Good Times Restaurants Posts Broad Profit Gains Across Earnings Lines for the Quarter and Year-to-Date Period

Bottom line

Good Times Restaurants Inc. delivered a higher year-over-year performance on all three profitability lines for both the three-month reporting period and the nine-month year-to-date period. Earnings Per Share, Diluted, Net Income (Loss) Attributable to Parent, and Operating Income (Loss) each registered an authorized increase in the current period relative to the prior-year comparative, and each line carried forward a profit in both the current and prior periods without a sign change. The reported set covers a three-month reporting period and a nine-month year-to-date period that close against the same prior-year comparatives, giving a clean two-period view on earnings quality and a single direction across the three lines.

- Earnings Per Share, Diluted was $0.18 per diluted share USD/SHARES for the three months ended June 30, 2026, higher than the prior period's $0.14 per diluted share USD/SHARES for the three months ended July 1, 2025, with both periods reporting a profit. - Earnings Per Share, Diluted was $0.21 per diluted share USD/SHARES for the nine months ended June 30, 2026, higher than the prior period's $0.1 per diluted share USD/SHARES for the nine months ended July 1, 2025, with both periods reporting a profit. - Net Income (Loss) Attributable to Parent was $1,907,000 USD for the three months ended June 30, 2026, higher than the prior period's $1,487,000 USD for the three months ended July 1, 2025, with both periods reporting a profit. - Net Income (Loss) Attributable to Parent was $2,237,000 USD for the nine months ended June 30, 2026, higher than the prior period's $1,027,000 USD for the nine months ended July 1, 2025, with both periods reporting a profit. - Operating Income (Loss) was $1,767,000 USD for the three months ended June 30, 2026, higher than the prior period's $1,233,000 USD for the three months ended July 1, 2025, with both periods reporting a profit. - Operating Income (Loss) was $2,239,000 USD for the nine months ended June 30, 2026, higher than the prior period's $796,000 USD for the nine months ended July 1, 2025, with both periods reporting a profit.

Reporting-period identity and source scope: the figures are drawn from the unaudited condensed consolidated financial statements and accompanying notes filed by Good Times Restaurants Inc. under 10-Q for period-ended-2026-06-30, filed under accession 0001214659-26-009729 (CIK 0000825324, ticker GTIM). The basis-of-presentation language appears at Note 1, the earnings-per-share methodology at Note 8, and the unaudited-status statement is reiterated in the interim-period note accompanying the balance-sheet date in Note 1. The accompanying Item 1 through Item 6 sections and the cited notes (including Note 2, Note 3, Note 4, Note 5, Note 6, Note 7, Note 9, Note 10, Note 11, and Note 12) frame the same interim reporting period as the financial statements, so no outside period has been spliced into this section. Management's interim commentary within Note 1 states that operating results for the fiscal quarter are not necessarily indicative of full-year results and that the interim statements should be read alongside the Company's earlier annual filing; that management caveat is recorded here without re-interpretation.

The filing evidence does not attribute this change to any single cause. The filing evidence contains no peer or industry comparison.

Financial performance

- Reported figures from the period show a profit on every profitability line the section is permitted to discuss, on both the three-month reporting period and the nine-month year-to-date period. - Compared with the prior-year comparative for the three-month reporting period, diluted earnings per share moved higher on an authorized year-over-year basis, with the current period remaining in profit and the prior-year comparative also in profit, an authorized profit-to-profit transition. - Net income attributable to parent likewise moved higher on an authorized year-over-year basis for the three-month reporting period, with both periods in profit, an authorized profit-to-profit transition.

- Operating income followed the same pattern, moving higher year-over-year for the three-month reporting period, with both the current and prior periods in profit, an authorized profit-to-profit transition. - The nine-month year-to-date comparison tells a consistent story: diluted earnings per share, net income attributable to parent, and operating income each moved higher year-over-year on an authorized basis, and each stayed in profit, an authorized profit-to-profit transition on all three lines. - Accounting context is light but specific.

The accompanying condensed consolidated financial statements are unaudited, and the period-end balance sheet is described as derived from the audited statements without all GAAP disclosures, so the filing should be read alongside the audited annual filing. - The Company's fiscal year is a fifty-two or fifty-three week year ending on the last Tuesday of September, with any extra week added to the first quarter; certain prior-year balances were reclassified to conform to the current year's presentation. - Recent pronouncements noted in the cited note are described by management as not expected to have a material effect on the consolidated financial statements, with implementation planned prospectively.

- Revenue is recognized primarily from restaurant operations (including third-party delivery sales) and franchise revenue, the latter covering sales-based royalties and advertising fund contributions; gift card breakage is recognized when redemption is considered remote based on historic patterns. - No forward-looking guidance figures are stated in this section's evidence, so expectations can only be inferred from the directional moves already noted and from management's assessment of recent pronouncements. - The filing evidence does not attribute this change to any single cause.

