Business Context and Reporting Period
Good Times Restaurants Inc. (GTIM) filed a Form 8-K on September 30, 2025, reporting a material definitive agreement entered into on the same date. The Company, incorporated in Nevada and headquartered in Golden, Colorado, operates the Bad Daddy's restaurant brand.
Key Financial Metrics
This filing does not provide specific financial performance metrics such as revenue, profit, cash flow, margins, or total debt levels. The document focuses exclusively on the terms of a credit agreement amendment.
Material Changes
The primary material change is the execution of a Third Amendment to the Company's Credit Agreement with Cadence Bank. Key modifications include:
- Restaurant Closures: Cadence Bank consented to the closure of two Bad Daddy's locations in Roswell, Georgia, and Broomfield, Colorado, along with the termination of their associated leases.
- Covenant Adjustments: The Amendment revised definitions for "Applicable Rate," "Consolidated EBITDA," and "Consolidated Fixed Charge Coverage Ratio."
- Covenant Amendments: The Consolidated Leverage Ratio covenant (Section 7.11(a)) and the Restricted Payments covenant (Section 7.06) were amended.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or specific risk factors beyond the implications of the credit agreement changes. The document notes that the description of the Amendment is qualified by reference to the full text filed as Exhibit 10.1.
Investor Verification Checklist
- Review Exhibit 10.1 (Third Amendment to Credit Agreement) for the specific new leverage ratio thresholds and EBITDA definitions.
- Verify the financial impact of closing the Roswell, GA, and Broomfield, CO, locations on future consolidated EBITDA.
- Confirm the status of the terminated leases and any associated exit costs or liabilities.
- Check subsequent filings for any impact on the Company's liquidity or ability to make restricted payments under the new covenant terms.