic 12,787,390 12,591,079 12,689,587 12,593,137 Effect of potentially dilutive securities: Stock options 225,471 - 40,553 - Restricted stock units 63,774 104,949 63,774 - Weighted-average shares outstanding diluted 13,076,635 12,696,028 12,793,915 12,593,137 Excluded from diluted weighted-average shares outstanding: Antidilutive 289,611 632,976 474,528 737,925 |
Contingent Liabilities and Liqu
Contingent Liabilities and Liquidity | 9 Months Ended |
Jun. 29, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Liquidity | Note 9. 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. As previously disclosed in the Company’s Form 10-K for the fiscal year ended September 29, 2020, the Company is the defendant party to a lawsuit filed by White Winston Select Asset Funds, LLC and GT Acquisition Group, Inc. v. Good Times Restaurants, Inc, arising from the failed negotiations between plaintiffs and the Company for the sale of the Good Times Drive Thru division to plaintiffs. The lawsuit was initially filed on September 24, 2019 in Delaware Chancery Court and Company removed the case to federal court in the US District Court for the District of Delaware on November 5, 2019. As of June 30, 2021, the parties have completed fact discovery. On July 30, 2021, the plaintiffs moved the Court for leave to amend their complaint and add new causes of action and a claim for $18 million in damages. The Company opposes this motion on various grounds and will continue to vigorously pursue a full defense of this matter on the merits. While we believe the amended complaint is without merit, if the plaintiffs are successful, it could have a material impact to the Company. Additionally, in the normal course of business, there may be various claims in process, matters in litigation, and other contingencies brought against the company by employees, vendors, customers, franchisees, or other parties. Evaluating these contingencies is a complex process that may involve substantial judgment on the potential outcome of such matters, and the ultimate outcome of such contingencies may differ from our current analysis. We review the adequacy of accruals and disclosures related to such contingent liabilities in consultation with legal counsel. While it is not possible to predict the outcome of these claims with certainty, it is management’s opinion that potential losses associated with such contingencies would be immaterial to our financial statements. |
Leases
Leases | 9 Months Ended |
Jun. 29, 2021 | |
Lessee Disclosure [Abstract] | |
Leases | Note 10. Leases The Company determines if a contract contains a lease at inception. The Company's material long-term operating lease agreements are for the land and buildings for our restaurants as well as our corporate office. The initial lease terms range from 10 years to 20 years, most of which include renewal options of 10 to 15 years. The lease term is generally the minimum of the noncancelable period or the lease term including renewal options which are reasonably certain of being exercised up to a term of approximately 20 years. Operating lease assets and liabilities are recognized at the lease commencement date for material leases with a term of greater than 12 months. Operating lease liabilities represent the present value of future minimum lease payments. Since our leases do not provide an implicit rate, our operating lease liabilities are calculated using our estimated incremental borrowing rate based on a collateralized borrowing over the term of each individual lease. Minimum lease payments include only fixed lease components of the agreement, as well as variable rate payments that depend on an index, initially measured using the index at the lease commencement date. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepaid or accrued lease payments, initial direct costs and lease incentives. Lease incentives are recognized when earned and reduce our operating lease asset related to the lease. They are amortized through the operating lease assets as reductions of rent expense over the lease term. 13 Table of Contents Operating lease expense is recognized on a straight-line basis over the lease term. Certain of the Company’s operating leases contain clauses that provide for contingent rent based on a percentage of sales greater than certain specified target amounts. Variable lease payments that do not depend on a rate or