Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 28, 2021 | Feb. 02, 2022 | |
Cover [Abstract] | ||
Entity Central Index Key | 0000825324 | |
Current Fiscal Year End Date | --09-27 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 28, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-18590 | |
Entity Registrant Name | Good Times Restaurants Inc. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 84-1133368 | |
Entity Address, Address Line One | 651 CORPORATE CIRCLE | |
Entity Address, 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 $.001 par value | |
Trading Symbol | GTIM | |
Name of Exchange on which Security is Registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,563,491 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 28, 2021 | Sep. 28, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 7,640 | $ 8,856 |
Receivables, net of allowance for doubtful accounts of $0 | 2,350 | 644 |
Prepaid expenses and other | 1,572 | 641 |
Inventories | 1,309 | 1,303 |
Total current assets | 12,871 | 11,444 |
PROPERTY AND EQUIPMENT: | ||
Land and building | 4,670 | 4,704 |
Leasehold improvements | 34,700 | 35,089 |
Fixtures and equipment | 29,527 | 30,286 |
Total property and equipment | 68,897 | 70,079 |
Less accumulated depreciation and amortization | (42,573) | (42,852) |
Total net property and equipment | 26,324 | 27,227 |
OTHER ASSETS: | ||
Operating lease right-of-use assets, net | 44,972 | 45,737 |
Deposits and other assets | 177 | 219 |
Trademarks | 3,900 | 3,900 |
Other intangibles, net | 4 | |
Goodwill | 5,150 | 5,150 |
Total other assets | 54,199 | 55,010 |
TOTAL ASSETS: | 93,394 | 93,681 |
CURRENT LIABILITIES: | ||
Accounts payable | 593 | 1,496 |
Deferred income | 63 | 61 |
Operating lease liabilities, current | 5,051 | 4,935 |
Other accrued liabilities | 7,121 | 6,394 |
Total current liabilities | 12,828 | 12,886 |
LONG-TERM LIABILITIES: | ||
Operating lease liabilities, net of current portion | 48,784 | 49,723 |
Deferred and other liabilities | 193 | 202 |
Total long-term liabilities | 48,977 | 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 December 28, 2021 and September 28, 2021 | ||
Common stock, $.001 par value; 50,000,000 shares authorized, 12,539,694 and 12,512,072 shares issued and outstanding as of December 28, 2021 and September 28, 2021, respectively | 13 | 13 |
Capital contributed in excess of par value | 59,122 | 59,021 |
Treasury stock, at cost; 376,351 and 376,651 shares as of December 28, 2021 and September 28, 2021, respectively | (1,608) | (1,608) |
Accumulated deficit | (27,350) | (27,680) |
Total Good Times Restaurants Inc. shareholders' equity | 30,177 | 29,746 |
Non-controlling interests | 1,412 | 1,124 |
Total shareholders' equity | 31,589 | 30,870 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 93,394 | $ 93,681 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 28, 2021 | Sep. 28, 2021 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 0 | $ 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,539,694 | 12,512,072 |
Common stock, shares outstanding | 12,539,694 | 12,512,072 |
Treasury stock at cost, shares | 376,351 | 376,651 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2021 | Dec. 29, 2020 | |
NET REVENUES: | ||
Total net revenues | $ 32,916 | $ 27,296 |
RESTAURANT OPERATING COSTS: | ||
Food and packaging costs | 10,226 | 7,841 |
Payroll and other employee benefit costs | 11,177 | 8,881 |
Restaurant occupancy costs | 2,328 | 2,195 |
Other restaurant operating costs | 4,138 | 3,469 |
Preopening costs | 50 | 39 |
Depreciation and amortization | 984 | 929 |
Total restaurant operating costs | 28,903 | 23,354 |
General and administrative costs | 2,705 | 2,174 |
Advertising costs | 641 | 509 |
Franchise costs | 5 | 5 |
Gain on restaurant asset sales and lease termination | (614) | (9) |
INCOME FROM OPERATIONS | 1,276 | 1,263 |
Interest expense, net | (18) | (98) |
NET INCOME BEFORE PROVISION FOR INCOME TAXES | 1,258 | 1,165 |
PROVISION FOR INCOME TAXES | 8 | |
NET INCOME | 1,250 | 1,165 |
Income attributable to non-controlling interests | (920) | (363) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 330 | $ 802 |
BASIC AND DILUTED INCOME PER SHARE: | ||
Net income attributable to Common Shareholders | $ 0.03 | $ 0.06 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||
Basic | 12,522,471 | 12,622,178 |
Diluted | 12,684,979 | 12,698,284 |
Restaurant sales [Member] | ||
NET REVENUES: | ||
Total net revenues | $ 32,676 | $ 27,081 |
Franchise revenues [Member] | ||
NET REVENUES: | ||
Total net revenues | $ 240 | $ 215 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Treasury Stock | Common Stock [Member] | Capital Contributed in Excess of Par Value [Member] | Non-Controlling Interest In Partnerships [Member] | Accumulated Deficit [Member] | Total |
BALANCES at Sep. 29, 2020 | $ (75) | $ 13 | $ 58,219 | $ 1,293 | $ (44,467) | $ 14,983 |
BALANCES, shares at Sep. 29, 2020 | 43,110 | 12,612,852 | ||||
Stock-based compensation cost | 61 | 61 | ||||
Restricted stock unit vesting, shares | 16,548 | |||||
Stock option exercises | 13 | $ 13 | ||||
Stock option exercises, shares | 7,984 | 7,984 | ||||
Non-controlling interests: | ||||||
Income | 363 | $ 363 | ||||
Distributions | (319) | (319) | ||||
Net Income attributable to common shareholders and comprehensive income | 802 | 802 | ||||
BALANCES at Dec. 29, 2020 | $ (75) | $ 13 | 58,293 | 1,337 | (43,665) | 15,903 |
BALANCES, shares at Dec. 29, 2020 | 43,110 | 12,637,384 | ||||
BALANCES at Sep. 28, 2021 | $ (1,608) | $ 13 | 59,021 | 1,124 | (27,680) | 30,870 |
BALANCES, shares at Sep. 28, 2021 | 376,351 | 12,512,072 | ||||
Stock-based compensation cost | 95 | 95 | ||||
Common stock grants, shares | 9,256 | |||||
Restricted stock unit vesting, shares | 13,366 | |||||
Stock option exercises | 6 | $ 6 | ||||
Stock option exercises, shares | 5,000 | 5,000 | ||||
