Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 26, 2023 | Jan. 23, 2024 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000825324 | |
Entity Registrant Name | Good Times Restaurants Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-26 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 26, 2023 | |
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 $.001 par value | |
Trading Symbol | GTIM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,190,413 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Dec. 26, 2023 | Sep. 26, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 3,515 | $ 4,182 |
Receivables | 1,334 | 769 |
Prepaid expenses and other | 705 | 163 |
Inventories | 1,424 | 1,407 |
Total current assets | 6,978 | 6,521 |
PROPERTY AND EQUIPMENT: | ||
Land and building | 5,722 | 5,722 |
Leasehold improvements | 38,345 | 38,191 |
Fixtures and equipment | 33,333 | 33,040 |
Total property and equipment | 77,400 | 76,953 |
Less accumulated depreciation and amortization | (54,847) | (53,917) |
Total net property and equipment | 22,553 | 23,036 |
OTHER ASSETS: | ||
Operating lease right-of-use assets, net | 39,153 | 40,007 |
Deferred tax assets, net | 11,506 | 11,583 |
Deposits and other assets | 270 | 277 |
Trademarks | 3,900 | 3,900 |
Other intangibles, net | 48 | 51 |
Goodwill | 5,713 | 5,713 |
Other Assets, Noncurrent | 60,590 | 61,531 |
TOTAL ASSETS: | 90,121 | 91,088 |
CURRENT LIABILITIES: | ||
Accounts payable | 2,642 | 2,585 |
Deferred income | 60 | 67 |
Operating lease liabilities, current | 5,902 | 5,787 |
Other accrued liabilities | 6,874 | 6,451 |
Total current liabilities | 15,478 | 14,890 |
LONG-TERM LIABILITIES: | ||
Maturities of long-term debt, net of current portion | 1,250 | 750 |
Operating lease liabilities, net of current portion | 41,202 | 42,332 |
Deferred and other liabilities | 109 | 122 |
Total long-term liabilities | 42,561 | 43,204 |
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of December 26, 2023 and September 26, 2023 | 0 | 0 |
Common stock, $.001 par value; 50,000,000 shares authorized; 12,977,433 issued; 11,285,815 and 11,446,587 shares outstanding as of December 26, 2023 and September 26, 2023, respectively | 13 | 13 |
Capital contributed in excess of par value | 56,739 | 56,701 |
Treasury stock, at cost; 1,691,618 and 1,530,846 shares as of December 26, 2023 and September 26, 2023, respectively | (5,346) | (4,908) |
Accumulated deficit | (19,791) | (19,235) |
Total Good Times Restaurants Inc. shareholders' equity | 31,615 | 32,571 |
Non-controlling interests | 467 | 423 |
Total shareholders’ equity | 32,082 | 32,994 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 90,121 | $ 91,088 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Dec. 26, 2023 | Sep. 26, 2023 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 12,977,433 | 12,977,433 |
Common stock, shares outstanding (in shares) | 11,285,815 | 11,446,587 |
Treasury stock, shares (in shares) | 1,691,618 | 1,530,846 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
NET REVENUES: | ||
Total net revenues | $ 33,132 | $ 33,394 |
RESTAURANT OPERATING COSTS: | ||
Food and packaging costs | 10,327 | 10,607 |
Payroll and other employee benefit costs | 11,624 | 11,548 |
Restaurant occupancy costs | 2,505 | 2,458 |
Other restaurant operating costs | 4,728 | 4,492 |
Depreciation and amortization | 927 | 910 |
Total restaurant operating costs | 30,111 | 30,015 |
General and administrative costs | 2,313 | 2,378 |
Advertising costs | 1,092 | 894 |
Gain on restaurant and equipment asset sales | (10) | 0 |
(LOSS) INCOME FROM OPERATIONS | (374) | 107 |
OTHER INCOME (EXPENSE): | ||
Interest expense, net | (32) | (12) |
NET (LOSS) INCOME BEFORE INCOME TAXES | (406) | 95 |
Provision for income taxes | (77) | 0 |
NET (LOSS) INCOME | (483) | 95 |
Income attributable to non-controlling interests | (73) | (222) |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (556) | $ (127) |
NET LOSS PER SHARE, ATTRIBUTABLE TO COMMON SHAREHOLDERS: | ||
Basic and Diluted (in dollars per share) | $ (5) | $ (1) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||
Basic (in shares) | 11,377,579 | 12,041,628 |
Diluted (in shares) | 11,377,579 | 12,041,628 |
Service [Member] | ||
NET REVENUES: | ||
Total net revenues | $ 32,946 | $ 33,179 |
Franchise [Member] | ||
NET REVENUES: | ||
Total net revenues | $ 186 | $ 215 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Treasury Stock, Common [Member] | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member] | Noncontrolling Interest [Member] | Retained Earnings [Member] | Total |
BALANCES (in shares) at Sep. 27, 2022 | 692,798 | 12,274,351 | ||||
BALANCES at Sep. 27, 2022 | $ (2,634) | $ 13 | $ 59,427 | $ 1,303 | $ (30,321) | $ 27,788 |
Stock-based compensation cost | $ 0 | $ 0 | 46 | 0 | 0 | 46 |
Restricted stock unit vesting (in shares) | 0 | 8,284 | ||||
Restricted stock unit vesting | $ 0 | $ 0 | (92) | 0 | 0 | $ (92) |
Stock option exercise (in shares) | 0 | 2,000 | 2,000 | |||
Stock option exercise | $ 0 | $ 0 | 5 | 0 | 0 | $ 5 |
Treasury shares purchased (in shares) | 371,395 | (371,395) | ||||