index, escalation in the index subsequent to the initial measurement, payments associated with non-lease components such as common area maintenance, real estate taxes and insurance, and short-term lease payments (leases with a term with 12 months or less) are expensed as incurred or when the achievement of the specified target that triggers the contingent rent is considered probable. Some of the leases provide for base rent, plus additional rent based on gross sales, as defined in each lease agreement. The Company is also generally obligated to pay certain real estate taxes, insurance and common area maintenance charges, and various other expenses related to properties, which are expensed as incurred. Components of operating lease costs were as follows for the fiscal quarters ended: Lease cost Classification June 29, 2021 June 30, 2020 Operating lease cost Occupancy, Other restaurant operating costs and General and administrative expenses, net $ 1,693 $ 1,665 Variable lease cost Occupancy 20 20 Sublease income Occupancy (136 ) (135 ) $ 1,577 $ 1,550 Components of operating lease costs were as follows for the three fiscal quarters ended: Lease cost Classification June 29, 2021 June 30, 2020 Operating lease cost Occupancy, Other restaurant operating costs and General and administrative expenses, net $ 5,220 $ 5,436 Variable lease cost Occupancy 61 60 Sublease income Occupancy (400 ) (365 ) $ 4,881 $ 5,131 Weighted average lease term and discount rate were as follows as of: June 29, 2021 June 30, 2020 Weighted average remaining lease term (in years) 9.8 10.6 Weighted average discount rate 5.0 % 5.0 % Supplemental cash flow disclosures for the three fiscal quarters ended: June 29, 2021 June 30, 2020 Cash paid for operating lease liabilities $ 5,168 $ 5,125 Non-cash operating lease assets obtained in exchange for operating lease liabilities $ 57 $ 3,077 Supplemental balance sheet disclosures: June 29, 2021 September 29, 2020 Right-of-use assets Operating lease assets $ 46,678 $ 49,252 Current lease liabilities Operating lease liability $ 4,857 $ 4,689 Non-current lease liabilities Operating lease liability, less current portion 50,698 53,731 Total lease liabilities $ 55,555 $ 58,420 Future minimum rent payments for our operating leases for each of the next five years as of June 29, 2021 are as follows: Fiscal year ending: Total Remainder of 2021 $ 2,064 2022 7,559 2023 7,608 2024 7,462 2025 7,565 Thereafter 39,111 Total minimum lease payments 71,369 Less: imputed interest (15,814 ) Present value of lease liabilities $ 55,555 14 Table of Contents The above future minimum rental amounts exclude the amortization of deferred lease incentives, renewal options that are not reasonably assured of renewal, and contingent rent. The Company generally has escalating rents over the term of the leases and records rent expense on a straight-line basis. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets and Goodwill | 9 Months Ended |
Jun. 29, 2021 | |
Goodwill and Intangible Asset Impairment [Abstract] | |
Impairment of Long-Lived Assets and Goodwill | Note 11. Impairment of Long-Lived Assets and Goodwill Long-Lived Assets. There were no impairments in the three fiscal quarters ending June 29, 2021. Given the results of our analyses at March 31, 2020 and June 30, 2020, we identified six restaurants where the expected future cash flows would not be sufficient to recover the carrying value of the associated assets. The restaurants are all Bad Daddy’s restaurants, two each in North Carolina and Colorado, and one each in Tennessee and Georgia. We recorded non-cash charges of $5,291,000 related to the impairment of these restaurants during the three quarters ending June 29, 2020. Trademarks. Goodwill. No goodwill impairment charges were recognized during the three quarters ended June 29, 2021. In March 2020, the outbreak of the COVID-19 pandemic prompted authorities in most jurisdictions where the Company operates to issue stay-at-home orders, leading to an unexpected significant disruption to the Company's business requiring the Company to close its restaurant dining rooms and operate its Bad Daddy’s restaurants under a delivery and carry-out model. As such, the consequences of the outbreak of the COVID-19 pandemic coupled with a sustained decline in the Company's stock price were determined to be indicators of impairment for its Bad Daddy’s reporting unit. As such, using