Good Times Restaurants (GTIM) 10-Q 11 Aug 22 2022 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 28, 2022	Aug. 08, 2022
Document Information Line Items
Entity Registrant Name	Good Times Restaurants Inc.
Trading Symbol	GTIM
Document Type	10-Q
Current Fiscal Year End Date	--09-27
Entity Common Stock, Shares Outstanding		12,361,450
Amendment Flag	false
Entity Central Index Key	0000825324
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Jun. 28, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-18590
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	84-1133368
Entity Address, Address Line One	651 CORPORATE CIRCLE
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
Title of 12(b) Security	Common Stock $.001 par value
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 28, 2022	Sep. 28, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 9,704	$ 8,856
Receivables, net of allowance for doubtful accounts of $0	662	644
Prepaid expenses and other current assets	1,387	641
Inventories	1,385	1,303
Total current assets	13,138	11,444
PROPERTY AND EQUIPMENT:
Land and building	4,670	4,704
Leasehold improvements	35,541	35,089
Fixtures and equipment	30,011	30,286
Total property and equipment	70,222	70,079
Less accumulated depreciation and amortization	(46,683)	(42,852)
Total net property and equipment	23,539	27,227
OTHER ASSETS:
Operating lease right-of-use assets, net	43,566	45,737
Deposits and other assets	176	219
Trademarks	3,900	3,900
Other intangibles, net	22	4
Goodwill	5,713	5,150
Total other assets	53,377	55,010
TOTAL ASSETS:	90,054	93,681
CURRENT LIABILITIES:
Accounts payable	753	1,496
Deferred income	57	61
Operating lease liabilities, current	5,349	4,935
Other accrued liabilities	7,412	6,394
Total current liabilities	13,571	12,886
LONG-TERM LIABILITIES:
Operating lease liabilities, net of current portion	46,859	49,723
Deferred and other liabilities	161	202
Total long-term liabilities	47,020	49,925
Good Times Restaurants Inc. shareholders’ equity:
Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of June 28, 2022 and September 28, 2021
Common stock, $.001 par value; 50,000,000 shares authorized, 12,393,843 and 12,512,072 shares issued and outstanding as of June 28, 2022 and September 28, 2021, respectively	13	13
Capital contributed in excess of par value	59,318	59,021
Treasury stock, at cost; 545,999 and 376,351 shares as of June 28, 2022 and September 28, 2021, respectively	(2,213)	(1,608)
Accumulated deficit	(29,031)	(27,680)
Total Good Times Restaurants Inc. shareholders' equity	28,087	29,746
Non-controlling interests	1,376	1,124
Total shareholders’ equity	29,463	30,870
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 90,054	$ 93,681

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 28, 2022	Sep. 28, 2021
Statement of Financial Position [Abstract]
Net of allowance for doubtful accounts (in Dollars)	$ 0	$ 0
Preferred stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, outstanding
Preferred stock, issued
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	12,393,843	12,512,072
Common stock, shares outstanding	12,393,843	12,512,072
Treasury stock at cost, shares	545,999	376,351

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 28, 2022	Jun. 29, 2021	Jun. 28, 2022	Jun. 29, 2021
NET REVENUES:
Total net revenues	$ 36,497	$ 33,946	$ 103,010	$ 90,434
RESTAURANT OPERATING COSTS:
Food and packaging costs	11,767	9,989	32,450	26,037
Payroll and other employee benefit costs	12,295	11,261	35,027	29,787
Restaurant occupancy costs	2,383	2,183	7,088	6,533
Other restaurant operating costs	4,753	3,730	13,558	10,841
Preopening costs	0	301	50	420
Depreciation and amortization	993	938	2,990	2,797
Total restaurant operating costs	32,191	28,402	91,163	76,415
General and administrative costs	2,379	2,505	7,661	7,097
Advertising costs	807	597	2,260	1,616
Franchise costs	5	5	16	22
Impairment of long-lived assets	303		2,056
Gain on restaurant asset sale and lease termination	(9)	(9)	(666)	(28)
Litigation contingencies			332
INCOME (LOSS) FROM OPERATIONS:	821	2,446	188	5,312
Other Expenses:
Interest and other expense, net	(12)	(66)	(41)	(244)
Gain on debt extinguishment	0	11,778	0	11,778
Total other income (expense), net	(12)	11,712	(41)	11,534
NET INCOME BEFORE INCOME TAXES:	809	14,158	147	16,846
Provision for Income Taxes	(1)		(9)
NET INCOME:	808	14,158	138	16,846
Income attributable to non-controlling interests	(339)	(524)	(1,489)	(1,313)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 469	$ 13,634	$ (1,351)	$ 15,533
NET (LOSS) INCOME PER SHARE, ATTRIBUTABLE TO COMMON SHAREHOLDERS:
Basic (in Dollars per share)	$ 0.04	$ 1.07	$ (0.11)	$ 1.22
Diluted (in Dollars per share)	$ 0.04	$ 1.04	$ (0.11)	$ 1.21
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in Shares)	12,457,251	12,787,390	12,502,449	12,689,587
Diluted (in Shares)	12,560,658	13,076,635	12,502,449	12,793,915
Restaurant sales
NET REVENUES:
Total net revenues	$ 36,265	$ 33,701	$ 102,305	$ 89,777
Franchise revenues
NET REVENUES:
Total net revenues	$ 232	$ 245	$ 705	$ 657