Treasury shares purchased | $ (873) | $ 0 | 0 | 0 | 0 | (873) |
Income attributable to non-controlling interests | 0 | 0 | 0 | 222 | 0 | 222 |
Distributions | 0 | 0 | 0 | (172) | 0 | (172) |
Contributions from unrelated limited partners | 0 | 0 | 0 | 13 | 0 | 13 |
Net loss attributable to Good Times Restaurants Inc and comprehensive loss | $ 0 | $ 0 | 0 | 0 | (127) | (127) |
BALANCES (in shares) at Dec. 27, 2022 | 1,064,193 | 11,913,240 | ||||
BALANCES at Dec. 27, 2022 | $ (3,507) | $ 13 | 59,386 | 1,366 | (30,448) | 26,810 |
BALANCES (in shares) at Sep. 26, 2023 | 1,530,846 | 11,446,587 | ||||
BALANCES at Sep. 26, 2023 | $ (4,908) | $ 13 | 56,701 | 423 | (19,235) | 32,994 |
Stock-based compensation cost | $ 0 | $ 0 | 38 | 0 | 0 | $ 38 |
Stock option exercise (in shares) | 0 | |||||
Treasury shares purchased (in shares) | 160,772 | (160,772) | ||||
Treasury shares purchased | $ (438) | $ 0 | 0 | 0 | 0 | $ (438) |
Income attributable to non-controlling interests | 0 | 0 | 0 | 73 | 0 | 73 |
Distributions | 0 | 0 | 0 | (29) | 0 | (29) |
Net loss attributable to Good Times Restaurants Inc and comprehensive loss | $ 0 | $ 0 | 0 | 0 | (556) | (556) |
BALANCES (in shares) at Dec. 26, 2023 | 1,691,618 | 11,285,815 | ||||
BALANCES at Dec. 26, 2023 | $ (5,346) | $ 13 | $ 56,739 | $ 467 | $ (19,791) | $ 32,082 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (483,000) | $ 95,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 948,000 | 932,000 |
Net change in operating lease right-of-use assets and liabilities | (161,000) | (682,000) |
Gain on restaurant and equipment asset sales | (10,000) | 0 |
Stock-based compensation expense | 38,000 | 46,000 |
Provision for income taxes | 77,000 | 0 |
Changes in operating assets and liabilities: | ||
Receivables and prepaids | (1,107,000) | (956,000) |
Inventories | (17,000) | (6,000) |
Deposits and other assets | 7,000 | 7,000 |
Increase (decrease) in: | ||
Accounts payable | 43,000 | 162,000 |
Accrued and other liabilities | 413,000 | 248,000 |
Net cash used in operating activities | (252,000) | (154,000) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payments for the purchase of property and equipment | (448,000) | (723,000) |
Proceeds from the sale of fixed assets | 0 | 4,000 |
Net cash used in investing activities | (448,000) | (719,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings against credit facility | 500,000 | 0 |
Payment for the purchase of treasury stock | (438,000) | (873,000) |
Payment for restricted stock vesting settled in cash | 0 | (92,000) |
Proceeds from stock option exercise | 0 | 5,000 |
Contributions from non-controlling interests | 0 | 13,000 |
Distributions to non-controlling interests | (29,000) | (172,000) |
Net cash provided by (used in) financing activities | 33,000 | (1,119,000) |
(DECREASE) IN CASH AND CASH EQUIVALENTS | (667,000) | (1,992,000) |
CASH AND CASH EQUIVALENTS, beginning of period | 4,182,000 | 8,906,000 |
CASH AND CASH EQUIVALENTS, end of period | 3,515,000 | 6,914,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 21,000 | 5,000 |
Change in accounts payable attributable to the purchase of property and equipment | $ (14,000) | $ (161,000) |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 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 one five 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 December 26, 2023 December 26, 2023 December 27, 2022. December 26, 2023 not may September 24, 2024. September 26, 2023 not 10 September 26, 2023. Fiscal Year 52/53 September. 52 13 53 first 14 December 26, 2023 December 27, 2022 13 Reclassification no Advertising Costs December 26, 2023 December 27, 2022, Receivables third third Receivables consist of the following as of: December 26, 2023 September 26, 2023 Large box retail partners $ 638 $ 291 Vendor rebates and incentives 341 185 Third party delivery partners 308 269 Franchise and other 47 24 Total $ 1,334 $ 769 |
Note 2 - Recent Accounting Pron
Note 2 - Recent Accounting Pronouncements | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Note 2. Recent Accounting Pronouncements ASU 2023 07–Segment 280 November 2023 December 15, 2023, December 15, 2024. 2023 07 2025 not The Company reviewed other recently issued accounting pronouncements and concluded that they were either not not |
Note 3 - Revenue
Note 3 - Revenue | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 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. Late in fiscal 2023, December 26, 2023. Revenues we receive from our franchise and license agreements include sales-based royalties, and from our franchise agreements also may not |
Note 4 - Goodwill and Intangibl
