While Wall Street focuses on Bad Daddy's bumpy road to recovery, there's a quiet revolution brewing in the heart of Good Times Restaurants Inc. (GTIM). It's a story of savvy acquisitions, strategic remodels, and a laser focus on digital engagement that's fueling impressive same-store sales growth. While the headlines scream about burger battles in the casual dining space, Good Times is quietly positioning itself for potential national domination – starting with an unexpected weapon: frozen custard.

Good Times, a Colorado-born-and-bred brand known for its juicy burgers and creamy frozen custard, has been experiencing a remarkable resurgence. The second quarter earnings call revealed an eighth consecutive quarter of same-store sales growth, a feat achieved despite brutal winter weather that would have crippled lesser chains. While the 0.9% increase might seem modest at first glance, the two-year stack of 8.5% paints a much more compelling picture of sustained growth.

But the real story lies beneath the surface. Good Times isn't just riding the wave of a strong economy or favorable market conditions. They're actively shaping their destiny through a series of calculated moves that are redefining their brand and expanding their reach.

The recent acquisitions of two formerly franchised Good Times restaurants in late fiscal 2023, and the ongoing negotiations to purchase another in Parker, Colorado, demonstrate a keen understanding of the power of strategic expansion. These aren't just random acquisitions; they're carefully chosen locations with dining rooms – a strategic advantage in Colorado's competitive QSR market. Furthermore, the targeted 'light re-skinning' of these locations, featuring fresh paint, updated signage, and new menu boards, signals a commitment to brand consistency and a modern, appealing aesthetic.

This commitment to revitalizing existing locations is further evident in the ongoing remodel program. Three Good Times have already undergone complete transformations, showcasing vibrant murals by local artists, eye-catching awnings, and bold, new signage. The fourth remodel, currently underway in Lakewood, Colorado, is more extensive, addressing long-deferred maintenance issues and reconfiguring an outdated kitchen layout. While this remodel will temporarily close the restaurant, it's a strategic investment in long-term efficiency and sales preservation.

These remodels are more than just a facelift. They're a clear signal that Good Times is playing the long game. They're investing in their brand, their locations, and their future. And the numbers are starting to reflect that investment.

Hypothetical Sales Increase After Remodel

The following chart represents a hypothesis: Good Times remodels are generating an average of double-digit sales increases, translating into an impressive return on investment of over 10%. This hypothesis is supported by the consistently strong performance of remodeled locations and the chain's continued commitment to expanding the program. If this trend holds, Good Times could be looking at a significant boost to both top-line revenue and profitability.

But perhaps the most intriguing element of Good Times' strategy is their embrace of digital engagement. Recognizing the need to reduce friction points and enhance customer experience, Good Times is testing the Toast point-of-sale system, a cutting-edge, cloud-based platform with a rich feature set. The successful pilot has paved the way for a system-wide rollout to all company-owned Good Times locations by the end of the fiscal year. Franchisees are also being encouraged to adopt the new system, ensuring brand-wide consistency and a seamless customer experience.

The introduction of digital menu boards at all company-owned locations is another key piece of the digital engagement puzzle. Eliminating print merchandising, these boards provide unparalleled flexibility, allowing for dynamic pricing strategies, weather-based product promotion, and real-time adjustments based on real-time sales data.

Good Times is also building its loyalty program, GT Rewards, with a focus on attracting and retaining customers in the drive-through space. While acknowledging the challenges of loyalty program adoption in a primarily drive-through model, Good Times is actively developing strategies to drive member acquisition and enhance engagement.

This focus on digital engagement isn't just about chasing trends. It's about creating a more efficient, responsive, and customer-centric brand. It's about leveraging technology to enhance every aspect of the Good Times experience.

While analysts remain focused on Bad Daddy's future, Good Times is quietly building a foundation for national success. With a strategic blend of acquisitions, remodels, and digital innovation, Good Times is poised to become more than just a Colorado favorite – it has the potential to become a national powerhouse in the QSR market. And it all starts with a simple, yet powerful formula: a delicious burger, a side of creamy frozen custard, and a commitment to exceeding customer expectations – one transaction at a time.

"Fun Fact: Good Times' frozen custard is made fresh throughout the day, using a special slow-churning process that results in a denser, creamier texture than traditional ice cream. This commitment to quality and freshness has made their frozen custard a beloved local treat."