Non-controlling interests: | ||||||
Income | 920 | $ 920 | ||||
Distributions | (632) | (632) | ||||
Net Income attributable to common shareholders and comprehensive income | 330 | 330 | ||||
BALANCES at Dec. 28, 2021 | $ (1,608) | $ 13 | $ 59,122 | $ 1,412 | $ (27,350) | $ 31,589 |
BALANCES, shares at Dec. 28, 2021 | 376,351 | 12,539,694 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2021 | Dec. 29, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,250 | $ 1,165 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,078 | 967 |
Amortization of operating lease assets | 757 | 1,055 |
Stock-based compensation expense | 95 | 61 |
Gain on lease termination | (614) | (9) |
Provision for income taxes | 8 | |
Changes in operating assets and liabilities: | ||
Receivables and other | (961) | (55) |
Inventories | (6) | 6 |
Deposits and other | (896) | (610) |
Accounts payable | (915) | (1,340) |
Lease incentives receivable | ||
Operating lease liabilities | (823) | (1,136) |
Accrued and other liabilities | 808 | 743 |
Net cash provided by (used in) operating activities | (219) | 847 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payments for the purchase of property and equipment | (237) | (483) |
Payments received from franchisees and others | 3 | |
Net cash used in investing activities | (237) | (480) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on notes payable and long-term debt | (1,500) | |
Proceeds from stock option exercise | 6 | 13 |
Distributions to non-controlling interests | (766) | (319) |
Net cash used in financing activities | (760) | (1,806) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (1,216) | (1,439) |
CASH AND CASH EQUIVALENTS, beginning of period | 8,856 | 11,454 |
CASH AND CASH EQUIVALENTS, end of period | 7,640 | 10,015 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 59 | |
Change in accounts payable attributable to the purchase of property and equipment | $ (12) | $ (133) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 28, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Good Times Restaurants Inc. (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, franchises, 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 28, 2021 and the results of its operations and its cash flows for the fiscal quarters ended December 28, 2021 and December 29, 2020. Operating results for the fiscal quarter ended December 28, 2021 are not necessarily indicative of the results that may be expected for the year ending September 28, 2021. The condensed consolidated balance sheet as of September 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 The global crisis resulting from the spread of COVID-19 had a substantial impact on our restaurant operations for the quarter ended December 28, 2021. 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. 7 Table of Contents Our operating results substantially depend upon our ability to drive traffic to our restaurants, and for our Bad Daddy’s Burger Bar restaurants, to serve guests in our dining rooms. We cannot currently estimate the duration of the impact of the COVID-19 pandemic on our business, including the impact of mutations of the virus and additional variants including but not limited to the recent delta and omicron variants; neither are we able to predict how the pandemic will evolve nor how various government entities will respond to its evolution. Should additional dining room closures occur, our business would be adversely affected. Even without government orders, customers may choose to reduce or eliminate in-restaurant dining because of increasing numbers of COVID-19 cases, hospitalizations, or deaths. Furthermore, although the development of certain vaccines that are currently being administered may reduce the risk of further government restrictions, there is no guarantee that the vaccine will be effective in eradicating the virus, additional mutations or variants of the virus may be resistant to any vaccine, and the length of the ongoing pandemic may change consumer behavior such that potential customers may still choose to reduce or eliminate in-restaurant dining. Additionally, in connection with spread of COVID-19, there have been disruptions in various food supply chains in the United States. Our operating results substantially depend upon our ability to obtain sufficient quantities of products such as beef, bacon, and other products used in the production of items served and sold to our guests. Ongoing impacts of the COVID-19 pandemic could result in product shortages and in-turn could require us to serve a limited menu, restrict number of items purchased per guest, or close some or all of our restaurants for an indeterminate period of time. Ongoing material adverse impacts from the COVID-19 pandemic could result in reduced revenue and cash flow and could affect our assessments of impairment of intangible assets, long-lived assets, or goodwill. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 28, 2021 | |
Accounting Changes and Error Corrections [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 | 3 Months Ended |
Dec. 28, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3. Revenue Revenue Recognition Revenues consist primarily of sales from restaurant operations; 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 | 3 Months Ended |