Note 4 - Goodwill and Intangible Assets | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 4. Goodwill and Intangible Assets The following table presents goodwill and intangible assets as of December 26, 2023 September 26, 2023 ( December 26, 2023 September 26, 2023 Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization: Non-compete agreements $ 50 $ (16 ) $ 34 $ 50 $ (14 ) $ 36 Reacquired franchise rights $ 15 $ (1 ) $ 14 $ 15 $ - $ 15 $ 65 $ (17 ) $ 48 $ 65 $ (14 ) $ 51 Indefinite-lived intangible assets: Trademarks $ 3,900 $ - $ 3,900 $ 3,900 $ - $ 3,900 Intangible assets, net $ 3,965 $ (17 ) $ 3,948 $ 3,965 $ (14 ) $ 3,951 Goodwill $ 5,713 $ - $ 5,713 $ 5,713 $ - $ 5,713 The Company had no goodwill impairment losses in the periods presented in the above table. The aggregate amortization expense related to these intangible assets subject to amortization was $3,000 for the quarter ended December 26, 2023 December 27, 2022. |
Note 5 - Stock-based Compensati
Note 5 - Stock-based Compensation | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 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 2008 “2008 2008 2008 2018 2018 “2018 2018 May 24, 2018. 2018 February 8, 2022 2018 2018 Stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period of the grant). The Company recognizes the impact of forfeitures as forfeitures occur. Our net loss for the quarters ended December 26, 2023 December 27, 2022 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 quarter ended December 26, 2023. not There were 38,000 incentive stock options awarded during the quarter ended December 26, 2023 2018 December 27, 2022, 2018 In addition to the exercise and grant date prices of the stock option awards, certain weighted average assumptions that were used to estimate the fair value of stock option grants are listed in the following table: Quarter Ended December 26, 2023 Incentive and Non-Qualified Stock Options Quarter Ended December 27, 2022 Incentive and Non-Qualified Stock Options Expected term (years) 6.25 5.0 Expected volatility 62.50 % 60.22 % Risk-free interest rate 4.68 % 4.21 % 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 quarter ended December 26, 2023 Shares Weighted Weighted Average Outstanding at beginning of year 437,528 $ 3.95 Options granted 38,000 $ 2.51 Outstanding December 26, 2023 475,528 $ 3.83 4.8 Exercisable December 26, 2023 341,528 $ 3.70 4.0 As of December 26, 2023 December 27, 2022, As of December 26, 2023, There were no stock options exercised during the quarter ended December 26, 2023. December 27, 2022 Restricted Stock Units There were 34,000 restricted stock units granted during the quarter ended December 26, 2023 December 27, 2022. A summary of the status of non-vested restricted stock units as of December 26, 2023 Shares Grant Date Fair Non-vested units at beginning of year 45,250 $2.29 to $4.50 Units granted during the quarter 34,000 $2.52 Non-vested units at December 26, 2023 79,250 $2.29 to $4.50 As of December 26, 2023, Restricted and Unrestricted Common Stock Awards No grants of restricted or unrestricted common stock were made during the quarter ended December 26, 2023. |
Note 6 - Gain on Sale of Assets
Note 6 - Gain on Sale of Assets | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 6. Gain on Sale of Assets For the fiscal quarter ended December 26, 2023, December 27, 2022, |
Note 7 - Prepaid Expenses and O
Note 7 - Prepaid Expenses and Other Current Assets | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Prepaid Expenses and Other Current Assets [Text Block] | Note 7. Prepaid expense and other current assets Prepaid expenses and other current assets consist of the following as of: December 26, 2023 September 26, 2023 Prepaid Insurance $ 474 $ - Other 231 163 Total $ 705 $ 163 |
Note 8 - Other Accrued Liabilit
Note 8 - Other Accrued Liabilities | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Note 8. Other Accrued Liabilities Other accrued liabilities consist of the following as of: December 26, 2023 September 26, 2023 Wages and other employee benefits $ 2,442 $ 2,892 Taxes, other than income taxes 1,396 1,275 Gift card liability, net of breakage 1,907 1,108 General expense accrual and other 1,129 1,176 Total $ 6,874 $ 6,451 |
Note 9 - Notes Payable and Long
Note 9 - Notes Payable and Long-term Debt | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 9. Notes Payable and Long-Term Debt Cadence Credit Facility The Company and its wholly owned subsidiaries (the “Subsidiaries”) maintain an amended and restated credit agreement with Cadence Bank (“Cadence”) pursuant to which, Cadence agreed to loan the Company up to $8,000,000, which has a maturity date of April 20, 2028 ( may Proceeds from the Cadence Credit Facility, if and when drawn, may The Cadence Credit Facility includes customary affirmative and negative covenants and events of default. The Cadence Credit Facility also requires the Company to maintain various financial condition ratios, including minimum liquidity, an amended maximum leverage ratio and an amended minimum fixed charge coverage ratio. In addition, to the extent the aggregate outstanding balance under the revolver under the Cadence Credit Facility exceeds $4.0 million, the Company is required to meet a new specified leverage ratio, on a pro forma basis, before making further borrowings as well as certain restricted payments, investments and growth capital expenditures. As of the date of filing of this report, the Company was in compliance with each of these covenants under the Cadence Credit Facility. During the fiscal quarter ended December 26, 2023 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 $299,000 and is amortizing these costs over the term of the credit agreement. As of December 26, 2023, In connection with the Cadence Credit Facility, the Company and the Subsidiaries entered into an Amended and Restated Security and Pledge Agreement (the “Security Agreement”) with Cadence. Under the Security Agreement, the Cadence Credit Facility is secured by a first As of December 26, 2023, September 26, 2028 December 26, 2023, Total interest expense on notes payable was $26,000 and $0 for the quarters ended December 26, 2023 December 27, 2022, |