Level 3 inputs, the Company performed a quantitative goodwill impairment assessment using both the discounted cash flow method and guideline public company method to determine the fair value of its reporting unit. Significant assumptions and estimates used in determining fair value include future revenues, operating costs, working capital changes, capital expenditures, and a discount rate that approximates the Company's weighted average cost of capital. Based on the quantitative assessment, the Company determined that the fair value of its reporting unit was less than its carrying value and recognized a non-cash goodwill impairment charge of $10.0 million, equal to the excess of the Bad Daddy’s reporting unit's carrying value above its fair value. No goodwill impairment charges were recognized related to goodwill attributable to its Good Times reporting unit. Changes in the carrying amount of goodwill for the three fiscal quarters ended June 30, 2020 are as follows (in thousands): Total Goodwill Balance as of September 24, 2019 $ 15,150 Impairment of Goodwill (10,000 ) Balance as of June 30, 2020 5,150 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 29, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. 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. 15 Table of Contents Although the Company had net income during the three fiscal quarters ended June 29, 2021, we have significant net operating loss carryforwards from prior years and incurred additional net operating losses during the three quarters ended June 30, 2020. Full valuation allowances were made to reduce any deferred tax assets incurred to zero; therefore, no income tax provision or benefit was recognized for the quarters ended June 29, 2021 and June 30, 2020 resulting in an effective income tax rate of 0% for both periods. The Company is subject to taxation in various jurisdictions within the U.S. The Company continues to remain subject to examination by U.S. federal authorities for the years 2018 through 2021. 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 June 29, 2021. |
Non-controlling Interests
Non-controlling Interests | 9 Months Ended |
Jun. 29, 2021 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | Note 13. 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 three quarters ended June 29, 2021 (in thousands): Bad Daddy’s Good Times Total Balance at September 29, 2020 $ 1,023 $ 270 $ 1,293 Income 688 625 1,313 Contributions 14 - 14 Distributions (805 ) (667 ) (1,472 ) Balance at June 29, 2021 $ 920 $ 228 $ 1,148 Our non-controlling interests consist of one joint-venture partnership involving seven Good Times restaurants and five joint-venture partnerships involving five Bad Daddy’s restaurants. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 29, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events None. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jun. 29, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 15. Segment Reporting All of our Bad Daddy’s Burger Bar restaurants (Bad Daddy’s) compete in the full-service segment of the restaurant industry while our Good Times Burgers and Frozen Custard restaurants (Good Times) compete in the quick-service segment of the 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. 16 Table of Contents The following tables present information about our reportable segments for the respective periods (in thousands): Quarter Ended Year-to-Date June 29, 2021 (13 Weeks) June 30, 2020 (13 Weeks) June 29, 2021 (39 Weeks) June 30, 2020 (40 Weeks) Revenues Bad Daddy’s $ 24,481 $ 14,928 $ 64,263 $ 57,199 Good Times 9,465 9,429 26,171 24,154 $ 33,946 $ 24,357 $ 90,434 $ 81,353 Income (loss) from operations Bad Daddy’s $ 1,441 $ (906 ) $ 2,759 $ (15,906 ) Good Times 830 1,827 2,655 2,036 Corporate 175 (78 ) (102 ) (192 ) $ 2,446 $ 843 $ 5,312 $ (14,062 ) Capital expenditures Bad Daddy’s $ 661 $ 330 $ 1,622 $ 2,171 Good Times 110 3 272 90 Corporate 141 7 204 33 $ 912 $ 340 $ 2,098 $ 2,294 June 29, 2021 September 29, 2020 Property and equipment, net Bad Daddy’s $ 23,414 $ 23,586 Good Times 3,583 3,874 Corporate 292 209 $ 27,289 $ 27,669 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jun. 29, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | The following table presents goodwill and intangible assets as of June 29, 2021 and September 29, 2020 (in thousands): June 29, 2021 September 29, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Non-compete agreements $ 50 $ (40 ) $ 10 $ 50 $ (28 ) $ 22 Indefinite-lived intangible assets: Trademarks 3,900 - 3,900 3,900 - 3,900 Intangible assets, net $ 3,950 $ (40 ) $ 3,910 $ 3,950 $ (28 ) $ 3,922 Goodwill $ 5,150 $ - $ 5,150 $ 5,150 $ - $ 5,150 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jun. 29, 2021 | |