Dec. 28, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 4. Goodwill and Intangible Assets The following table presents goodwill and intangible assets as of December 28, 2021 and September 28, 2021 (in thousands): December 28, 2021 September 28, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Non-compete agreements $ - $ - $ - $ 50 $ (46 ) $ 4 Indefinite-lived intangible assets: Trademarks 3,900 - 3,900 3,900 - 3,900 Intangible assets, net $ 3,900 $ - $ 3,900 $ 3,950 $ (46 ) $ 3,904 Goodwill $ 5,150 $ - $ 5,150 $ 5,150 $ - $ 5,150 8 Table of Contents 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 $4,000 for the quarter ended December 28, 2021 and $4,000 for the quarter ended December 29, 2020. The company’s non-compete agreements were fully amortized at the end of the first fiscal quarter of 2021 and were written off at that time. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 28, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 5. Stock-Based Compensation The Company has traditionally maintained incentive compensation plans that include provision for the issuance of equity-based awards. The Company established the 2008 Omnibus Equity Incentive Compensation Plan in 2008 (the “2008 Plan”) and has outstanding awards that were issued under the 2008 Plan. Subsequently, the 2008 Plan expired in 2018 and the Company established a new plan, the 2018 Omnibus Equity Incentive Plan (the “2018 Plan”) during the third fiscal quarter of 2018, 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 900,000. The Company, in its annual proxy statement filed with the United States Securities and Exchange Commission on December 17, 2021, for the Company’s 2022 Annual Meeting of Shareholders to be held on February 9, 2022, submitted a proposal for shareholder approval on an amendment to increase the number of shares available for issuance under the 2018 Plan from 900,000 to 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 for the quarters ended December 28, 2021 and December 29, 2020 includes $95,000 and $61,000, 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 quarter ended December 28, 2021. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by the employees who receive equity awards. During the quarter ended December 28, 2021, the Company granted 80,000 incentive stock options to its Chief Executive Officer, from available shares under its 2018 Plan, with an exercise price of $5.20 per share and a per share weighted average fair value of $2.65. These options were granted pursuant to the Chief Executive Officer’s Second Amended and Restated Employment Agreement dated December 24, 2020. During the quarter ended December 29, 2020, the Company granted 90,000 incentive stock options to its Chief Executive Officer, from available shares under its 2018 Plan, with an exercise price of $2.33 per share and a per share weighted average fair value of $1.24. These options were granted pursuant to the Chief Executive Officer’s Second Amended and Restated Employment Agreement dated December 24, 2020. 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 28, 2021 Incentive and Non-Qualified Stock Options Quarter Ended December 29, 2020 Incentive and Non-Qualified Stock Options Expected term (years) 4.5 4.5 Expected volatility 61.3% 67.6% Risk-free interest rate 0.9% 0.3% 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. 9 Table of Contents The following table summarizes stock option activity for the quarter ended December 28, 2021 under all plans: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Yrs) Outstanding at beginning of year 443,815 $ 3.63 Options granted 80,000 $ 5.20 Options exercised (5,000 ) $ 1.31 Outstanding December 28, 2021 518,815 $ 3.89 5.7 Exercisable December 28, 2021 376,732 $ 3.56 5.4 As of December 28, 2021, the aggregate intrinsic value of the outstanding and exercisable options was $393,000 and $369,000, respectively. Only options whose exercise price is below the current market price of the underlying stock are included in the intrinsic value calculation. As of December 28, 2021, the total remaining unrecognized compensation cost related to non-vested stock options was $265,000 and is expected to be recognized over a weighted average period of approximately 1.7 years. There were 5,000 stock options exercised that resulted in an issuance of 5,000 shares during the quarter ended December 28, 2021 with proceeds of approximately $6,000. There were 7,984 stock options exercised that resulted in an issuance of 7,984 shares during the quarter ended December 29, 2020 with proceeds of approximately $13,000. Restricted Stock Units During the quarters ended December 28, 2021 and December 29, 2020, there were no restricted stock units granted. A summary of the status of non-vested restricted stock as of December 28, 2021 is presented below. Shares Grant Date Fair Value Per Share Non-vested shares at beginning of year 61,952 $1.54 to $3.95 Vested (15,616 ) $3.95 Non-vested shares at December 28, 2021 46,336 $1.54 As of December 28, 2021, there was $22,000 of total unrecognized compensation cost related to non-vested restricted stock. This cost is expected to be recognized over a weighted average period of approximately 0.7 years. Restricted and Unrestricted Common Stock Awards During the quarter ended December 28, 2021 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 and resulted in the recognition of $40,000 of stock-based compensation expense. No grants of restricted or unrestricted common stock were made during the quarter ended December 29, 2020. |
Gain on Sale of Assets and Leas
Gain on Sale of Assets and Lease Termination | 3 Months Ended |
Dec. 28, 2021 | |
Discontinued Operations and Disposal Groups [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 and we recognized a $607,000 gain in connection with the lease termination. The Company will continue to operate this location through the majority of the notice period ending March 31, 2022 and will vacate the leased premises on or prior to that date. The remainder of the gain recognized during the period is the periodic recognition of deferred gains resulting from prior sale-leaseback transactions associated with certain Good Times restaurants. |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 3 Months Ended |