Note 10 - Earnings (Loss) Per C
Note 10 - Earnings (Loss) Per Common Share | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 10. Earnings (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 December 26, 2023 December 27, 2022 Weighted-average shares outstanding basic 11,377,579 12,041,628 Effect of potentially dilutive securities: Stock options - - Restricted stock units - - Weighted-average shares outstanding diluted 11,377,579 12,041,628 Excluded from diluted weighted-average shares outstanding: Antidilutive 435,900 527,658 |
Note 11 - Contingent Liabilitie
Note 11 - Contingent Liabilities and Liquidity | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 11. Contingent Liabilities and Liquidity There may may may not 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 November 5, 2019. July 30, 2021, April 11, 2022, not May 5, 2022, May 25, 2022, October 24, 2022. January 25, 2023, The plaintiffs filed a notice of appeal of the Court’s January 25, 2023 May 18, 2023, June 23, 2023, August 7, 2023, August 28, 2023 may January 29, 2024 no may The Company previously recorded an accrual for contingent litigation expense in the fiscal quarter ended March 28, 2022 |
Note 12 - Leases
Note 12 - Leases | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 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 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. The Company reassesses the number of remaining renewal options to include in a lease term for a specific lease when it exercises an option to extend such lease. Operating lease assets and liabilities are recognized at the lease commencement date for material leases with a term of greater than 12 not 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 12 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 December 26, 2023 December 27, 2022: Lease cost Classification December 26, 2023 December 27, 2022 Operating lease cost Occupancy, Other restaurant operating costs and General and administrative expenses, net $ 1,901 $ 1,825 Variable lease cost Occupancy 5 37 Sublease income Occupancy (139 ) (129 ) $ 1,767 $ 1,733 Weighted average lease term and discount rate are as follows: December 26, 2023 December 27, 2022 Weighted average remaining lease term (in years) 7.75 8.49 Weighted average discount rate 5.0 % 5.0 % Supplemental cash flow disclosures: December 26, 2023 December 27, 2022 Cash paid for operating lease liabilities $ 1,922 $ 1,853 Non-cash operating lease assets obtained in exchange for operating lease liabilities $ 364 $ (73 ) Supplemental balance sheet disclosures: December 26, 2023 December 27, 2022 Right-of-use assets Operating lease assets $ 39,153 $ 41,652 Current lease liabilities Operating lease liability $ 5,902 $ 5,394 Non-current lease liabilities Operating lease liability, less current portion 41,202 43,846 Total lease liabilities $ 47,104 $ 49,240 Future minimum rent payments for our operating leases for each of the next five December 26, 2023 Fiscal year: Total Remainder of 2024 $ 6,130 2025 8,219 2026 7,791 2027 7,494 2028 6,733 Thereafter 20,858 Total minimum lease payments 57,225 Less: imputed interest (10,121 ) Present value of lease liabilities $ 47,104 The above future minimum rental amounts exclude the amortization of deferred lease incentives, renewal options that are not |
Note 13 - Impairment of Long-li
Note 13 - Impairment of Long-lived Assets and Goodwill | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | Note 13. Impairment of Long-Lived Assets and Goodwill Long-Lived Assets. may not There were no impairments of long-lived assets recorded in the fiscal quarters ended December 26, 2023 December 27, 2022. Trademarks. December 26, 2023 December 27, 2022. Goodwill. not 1 2 December 26, 2023 December 27, 2022, |
Note 14 - Income Taxes
Note 14 - Income Taxes | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 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’s effective income tax rate for the three December 26, 2023 three December 27, 2022. 2023. December 27, 2022, zero 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 tax years 2020 2022. not December 26, 2023. |
Note 15 - Non-controlling Inter