Share-based Payment Arrangement [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: Three Quarters Ended June 29, 2021 Incentive and Non-Qualified Stock Options Expected term (years) 3.63 Expected volatility 74.62 % Risk-free interest rate 0.24 % Expected dividends - |
Summary of Stock Option Activity Under Share Based Compensation Plan | The following table summarizes stock option activity for the three quarters ended June 29, 2021 under all plans: Shares Weighted Average Exercise Price Weighted Avg. Remaining Contractual Life (Yrs.) Outstanding at beginning of year 630,268 $ 3.56 Options granted 90,000 $ 2.33 Options exercised (170,248 ) $ 2.39 Forfeited (14,309 ) $ 3.76 Expired (20,629 ) $ 1.56 Outstanding June 29, 2021 515,082 $ 3.81 5.7 Exercisable June 29, 2021 421,862 $ 3.73 5.4 |
Schedule of Non-vested Restricted Stock Activity | A summary of the status of non-vested restricted stock as of June 29, 2021 is presented below. Shares Grant Date Fair Value Per Share Non-vested shares at beginning of year 92,604 $1.54 to $3.95 Vested (26,894 ) $2.52 to $3.95 Forfeited (1,935 ) $2.30 to $2.68 Non-vested shares at June 29, 2021 63,775 $1.54 to $3.95 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended |
Jun. 29, 2021 | |
Other Accrued Liabilities | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consist of the following as of: June 29, 2021 June 30, 2020 Accrued salaries and wages $ 1,201 $ 557 Accrued incentive compensation 1,295 885 Sales taxes payable 773 712 Accrued paid time off 520 443 Property taxes payable 357 324 Accrued other 2,345 2,134 $ 6,491 $ 5,055 |
Net Income (Loss) per Common _2
Net Income (Loss) per Common Share (Tables) | 9 Months Ended |
Jun. 29, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Reconciles Basic and Diluted Weighted-Average Shares Outstanding | The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding: Quarter Ended Year-to-Date June 29, 2021 June 30, 2020 June 29, 2021 June 30, 2020 Weighted-average shares outstanding basic 12,787,390 12,591,079 12,689,587 12,593,137 Effect of potentially dilutive securities: Stock options 225,471 - 40,553 - Restricted stock units 63,774 104,949 63,774 - Weighted-average shares outstanding diluted 13,076,635 12,696,028 12,793,915 12,593,137 Excluded from diluted weighted-average shares outstanding: Antidilutive 289,611 632,976 474,528 737,925 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jun. 29, 2021 | |
Lessee Disclosure [Abstract] | |
Schedule of Components of Lease Expense | Components of operating lease costs were as follows for the fiscal quarters ended: Lease cost Classification June 29, 2021 June 30, 2020 Operating lease cost Occupancy, Other restaurant operating costs and General and administrative expenses, net $ 1,693 $ 1,665 Variable lease cost Occupancy 20 20 Sublease income Occupancy (136 ) (135 ) $ 1,577 $ 1,550 Components of operating lease costs were as follows for the three fiscal quarters ended: Lease cost Classification June 29, 2021 June 30, 2020 Operating lease cost Occupancy, Other restaurant operating costs and General and administrative expenses, net $ 5,220 $ 5,436 Variable lease cost Occupancy 61 60 Sublease income Occupancy (400 ) (365 ) $ 4,881 $ 5,131 |
Schedule of Weighted Average Lease Term and Discount Rate | Weighted average lease term and discount rate were as follows as of: June 29, 2021 June 30, 2020 Weighted average remaining lease term (in years) 9.8 10.6 Weighted average discount rate 5.0 % 5.0 % |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow disclosures for the three fiscal quarters ended: June 29, 2021 June 30, 2020 Cash paid for operating lease liabilities $ 5,168 $ 5,125 Non-cash operating lease assets obtained in exchange for operating lease liabilities $ 57 $ 3,077 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet disclosures: June 29, 2021 September 29, 2020 Right-of-use assets Operating lease assets $ 46,678 $ 49,252 Current lease liabilities Operating lease liability $ 4,857 $ 4,689 Non-current lease liabilities Operating lease liability, less current portion 50,698 53,731 Total lease liabilities $ 55,555 $ 58,420 |