Dec. 28, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Note 7. Notes Payable and Long-Term Debt Cadence Credit Facility The Company maintains a credit agreement with Cadence Bank (“Cadence”) pursuant to which, as amended, Cadence agreed to loan the Company up to $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 December 28, 2021, any borrowings under the Cadence Credit Facility, as amended, bear interest at a variable rate based upon the Company’s election of (i) 2.5% plus the base rate, which is the highest of the (a) Federal Funds Rate plus 0.5%, (b) the Cadence bank publicly announced prime rate, and (c) LIBOR plus 1.0%, or (ii) LIBOR, with a 0.250% floor, plus 3.5%. Interest is due at the end of each calendar quarter if the Company selects to pay interest based on the base rate and at the end of each LIBOR period if it selects to pay interest based on LIBOR. 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. 10 Table of Contents During the fiscal quarter ended December 28, 2021, the weighted average interest rate applicable to borrowings under the Cadence Credit Facility was 3.75%. As of December 28, 2021, 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 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 December 28, 2021, the Company was in compliance with all financial covenants under the Cadence Credit Facility. As a result of entering into the Cadence Credit Facility and the various amendments, the Company paid loan origination costs including professional fees of approximately $308,500 and is amortizing these costs over the term of the credit agreement. The obligations under the Cadence Credit Facility are collateralized by a first-priority lien on substantially all of the Company’s assets. As of December 28, 2021, there were no outstanding borrowings against the facility. Availability of the Cadence Credit Facility for borrowings is reduced by the outstanding face value of any letters of credit issued under the facility. As of December 28, 2021, there were no outstanding letters of credit issued under the facility. Paycheck Protection Program Loans On May 7, 2020, Good Times and three of its wholly-owned subsidiaries entered into unsecured loans in the aggregate principal amount of $11,645,000 (the “Loans”) with Cadence Bank, N.A. pursuant to the PPP. In June 2021, the SBA approved forgiveness in full of the Loans, including accrued interest, in the aggregate amount of $11,778,226, which was recognized as gain on debt extinguishment in the fiscal year ended September 28, 2021. The principal and accrued interest balance on each of these Loans is now zero, as of the forgiveness date specific to each of the Loans. |
Net Income per Common Share
Net Income per Common Share | 3 Months Ended |
Dec. 28, 2021 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Note 8. Net 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 December 28, 2021 December 29, 2020 Weighted-average shares outstanding basic 12,522,471 12,622,178 Effect of potentially dilutive securities: Stock options 116,172 1,048 Restricted stock units 46,336 75,058 Weighted-average shares outstanding diluted 12,684,979 12,698,284 Excluded from diluted weighted-average shares outstanding: Antidilutive 153,118 684,114 |
Contingent Liabilities and Liqu
Contingent Liabilities and Liquidity | 3 Months Ended |
Dec. 28, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Liquidity | Note 9. 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, it is management’s opinion that any reasonably possible losses associated with such contingencies would be immaterial to our financial statements. There have been no material developments to the information provided in Part I, Item 3 of our Form 10-K for the fiscal year ended September 28, 2021. |
Leases
Leases | 3 Months Ended |
Dec. 28, 2021 | |
Lessee Disclosure [Abstract] | |
Leases | Note 10. Leases The Company determines if a contract contains a lease at inception. The Company's material long-term operating lease agreements are for the land and buildings for our restaurants as well as our corporate office. The initial lease terms range from 10 years to 20 years, most of which include renewal options of 10 to 15 years. The lease term is generally the minimum of the noncancelable period or the lease term including renewal options which are reasonably certain of being exercised up to a term of approximately 20 years. Operating lease assets and liabilities are recognized at the lease commencement date for material leases with a term of greater than 12 months. Operating lease liabilities represent the present value of future minimum lease payments. Since our leases do not provide an implicit rate, our operating lease liabilities are calculated using our estimated incremental borrowing rate based on a collateralized borrowing over the term of each individual lease. Minimum lease payments include only fixed lease components of the agreement, as well as variable rate payments that depend on an index, initially measured using the index at the lease commencement date. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepaid or accrued lease payments, initial direct costs and lease incentives. Lease incentives are recognized when earned and reduce our operating lease asset related to the lease. They are amortized through the operating lease assets as reductions of rent expense over the lease term. 