Note 15 - Non-controlling Interests | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Noncontrolling Interest Disclosure [Text Block] | 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 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 quarter ended December 26, 2023( Total Balance at September 26, 2023 $ 423 Income 73 Distributions (29 ) Balance at December 26, 2023 $ 467 Our non-controlling interests at the end of the quarter consisted of one |
Note 16 - Segment Reporting
Note 16 - Segment Reporting | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 16. 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 December 26, 2023 December 27, 2022 Revenues Bad Daddy’s $ 24,193 $ 25,226 Good Times 8,939 8,168 $ 33,132 $ 33,394 (Loss) income from operations Bad Daddy’s $ (763 ) $ (7 ) Good Times 389 114 $ (374 ) $ 107 Capital expenditures Bad Daddy’s $ 132 $ 158 Good Times 330 726 $ 462 $ 884 December 26, 2023 September 26, 2023 Property and equipment, net Bad Daddy’s $ 18,468 $ 18,053 Good Times 4,085 4,983 $ 22,553 $ 23,036 Total assets Bad Daddy’s $ 66,614 $ 67,720 Good Times 23,507 23,368 $ 90,121 $ 91,088 |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 3 Months Ended |
Dec. 26, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 17. Subsequent Events None. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 26, 2023 | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | 5. OTHER INFORMATION During the quarter ended December 26, 2023, none 16a 1 1934, 10b5 1 10b5 1 408 1933 |
Rule 10b5-1 Arrangement Adopted [Flag] | false |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Tables) | 3 Months Ended |
Dec. 26, 2023 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 26, 2023 September 26, 2023 Large box retail partners $ 638 $ 291 Vendor rebates and incentives 341 185 Third party delivery partners 308 269 Franchise and other 47 24 Total $ 1,334 $ 769 |
Note 4 - Goodwill and Intangi_2
Note 4 - Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Dec. 26, 2023 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | December 26, 2023 September 26, 2023 Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization: Non-compete agreements $ 50 $ (16 ) $ 34 $ 50 $ (14 ) $ 36 Reacquired franchise rights $ 15 $ (1 ) $ 14 $ 15 $ - $ 15 $ 65 $ (17 ) $ 48 $ 65 $ (14 ) $ 51 Indefinite-lived intangible assets: Trademarks $ 3,900 $ - $ 3,900 $ 3,900 $ - $ 3,900 Intangible assets, net $ 3,965 $ (17 ) $ 3,948 $ 3,965 $ (14 ) $ 3,951 Goodwill $ 5,713 $ - $ 5,713 $ 5,713 $ - $ 5,713 |
Note 5 - Stock-based Compensa_2
Note 5 - Stock-based Compensation (Tables) | 3 Months Ended |
Dec. 26, 2023 | |
Notes Tables | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Quarter Ended December 26, 2023 Incentive and Non-Qualified Stock Options Quarter Ended December 27, 2022 Incentive and Non-Qualified Stock Options Expected term (years) 6.25 5.0 Expected volatility 62.50 % 60.22 % Risk-free interest rate 4.68 % 4.21 % Expected dividends - - |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Shares Weighted Weighted Average Outstanding at beginning of year 437,528 $ 3.95 Options granted 38,000 $ 2.51 Outstanding December 26, 2023 475,528 $ 3.83 4.8 Exercisable December 26, 2023 341,528 $ 3.70 4.0 |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Shares Grant Date Fair Non-vested units at beginning of year 45,250 $2.29 to $4.50 Units granted during the quarter 34,000 $2.52 Non-vested units at December 26, 2023 79,250 $2.29 to $4.50 |
Note 7 - Prepaid Expenses and_2
Note 7 - Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Dec. 26, 2023 | |
Notes Tables | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | December 26, 2023 September 26, 2023 Prepaid Insurance $ 474 $ - Other 231 163 Total $ 705 $ 163 |
Note 8 - Other Accrued Liabil_2
Note 8 - Other Accrued Liabilities (Tables) | 3 Months Ended |
Dec. 26, 2023 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | December 26, 2023 September 26, 2023 Wages and other employee benefits $ 2,442 $ 2,892 Taxes, other than income taxes 1,396 1,275 Gift card liability, net of breakage 1,907 1,108 General expense accrual and other 1,129 1,176 Total $ 6,874 $ 6,451 |
Note 10 - Earnings (Loss) Per_2
Note 10 - Earnings (Loss) Per Common Share (Tables) | 3 Months Ended |
Dec. 26, 2023 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Quarter Ended December 26, 2023 December 27, 2022 Weighted-average shares outstanding basic 11,377,579 12,041,628 Effect of potentially dilutive securities: Stock options - - Restricted stock units - - Weighted-average shares outstanding diluted 11,377,579 12,041,628 Excluded from diluted weighted-average shares outstanding: Antidilutive 435,900 527,658 |
Note 12 - Leases (Tables)
Note 12 - Leases (Tables) | 3 Months Ended |
Dec. 26, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Lease cost Classification December 26, 2023 December 27, 2022 Operating lease cost Occupancy, Other restaurant operating costs and General and administrative expenses, net $ 1,901 $ 1,825 Variable lease cost Occupancy 5 37 Sublease income Occupancy (139 ) (129 ) $ 1,767 $ 1,733 |
Schedule of Weighted Average Lease Term and Discount Rate [Table Text Block] | December 26, 2023 December 27, 2022 Weighted average remaining lease term (in years) 7.75 8.49 Weighted average discount rate 5.0 % 5.0 % |