Consolidated Statements of Shar

Consolidated Statements of Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands	Treasury Stock, at cost	Common Stock	Capital Contributed in Excess of Par Value	Non- Controlling Interest In Partnerships	Accumulated Deficit	Total
BALANCES at Sep. 28, 2020	$ (75)	$ 13	$ 58,219	$ 1,293	$ (44,467)	$ 14,983
BALANCES (in Shares) at Sep. 28, 2020	43,110	12,612,852
Stock-based compensation cost			61			61
Restricted stock unit vesting
Restricted stock unit vesting (in Shares)		16,548
Stock option exercise			13			13
Stock option exercise (in Shares)		7,984
Income				363		363
Distributions				(319)		(319)
Net Income (Loss) attributable to common shareholders and comprehensive income (loss)					802	802
BALANCES at Dec. 29, 2020	$ (75)	$ 13	58,293	1,337	(43,665)	15,903
BALANCES (in Shares) at Dec. 29, 2020	43,110	12,637,384
BALANCES at Sep. 28, 2020	$ (75)	$ 13	58,219	1,293	(44,467)	14,983
BALANCES (in Shares) at Sep. 28, 2020	43,110	12,612,852
BALANCES at Jun. 29, 2021	$ (75)	$ 13	58,953	1,148	(28,934)	31,105
BALANCES (in 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 (in Shares) at Dec. 29, 2020	43,110	12,637,384
Stock-based compensation cost			215			215
Performance shares granted (in Shares)		10,000
Common stock grants
Common stock grants (in Shares)		12,948
Stock option exercise			83			83
Stock option exercise (in Shares)		35,346
Income				426		426
Distributions				(536)		(536)
Net Income (Loss) attributable to common shareholders and comprehensive income (loss)					1,097	1,097
BALANCES at Mar. 30, 2021	$ (75)	$ 13	58,591	1,227	(42,568)	17,188
BALANCES (in Shares) at Mar. 30, 2021	43,110	12,695,678
Stock-based compensation cost			51			51
Contributions				14		14
Restricted stock unit vesting
Restricted stock unit vesting (in Shares)		8,283
Stock option exercise			311			311
Stock option exercise (in Shares)		126,918
Income				524		524
Distributions				(617)		(617)
Net Income (Loss) attributable to common shareholders and comprehensive income (loss)					13,634	13,634
BALANCES at Jun. 29, 2021	$ (75)	$ 13	58,953	1,148	(28,934)	31,105
BALANCES (in Shares) at Jun. 29, 2021	43,110	12,830,879
BALANCES at Sep. 27, 2021	$ (1,608)	$ 13	59,021	1,124	(27,680)	30,870
BALANCES (in Shares) at Sep. 27, 2021	376,351	12,512,072
Stock-based compensation cost			95			95
Restricted stock unit vesting
Restricted stock unit vesting (in Shares)		13,366
Common stock grants
Common stock grants (in Shares)		9,256
Stock option exercise			6			6
Stock option exercise (in Shares)		5,000
Income				920		920
Distributions				(632)		(632)
Net Income (Loss) attributable to common shareholders and comprehensive income (loss)					330	330
BALANCES at Dec. 28, 2021	$ (1,608)	$ 13	59,122	1,412	(27,350)	31,589
BALANCES (in Shares) at Dec. 28, 2021	376,351	12,539,694
BALANCES at Sep. 28, 2021						30,870
Income						1,489
Net Income (Loss) attributable to common shareholders and comprehensive income (loss)						(1,351)
BALANCES at Jun. 28, 2022	$ (2,213)	$ 13	59,318	1,376	(29,031)	29,463
BALANCES (in Shares) at Jun. 28, 2022	545,999	12,393,843
BALANCES at Dec. 28, 2021	$ (1,608)	$ 13	59,122	1,412	(27,350)	31,589
BALANCES (in Shares) at Dec. 28, 2021	376,351	12,539,694
Stock-based compensation cost			52			52
Repurchases of common stock	$ (331)					(331)
Repurchases of common stock (in Shares)	75,900	(75,900)
Restricted stock unit vesting
Restricted stock unit vesting (in Shares)
Stock option exercise			84			84
Stock option exercise (in Shares)		23,797
Income				230		230
Distributions				(112)		(112)
Net Income (Loss) attributable to common shareholders and comprehensive income (loss)					(2,150)	(2,150)
BALANCES at Mar. 29, 2022	$ (1,939)	$ 13	59,258	1,530	(29,500)	29,362
BALANCES (in Shares) at Mar. 29, 2022	452,251	12,487,591
Stock-based compensation cost			60			60
Repurchases of common stock	$ (274)					(274)
Repurchases of common stock (in Shares)	93,748	(93,748)
Income				339		339
Distributions				(493)		(493)
Net Income (Loss) attributable to common shareholders and comprehensive income (loss)					469	469
BALANCES at Jun. 28, 2022	$ (2,213)	$ 13	$ 59,318	$ 1,376	$ (29,031)	$ 29,463
BALANCES (in Shares) at Jun. 28, 2022	545,999	12,393,843

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 28, 2022	Jun. 29, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 138	$ 16,846
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	3,129	2,920
Amortization of operating lease assets	2,908	2,631
Decrease in ROU assets	57
Gain on debt extinguishment	0	(11,778)
Impairment of long-lived assets	2,056
Gain on lease termination	(642)
Stock-based compensation expense	207	327
Recognition of deferred gain on sale of restaurant building	(24)	(28)
Income tax provision	9
Changes in operating assets and liabilities:
Receivables and other	(18)	280
Prepaid expense	(742)
Inventories	(62)	(102)
Deposits and other assets	70	(260)
Accounts payable	(529)	(820)
Operating lease liabilities	(3,262)	(2,922)
Deferred liabilities		(4)
Accrued and other liabilities	1,123	296
Net cash provided by operating activities	4,418	7,386
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for the purchase of property and equipment	(1,623)	(2,098)
Acquisition of restaurant from franchisee, net of cash acquired	(728)
Proceeds from sale of fixed assets	745
Payments received from franchisees and others		13
Net cash used in investing activities	(1,606)	(2,085)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments for the purchase of treasury stock	(605)
Principal payments on notes payable and long-term debt		(5,500)
Proceeds from stock option exercise	90	407
Contributions from non-controlling interests		14
Distributions to non-controlling interests	(1,449)	(1,375)
Net cash used in financing activities	(1,964)	(6,454)
NET CHANGE IN CASH AND CASH EQUIVALENTS	848	(1,153)
CASH AND CASH EQUIVALENTS, beginning of period	8,856	11,454
CASH AND CASH EQUIVALENTS, end of period	9,704	10,301
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	14	33
Change in accounts payable attributable to the purchase of property and equipment	$ (214)	$ 500