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 December 28, 2021 and December 29, 2020: Lease cost Classification December 28, 2021 December 29, 2020 Operating lease cost Occupancy, Other restaurant operating costs and General and administrative expenses, net $ 1,795 $ 1,757 Variable lease cost Occupancy 20 20 Sublease income Occupancy (136 ) (129 ) $ 1,679 $ 1,648 Weighted average lease term and discount rate are as follows: December 28, 2021 December 29, 2020 Weighted average remaining lease term (in years) 9.3 10.2 Weighted average discount rate 5.0 % 5.0 % Supplemental cash flow disclosures for the fiscal quarter ended December 28, 2021: December 28, 2021 December 29, 2020 Cash paid for operating lease liabilities $ 1,718 $ 1,732 Non-cash operating lease assets obtained in exchange for operating lease liabilities $ 60 $ 11 Supplemental balance sheet disclosures: December 28, 2021 December 29, 2020 Right-of-use assets Operating lease assets $ 44,972 $ 48,202 Current lease liabilities Operating lease liability $ 5,051 $ 4,771 Non-current lease liabilities Operating lease liability, less current portion 48,784 52,524 Total lease liabilities $ 53,835 $ 57,295 12 Table of Contents Future minimum rent payments for our operating leases for each of the next five years as of December 28, 2021 are as follows: Fiscal year ending: Total Remainder of 2022 $ 5,707 2023 7,684 2024 7,546 2025 7,654 2026 7,108 Thereafter 32,229 Total minimum lease payments 67,928 Less: imputed interest (14,093 ) Present value of lease liabilities $ 53,835 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 | 3 Months Ended |
Dec. 28, 2021 | |
Goodwill and Intangible Asset Impairment [Abstract] | |
Impairment of Long-Lived Assets and Goodwill | Note 11. Impairment of Long-Lived Assets and Goodwill Long-Lived Assets. There were no impairments in the fiscal quarters ended December 28, 2021 and December 29, 2020. Trademarks. Goodwill. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes We account for income taxes using the liability method, whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The deferred tax assets are reviewed periodically for recoverability and valuation allowances are adjusted as necessary. Although the Company had net income in both the quarter ended December 28, 2021 and the quarter ended December 29, 2020, we 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 December 28,2021 and December 29, 2020. 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 $8,000 for the quarter ended December 28, 2021 related to state income taxes resulting in an effective income tax rate of 2.0% for the period. For the period ended December 29, 2020, we did not recognize any provision for income taxes as we estimated no current tax liability either for federal or state jurisdictions resulting in an effective tax rate of 0%. 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 2017 through 2020. The Company believes that its income tax filing positions and deductions will be sustained upon audit and does not anticipate any adjustments that will result in a material adverse effect on the Company’s financial condition, results of operations, or cash flows. Therefore, no reserves for uncertain income tax positions have been recorded. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. No accrual for interest and penalties was considered necessary as of December 28, 2021. |
Non-controlling Interests
Non-controlling Interests | 3 Months Ended |
Dec. 28, 2021 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | Note 13. 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 quarter ended December 28, 2021 (in thousands): Bad Daddy’s Good Times Total Balance at September 28, 2021 $ 913 $ 211 $ 1,124 Income 684 236 920 Distributions (516 ) (116 ) (632 ) Balance at December 28, 2021 $ 1,081 $ 331 $ 1,412 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 | 3 Months Ended |
Dec. 28, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events Share Repurchase and Amendment to the Cadence Credit Agreement On February 3, 2022 the Company issued a press release announcing a share repurchase program of up to an aggregate amount of $5.0 Million of the Company’s common stock beginning February 7, 2022. The authorization to repurchase will continue until the maximum value of shares is achieved or the Company terminates the program. The timing and amount of repurchases will depend upon the Company’s stock price, economic and market conditions, regulatory requirements, and other corporate considerations. In connection with this share repurchase program, the Cadence Credit Facility was amended to, among other things, modify the “Restricted Payments” covenant to exempt Company repurchases of common stock until December 31, 2022 in an aggregate amount not to exceed $5.0 million. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Dec. 28, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 15. Segment Reporting All of our Bad Daddy’s Burger Bar restaurants (Bad Daddy’s) compete in the full-service segment of the restaurant industry while our Good Times Burgers and Frozen Custard restaurants (Good Times) compete in the quick-service segment of the dining industry. We believe that providing this additional financial information for each of our brands will provide a better understanding of our overall operating results. Income (loss) from operations represents revenues less restaurant operating costs and expenses, directly allocable general and administrative expenses, and other restaurant-level expenses directly associated with each brand including depreciation and amortization, pre-opening costs and losses or gains on disposal of property and equipment. Unallocated corporate capital expenditures are presented below as reconciling items to the amounts presented in the consolidated financial statements. 