Schedule of Supplemental Cash Flow Information Related to Leases [Table Text Block] | December 26, 2023 December 27, 2022 Cash paid for operating lease liabilities $ 1,922 $ 1,853 Non-cash operating lease assets obtained in exchange for operating lease liabilities $ 364 $ (73 ) |
Schedule of Components of Lease Assets and Liabilities [Table Text Block] | December 26, 2023 December 27, 2022 Right-of-use assets Operating lease assets $ 39,153 $ 41,652 Current lease liabilities Operating lease liability $ 5,902 $ 5,394 Non-current lease liabilities Operating lease liability, less current portion 41,202 43,846 Total lease liabilities $ 47,104 $ 49,240 |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Fiscal year: Total Remainder of 2024 $ 6,130 2025 8,219 2026 7,791 2027 7,494 2028 6,733 Thereafter 20,858 Total minimum lease payments 57,225 Less: imputed interest (10,121 ) Present value of lease liabilities $ 47,104 |
Note 15 - Non-controlling Int_2
Note 15 - Non-controlling Interests (Tables) | 3 Months Ended |
Dec. 26, 2023 | |
Notes Tables | |
Schedule of Activity in Noncontrolling Interests [Table Text Block] | Total Balance at September 26, 2023 $ 423 Income 73 Distributions (29 ) Balance at December 26, 2023 $ 467 |
Note 16 - Segment Reporting (Ta
Note 16 - Segment Reporting (Tables) | 3 Months Ended |
Dec. 26, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Quarter Ended December 26, 2023 December 27, 2022 Revenues Bad Daddy’s $ 24,193 $ 25,226 Good Times 8,939 8,168 $ 33,132 $ 33,394 (Loss) income from operations Bad Daddy’s $ (763 ) $ (7 ) Good Times 389 114 $ (374 ) $ 107 Capital expenditures Bad Daddy’s $ 132 $ 158 Good Times 330 726 $ 462 $ 884 December 26, 2023 September 26, 2023 Property and equipment, net Bad Daddy’s $ 18,468 $ 18,053 Good Times 4,085 4,983 $ 22,553 $ 23,036 Total assets Bad Daddy’s $ 66,614 $ 67,720 Good Times 23,507 23,368 $ 90,121 $ 91,088 |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation (Details Textual) - USD ($) | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Marketing and Advertising Expense | $ 47,000 | $ 66,000 |
Note 1 - Basis of Presentatio_3
Note 1 - Basis of Presentation - Receivables (Details) - USD ($) $ in Thousands | Dec. 26, 2023 | Sep. 26, 2023 |
Receivables, Net, Current | $ 1,334 | $ 769 |
Receivables From Large Box Retail Partners [Member] | ||
Receivables, Net, Current | 638 | 291 |
Rebate Receivables [Member] | ||
Receivables, Net, Current | 341 | 185 |
Third Party Delivery Receivables [Member] | ||
Receivables, Net, Current | 308 | 269 |
Franchise and Other Receivables [Member] | ||
Receivables, Net, Current | $ 47 | $ 24 |
Note 4 - Goodwill and Intangi_3
Note 4 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 |
Amortization of Intangible Assets | $ 3,000 | $ 2,000 |
Note 4 - Goodwill and Intangi_4
Note 4 - Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 26, 2023 | Sep. 26, 2023 |
Intangible assets subject to amortization, gross | $ 65 | $ 65 |
iIntangible assets, accumulated amortization | (17) | (14) |
Intangible assets subject to amortization, net | 48 | 51 |
Intangible assets, gross | 3,965 | 3,965 |
Intangible assets, net | 3,948 | 3,951 |
Goodwill, gross | 5,713 | 5,713 |
Goodwill, accumulated amortization | 0 | 0 |
Goodwill | 5,713 | 5,713 |
Trademarks [Member] | ||
Indefinite-lived intangible assets | 3,900 | 3,900 |
Noncompete Agreements [Member] | ||
Intangible assets subject to amortization, gross | 50 | 50 |
iIntangible assets, accumulated amortization | (16) | (14) |
Intangible assets subject to amortization, net | 34 | 36 |
Reacquired Franchise Rights [Member] | ||
Intangible assets subject to amortization, gross | 15 | 15 |
iIntangible assets, accumulated amortization | (1) | 0 |
Intangible assets subject to amortization, net | $ 14 | $ 15 |
Note 5 - Stock-based Compensa_3
Note 5 - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | |||
Dec. 26, 2023 | Dec. 27, 2022 | Feb. 08, 2022 | May 24, 2018 | |
Share-Based Payment Arrangement, Expense | $ 38,000 | $ 46,000 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 38,000 | |||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 2.51 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ 21,269 | $ 199,000 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | 0 | 2,000 | ||
Proceeds from Stock Options Exercised | $ 0 | $ 5,000 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 34,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value | $ 21,269 | $ 199,000 | ||
Share-Based Payment Arrangement, Option [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 123,000 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years 2 months 12 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 149,000 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 2 months 12 days | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 34,000 | 25,750 | ||
Restricted Stock [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 0 | |||
The 2018 Omnibus Equity Incentive Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 1,050,000 | 900,000 | ||