Schedule of Future Minimum Rent Payments Related to Operating Leases | Future minimum rent payments for our operating leases for each of the next five years as of June 29, 2021 are as follows: Fiscal year ending: Total Remainder of 2021 $ 2,064 2022 7,559 2023 7,608 2024 7,462 2025 7,565 Thereafter 39,111 Total minimum lease payments 71,369 Less: imputed interest (15,814 ) Present value of lease liabilities $ 55,555 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets and Goodwill (Tables) | 9 Months Ended |
Jun. 29, 2021 | |
Goodwill and Intangible Asset Impairment [Abstract] | |
Schedule of goodwill | Changes in the carrying amount of goodwill for the three fiscal quarters ended June 30, 2020 are as follows (in thousands): Total Goodwill Balance as of September 24, 2019 $ 15,150 Impairment of Goodwill (10,000 ) Balance as of June 30, 2020 5,150 |
Non-controlling Interests (Tabl
Non-controlling Interests (Tables) | 9 Months Ended |
Jun. 29, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interest | The following table summarizes the activity in non-controlling interests during the three quarters ended June 29, 2021 (in thousands): Bad Daddy’s Good Times Total Balance at September 29, 2020 $ 1,023 $ 270 $ 1,293 Income 688 625 1,313 Contributions 14 - 14 Distributions (805 ) (667 ) (1,472 ) Balance at June 29, 2021 $ 920 $ 228 $ 1,148 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jun. 29, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments | The following tables present information about our reportable segments for the respective periods (in thousands): Quarter Ended Year-to-Date June 29, 2021 (13 Weeks) June 30, 2020 (13 Weeks) June 29, 2021 (39 Weeks) June 30, 2020 (40 Weeks) Revenues Bad Daddy’s $ 24,481 $ 14,928 $ 64,263 $ 57,199 Good Times 9,465 9,429 26,171 24,154 $ 33,946 $ 24,357 $ 90,434 $ 81,353 Income (loss) from operations Bad Daddy’s $ 1,441 $ (906 ) $ 2,759 $ (15,906 ) Good Times 830 1,827 2,655 2,036 Corporate 175 (78 ) (102 ) (192 ) $ 2,446 $ 843 $ 5,312 $ (14,062 ) Capital expenditures Bad Daddy’s $ 661 $ 330 $ 1,622 $ 2,171 Good Times 110 3 272 90 Corporate 141 7 204 33 $ 912 $ 340 $ 2,098 $ 2,294 June 29, 2021 September 29, 2020 Property and equipment, net Bad Daddy’s $ 23,414 $ 23,586 Good Times 3,583 3,874 Corporate 292 209 $ 27,289 $ 27,669 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 29, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Advertising Costs | $ 205 | $ 176 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 29, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Impairment to goodwill | $ 10,000 | $ 10,000 | |||
Amortization of Intangible Assets | $ 12 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Intangible Assets Subject to Amortization) (Details) - USD ($) $ in Thousands | Jun. 29, 2021 | Sep. 29, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (40) | $ (28) |
Net Carrying Amount | 10 | |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50 | 50 |
Accumulated Amortization | (40) | (28) |
Net Carrying Amount | $ 10 | $ 22 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Indefinite-lived Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 29, 2021 | Sep. 29, 2020 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 3,900 | $ 3,900 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Goodwill and Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 29, 2021 | Sep. 29, 2020 | Jun. 30, 2020 | Sep. 29, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible assets, gross carrying amount | $ 3,950 | $ 3,950 | ||
Accumulated Amortization | (40) | (28) | ||
Intangible Assets, net carrying amount | 3,910 | 3,922 | ||
Goodwill, gross carrying amount | 5,150 | 5,150 | ||
Goodwill, Accumulated Amortization | ||||
Goodwill, net carrying amount | $ 5,150 | $ 5,150 | $ 5,150 | $ 15,150 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Estimated Aggregate Future Amortization Expense) (Details) $ in Thousands | Jun. 29, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2021 | $ 4 |
2022 | 6 |
Net Carrying Amount | $ 10 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 29, 2021 | Mar. 30, 2021 | Dec. 29, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 29, 2021 | Jun. 30, 2020 | Sep. 29, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock based compensation expense | $ 327 | $ 223 | ||||||