14 Table of Contents The following tables present information about our reportable segments for the respective periods (in thousands): Quarter Ended December 28, 2021 (13 Weeks) December 29, 2020 (13 Weeks) Revenues Bad Daddy’s $ 24,672 $ 18,816 Good Times 8,244 8,480 $ 32,916 $ 27,296 Income from operations Bad Daddy’s $ 308 $ 178 Good Times 968 1,085 $ 1,276 $ 1,263 Capital expenditures Bad Daddy’s $ 192 $ 370 Good Times 45 113 $ 237 $ 483 December 28, 2021 September 28, 2021 Property and equipment, net $ 23,082 $ 23,293 Bad Daddy’s 3,242 3,773 Good Times $ 26,324 $ 27,066 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Dec. 28, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | The following table presents goodwill and intangible assets as of December 28, 2021 and September 28, 2021 (in thousands): December 28, 2021 September 28, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Non-compete agreements $ - $ - $ - $ 50 $ (46 ) $ 4 Indefinite-lived intangible assets: Trademarks 3,900 - 3,900 3,900 - 3,900 Intangible assets, net $ 3,900 $ - $ 3,900 $ 3,950 $ (46 ) $ 3,904 Goodwill $ 5,150 $ - $ 5,150 $ 5,150 $ - $ 5,150 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 28, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Weighted Average Assumptions Used to Estimate Fair Value of Stock Option Grants | In addition to the exercise and grant date prices of the stock option awards, certain weighted average assumptions that were used to estimate the fair value of stock option grants are listed in the following table: Quarter Ended December 28, 2021 Incentive and Non-Qualified Stock Options Quarter Ended December 29, 2020 Incentive and Non-Qualified Stock Options Expected term (years) 4.5 4.5 Expected volatility 61.3% 67.6% Risk-free interest rate 0.9% 0.3% Expected dividends - - |
Summary of Stock Option Activity Under Share Based Compensation Plan | The following table summarizes stock option activity for the quarter ended December 28, 2021 under all plans: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Yrs) Outstanding at beginning of year 443,815 $ 3.63 Options granted 80,000 $ 5.20 Options exercised (5,000 ) $ 1.31 Outstanding December 28, 2021 518,815 $ 3.89 5.7 Exercisable December 28, 2021 376,732 $ 3.56 5.4 |
Schedule of Non-vested Restricted Stock Activity | Shares Grant Date Fair Value Per Share Non-vested shares at beginning of year 61,952 $1.54 to $3.95 Vested (15,616 ) $3.95 Non-vested shares at December 28, 2021 46,336 $1.54 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 3 Months Ended |
Dec. 28, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Reconciles Basic and Diluted Weighted-Average Shares Outstanding | The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding: Quarter Ended December 28, 2021 December 29, 2020 Weighted-average shares outstanding basic 12,522,471 12,622,178 Effect of potentially dilutive securities: Stock options 116,172 1,048 Restricted stock units 46,336 75,058 Weighted-average shares outstanding diluted 12,684,979 12,698,284 Excluded from diluted weighted-average shares outstanding: Antidilutive 153,118 684,114 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 28, 2021 | |
Lessee Disclosure [Abstract] | |
Schedule of Components of Lease Expense | Lease cost Classification December 28, 2021 December 29, 2020 Operating lease cost Occupancy, Other restaurant operating costs and General and administrative expenses, net $ 1,795 $ 1,757 Variable lease cost Occupancy 20 20 Sublease income Occupancy (136 ) (129 ) $ 1,679 $ 1,648 |
Schedule of Weighted Average Lease Term and Discount Rate | Weighted average lease term and discount rate are as follows: December 28, 2021 December 29, 2020 Weighted average remaining lease term (in years) 9.3 10.2 Weighted average discount rate 5.0 % 5.0 % |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow disclosures for the fiscal quarter ended December 28, 2021: December 28, 2021 December 29, 2020 Cash paid for operating lease liabilities $ 1,718 $ 1,732 Non-cash operating lease assets obtained in exchange for operating lease liabilities $ 60 $ 11 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet disclosures: December 28, 2021 December 29, 2020 Right-of-use assets Operating lease assets $ 44,972 $ 48,202 Current lease liabilities Operating lease liability $ 5,051 $ 4,771 Non-current lease liabilities Operating lease liability, less current portion 48,784 52,524 Total lease liabilities $ 53,835 $ 57,295 |
Schedule of Future Minimum Rent Payments Related to Operating Leases | Future minimum rent payments for our operating leases for each of the next five years as of December 28, 2021 are as follows: Fiscal year ending: Total Remainder of 2022 $ 5,707 2023 7,684 2024 7,546 2025 7,654 2026 7,108 Thereafter 32,229 Total minimum lease payments 67,928 Less: imputed interest (14,093 ) Present value of lease liabilities $ 53,835 |
Non-controlling Interests (Tabl
Non-controlling Interests (Tables) | 3 Months Ended |
Dec. 28, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interest | The following table summarizes the activity in non-controlling interests during the quarter ended December 28, 2021 (in thousands): Bad Daddy’s Good Times Total Balance at September 28, 2021 $ 913 $ 211 $ 1,124 Income 684 236 920 Distributions (516 ) (116 ) (632 ) Balance at December 28, 2021 $ 1,081 $ 331 $ 1,412 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Dec. 28, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments | The following tables present information about our reportable segments for the respective periods (in thousands): Quarter Ended December 28, 2021 (13 Weeks) December 29, 2020 (13 Weeks) Revenues Bad Daddy’s $ 24,672 $ 18,816 Good Times 8,244 8,480 $ 32,916 $ 27,296 Income from operations Bad Daddy’s $ 308 $ 178 Good Times 968 1,085 $ 1,276 $ 1,263 Capital expenditures Bad Daddy’s $ 192 $ 370 Good Times 45 113 $ 237 $ 483 December 28, 2021 September 28, 2021 Property and equipment, net $ 23,082 $ 23,293 Bad Daddy’s 3,242 3,773 Good Times $ 26,324 $ 27,066 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) | 3 Months Ended | |
Dec. 28, 2021 | Dec. 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Advertising Costs | $ 69,000 | $ 67,000 |
Receivables from gift cards sold to large-box retail partners | 619,000 | |
Receivable recorded for lease termination agreement | $ 745,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) | 3 Months Ended |
