Good Times Restaurants Inc.

ladies and gentlemen thank you for joining us and welcome to the q2 2026 good times restaurant inc earnings call i will now hand the call off i will now hand the conference over to carrie august chief accounting officer please go ahead good afternoon ladies and gentlemen and welcome to the good times restaurants inc physical 2026 second quarter earnings call i am carrie august the company's chief accounting officer

By now, everyone should have access to the company's earnings release, which is available in the investor section of the company's website. As a reminder, a part of today's discussion will include forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not guarantees of future performance, and therefore you should not put undue reliance on them. These statements involve known and unknown risks, which may cause the company's actual results to differ materially from results expressed or implied by the forward-looking statements. Such risks and uncertainties include, among other things, the market price of the company's stock prevailing from time to time, the nature of other investment opportunities presented to the company, the disruption to our business from pandemics and other public health emergencies, the impact of staffing constraints at our restaurants, the impact of supply chain constraints and inflation, the uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants, Delays in developing and opening new restaurants because of weather, local permitting or other reasons. Increased competition. Cost increases or ingredient shortages. General economic and operating conditions. Risks associated with our share repurchase program. Risks associated with the acquisition of additional restaurants. Adequacy of cash flows and the cost and availability of capital or credit facility borrowings to provide liquidity. changes in federal, state, or local laws and regulations affecting our restaurants, including wage and tip credit regulations, and other matters discussed under the Risk Factors section of Good Time's annual report on Form 10-K for the fiscal year ended September 30, 2025, and other reports filed with the SEC. During today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP and reconciliation to comparable GAAP measures available in our earnings release. And now I would like to turn the call over to our Chief Executive Officer, Ryan Zink.

Thank you, Carrie, and thank you all for joining us today. I'm encouraged by the results that our team has delivered in the second quarter of fiscal 2026. Our same-store sales at both brands again improved sequentially from the first quarter. Profitability also improved from the prior year, the result of a combined partnership between operations and supply chain to improve upon both our food and beverage cost and our cost of labor. While cost management continues to be a fundamental pillar of our forward-looking strategy, Our leadership team continues to focus on same-store sales growth as our highest priority. Early in the second quarter, we retained Cultivator, based out of Denver, to serve as our design and advertising agency for the Good Times brand. Cultivator has extensive experience in the restaurant industry and blends expertise built from working on large accounts with a scrappiness that matches our own culture. During the past couple of months, we have worked with them to create new brand imagery and refine our brand position. And we're excited to activate this new creative image, starting with on-premise merchandising and ultimately an outside the four walls advertising as well. We are having good success with a test of a $2 promotional price for our Bambinos and a handful of our restaurants in Northern Colorado. Bambinos are sliders topped with burger sauce American cheese and pickles. We've seen strong results in both same store sales and same store traffic improvement in the test restaurants as compared to the balance of the system. We expect to roll this promotional price system wide beginning in June as a summer promotion to catalyze traffic growth with a simple to execute tasty burger that fits the needs of today's customers both in portion size and in price. It provides a clear message of value to strike right at the value-based promotions being used by many of our competitors. Bambinos are quintessentially good times, having been on our menu for 19 years. Though Bambinos have a strong following, we hope to attract new customers and to increase frequency with our Bambino OGs. Simultaneously, we will strongly merchandise our full-size burger lineup now featuring a larger cook to order patty while remaining a speedy experience for our guests. We continue to have our seasonal burger features as well with our jalapeno popper burger beginning June 1st. Our intent is to drive traffic and build guest frequency while managing the impact of the mix shift into the promotionally priced bambinos. On May 1st, based on loud and clear guest feedback We reintroduce cheese curds to the menu and are promoting this to build traffic and attract returning guests that really love this proprietary product. Within our custard lineup, we have a trio of brand new spoon benders made with our signature vanilla custard for June, July, and August. The Berry Cool Spoon Bender will kick summer off with strawberries, blueberries, and granola, followed by the Cherry Pie Spoon Bender, And then wrapping up summer will be a Colorado inspired trail mix spoonbender. We continue to grow our GT rewards program, which is a key method we have to connect with and engage with our regular guests. Fully 7% of our sales are now generated by GT rewards members. And this is up from just shy of 4% immediately prior to switching our loyalty engine to thanks in December from our prior provider. GT Rewards will be a strong supplement to our messaging strategy around the multiple price and product promotional news we will be sharing with guests this summer. Our approach of growth is aimed at organic sales and traffic growth at Bad Daddies as well. As discussed during last quarter's call, we've implemented our new monthly drops program that has replaced our previous traditional LTO. Leaning into drop culture, we feature a single item that is limited to a single month. While to date these items have been exclusively burgers and our pipeline for the balance of the fiscal year is burger centric, the program is designed to be more expansive than a simple burger of the month program. And a drop could apply to any section of our menu. At both concepts, we are nearing completion of the rollout of our new learning management platform that we call Burger Hub. Powered by the Skoops LMS, this platform expands beyond our already existing digital access to concept-specific training materials and provides defined learning paths and validations within the system, along with data and reporting that can be accessed both at the unit level and by above store leadership. Burger Hub itself is but one manifestation of our operations teams strategic focus during the year to deliver high impact training and learning to employees in all roles within our restaurants. I will now turn the call back over to Carrie for a review of our performance during the quarter.