- The filing evidence contains no peer or industry comparison. - For a quick cross-check on what a higher diluted EPS print on a profit-to-profit year-over-year transition can imply for shareholder return, an ROI Calculator sits alongside these results.

Operating drivers and segments

- The filing is presented at the consolidated level; Good Times Restaurants Inc. reports two restaurant concepts — Bad Daddy’s Burger Bar, a full-service brand primarily located in Colorado and across the Southeast region of the United States, and Good Times Burgers & Custard, a drive-thru fast-food hamburger concept franchised and operated in Colorado and Wyoming. - Revenue mix is described in Note 3, which states that revenues consist primarily of sales from restaurant operations (including third-party delivery sales) and franchise revenue (franchise royalties plus contributions to advertising funds), with gift card breakage and a GT Rewards loyalty program also referenced. - Profitability at the consolidated level is reported as Operating Income (Loss) of $1,767,000 for the three months ended June 30, 2026 and $2,239,000 for the nine months ended June 30, 2026, against prior-period comparatives of $1,233,000 (the three months ended July 1, 2025) and $796,000 (the nine months ended July 1, 2025). - The authorized year-over-year direction for both the three-month and nine-month Operating Income lines is "increase", with profit-to-profit transitions on both horizons.

- Management’s narrative, anchored in Note 1, describes the consolidated entity, the consolidation of one limited partnership in which the Company is the general partner and receives a management fee, and the basis-of-presentation language that interim results may not be indicative of the full fiscal year. - Management references Advertising Funds that administer programs for both the Bad Daddy’s and Good Times brands, with franchisee contributions to the Good Times Advertising Fund included as a component of franchise revenues; receivables are described as royalties, vendor rebates, third-party delivery and online-ordering payments, and gift card sale proceeds. - On recent accounting pronouncements, management cites ASU Income Taxes (Topic) Improvements to Income Tax Disclosures in Note 2, expected to be implemented prospectively, with no anticipated material effect on the consolidated financial statements. - Management does not attribute period-over-period Operating Income movement to any single cause within the quoted evidence. Independent cross-checks against the Heartland Express profit recovery insight and the CECO Environmental loss commentary illustrate alternative year-over-year operating-income patterns reported by peers, but those comparisons sit outside this filing. - Peer benchmarking and segment-level margin decomposition (Bad Daddy’s versus Good Times, company-operated versus franchised) are not disclosed in the cited notes, so an apples-to-apples segment profitability table cannot be reconstructed from the filing evidence. - The filing evidence does not attribute this change to any single cause. - The filing evidence contains no peer or industry comparison.

Cash flow and capital

Reported facts - Operating cash flow: $1,461,000 USD for the nine months ended July 1, 2025 and $3,698,000 USD for the nine months ended June 30, 2026. - Investing cash flow: -$3,192,000 USD for the nine months ended July 1, 2025 and -$630,000 USD for the nine months ended June 30, 2026. - Financing cash flow: $1,016,000 USD for the nine months ended July 1, 2025 and -$2,076,000 USD for the nine months ended June 30, 2026. - Capital expenditures (Payments to Acquire Property, Plant, and Equipment): $2,765,000 USD for the nine months ended July 1, 2025 and $924,000 USD for the nine months ended June 30, 2026. - Share repurchases (Payments for Repurchase of Common Stock) appear only in the prior-year nine-month period at $364,000 USD for the nine months ended July 1, 2025. - Balance sheet items at the balance sheet date of June 30, 2026: Accounts Payable, Current of $2,663,000 USD and Long-term Debt, Excluding Current Maturities of $285,000 USD.

Management explanations - The Company’s working-capital revolver is described in Note 7: an amended and restated credit facility with Huntington Bank whose proceeds may fund new restaurant development, buy out non-controlling partners, finance equity repurchases, and meet working capital and general corporate needs. The filing also states the Company was in compliance with all covenants under that facility as of the report date. - Note 9 frames the contingent liabilities and liquidity posture without quantifying a target cash balance. - Treasury-stock repurchases are not described narratively in the cited excerpt; only the comparative nine-month payment amount is reflected in the prior-year column.

Analyst inference - Net Cash Provided by (Used in) Operating Activities (period the nine months ended June 30, 2026 compared with the nine months ended July 1, 2025): authorized direction increase; current is positive, prior is positive. - Net Cash Provided by (Used in) Investing Activities (period the nine months ended June 30, 2026 compared with the nine months ended July 1, 2025): authorized direction increase; current is negative, prior is negative. - Net Cash Provided by (Used in) Financing Activities (period the nine months ended June 30, 2026 compared with the nine months ended July 1, 2025): authorized direction decrease; current is negative, prior is positive. - Payments to Acquire Property, Plant, and Equipment (period the nine months ended June 30, 2026 compared with the nine months ended July 1, 2025): authorized direction decrease; current is positive, prior is positive. - The investing line remains a use of cash in both years while capital spending as a component moderated year over year; operating cash generation strengthened; the financing line moved from a source of cash to a use of cash. - The filing also discloses that further revolver draws, restricted payments, investments, and growth capital expenditures can be gated by a separate pro-forma leverage test once aggregate revolver usage exceeds a stated dollar threshold, which is the only quantitative gating mechanism offered in the cited note.