Stock options exercised, shares | 170,248 | 15,646 | ||||||
Proceeds from stock option exercises | $ 407 | |||||||
Stock issued against stock options exercised | 2,413 | |||||||
Stock options granted, shares | 90,000 | |||||||
Stock options granted, exercise price | $ 3.81 | $ 3.81 | $ 3.56 | |||||
Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options exercised, shares | 126,918 | 35,346 | 7,984 | 2,413 | ||||
Chief Executive Officer [Member] | 2018 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options granted, per-share weighted average fair value | $ 1.22 | |||||||
Stock options granted, shares | 90,000 | |||||||
Stock options granted, exercise price | $ 2.33 | $ 2.33 | ||||||
Director [Member] | 2018 Plan [Member] | Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options granted, per-share weighted average fair value | $ 2.78 | |||||||
Stock options granted, shares | 12,948 | |||||||
Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate Intrinsic Value, Outstanding | $ 358 | $ 358 | ||||||
Aggregate Intrinsic Value, Exercisable | 331 | 331 | ||||||
Remaining total unrecognized compensation cost related to unvested stock-based arrangements | 110 | $ 110 | ||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 1 year 6 months | |||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Remaining total unrecognized compensation cost related to unvested stock-based arrangements | $ 60 | $ 60 | ||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 4 months 24 days | |||||||
Restricted Stock [Member] | Restricted stock units vest three years following the grant date [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options granted, per-share weighted average fair value | $ 1.54 | |||||||
Stock options granted, shares | 46,336 | |||||||
Restricted Stock [Member] | Restricted stock units vested on their grant date [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options granted, per-share weighted average fair value | $ 1.67 | |||||||
Stock options granted, shares | 14,000 | |||||||
Restricted Stock [Member] | 2018 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options granted, shares | 60,336 | |||||||
Performance shares [Member] | Chief Executive Officer [Member] | 2018 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options granted, per-share weighted average fair value | $ 2.77 | |||||||
Stock options granted, shares | 10,000 |
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] | 9 Months Ended |
Jun. 29, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 3 years 7 months 17 days |
Expected volatility | 74.62% |
Risk-free interest rate | 0.24% |
Expected dividends |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity under Share Based Compensation Plan) (Details) - $ / shares | 9 Months Ended | |
Jun. 29, 2021 | Jun. 30, 2020 | |
Shares | ||
Outstanding at beginning of year | 630,268 | |
Options granted | 90,000 | |
Options exercised | (170,248) | (15,646) |
Forfeited | (14,309) | |
Expired | (20,629) | |
Outstanding June 29, 2021 | 515,082 | |
Exercisable June 29, 2021 | 421,862 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of year | $ 3.56 | |
Options granted | 2.33 | |
Options exercised | 2.39 | |
Forfeited | 3.76 | |
Expired | 1.56 | |
Outstanding June 29, 2021 | 3.81 | |
Exercisable June 29, 2021 | $ 3.73 | |
Weighted Avg. Remaining Contractual Life (Yrs.) | ||
Outstanding June 29, 2021 | 5 years 8 months 12 days | |
Exercisable June 29, 2021 | 5 years 4 months 24 days |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Non-vested Restricted Stock Activity) (Details) - Restricted Stock [Member] | 9 Months Ended |
Jun. 29, 2021$ / sharesshares | |
Shares | |
Non-vested shares at beginning of year | shares | 92,604 |
Vested | shares | (26,894) |
Forfeited | shares | (1,935) |
Non-vested shares at June 29, 2021 | shares | 63,775 |
Minimum [Member] | |
Grant Date Fair Value Per Share | |
Non-vested shares at beginning of year | $ 1.54 |
Vested | 2.52 |
Forfeited | 2.30 |
Non-vested shares at June 29, 2021 | 1.54 |
Maximum [Member] | |
Grant Date Fair Value Per Share | |
Non-vested shares at beginning of year | 3.95 |
Vested | 3.95 |
Forfeited | 2.68 |
Non-vested shares at June 29, 2021 | $ 3.95 |
Other Accrued Liabilities (Sche
Other Accrued Liabilities (Schedule of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jun. 29, 2021 | Sep. 29, 2020 | Jun. 30, 2020 |