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 28, 2022
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. (the “Company”) and its wholly-owned subsidiaries as well as six partnerships in which the Company is the controlling partner. All significant intercompany balances and transactions have been eliminated in consolidation. The Company operates, and licenses full-service restaurants under the brand Bad Daddy’s Burger Bar The Company operates and franchises drive-thru fast food hamburger restaurants under the brand Good Times Burgers & Frozen Custard 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 28, 2022 and the results of its operations and its cash flows for the three fiscal quarters ended June 28, 2022 and June 29, 2021. Operating results for the three fiscal quarters ended June 28, 2022 are not necessarily indicative of the results that may be expected for the year ending September 27, 2022. The condensed consolidated balance sheet as of September 28, 2021 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 28, 2021. Fiscal Year Advertising Costs Receivables COVID-19 Currently all of our Bad Daddy’s and Good Times restaurants are operating without COVID-19 related government restrictions or mask mandates. However, the second-and third-order effects from the pandemic have had a lingering impact on our restaurant operations for the three quarters ended June 28, 2022 including disruptions and other impacts to the supply chain and labor markets, and varying changes in consumer behavior. 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 closed by government orders. Beginning in early January 2021, we began to re-open Colorado dining rooms at Bad Daddy’s, with limited occupancy, as local regulations allowed. Our dining rooms in all other states in which Bad Daddy’s has operations were open during this time. Although certain dining rooms were open, all were operating at some reduction of capacity, whether driven by explicit capacity reductions under government orders, or due to social distancing protocols that are either mandated by the same government orders, or which we abide by as under our own internal protocols designed to maintain a safe foodservice environment, both for our employees and for our customers. 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 predict the continued impact of the effect of the COVID-19 pandemic on our business, including any mutations of the virus and additional variants; neither are we able to predict how the pandemic will evolve nor how the long-lived impacts on supply chain, labor market, and customer behavior will evolve. Should dining room closures or mask mandates reoccur, our business could be adversely affected. Even without government orders, customers may choose to reduce or eliminate in-restaurant dining if there are increasing numbers of COVID-19 cases, hospitalizations, or deaths. 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, packaging and other products used in the production of menu items for 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 number of items purchased per guest, or close some or all of our restaurants for an indeterminate period of time. The long-lived, residual impacts from the COVID-19 pandemic and its evolution could result in reduced revenue and cash flow and could affect our assessments of impairment of intangible assets, long-lived assets, or goodwill. War in Ukraine Although we conduct all of our restaurant operations within the USA, worldwide product supply chains have been impacted by the war in Ukraine. Specifically sunflower oil and wheat, which are fungible commodities, are used as ingredients in our raw materials and purchased by our suppliers, have significant supplies that typically originate in Ukraine. The lack of availability of supplies of such products may impact the availability and supplier pricing for products purchased by us for use in our business, which could result in higher food and packaging costs or reduced revenues.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Jun. 28, 2022
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	Note 2. Recent Accounting Pronouncements The Company reviewed all 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. 28, 2022
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 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. 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. 28, 2022
Goodwill and Intangible Assets [Abstract]
Goodwill and Intangible Assets	Note 4. Goodwill and Intangible Assets The following table presents goodwill and intangible assets as of June 28, 2022 and September 28, 2021 (in thousands): June 28, 2022 September 28, 2021 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangible assets subject to Non-compete agreements $ 25 $ (3 ) $ 22 $ 50 $ (46 ) $ 4 Indefinite-lived intangible assets: Trademarks 3,900 - 3,900 3,900 - 3,900 Intangible assets, net $ 3,925 $ (3 ) $ 3,922 $ 3,950 $ (46 ) $ 3,904 Goodwill $ 5,713 $ - $ 5,713 $ 5,150 $ - $ 5,150 The Company had no goodwill impairment losses in the periods presented in the above table. The aggregate amortization expense related to intangible assets subject to amortization was $3,000 for the three quarters ended June 28, 2022 and $46,000 for the three quarters ended June 29, 2021.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Jun. 28, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 5. Stock-Based Compensation The Company has traditionally maintained incentive compensation plans that include a 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 (the “2018 Plan”), pursuant to shareholder approval. Future awards will be issued under the 2018 Plan. Currently, the maximum number of shares available for issuance under the 2018 Plan is 1,050,000. 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 28, 2022 and June 29, 2021 includes $207,000 and $327,000, 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 28, 2022. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by the employees who receive equity awards. 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 28, 2022 Three Quarters Ended June 29, 2021 Expected term (years) 6.5 3.63 Expected volatility 61.31% 74.62% Risk-free interest rate 1.76% 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 28, 2022 under all plans: Shares Weighted Weighted Average Outstanding at beginning of year 443,815 $ 3.63 Options granted 105,000 $ 4.90 Options exercised (28,797 ) $ 3.10 Options Forfeited (20,362 ) $ 4.63 Outstanding June 28, 2022 499,656 $ 3.89 5.7 Exercisable June 28, 2022 351,872 $ 3.52 5.1 As of June 28, 2022, the aggregate intrinsic value of the outstanding and exercisable options was $57,000. Only options whose exercise price is below the closing price of the Company’s common stock as of June 28, 2022 are included in the intrinsic value calculation. During the three quarters ended June 28, 2022, the Company granted 105,000 stock options, which includes 25,000 non-qualified stock options to its Senior Vice President of Finance pursuant to Rule 5635(c)(4) of the Nasdaq Stock Market Listing Rules as an inducement to employment. As of June 28, 2022, the total remaining unrecognized compensation cost related to non-vested stock options was approximately $239,000 and is expected to be recognized over a weighted average period of approximately 1.6 years. There were 28,797 stock options exercised during the three quarters ended June 28, 2022 with proceeds of approximately $90,000. There were 170,248 stock options exercised during the three quarters ended June 29, 2021 with proceeds of approximately $407,000. Restricted Stock Units During the three quarters ended June 28, 2022 there were 28,000 restricted stock units granted, and no restricted stock units granted during the three quarters ended June 29, 2021. A summary of the status of non-vested restricted stock as of June 28, 2022 is presented below. Shares Grant Date Fair Non-vested shares at September 28, 2021 61,952 $1.54 to $3.95 Granted 28,000 $4.50 Vested (15,616 ) $3.95 Non-vested shares at June 28, 2022 74,336 $1.54 to $4.50 As of June 28, 2022, there was $120,000 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 2.4 years. Restricted and Unrestricted Common Stock Awards During the three quarters ended June 28, 2022 there were 9,256 unrestricted shares of common stock granted to directors of the Company. These shares had a grant date fair value of $4.35 per share which is equal to the closing price of the stock on the date of grant and resulted in the recognition of $40,000 of stock-based compensation expense. 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.

Gain on Sale of Assets and Leas

Gain on Sale of Assets and Lease Termination	9 Months Ended
	Jun. 28, 2022
Gain on Sale of Assets and Lease Termination [Abstract]
Gain on Sale of Assets and Lease Termination	Note 6. Gain on Sale of Assets and Lease Termination The Company had previously entered into an agreement with the landlord for one of its Good Times restaurants which provided the landlord an option to terminate the lease with a six-month notice in exchange for a specific termination penalty. During the fiscal quarter ended December 28, 2021 the landlord for this location exercised the termination option. The Company continued to operate this location through the majority of the notice period ending March 31, 2022. During the quarter ended March 29, 2022, we recognized a $642,000 gain in connection with the lease termination. The remainder of the gain recognized during the three quarters ended June 28, 2022 is the periodic recognition of deferred gains resulting from prior sale-leaseback transactions associated with certain Good Times restaurants.