Counter-evidence - The filing does not separate maintenance versus growth capital spending and presents only a single aggregated "Payments to Acquire Property, Plant, and Equipment" figure for each period. - No free-cash-flow reconciliation, no cash-interest or cash-tax breakdown, and no schedule of non-cash items is provided in the cited excerpt, so the bridge from net income to operating cash flow cannot be reconstructed. - The filing evidence does not attribute this change to any single cause.

Unknowns - The size, timing, and program status of any equity repurchases in the current nine-month period are not disclosed beyond the prior-year payment amount, so the swing in financing cash flow cannot be specifically attributed to buybacks, debt service, or other uses from this filing alone. - Working-capital line items other than Accounts Payable and the long-term debt component of the capital structure as of the balance sheet date of June 30, 2026 are not enumerated in this section’s catalog. - The filing evidence does not disclose segment-level detail for this dimension.

Peer and historical context

- The year-over-year movement on operating profitability lines is uniform: both Operating Income (Loss) and Net Income (Loss) Attributable to Parent are higher than the prior-year comparative for both the three-month reporting period and the nine-month year-to-date period. - Operating cash generation also tracks the profitability improvement, with Net Cash Provided by (Used in) Operating Activities for the nine-month year-to-date period higher than the prior-year comparative period. - The pattern — profits in the current and prior periods on every profitability line, with each line higher than the prior period — is internally consistent across the income statement and the cash flow statement, which reduces the chance the improvement is concentrated in a single line. - The filing evidence does not attribute this change to any single cause.

- The improvement is described only in directional terms; without absolute figures in the prose, the magnitude of the year-over-year change cannot be assessed from this section. - The cited disclosures around the Revolving Credit Facility, contingent liabilities, lease impairments, and the casualty event at one location all indicate that the current period still contained non-recurring negative items, including a restaurant destroyed in a casualty event, lease right-of-use impairments, and a covenant-conditioned revolver. The improvement occurred alongside these charges rather than in a clean quarter. - Long-lived asset impairment language references a Good Times restaurant that closed during the three fiscal quarters ended June and lease right-of-use impairments at locations generating insufficient income, which suggests at least a portion of the underlying restaurant base was under pressure even as consolidated profitability moved higher. - The filing evidence contains no peer or industry comparison.

For readers comparing this report to other issuers in the same earnings window, the directional pattern here — higher operating income, higher net income, and higher operating cash flow on a year-over-year basis — mirrors the profile documented in the Heartland Express Posts Profit Recovery on Softer Top Line for Both the Quarter and Six-Month Year-to-Date Period write-up, where profitability lines also improved year over year despite softer top-line context. The structural similarity is limited to directional improvement on the same three profitability and cash-flow lines; magnitudes and segment-level drivers cannot be compared because The filing evidence does not disclose segment-level detail for this dimension. and absolute values are not part of this section.

Scenario analysis

- Reported facts: Net Income (Loss) Attributable to Parent was $1,027,000 USD for the nine months ended July 1, 2025, and $1,487,000 USD for the three months ended July 1, 2025. - Reported facts: Net Income (Loss) Attributable to Parent was $2,237,000 USD for the nine months ended June 30, 2026, and $1,907,000 USD for the three months ended June 30, 2026. - Management explanations: Contingent claims are reviewed with legal counsel and management believes any reasonably possible losses are adequately accrued or immaterial, as discussed in Note 9. - Analyst inference: The base scenario reflects the authorized nine-month increase and quarter-over-quarter increase in net income, with profit maintained on both a year-to-date and quarterly basis relative to the prior-year profit. - Counter-evidence: Note 11 describes long-lived asset and trademark impairment charges during the three fiscal quarters, including a closed Good Times restaurant and underperforming lease right-of-use assets; a separate casualty event at a destroyed location produced a net gain tied to lease liability elimination. - Unknowns: The filing evidence does not attribute this change to any single cause.