Other Accrued Liabilities | |||
Accrued salaries and wages | $ 1,201 | $ 557 | |
Accrued incentive compensation | 1,295 | 885 | |
Sales taxes payable | 773 | 712 | |
Accrued paid time off | 520 | 443 | |
Property taxes payable | 357 | 324 | |
Accrued other | 2,345 | 2,134 | |
Total Accrued Liabilities | $ 6,491 | $ 5,055 | $ 5,055 |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Details) - USD ($) | Jan. 08, 2021 | Jun. 29, 2021 | Jun. 29, 2021 | Jul. 01, 2021 | May 07, 2020 |
Subsidiaries [Member] | |||||
Debt Instrument [Line Items] | |||||
Gain on debt extinguishment | $ 11,778,226 | ||||
Cadence Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan agreement, increase amount | $ 11,000,000 | ||||
Interest rate | 0.25% | 0.25% | |||
Weighted average interest rate | 3.75% | 3.75% | |||
Interest rate description | As of June 29, 2021, any borrowings under the Cadence Credit Facility, as amended, bear interest at a variable rate based upon the Company’s election of (i) 2.5% 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 0.250% floor, plus 3.5%. 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. | ||||
Payment of debt issuance costs | $ 308,500 | ||||
Maturity date | Jan. 31, 2023 | Jan. 31, 2023 | |||
Minimum liquidity amount | $ 2,000,000 | $ 2,000,000 | |||
Letters of credit outstanding face value | 157,500 | 157,500 | |||
Reduce commitment amount | $ 11,000,000 | $ 10,000,000 | $ 10,000,000 | ||
Cadence Credit Facility [Member] | Subsequent Event[Member] | |||||
Debt Instrument [Line Items] | |||||
Reduce commitment amount | $ 8,000,000 | ||||
Paycheck Protection Program [Member] | Cadence Bank, N.A. [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured loan aggregate principal amount | $ 11,645,000 |
Net Income (Loss) per Common _3
Net Income (Loss) per Common Share (Summary of Reconciles Basic and Diluted Weighted-Average Shares Outstanding) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2021 | Jun. 30, 2020 | Jun. 29, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares outstanding basic | 12,787,390 | 12,591,079 | 12,689,587 | 12,593,137 |
Effect of potentially dilutive securities: | ||||
Stock options | 225,471 | 40,553 | ||
Restricted stock units | 63,774 | 104,949 | 63,774 | |
Weighted-average shares outstanding diluted | 13,076,635 | 12,696,028 | 12,793,915 | 12,593,137 |
Excluded from diluted weighted-average shares outstanding: | ||||
Antidilutive | 289,611 | 632,976 | 474,528 | 737,925 |
Contingent Liabilities and Li_2
Contingent Liabilities and Liquidity (Details) - Sale of Good Times Drive Thru division to plaintiffs [Member] - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Jul. 30, 2021 | Jun. 29, 2021 | |
Loss Contingencies [Line Items] | ||
Lawsuit filing date | September 24, 2019 | |
Subsequent Event[Member] | ||
Loss Contingencies [Line Items] | ||
Amount of damages sought | $ 18 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 9 Months Ended |
Jun. 29, 2021 | |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Initial lease term | 10 years |
Lease renewal term | 10 years |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Initial lease term | 20 years |
Lease renewal term | 15 years |
Remaining lease term | 20 years |
Leases (Schedule of Components
Leases (Schedule of Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2021 | Jun. 30, 2020 | Jun. 29, 2021 | Jun. 30, 2020 | |
Lessee Disclosure [Abstract] | ||||
Operating lease cost | $ 1,693 | $ 1,665 | $ 5,220 | $ 5,436 |
Variable lease cost | 20 | 20 | 61 | 60 |
Sublease income | (136) | (135) | (400) | (365) |
Lease cost, Total | $ 1,577 | $ 1,550 | $ 4,881 | $ 5,131 |
Leases (Schedule of Weighted Av
Leases (Schedule of Weighted Average Lease Term and Discount Rate) (Details) | Jun. 29, 2021 | Jun. 30, 2020 |
Lessee Disclosure [Abstract] | ||
Weighted average remaining lease term (in years) | 9 years 9 months 18 days | 10 years 7 months 6 days |
Weighted average discount rate | 5.00% | 5.00% |
Leases (Schedule of Supplementa
Leases (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 29, 2021 | Jun. 30, 2020 | |
Lessee Disclosure [Abstract] | ||
Cash paid for operating lease liabilities | $ 5,168 | $ 5,125 |
Non-cash operating lease assets obtained in exchange for operating lease liabilities | $ 57 | $ 3,077 |
Leases (Schedule of Supplemen_2
Leases (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Thousands | Jun. 29, 2021 | Sep. 29, 2020 |