Prepaid Expense and Other Curre

Prepaid Expense and Other Current Assets	9 Months Ended
	Jun. 28, 2022
Prepaid Expense And Other [Abstract]
Prepaid expense and other current assets	Note 7. Prepaid expense and other current assets Prepaid expenses and other current assets consist of the following as of: June 28, 2022 September 28, 2021 Prepaid Rent $ 773 $ - Other 614 641 Total $ 1,387 $ 641

Other Accrued Liabilities

Other Accrued Liabilities	9 Months Ended
	Jun. 28, 2022
Other Accrued Liabilities [Abstract]
Other Accrued Liabilities	Note 8. Other Accrued Liabilities Other accrued liabilities consist of the following as of: June 28, 2022 September 28, 2021 Wages and other employee benefits $ 3,115 $ 3,282 Taxes, other than income taxes 1,248 1,334 Gift card liability, net of breakage 980 375 General expense accrual and other 2,069 1,403 Total $ 7,412 $ 6,394

Notes Payable and Long-Term Deb

Notes Payable and Long-Term Debt	9 Months Ended
	Jun. 28, 2022
Debt Disclosure [Abstract]
Notes Payable and Long-Term Debt	Note 9. 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 has agreed to loan the Company up to $8,000,000 with a maturity date of January 31, 2023 (as amended, the “Cadence Credit Facility”). 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 28, 2022, 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 elects to pay interest based on the base rate and at the end of each LIBOR period if it elects to pay interest based on LIBOR. The Cadence Credit Facility includes provisions for the Administrative Agent of the facility to amend the facility to replace LIBOR with an alternate benchmark rate, which may be (but is not required to be) SOFR, at such point in time when appliable LIBOR rates are no longer available or no longer reliable. The exact timing of any transition of LIBOR to an alternate benchmark rate is not currently known. As of June 28, 2022, 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 financial 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 28, 2022, the Company was in compliance with all of these 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 28, 2022, 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 28, 2022, there were no outstanding letters of credit issued under the facility.

Net (Loss) Income Per Common Sh

Net (Loss) Income Per Common Share	9 Months Ended
	Jun. 28, 2022
Net (Loss) Income per Common Share [Abstract]
Net (Loss) Income per Common Share	Note 10. Net (Loss) Income 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 28 2022 June 29, 2021 June 28, 2022 June 29, 2021 Weighted-average shares 12,457,251 12,787,390 12,502,449 12,689,587 Effect of potentially dilutive Stock options 29,071 225,471 - 40,553 Restricted stock units 74,336 63,774 - 63,774 Weighted-average shares 12,560,658 13,076,635 12,502,449 12,793,915 Excluded from diluted weighted Antidilutive 387,378 289,611 249,752 474,528

Contingent Liabilities and Liqu

Contingent Liabilities and Liquidity	9 Months Ended
	Jun. 28, 2022
Commitments and Contingencies Disclosure [Abstract]
Contingent Liabilities and Liquidity	Note 11. Contingent Liabilities and Liquidity 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 regularly 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, subject to our disclosure immediately below, it is management’s opinion that any reasonably possible losses associated with such contingencies would be immaterial to our financial statements. The Company is the defendant in a lawsuit styled as 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 subsidiary 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. 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. On April 11, 2022, the Court heard the parties’ respective motions for summary judgment on the plaintiffs’ claims. The Court verbally ruled that it was dismissing all of the plaintiffs’ claims except for their claim for breach of an express and implied obligation to negotiate in good faith under the parties’ letter of intent. On May 5, 2022, the Court issued a written order confirming this ruling. On May 25, 2022, the Court issued an order that the plaintiffs are only entitled to reliance damages should they prevail on their claim for breaches of the express and implied obligations to negotiate in good faith. Trial is set on this lone remaining claim for August 22, 2022. While the Court’s rulings have significantly limited plaintiff’s opportunity for recovery in the case, in light of the ruling and the Court’s order, the inherent uncertainties of trial and the Company’s posture in respect of settlement, among other things, the Company has determined that some loss in respect of the lawsuit is probable and accordingly recorded an accrual in the quarter ended March 28, 2022 in the amount of $332,000. This amount represents the Company’s best estimate of the likely amount of plaintiffs’ damage recovery assuming a finding of liability in their favor at trial and their ability to satisfy the legal standard for proving damages in such amount, based upon the Company’s retained expert and a report he made in response to the plaintiffs’ claims for damages. The accrual is an estimate and is based on current information, the judgment of management and advice of counsel. The Company will continue to evaluate this matter based on new information as it becomes available. The outcome of the case could result in losses less than or in excess of amounts accrued. Any additional liability in excess of the accrual could have a material impact on the Company’s results of operations, liquidity or financial condition for the annual or interim period during which any such additional liability is accrued. The Company will continue to vigorously pursue a full defense of this matter on the merits.