Dec. 28, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization of Intangible Assets | $ 4,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Intangible Assets Subject to Amortization) (Details) - USD ($) $ in Thousands | Dec. 28, 2021 | Sep. 28, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (46) | |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50 | |
Accumulated Amortization | (46) | |
Net Carrying Amount | $ 4 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Indefinite-lived Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 28, 2021 | Sep. 28, 2021 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 3,900 | $ 3,900 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Goodwill and Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 28, 2021 | Sep. 28, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets, gross carrying amount | $ 3,900 | $ 3,950 |
Accumulated Amortization | (46) | |
Intangible Assets, net carrying amount | 3,900 | 3,904 |
Goodwill, gross carrying amount | 5,150 | 5,150 |
Goodwill, Accumulated Amortization | ||
Goodwill, net carrying amount | $ 5,150 | $ 5,150 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Dec. 28, 2021 | Dec. 29, 2020 | Dec. 29, 2021 | Sep. 28, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 95 | $ 61 | ||
Stock option exercises, shares | 5,000 | 7,984 | ||
Proceeds from stock option exercise | $ 6 | $ 13 | ||
Stock options granted, shares | 80,000 | |||
Stock options granted, exercise price | $ 3.89 | $ 3.63 | ||
Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option exercises, shares | 5,000 | 7,984 | ||
2018 Plan [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for issuance | 900,000 | |||
2018 Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for issuance | 1,050,000 | |||
Chief Executive Officer [Member] | 2018 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted, per-share weighted average fair value | $ 2.65 | $ 1.24 | ||
Stock options granted, shares | 80,000 | 90,000 | ||
Stock options granted, exercise price | $ 5.20 | $ 2.33 | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate Intrinsic Value, Outstanding | $ 393 | |||
Aggregate Intrinsic Value, Exercisable | 369 | |||
Remaining total unrecognized compensation cost related to unvested stock-based arrangements | $ 265 | |||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 1 year 8 months 12 days | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining total unrecognized compensation cost related to unvested stock-based arrangements | $ 22 | |||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 8 months 12 days | |||
Restricted and Unrestricted Common Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 40 | |||
Stock options granted, per-share weighted average fair value | $ 4.35 | |||
Stock options granted, shares | 9,256 |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions Used to Estimate Fair Value of Stock Option Grants) (Details) - Incentive and Non-Statutory Stock Options [Member] - USD ($) | 3 Months Ended | |
Dec. 28, 2021 | Dec. 29, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (years) | 4 years 6 months | 4 years 6 months |
Expected volatility | 61.30% | 67.60% |
Risk-free interest rate | 0.90% | 0.30% |
Expected dividends |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity under Share Based Compensation Plan) (Details) - $ / shares | 3 Months Ended | |
Dec. 28, 2021 | Dec. 29, 2020 | |
Shares | ||
Outstanding at beginning of year | 443,815 | |
Options granted | 80,000 | |
Options exercised | (5,000) | (7,984) |
Outstanding December 28, 2021 | 518,815 | |
Exercisable December 28, 2021 | 376,732 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of year | $ 3.63 | |
Options granted | 5.20 | |
Options exercised | 1.31 | |
Outstanding December 28, 2021 | 3.89 | |
Exercisable December 28, 2021 | $ 3.56 | |
Weighted Avg. Remaining Contractual Life (Yrs.) | ||
Outstanding December 28, 2021 | 5 years 8 months 12 days | |
Exercisable December 28, 2021 | 5 years 4 months 24 days |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Non-vested Restricted Stock Activity) (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Dec. 28, 2021 | Sep. 28, 2021 | |
Shares | ||
Non-vested shares at beginning of year | 61,952 | |
Vested | (15,616) | |
Non-vested shares at December 28, 2021 | 46,336 | |
Grant Date Fair Value Per Share | ||
Non-vested shares | $ 1.54 | |
Vested | $ 3.95 | |
Minimum [Member] | ||
Grant Date Fair Value Per Share | ||
Non-vested shares | $ 1.54 | |
Maximum [Member] | ||
Grant Date Fair Value Per Share | ||
Non-vested shares | $ 3.95 |
Gain on Sale of Assets and Le_2
Gain on Sale of Assets and Lease Termination (Details) $ in Thousands | 3 Months Ended |
Dec. 28, 2021USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |
Gain on Termination of Lease | $ 607 |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jun. 29, 2021 | Dec. 28, 2021 | May 07, 2020 | |
Subsidiaries [Member] | |||
Debt Instrument [Line Items] | |||
Gain on debt extinguishment | $ 11,778,226 | ||
Cadence Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Loan agreement, increase amount | $ 8,000,000 | ||
Interest rate | 0.25% | ||
Weighted average interest rate | 3.75% | ||
Interest rate description | As of December 28, 2021, any borrowings under the Cadence Credit Facility, as amended, bear interest at a variable rate based upon the Company’s election of (i) 2.5% plus the base rate, which is the highest of the (a) Federal Funds Rate plus 0.5%, (b) the Cadence bank publicly announced prime rate, and (c) LIBOR plus 1.0%, or (ii) LIBOR, with a 0.250% floor, plus 3.5%. Interest is due at the end of each calendar quarter if the Company selects to pay interest based on the base rate and at the end of each LIBOR period if it selects to pay interest based on LIBOR. | ||
Payment of debt issuance costs | $ 308,500 | ||