- Reported facts: Net Income (Loss) Attributable to Parent was $2,237,000 USD for the nine months ended June 30, 2026, and $1,907,000 USD for the three months ended June 30, 2026. - Management explanations: The Company continues to evaluate trademarks for impairment annually and on an interim basis and tests goodwill whenever impairment indications arise, per Note 11 and Note 5. - Analyst inference: An upside scenario would see the authorized year-over-year net income gains extend further, with the two reporting units (Good Times and Bad Daddy’s) generating additional operating leverage and reduced impairment pressure. - Counter-evidence: Note 11 notes ongoing impairment reviews tied to underperforming restaurants and lease right-of-use assets where closure at the end of the current lease term is considered probable, which could compress margins. - Unknowns: The filing evidence contains no peer or industry comparison.

- Reported facts: Net Income (Loss) Attributable to Parent was $1,027,000 USD for the nine months ended July 1, 2025, and $1,487,000 USD for the three months ended July 1, 2025. - Management explanations: Long-lived asset impairment reviews rely on judgment about future projections and operating results, per Note 11. - Analyst inference: A downside scenario would reverse the authorized increase, with additional impairments or a casualty-driven charge compressing earnings from the reported profit levels for the nine months ended June 30, 2026 and the three months ended June 30, 2026. - Counter-evidence: The casualty event tied to the destroyed location produced a net gain rather than a loss, and Note 9 indicates management views pending claims as adequately accrued or immaterial. - Unknowns: The filing evidence does not attribute this change to any single cause.

Risks and what to watch

Reported facts from the cited period show net income attributable to parent of $2,237,000 for the nine months ended June 30, 2026 and $1,907,000 for the three months ended June 30, 2026. The prior-year comparatives recorded in the same filing are $1,027,000 for the nine months ended July 1, 2025 and $1,487,000 for the three months ended July 1, 2025. Within the margins authorized for this section, both the three-month and nine-month year-to-date periods moved higher year over year and remained in profit on both sides of the comparison, while the diluted earnings per share comparison similarly rose on a profit-to-profit basis. The commentary below focuses on what could change that picture, not on restating those authorized transitions.

Management explanation in the source narrative centers on three themes that shape the risk profile. First, contingent liabilities are flagged in Note 9, where management states that any reasonably possible losses associated with contingencies have been adequately accrued or would be immaterial, but explicitly concedes it cannot predict the outcome with certainty. Second, long-lived asset impairment is described in Note 11 as a process involving significant judgment about future projections and operating results at the individual restaurant level. The filing discloses impairments during the recent three-quarter window tied to one closed Good Times restaurant and to lease right-of-use assets at underperforming restaurants the Company believes are probable to close at lease end, together with new assets deployed where prior impairment assessments no longer held. Third, a casualty event destroyed one location during the quarter, producing a net gain from elimination of the related lease liability; the Company is awaiting an insurance recovery that cannot yet be reasonably estimated, and no insurance proceeds have been recorded.

Counter-evidence to the profit-improvement narrative sits inside goodwill and trademark accounting under Note 5. The Company carries goodwill and indefinite-lived trademarks that are tested annually and on an interim basis when triggers arise, and the trademark evaluation explicitly compares fair value to carrying amount. Note 12 is the cited note whose contents are not summarized in the quoted passage. Segment-level operating drivers are not separately broken out beyond the two reporting units described in the goodwill discussion, so for several risk dimensions the filing provides no further detail.

Analyst inference here is bounded. The authorized earnings direction is favorable on both the three-month and nine-month views, yet the same filing simultaneously discloses recurring restaurant-level impairment activity, a casualty that required a lease-termination gain, and an open insurance recovery that could move results in either direction once quantified. Readers weighing the next period should therefore treat the headline earnings improvement as conditional on restaurant-level cash flow projections that the Company itself describes as judgmental.

Unknowns that warrant explicit acknowledgement: the eventual net insurance recovery, the dollar amount of any new impairment charges tied to underperforming restaurants, the outcome of pending contingencies covered by Note 9, and the fair-value gap on trademarks if interim testing is triggered. The filing evidence does not attribute the profit movement to any single cause, so causality is summarized as The filing evidence does not attribute this change to any single cause.. The filing evidence contains no peer or industry comparison, so relative performance is summarized as The filing evidence contains no peer or industry comparison.. The filing evidence does not disclose segment-level detail beyond the existence of the two reporting units, so finer segment attribution is summarized as The filing evidence does not disclose segment-level detail for this dimension..

Metrics to watch next period include the level of restaurant-level impairment charges relative to historical run rate, any update to the open insurance recovery, the contingent-liability accrual movement, trademark fair-value indications if interim testing is triggered, and whether the two reporting units continue to generate the cash flow assumptions used in the impairment review. Readers may also want to benchmark the next print against peers such as those covered in First Commonwealth Posts Higher Year-Over-Year Diluted EPS and Net Income on Both the Quarter and the Six-Month Year-to-Date Period and Heartland Express Posts Profit Recovery on Softer Top Line for Both the Quarter and Six-Month Year-to-Date Period to gauge whether the favorable year-over-year net income direction is broad-based or company-specific.