Leases

Leases	9 Months Ended
	Jun. 28, 2022
Leases [Abstract]
Leases	Note 12. 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 multiple renewal options, typically 5 years each, with cumulative renewal option periods 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. 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 are as follows for the fiscal quarters ended: Lease cost Classification June 28, 2022 June 29, 2021 Operating lease cost Occupancy, Preopening costs, and General and administrative expenses, net $ 1,866 $ 1,693 Variable lease cost Occupancy 27 20 Sublease income Occupancy (136 ) (136 ) $ 1,757 $ 1,577 Components of operating lease costs are as follows for the three fiscal quarters ended: Lease cost Classification June 28, 2022 June 29, 2021 Operating lease cost Occupancy, Preopening costs, and General and administrative expenses, net $ 5,491 $ 5,220 Variable lease cost Occupancy 106 61 Sublease income Occupancy (408 ) (400 ) $ 5,189 $ 4,881 Weighted average lease term and discount rate are as follows: June 28, 2022 June 29, 2021 Weighted average remaining lease term (in years) 8.85 9.8 Weighted average discount rate 5.0 % 5.0 % Supplemental cash flow disclosures for the three fiscal quarters ended: June 28, 2022 June 29, 2021 Cash paid for operating lease liabilities $ 5,383 $ 5,168 Non-cash operating lease assets obtained in exchange for $ 734 $ 57 Supplemental balance sheet disclosures: Balance Sheet Classification Lease Classification June 28, 2022 June 29,2021 Right-of-use assets Operating lease assets $ 43,566 $ 46,678 Current lease liabilities Operating lease liabilities 5,349 4,857 Non-current lease liabilities Operating lease liabilities, less current portion 46,859 50,698 Total lease liabilities $ 52,208 $ 55,555 Future minimum rent payments for our operating leases for each of the next five years as of June 28, 2022 are as follows: Fiscal year ending: Total Remainder of 2022 $ 1,951 2023 7,833 2024 7,730 2025 7,814 2026 7,256 Thereafter 32,539 Total minimum lease payments 65,123 Less: imputed interest (12,915 ) Present value of lease liabilities $ 52,208 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. 28, 2022
Impairment Of Long Lived Assets And Goodwill [Abstract]
Impairment of Long-Lived Assets and Goodwill	Note 13. Impairment of Long-Lived Assets and Goodwill Long-Lived Assets. During the quarter ended June 28, 2022, we recognized $303,000 in impairment cost related to one Good Times restaurant. For the three quarters ended June 28, 2022, we recognized $2,056,000 in total asset impairments for four restaurants. Of this amount, $790,000 was related to three Good Times restaurants and $1,266,000 was related to one Bad Daddy’s restaurant. During the three quarters ended June 29, 2021 no asset impairment costs were recognized. Trademarks. Goodwill.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 28, 2022
IncomeTax [Abstract]
Income Taxes	Note 14. 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 continues to have significant net operating loss carryforwards from prior years and a history of net losses through the duration of our existence. Full valuation allowances were established to reduce any deferred tax assets recorded to zero for both the quarters ended June 28, 2022 and June 29, 2021. Although we have established a full valuation allowance on our deferred tax assets, we are subject to income tax in certain jurisdictions where we do not have substantial net operating loss carry forwards. As such, we have recognized a provision for income taxes of $9,000 for the three quarters ended June 28, 2022 related to state income taxes resulting in an effective income tax rate of (0.7% 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 2019 2022

Non-controlling Interests

Non-controlling Interests	9 Months Ended
	Jun. 28, 2022
Noncontrolling Interest [Abstract]
Non-controlling Interests	Note 15. Non-controlling Interests Non-controlling interests are presented as a separate item in the shareholders’ 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 shareholders’ 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 28, 2022 (in thousands): Bad Daddy’s Good Times Total Balance as of September 28, 2021 $ 915 $ 209 $ 1,124 Income 1,025 464 1,489 Distributions (840 ) (397 ) (1,237 ) Balance as of June 28, 2022 $ 1,100 $ 276 $ 1,376 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. 28, 2022
Subsequent Events [Abstract]
Subsequent Events	Note 16. Subsequent Events None.

Segment Reporting

Segment Reporting	9 Months Ended
	Jun. 28, 2022
Segment Reporting [Abstract]
Segment Reporting	Note 17. 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. The following tables present information about our reportable segments for the respective periods (in thousands): Quarter Ended Year-to-Date June 28, 2022 June 29, 2021 June 28, 2022 June 29, 2021 Revenues Bad Daddy’s $ 27,231 $ 24,481 $ 77,427 $ 64,263 Good Times 9,266 9,465 25,583 26,171 36,497 33,946 103,010 90,434 Income (Loss) from Bad Daddy’s 635 1,577 138 2,760 Good Times 186 869 50 2,552 821 2,446 188 5,312 Capital expenditures Bad Daddy’s 652 802 1,480 1,826 Good Times 364 110 471 272 $ 1,016 $ 912 $ 1,951 $ 2,098 June 28, 2022 September 28, 2021 Property and equipment, net Bad Daddy’s $ 20,990 $ 23,293 Good Times 2,548 3,773 $ 23,538 $ 27,066

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Jun. 28, 2022
Goodwill and Intangible Assets [Abstract]
Schedule of goodwill and intangible assets	June 28, 2022 September 28, 2021 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangible assets subject to Non-compete agreements $ 25 $ (3 ) $ 22 $ 50 $ (46 ) $ 4 Indefinite-lived intangible assets: Trademarks 3,900 - 3,900 3,900 - 3,900 Intangible assets, net $ 3,925 $ (3 ) $ 3,922 $ 3,950 $ (46 ) $ 3,904 Goodwill $ 5,713 $ - $ 5,713 $ 5,150 $ - $ 5,150

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Jun. 28, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of estimate fair value of stock option grants	Three Quarters Ended June 28, 2022 Three Quarters Ended June 29, 2021 Expected term (years) 6.5 3.63 Expected volatility 61.31% 74.62% Risk-free interest rate 1.76% 0.24% Expected dividends - -
Schedule of stock option activity	Shares Weighted Weighted Average Outstanding at beginning of year 443,815 $ 3.63 Options granted 105,000 $ 4.90 Options exercised (28,797 ) $ 3.10 Options Forfeited (20,362 ) $ 4.63 Outstanding June 28, 2022 499,656 $ 3.89 5.7 Exercisable June 28, 2022 351,872 $ 3.52 5.1
Schedule of non-vested restricted stock	Shares Grant Date Fair Non-vested shares at September 28, 2021 61,952 $1.54 to $3.95 Granted 28,000 $4.50 Vested (15,616 ) $3.95 Non-vested shares at June 28, 2022 74,336 $1.54 to $4.50

Prepaid Expense and Other Cur_2

Prepaid Expense and Other Current Assets (Tables)	9 Months Ended
	Jun. 28, 2022
Prepaid Expense And Other [Abstract]
Schedule of other prepaid expenses	June 28, 2022 September 28, 2021 Prepaid Rent $ 773 $ - Other 614 641 Total $ 1,387 $ 641

Other Accrued Liabilities (Tabl

Other Accrued Liabilities (Tables)	9 Months Ended
	Jun. 28, 2022
Other Accrued Liabilities [Abstract]
Schedule of other accrued liabilities	June 28, 2022 September 28, 2021 Wages and other employee benefits $ 3,115 $ 3,282 Taxes, other than income taxes 1,248 1,334 Gift card liability, net of breakage 980 375 General expense accrual and other 2,069 1,403 Total $ 7,412 $ 6,394