Maturity date | Jan. 31, 2023 | ||
Minimum liquidity amount | $ 2,000,000 | ||
Paycheck Protection Program [Member] | Cadence Bank, N.A. [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured loan aggregate principal amount | $ 11,645,000 |
Net Income per Common Share (Su
Net Income per Common Share (Summary of Reconciles Basic and Diluted Weighted-Average Shares Outstanding) (Details) - shares | 3 Months Ended | |
Dec. 28, 2021 | Dec. 29, 2020 | |
Earnings Per Share [Abstract] | ||
Weighted-average shares outstanding basic | 12,522,471 | 12,622,178 |
Effect of potentially dilutive securities: | ||
Stock options | 116,172 | 1,048 |
Restricted stock units | 46,336 | 75,058 |
Weighted-average shares outstanding diluted | 12,684,979 | 12,698,284 |
Excluded from diluted weighted-average shares outstanding: | ||
Antidilutive | 153,118 | 684,114 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 3 Months Ended |
Dec. 28, 2021 | |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Initial lease term | 10 years |
Lease renewal term | 10 years |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Initial lease term | 20 years |
Lease renewal term | 15 years |
Remaining lease term | 20 years |
Leases (Schedule of Components
Leases (Schedule of Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2021 | Dec. 29, 2020 | |
Lessee Disclosure [Abstract] | ||
Operating lease cost | $ 1,795 | $ 1,757 |
Variable lease cost | 20 | 20 |
Sublease income | (136) | (129) |
Lease cost, Total | $ 1,679 | $ 1,648 |
Leases (Schedule of Weighted Av
Leases (Schedule of Weighted Average Lease Term and Discount Rate) (Details) | Dec. 28, 2021 | Dec. 29, 2020 |
Lessee Disclosure [Abstract] | ||
Weighted average remaining lease term (in years) | 9 years 3 months 18 days | 10 years 2 months 12 days |
Weighted average discount rate | 5.00% | 5.00% |
Leases (Schedule of Supplementa
Leases (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2021 | Dec. 29, 2020 | |
Lessee Disclosure [Abstract] | ||
Cash paid for operating lease liabilities | $ 1,718 | $ 1,732 |
Non-cash operating lease assets obtained in exchange for operating lease liabilities | $ 60 | $ 11 |
Leases (Schedule of Supplemen_2
Leases (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Thousands | Dec. 28, 2021 | Sep. 28, 2021 | Dec. 29, 2020 |
Lessee Disclosure [Abstract] | |||
Right-of-use assets | $ 44,972 | $ 45,737 | $ 48,202 |
Current lease liabilities | 5,051 | 4,935 | 4,771 |
Non-current lease liabilities | 48,784 | $ 49,723 | 52,524 |
Total lease liabilities | $ 53,835 | $ 57,295 |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Rent Payments Related to Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 28, 2021 | Dec. 29, 2020 |
Fiscal year ending: | ||
Remainder of 2022 | $ 5,707 | |
2023 | 7,684 | |
2024 | 7,546 | |
2025 | 7,654 | |
2026 | 7,108 | |
Thereafter | 32,229 | |
Total minimum lease payments | 67,928 | |
Less: imputed interest | (14,093) | |
Present value of lease liabilities | $ 53,835 | $ 57,295 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets and Goodwill (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Dec. 28, 2021USD ($)restaurants | Sep. 28, 2021USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Number of restaurants impaired | restaurants | 2 | |
Goodwill | $ 5,150 | $ 5,150 |
Good Times [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Goodwill | 96 | |
Bad Daddy's [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Goodwill | $ 5,054 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2021 | Dec. 29, 2020 | |
Income Tax Examination [Line Items] | ||
Deferred tax assets | $ 0 | $ 0 |
Income tax provision or benefit | $ 8 | |
Effective income tax rate | 2.00% | |
Reserves for uncertain tax positions | $ 0 | |
Accrual for interest and penalties | $ 0 | |
Minimum [Member] | ||
Income Tax Examination [Line Items] | ||
Years subject to income tax examination | 2017 | |
Maximum [Member] | ||
Income Tax Examination [Line Items] | ||
Years subject to income tax examination | 2020 |
Non-controlling Interests (Sche
Non-controlling Interests (Schedule of Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2021 | Dec. 29, 2020 | |
Noncontrolling Interest [Line Items] | ||
Balance at September 28, 2021 | $ 1,124 | |
Income | 920 | $ 363 |
Distributions | (632) | $ (319) |
Balance at December 28, 2021 | 1,412 | |
Bad Daddy's [Member] | ||
Noncontrolling Interest [Line Items] | ||
Balance at September 28, 2021 | 913 | |
Income | 684 | |
Distributions | (516) | |
Balance at December 28, 2021 | 1,081 | |
Good Times [Member] | ||
Noncontrolling Interest [Line Items] | ||
Balance at September 28, 2021 | 211 | |
Income | 236 | |
Distributions | (116) | |
Balance at December 28, 2021 | $ 331 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] $ in Millions | Feb. 03, 2022USD ($) |
Board of Directors [Member] | |
Subsequent Event [Line Items] | |
Stock repurchase program, authorized amount | $ 5 |
Director [Member] | |
Subsequent Event [Line Items] | |
Stock repurchase program expiry date | Dec. 31, 2022 |
Director [Member] | Maximum [Member] | |
Subsequent Event [Line Items] | |
Stock repurchase program aggregate amount | $ 5 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 28, 2021 | Dec. 29, 2020 | Sep. 28, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 32,916 | $ 27,296 | |
Income from operations | 1,276 | 1,263 | |
Capital expenditures | 237 | 483 | |
Property and equipment, net | 26,324 | $ 27,066 | |
Bad Daddys [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 24,672 | 18,816 | |
Income from operations | 308 | 178 | |
Capital expenditures | 192 | 370 | |
Good Times [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,244 | 8,480 | |
Income from operations | 968 | 1,085 | |
Capital expenditures | 45 | $ 113 | |
Property and equipment, net | $ 3,242 | $ 3,773 |