Lessee Disclosure [Abstract] | ||
Right-of-use assets | $ 46,678 | $ 49,252 |
Current lease liabilities | 4,857 | 4,689 |
Non-current lease liabilities | 50,698 | 53,731 |
Total lease liabilities | $ 55,555 | $ 58,420 |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Rent Payments Related to Operating Leases) (Details) - USD ($) $ in Thousands | Jun. 29, 2021 | Sep. 29, 2020 |
Fiscal year ending: | ||
Remainder of 2021 | $ 2,064 | |
2022 | 7,559 | |
2023 | 7,608 | |
2024 | 7,462 | |
2025 | 7,565 | |
Thereafter | 39,111 | |
Total minimum lease payments | 71,369 | |
Less: imputed interest | (15,814) | |
Present value of lease liabilities | $ 55,555 | $ 58,420 |
Impairment of Long-Lived Asse_3
Impairment of Long-Lived Assets and Goodwill (Narrative) (Details) $ in Thousands | 9 Months Ended | |||
Jun. 29, 2021USD ($)restaurants | Jun. 30, 2020USD ($) | Sep. 29, 2020USD ($) | Sep. 29, 2019USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Number of restaurants impaired | restaurants | 2 | |||
Goodwill | $ 5,150 | $ 5,150 | $ 5,150 | $ 15,150 |
Bad Daddy's Restaurants In North Carolina and Tennessee [Member] | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Non-cash impairment charge | $ 5,291 | |||
Good Times [Member] | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Goodwill | 96 | |||
Bad Daddy's [Member] | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Goodwill | $ 5,054 |
Impairment of Long-Lived Asse_4
Impairment of Long-Lived Assets and Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 29, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Asset Impairment [Abstract] | |||||
Balance as of September 24, 2019 | $ 5,150 | $ 15,150 | |||
Impairment of Goodwill | $ (10,000) | (10,000) | |||
Balance as of June 30, 2020 | $ 5,150 | $ 5,150 | $ 5,150 | $ 5,150 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 29, 2021 | Jun. 30, 2020 | |
Income Tax Examination [Line Items] | ||
Deferred tax assets | $ 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 | 2018 | |
Maximum [Member] | ||
Income Tax Examination [Line Items] | ||
Years subject to income tax examination | 2021 |
Non-controlling Interests (Sche
Non-controlling Interests (Schedule of Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 29, 2021 | Mar. 30, 2021 | Dec. 29, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 29, 2021 | Jun. 30, 2020 | |
Noncontrolling Interest [Line Items] | ||||||||
Balance at September 29, 2020 | $ 1,293 | $ 1,293 | ||||||
Income | $ 524 | $ 426 | 363 | $ 352 | $ 174 | $ 212 | 1,313 | $ 738 |
Contributions | 14 | 22 | 14 | |||||
Distributions | (617) | $ (536) | (319) | $ (494) | $ (95) | $ (291) | (1,472) | |
Balance at June 29, 2021 | 1,148 | 1,148 | ||||||
Bad Daddy's [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Balance at September 29, 2020 | 1,023 | 1,023 | ||||||
Income | 688 | |||||||
Contributions | 14 | |||||||
Distributions | (805) | |||||||
Balance at June 29, 2021 | 920 | 920 | ||||||
Good Times [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Balance at September 29, 2020 | $ 270 | 270 | ||||||
Income | 625 | |||||||
Contributions | ||||||||
Distributions | (667) | |||||||
Balance at June 29, 2021 | $ 228 | $ 228 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2021 | Jun. 30, 2020 | Jun. 29, 2021 | Jun. 30, 2020 | Sep. 29, 2020 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 33,946 | $ 24,357 | $ 90,434 | $ 81,353 | |
Income (loss) from operations | 2,446 | 843 | 5,312 | (14,062) | |
Capital expenditures | 912 | 340 | 2,098 | 2,294 | |
Property and equipment, net | 27,289 | 27,289 | $ 27,669 | ||
Bad Daddys [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 24,481 | 14,928 | 64,263 | 57,199 | |
Income (loss) from operations | 1,441 | (906) | 2,759 | (15,906) | |
Capital expenditures | 661 | 330 | 1,622 | 2,171 | |
Property and equipment, net | 23,414 | 23,414 | 23,586 | ||
Good Times [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,465 | 9,429 | 26,171 | 24,154 | |
Income (loss) from operations | 830 | 1,827 | 2,655 | 2,036 | |
Capital expenditures | 110 | 3 | 272 | 90 | |
Property and equipment, net | 3,583 | 3,583 | 3,874 | ||
Corporate Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from operations | 175 | (78) | (102) | (192) | |
Capital expenditures | 141 | $ 7 | 204 | $ 33 | |
Property and equipment, net | $ 292 | $ 292 | $ 209 |