Net (Loss) Income Per Common _2

Net (Loss) Income Per Common Share (Tables)	9 Months Ended
	Jun. 28, 2022
Net (Loss) Income per Common Share [Abstract]
Schedule of reconciles basic and diluted weighted average shares outstanding	Quarter Ended Year-to-Date June 28 2022 June 29, 2021 June 28, 2022 June 29, 2021 Weighted-average shares 12,457,251 12,787,390 12,502,449 12,689,587 Effect of potentially dilutive Stock options 29,071 225,471 - 40,553 Restricted stock units 74,336 63,774 - 63,774 Weighted-average shares 12,560,658 13,076,635 12,502,449 12,793,915 Excluded from diluted weighted Antidilutive 387,378 289,611 249,752 474,528

Leases (Tables)

Leases (Tables)	9 Months Ended
	Jun. 28, 2022
Leases [Abstract]
Schedule of components of operating lease costs	Lease cost Classification June 28, 2022 June 29, 2021 Operating lease cost Occupancy, Preopening costs, and General and administrative expenses, net $ 1,866 $ 1,693 Variable lease cost Occupancy 27 20 Sublease income Occupancy (136 ) (136 ) $ 1,757 $ 1,577 Lease cost Classification June 28, 2022 June 29, 2021 Operating lease cost Occupancy, Preopening costs, and General and administrative expenses, net $ 5,491 $ 5,220 Variable lease cost Occupancy 106 61 Sublease income Occupancy (408 ) (400 ) $ 5,189 $ 4,881
Schedule of weighted average lease term and discount rate	June 28, 2022 June 29, 2021 Weighted average remaining lease term (in years) 8.85 9.8 Weighted average discount rate 5.0 % 5.0 %
Schedule of supplemental cash flow disclosures	June 28, 2022 June 29, 2021 Cash paid for operating lease liabilities $ 5,383 $ 5,168 Non-cash operating lease assets obtained in exchange for $ 734 $ 57
Schedule of supplemental balance sheet	Balance Sheet Classification Lease Classification June 28, 2022 June 29,2021 Right-of-use assets Operating lease assets $ 43,566 $ 46,678 Current lease liabilities Operating lease liabilities 5,349 4,857 Non-current lease liabilities Operating lease liabilities, less current portion 46,859 50,698 Total lease liabilities $ 52,208 $ 55,555
Schedule of future minimum rent payments for our operating leases	Fiscal year ending: Total Remainder of 2022 $ 1,951 2023 7,833 2024 7,730 2025 7,814 2026 7,256 Thereafter 32,539 Total minimum lease payments 65,123 Less: imputed interest (12,915 ) Present value of lease liabilities $ 52,208

Non-controlling Interests (Tabl

Non-controlling Interests (Tables)	9 Months Ended
	Jun. 28, 2022
Noncontrolling Interest [Abstract]
Schedule of summarizes the activity in non-controlling interests	Bad Daddy’s Good Times Total Balance as of September 28, 2021 $ 915 $ 209 $ 1,124 Income 1,025 464 1,489 Distributions (840 ) (397 ) (1,237 ) Balance as of June 28, 2022 $ 1,100 $ 276 $ 1,376

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Jun. 28, 2022
Segment Reporting [Abstract]
Schedule of reportable segments	Quarter Ended Year-to-Date June 28, 2022 June 29, 2021 June 28, 2022 June 29, 2021 Revenues Bad Daddy’s $ 27,231 $ 24,481 $ 77,427 $ 64,263 Good Times 9,266 9,465 25,583 26,171 36,497 33,946 103,010 90,434 Income (Loss) from Bad Daddy’s 635 1,577 138 2,760 Good Times 186 869 50 2,552 821 2,446 188 5,312 Capital expenditures Bad Daddy’s 652 802 1,480 1,826 Good Times 364 110 471 272 $ 1,016 $ 912 $ 1,951 $ 2,098 June 28, 2022 September 28, 2021 Property and equipment, net Bad Daddy’s $ 20,990 $ 23,293 Good Times 2,548 3,773 $ 23,538 $ 27,066

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($)	9 Months Ended
	Jun. 28, 2022	Jun. 29, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Advertising funds from franchisees	$ 204,000	$ 205,000

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 28, 2022	Jun. 29, 2021
Goodwill and Intangible Assets [Abstract]
Amortization expense	$ 3,000	$ 46,000

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets (Details) - Schedule of goodwill and intangible assets - USD ($) $ in Thousands	Jun. 28, 2022	Sep. 28, 2021
Indefinite-lived intangible assets:
Intangible Assets, net carrying amount, Gross Carrying Amount	$ 3,925	$ 3,950
Intangible Assets, net carrying amount, Accumulated Amortization	(3)	(46)
Intangible Assets, net carrying amount, Net Carrying Amount	3,922	3,904
Goodwill, Gross Carrying Amount	5,713	5,150
Goodwill, Accumulated Amortization
Goodwill, Net Carrying Amount	5,713	5,150
Non-compete agreements [Member]
Intangible assets subject to amortization:
Intangible assets, Gross Carrying Amount	25	50
Intangible assets, Accumulated Amortization	(3)	(46)
Intangible assets, Net Carrying Amount	22	4
Trademarks [Member]
Indefinite-lived intangible assets:
Intangible Assets, net carrying amount, Gross Carrying Amount	3,900	3,900
Intangible Assets, net carrying amount, Accumulated Amortization
Intangible Assets, net carrying amount, Net Carrying Amount	$ 3,900	$ 3,900

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	9 Months Ended
	Jun. 28, 2022	Jun. 29, 2021
Stock-Based Compensation (Details) [Line Items]
Compensation costs (in Dollars)	$ 207,000	$ 327,000
Stock options granted	28,000
Proceeds from stock option (in Dollars)	$ 90,000	$ 407,000
Unrestricted shares	105,000
Fair value per share (in Dollars per share)	$ 4.5
2018 Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Shares available for issuance	1,050,000
Stock Option Awards [Member]
Stock-Based Compensation (Details) [Line Items]
Stock options exercised	28,797	170,248
Chief Executive Officer [Member]
Stock-Based Compensation (Details) [Line Items]
Fair value per share (in Dollars per share)	$ 2.77
Chief Executive Officer [Member] | 2018 Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Stock options granted, shares		12,948
Performance of shares		10,000
Stock Options [Member]
Stock-Based Compensation (Details) [Line Items]
Aggregate outstanding Intrinsic Value (in Dollars)	$ 57,000
Stock options granted	105,000
Unrecognized compensation cost (in Dollars)	$ 239,000
Weighted average period	1 year 7 months 6 days
Non-qualified stock options [Member]
Stock-Based Compensation (Details) [Line Items]
Stock options granted	25,000
Restricted Stock [Member]
Stock-Based Compensation (Details) [Line Items]
Unrecognized compensation cost (in Dollars)	$ 120,000
Weighted average period	2 years 4 months 24 days
Restricted stock units granted	28,000
Restricted and Unrestricted Common Stock Awards [Member]
Stock-Based Compensation (Details) [Line Items]
Stock based compensation expense (in Dollars)	$ 40,000
Restricted and Unrestricted Common Stock Awards [Member] | Director [Member]
Stock-Based Compensation (Details) [Line Items]
Unrestricted shares	9,256
Fair value per share (in Dollars per share)	$ 4.35
Restricted and Unrestricted Common Stock Awards [Member] | Chief Executive Officer [Member]
Stock-Based Compensation (Details) [Line Items]
Fair value per share (in Dollars per share)	$ 2.78