The 2018 Omnibus Equity Incentive Plan [Member] | Incentive Stock Options [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 38,000 | |||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 2.51 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 1.58 | |||
The 2018 Omnibus Equity Incentive Plan [Member] | Incentive Stock Options [Member] | Chief Executive Officer [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 20,000 | |||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 3 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 2.29 |
Note 5 - Stock-based Compensa_4
Note 5 - Stock-based Compensation - Weighted Average Assumptions of Stock Options (Details) | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Expected term (years) (Year) | 6 years 3 months | 5 years |
Expected volatility | 62.50% | 60.22% |
Risk-free interest rate | 4.68% | 4.21% |
Expected dividends | 0% | 0% |
Note 5 - Stock-based Compensa_5
Note 5 - Stock-based Compensation - Summary of Stock Option Activity (Details) | 3 Months Ended |
Dec. 26, 2023 $ / shares shares | |
Outstanding at beginning of year, shares (in shares) | shares | 437,528 |
Outstanding at beginning of year, weighted average exercise price (in dollars per share) | $ / shares | $ 3.95 |
Options granted, shares (in shares) | shares | 38,000 |
Options granted, weighted average exercise price (in dollars per share) | $ / shares | $ 2.51 |
Outstanding, shares (in shares) | shares | 475,528 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 3.83 |
Outstanding, weighted average remaining contractual life (Year) | 4 years 9 months 18 days |
Exercisable, shares (in shares) | shares | 341,528 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 3.7 |
Exercisable, weighted average remaining contractual life (Year) | 4 years |
Note 5 - Stock-based Compensa_6
Note 5 - Stock-based Compensation - Non-vested Restricted Stock Units (Details) - $ / shares | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Units granted during the quarter, shares (in shares) | 34,000 | |
Units granted during the quarter, weighted average grant date fair value (in dollars per share) | $ 2.52 | |
Non-vested units, grant date fair value per share (in dollars per share) | $ 2.52 | |
Restricted Stock Units (RSUs) [Member] | ||
Non-vested units at beginning of year, shares (in shares) | 45,250 | |
Units granted during the quarter, shares (in shares) | 34,000 | 25,750 |
Non-vested units, shares (in shares) | 79,250 | |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||
Non-vested units at beginning of year, grant date fair value per share (in dollars per share) | $ 2.29 | |
Units granted during the quarter, weighted average grant date fair value (in dollars per share) | 2.29 | |
Non-vested units, grant date fair value per share (in dollars per share) | 2.29 | |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||
Non-vested units at beginning of year, grant date fair value per share (in dollars per share) | 4.5 | |
Units granted during the quarter, weighted average grant date fair value (in dollars per share) | 4.5 | |
Non-vested units, grant date fair value per share (in dollars per share) | $ 4.5 |
Note 6 - Gain on Sale of Asse_2
Note 6 - Gain on Sale of Assets (Details Textual) - USD ($) | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Sale Leaseback Transactions, Deferred Gain, Net | $ 10,000 | $ 8,000 |
Gain (Loss) on Disposition of Other Assets | $ (8,000) |
Note 7 - Prepaid Expenses and_3
Note 7 - Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 26, 2023 | Sep. 26, 2023 |
Prepaid Insurance | $ 474 | $ 0 |
Other | 231 | 163 |
Total | $ 705 | $ 163 |
Note 8 - Other Accrued Liabil_3
Note 8 - Other Accrued Liabilities - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 26, 2023 | Sep. 26, 2023 |
Wages and other employee benefits | $ 2,442 | $ 2,892 |
Taxes, other than income taxes | 1,396 | 1,275 |
Gift card liability, net of breakage | 1,907 | 1,108 |
General expense accrual and other | 1,129 | 1,176 |
Total | $ 6,874 | $ 6,451 |
Note 9 - Notes Payable and Lo_2
Note 9 - Notes Payable and Long-term Debt (Details Textual) - USD ($) | 3 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Apr. 20, 2023 | |
Interest Expense, Debt | $ 26,000 | $ 0 | |
Cadence Bank [Member] | Revolving Credit Facility [Member] | Prior Cadence Credit Facility [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 | ||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | ||
Cadence Bank [Member] | Revolving Credit Facility [Member] | Senior Credit Facility [Member] | |||
Debt Instrument, Covenant, Minimum Outstanding Balance for New Specified Leverage Ratio | $ 4,000,000 | ||
Debt, Weighted Average Interest Rate | 8.45% | ||
Payments of Financing Costs | $ 299,000 | ||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 115,000 | ||
Long-Term Line of Credit | 1,250,000 | ||
Letters of Credit Outstanding, Amount | 10,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 6,740,000 |
Note 10 - Earnings (Loss) Per_3
Note 10 - Earnings (Loss) Per Common Share - Reconciliation of Basic to Diluted Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Basic (in shares) | 11,377,579 | 12,041,628 |