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - Schedule of estimate fair value of stock option grants - Incentive and Non-Qualified Stock Options [Member] - USD ($)	9 Months Ended
	Jun. 28, 2022	Jun. 29, 2021
Stock-Based Compensation (Details) - Schedule of estimate fair value of stock option grants [Line Items]
Expected term (years)	6 years 6 months	3 years 7 months 17 days
Expected volatility	61.31%	74.62%
Risk-free interest rate	1.76%	0.24%
Expected dividends (in Dollars)

Stock-Based Compensation (Det_3

Stock-Based Compensation (Details) - Schedule of stock option activity	9 Months Ended
	Jun. 28, 2022 $ / shares shares
Schedule of stock option activity [Abstract]
Outstanding at beginning of year, shares | shares	443,815
Outstanding at beginning of year, weighted average exercise price | $ / shares	$ 3.63
Outstanding at beginning of year, weighted average remaining contractual life
Options granted, shares | shares	105,000
Options granted, weighted average exercise price | $ / shares	$ 4.9
Options granted, weighted average remaining contractual life
Options exercised, shares | shares	(28,797)
Options exercised, weighted average exercise price | $ / shares	$ 3.1
Options exercised, weighted average remaining contractual life
Options Forfeited, Shares | shares	(20,362)
Options Forfeited, weighted average exercise price | $ / shares	$ 4.63
Options Forfeited, weighted average remaining contractual life
Outstanding ending balance, shares | shares	499,656
Outstanding ending balance, weighted average exercise price | $ / shares	$ 3.89
Outstanding ending balance, weighted average remaining contractual life	5 years 8 months 12 days
Exercisable, share | shares	351,872
Exercisable, weighted average exercise price | $ / shares	$ 3.52
Exercisable, weighted average remaining contractual life	5 years 1 month 6 days

Stock-Based Compensation (Det_4

Stock-Based Compensation (Details) - Schedule of non-vested restricted stock	9 Months Ended
	Jun. 28, 2022 $ / shares shares
Stock-Based Compensation (Details) - Schedule of non-vested restricted stock [Line Items]
Non-vested shares at beginning of year, shares (in Shares) | shares	61,952
Granted, shares (in Shares) | shares	28,000
Granted, grant date fair value per share	$ 4.5
Vested, shares (in Shares) | shares	(15,616)
Vested, grant date fair value per share	$ 3.95
Non-vested, shares ending (in Shares) | shares	74,336
Minimum [Member]
Stock-Based Compensation (Details) - Schedule of non-vested restricted stock [Line Items]
Non-vested shares at beginning of year grant date fair value	$ 1.54
Non-vested, shares ending grant date fair value per share	1.54
Maximum [Member]
Stock-Based Compensation (Details) - Schedule of non-vested restricted stock [Line Items]
Non-vested shares at beginning of year grant date fair value	3.95
Non-vested, shares ending grant date fair value per share	$ 4.5

Gain on Sale of Assets and Le_2

Gain on Sale of Assets and Lease Termination (Details)	6 Months Ended
	Mar. 29, 2022 USD ($)
Gain on Sale of Assets and Lease Termination [Abstract]
Gain in lease termination	$ 642,000

Prepaid Expense and Other Cur_3

Prepaid Expense and Other Current Assets (Details) - Schedule of other prepaid expenses - USD ($) $ in Thousands	Jun. 28, 2022	Sep. 28, 2021
Schedule of other prepaid expenses [Abstract]
Prepaid Rent	$ 773
Other miscellaneous prepaid amounts	614	641
Total	$ 1,387	$ 641

Other Accrued Liabilities (Deta

Other Accrued Liabilities (Details) - Schedule of other accrued liabilities - USD ($) $ in Thousands	Jun. 28, 2022	Sep. 28, 2021
Schedule of other accrued liabilities [Abstract]
Wages and other employee benefits	$ 3,115	$ 3,282
Taxes, other than income taxes	1,248	1,334
Gift card liability, net of breakage	980	375
General expense accrual and other	2,069	1,403
Total	$ 7,412	$ 6,394

Notes Payable and Long-Term D_2

Notes Payable and Long-Term Debt (Details)	9 Months Ended
	Jun. 28, 2022 USD ($)
Notes Payable and Long-Term Debt (Details) [Line Items]
Interest rate	0.25%
Description of interest at a variable rate	As of June 28, 2022, 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%.
Description of cadence credit facility	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 financial 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 28, 2022, the Company was in compliance with all of these financial covenants under the Cadence Credit Facility.
Cadence Credit Facility [Member]
Notes Payable and Long-Term Debt (Details) [Line Items]
Maturity date	The Company maintains a credit agreement with Cadence Bank (“Cadence”) pursuant to which, as amended, Cadence has agreed to loan the Company up to $8,000,000 with a maturity date of January 31, 2023 (as amended, the “Cadence Credit Facility”).
Cadence agreed loan	$ 8,000,000
Professional fees	$ 308,500

Net (Loss) Income Per Common _3

Net (Loss) Income Per Common Share (Details) - Schedule of reconciles basic and diluted weighted average shares outstanding - shares	3 Months Ended		9 Months Ended
	Jun. 28, 2022	Jun. 29, 2021	Jun. 28, 2022	Jun. 29, 2021
Schedule of reconciles basic and diluted weighted average shares outstanding [Abstract]
Weighted-average shares outstanding basic	12,457,251	12,787,390	12,502,449	12,689,587
Effect of potentially dilutive securities:
Stock options	29,071	225,471		40,553
Restricted stock units	74,336	63,774		63,774
Weighted-average shares outstanding diluted	12,560,658	13,076,635	12,502,449	12,793,915
Excluded from diluted weighted average shares outstanding:
Antidilutive	387,378	289,611	249,752	474,528

Contingent Liabilities and Li_2

Contingent Liabilities and Liquidity (Details) - USD ($)	1 Months Ended
	Jul. 30, 2021	Mar. 28, 2022
Commitments and Contingencies Disclosure [Abstract]
New causes of action and a claim in damages	$ 18,000,000
Accrual current period amount		$ 332,000

Leases (Details)

Leases (Details)	9 Months Ended
	Jun. 28, 2022
Leases (Details) [Line Items]
Lease renewal term	5 years
Remaining lease term	20 years
Minimum [Member]
Leases (Details) [Line Items]
Initial lease term	10 years
Lease renewal term	10 years
Maximum [Member]
Leases (Details) [Line Items]
Initial lease term	20 years
Lease renewal term	15 years

Leases (Details) - Schedule of

Leases (Details) - Schedule of components of operating lease costs - USD ($) $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 28, 2022	Jun. 29, 2021	Jun. 28, 2022	Jun. 29, 2021
Schedule of components of operating lease costs [Abstract]
Operating lease cost	$ 1,866	$ 1,693	$ 5,491	$ 5,220
Variable lease cost	27	20	106	61
Sublease income	(136)	(136)	(408)	(400)
Lease cost, Total	$ 1,757	$ 1,577	$ 5,189	$ 4,881

Leases (Details) - Schedule o_2

Leases (Details) - Schedule of weighted average lease term and discount rate	Jun. 28, 2022	Jun. 29, 2021
Schedule of weighted average lease term and discount rate [Abstract]
Weighted average remaining lease term (in years)	8 years 10 months 6 days	9 years 9 months 18 days
Weighted average discount rate	5%	5%

Leases (Details) - Schedule o_3

Leases (Details) - Schedule of supplemental cash flow disclosures - USD ($) $ in Thousands	9 Months Ended
	Jun. 28, 2022	Jun. 29, 2021
Schedule of supplemental cash flow disclosures [Abstract]
Cash paid for operating lease liabilities	$ 5,383	$ 5,168
Non-cash operating lease assets obtained in exchange for operating lease liabilities	$ 734	$ 57

Leases (Details) - Schedule o_4

Leases (Details) - Schedule of supplemental balance sheet - USD ($) $ in Thousands	Jun. 28, 2022	Sep. 28, 2021	Jun. 29, 2021
Schedule of supplemental balance sheet [Abstract]
Right-of-use assets	$ 43,566	$ 45,737	$ 46,678
Current lease liabilities	5,349	4,935	4,857
Non-current lease liabilities	46,859	$ 49,723	50,698
Total lease liabilities	$ 52,208		$ 55,555

Leases (Details) - Schedule o_5

Leases (Details) - Schedule of future minimum rent payments for our operating leases $ in Thousands	Jun. 28, 2022 USD ($)
Schedule of future minimum rent payments for our operating leases [Abstract]
Remainder of 2022	$ 1,951
2023	7,833
2024	7,730
2025	7,814
2026	7,256
Thereafter	32,539
Total minimum lease payments	65,123
Less: imputed interest	(12,915)
Present value of lease liabilities	$ 52,208

Impairment of Long-Lived Asse_2

Impairment of Long-Lived Assets and Goodwill (Details) $ in Thousands	9 Months Ended
	Jun. 28, 2022 USD ($)
Impairment of Long-Lived Assets and Goodwill (Details) [Line Items]
Total asset impairments	$ 2,056,000
Bad Daddy’s Restaurants [Member]
Impairment of Long-Lived Assets and Goodwill (Details) [Line Items]
Total asset impairments	1,266,000
Goodwill attributable	5,617,000
One Good Times Restaurants [Member]
Impairment of Long-Lived Assets and Goodwill (Details) [Line Items]
Total asset impairments	303,000
Goodwill attributable	96,000
Three Good Times Restaurants [Member]
Impairment of Long-Lived Assets and Goodwill (Details) [Line Items]
Total asset impairments	$ 790,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 28, 2022	Jun. 29, 2021
Income Taxes (Details) [Line Items]
Deferred tax assets	$ 0	$ 0
Income tax provision or benefit	$ 9,000
Effective income tax rate	0.70%	0%
Minimum [Member]
Income Taxes (Details) [Line Items]
Years subject to income tax examination	2019
Maximum [Member]
Income Taxes (Details) [Line Items]
Years subject to income tax examination	2022

Non-controlling Interests (Deta

Non-controlling Interests (Details) - Schedule of summarizes the activity in non-controlling interests $ in Thousands	9 Months Ended
	Jun. 28, 2022 USD ($)
Non-controlling Interests (Details) - Schedule of summarizes the activity in non-controlling interests [Line Items]
Balance as of September 28, 2021	$ 1,124
Income	1,489
Distributions	(1,237)
Balance as of June 28, 2022	1,376
Good Times [Member]
Non-controlling Interests (Details) - Schedule of summarizes the activity in non-controlling interests [Line Items]
Balance as of September 28, 2021	209
Income	464
Distributions	(397)
Balance as of June 28, 2022	276
Bad Daddy’s [Member]
Non-controlling Interests (Details) - Schedule of summarizes the activity in non-controlling interests [Line Items]
Balance as of September 28, 2021	915
Income	1,025
Distributions	(840)
Balance as of June 28, 2022	$ 1,100

Segment Reporting (Details) - S

Segment Reporting (Details) - Schedule of reportable segments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 28, 2022	Jun. 29, 2021	Jun. 28, 2022	Jun. 29, 2021	Sep. 28, 2021
Revenues
Total Revenues	$ 36,497	$ 33,946	$ 103,010	$ 90,434
Income (Loss) from operations
Total Income (Loss) from operations	821	2,446	188	5,312
Capital expenditures
Total Capital expenditures	1,016	912	1,951	2,098
Property and equipment, net
Total Property and equipment, net	23,538		23,538		$ 27,066
Bad Daddy’s [Member]
Revenues
Total Revenues	27,231	24,481	77,427	64,263
Income (Loss) from operations
Total Income (Loss) from operations	635	1,577	138	2,760
Capital expenditures
Total Capital expenditures	652	802	1,480	1,826
Property and equipment, net
Total Property and equipment, net	20,990		20,990		23,293
Good Times [Member]
Revenues
Total Revenues	9,266	9,465	25,583	26,171
Income (Loss) from operations
Total Income (Loss) from operations	186	869	50	2,552
Capital expenditures
Total Capital expenditures	364	$ 110	471	$ 272
Property and equipment, net
Total Property and equipment, net	$ 2,548		$ 2,548		$ 3,773