Weighted-average shares outstanding diluted (in shares) | 11,377,579 | 12,041,628 |
Antidilutive (in shares) | 435,900 | 527,658 |
Share-Based Payment Arrangement, Option [Member] | ||
Effect of potentially dilutive securities (in shares) | 0 | 0 |
Restricted Stock Units (RSUs) [Member] | ||
Effect of potentially dilutive securities (in shares) | 0 | 0 |
Note 11 - Contingent Liabilit_2
Note 11 - Contingent Liabilities and Liquidity (Details Textual) - USD ($) | Jul. 30, 2021 | Mar. 28, 2022 |
Loss Contingency, Damages Sought, Value | $ 18,000,000 | |
Loss Contingency Accrual | $ 332,000 |
Note 12 - Leases (Details Textu
Note 12 - Leases (Details Textual) | Dec. 26, 2023 |
Minimum [Member] | |
Lessee, Operating Lease, Term of Contract (Year) | 10 years |
Lessee, Operating Lease, Renewal Term (Year) | 10 years |
Maximum [Member] | |
Lessee, Operating Lease, Term of Contract (Year) | 20 years |
Lessee, Operating Lease, Renewal Term (Year) | 15 years |
Lessee, Operating Lease, Remaining Lease Term (Year) | 20 years |
Note 12 - Leases - Components o
Note 12 - Leases - Components of Operating Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Operating lease cost | $ 1,901 | $ 1,825 |
Variable lease cost | 5 | 37 |
Sublease income | (139) | (129) |
Lease, Cost | $ 1,767 | $ 1,733 |
Note 12 - Leases - Weighted Ave
Note 12 - Leases - Weighted Average Lease Term and Discount Rate (Details) | Dec. 26, 2023 | Dec. 27, 2022 |
Weighted average remaining lease term (in years) (Year) | 7 years 9 months | 8 years 5 months 26 days |
Weighted average discount rate | 5% | 5% |
Note 12 - Leases - Supplemental
Note 12 - Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Cash paid for operating lease liabilities | $ 1,922 | $ 1,853 |
Non-cash operating lease assets obtained in exchange for operating lease liabilities | 364 | 73 |
Non-cash operating lease assets obtained in exchange for operating lease liabilities | $ (364) | $ (73) |
Note 12 - Leases - Supplement_2
Note 12 - Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 26, 2023 | Sep. 26, 2023 | Dec. 27, 2022 |
Right-of-use assets | $ 39,153 | $ 40,007 | $ 41,652 |
Current lease liabilities | 5,902 | 5,787 | 5,394 |
Non-current lease liabilities | 41,202 | $ 42,332 | 43,846 |
Total lease liabilities | $ 47,104 | $ 49,240 |
Note 12 - Leases - Future Minim
Note 12 - Leases - Future Minimum Rent Payments (Details) - USD ($) $ in Thousands | Dec. 26, 2023 | Dec. 27, 2022 |
Remainder of 2024 | $ 6,130 | |
2025 | 8,219 | |
2026 | 7,791 | |
2027 | 7,494 | |
2028 | 6,733 | |
Thereafter | 20,858 | |
Total minimum lease payments | 57,225 | |
Less: imputed interest | (10,121) | |
Present value of lease liabilities | $ 47,104 | $ 49,240 |
Note 13 - Impairment of Long-_2
Note 13 - Impairment of Long-lived Assets and Goodwill (Details Textual) | 3 Months Ended | ||
Dec. 26, 2023 USD ($) | Dec. 27, 2022 USD ($) | Sep. 26, 2023 USD ($) | |
Number of Reporting Units | 2 | ||
Goodwill | $ 5,713,000 | $ 5,713,000 | |
Good Times Restaurants [Member] | |||
Goodwill | 96,000 | $ 96,000 | |
Bad Daddy’s Restaurants [Member] | |||
Goodwill | 5,617,000 | 5,617,000 | |
Trademarks [Member] | |||
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill) | 0 | 0 | |
Restaurant Assets [Member] | |||
Impairment, Long-Lived Asset, Held-for-Use | $ 0 | $ 0 |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Effective Income Tax Rate Reconciliation, Percent | (14.04%) | 0% |
Open Tax Year | 2020 2021 2022 | |
Unrecognized Tax Benefits | $ 0 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 |
Note 15 - Non-controlling Int_3
Note 15 - Non-controlling Interests (Details Textual) - Good Times Restaurants [Member] | Dec. 26, 2023 |
Number of Restaurants | 6 |
Subsidiary, Ownership Percentage, Parent | 50% |
Note 15 - Non-controlling Int_4
Note 15 - Non-controlling Interests - Summary of Activity in Non-controlling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Balance | $ 423 | |
Distributions | (29) | $ (172) |
Balance | 467 | |
Bad Daddy’s Restaurants [Member] | ||
Balance | 423 | |
Income | 73 | |
Distributions | (29) | |
Balance | $ 467 |
Note 16 - Segment Reporting - I
Note 16 - Segment Reporting - Information About Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 26, 2023 | Dec. 27, 2022 | Sep. 26, 2023 | Sep. 23, 2022 | |
Revenues | $ 33,132 | $ 33,394 | ||
(Loss) Income from operation | (374) | 107 | ||
Capital expenditures | 462 | 884 | ||
Property and equipment, net | 22,553 | $ 23,036 | $ 23,036 | |
Total Assets | 90,121 | $ 91,088 | 91,088 | |
Bad Daddy’s Restaurants [Member] | ||||
Revenues | 24,193 | 25,226 | ||
(Loss) Income from operation | (763) | (7) | ||
Capital expenditures | 132 | 158 | ||
Property and equipment, net | 18,468 | 18,053 | ||
Total Assets | 66,614 | 67,720 | ||
Good Times Restaurants [Member] | ||||
Revenues | 8,939 | 8,168 | ||
(Loss) Income from operation | 389 | 114 | ||
Capital expenditures | 330 | $ 726 | ||
Property and equipment, net | 4,085 | 4,983 | ||
Total Assets | $ 23,507 | $ 23,368 |