Good Times Restaurants Inc (GTIM) 2024 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Good Times Restaurants Inc. fiscal 2024 third quarter earnings call. I am Keri August, the company's Senior Vice President of Finance and Accounting. By now, everyone should have access to the company's earnings release, which is available in the investor section of the company's website.

女士們、先生們，下午好，歡迎參加 Good Times Hotels Inc. 2024 財年第三季財報電話會議。我是 Keri August，公司財務和會計高級副總裁。到目前為止，每個人都應該可以訪問該公司的收益發布，該發布可以在該公司網站的投資者部分找到。

As a reminder, a part of today's discussion will include forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not guarantees of future performance and therefore, you should not put undue reliance on them.

提醒一下，今天討論的一部分將包括聯邦證券法含義內的前瞻性陳述。這些前瞻性陳述並不是對未來績效的保證，因此，您不應過度依賴它們。

These statements involve known and unknown risks, which may cause the company's actual results to differ materially from results expressed or implied by the forward-looking statements.

這些陳述涉及已知和未知的風險，可能導致公司的實際結果與前瞻性陳述明示或暗示的結果有重大差異。

Such risks and uncertainties include among other things, the market price of the company's stock prevailing from time to time, the nature of other investment opportunities presented to the company, the disruption to our business from pandemics and other health -- other public health emergencies, the impact and duration of staffing constraints at our restaurants, the impact of supply chain constraints and inflation, the uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants, delays in developing and opening new restaurants because of weather, local permitting, or other reasons, increased competition, cost increases or shortages in raw food products, other general economic and operating conditions, risks associated with our share repurchase program, risks associated with the acquisition of additional restaurants, the adequacy of cash flows and the costs and availability of capital or credit facility borrowings to provide liquidity, changes in federal, state or local laws and regulations affecting the operation of our restaurants, including minimum wage and tip credit regulations and other matters discussed under the risk factors section of Good Times annual report on Form 10-K for the fiscal year ended September 26, 2023, and other reports filed with the SEC.

此類風險和不確定性包括公司股票不時流行的市場價格、公司提供的其他投資機會的性質、流行病和其他健康問題（其他公共衛生緊急情況）對我們業務的干擾，我們餐廳人員配置限制的影響和持續時間、供應鏈限制和通貨膨脹的影響、當前餐廳發展計劃的不確定性以及實施這些計劃和整合新餐廳的能力、由於天氣原因延遲開發和開設新餐廳、當地允許或其他原因、競爭加劇、生食產品成本增加或短缺、其他一般經濟和經營狀況、與我們的股票回購計劃相關的風險、與收購更多餐廳相關的風險、現金流的充足性和用於提供流動性的資本或信貸便利借款的成本和可用性，影響我們餐廳營運的聯邦、州或地方法律法規的變化，包括最低工資和小費信貸法規以及《美好時光》風險因素部分討論的其他事項截至2023 年9 月26 日的財政年度10-K 表格年度報告，以及向SEC 提交的其他報告。

During today's call, the company will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP and reconciliations to comparable GAAP measures available in our earnings release.

在今天的電話會議上，公司將討論非公認會計準則衡量標準，我們相信這些衡量標準有助於評估我們的表現。這些附加資訊的呈現不應被孤立地考慮，也不應被視為替代根據 GAAP 準備的結果以及與我們收益發布中提供的可比較 GAAP 指標的對帳。

And now I would like to turn the call over to our Chief Executive Officer, Ryan Zink.

現在我想將電話轉給我們的執行長 Ryan Zink。

Thank you, Carrie, and thank you all for joining us today. I'm encouraged by the sales results from both brands with Good Times delivering same-store sales growth of 5.8% for the quarter. Meanwhile, Bad Daddy's reported the same-store sales increase this quarter, posting a 1.2% increase.

謝謝嘉莉，也謝謝大家今天加入我們。我對兩個品牌的銷售業績感到鼓舞，Good Times 本季同店銷售額成長了 5.8%。同時，Bad Daddy's 報告本季同店銷售額成長 1.2%。

Our approach at both brands is centered around an intense focus on the guest and in particular at Bad Daddy's, investing in greater front-of-house labor to provide better hospitality in our dining rooms and greater engagement and speed at the bar.

我們對這兩個品牌的做法都是以高度關注客人為中心，特別是在Bad Daddy's，投資更多的前台勞動力，以便在我們的餐廳提供更好的招待，並在酒吧提供更高的參與度和速度。

As of the date of this call, same-store sales during the fourth quarter at Bad Daddy's continued to be growing in the low single digit range and our performance against the Black Box casual dining index has continued to trend favorably.

截至本次電話會議召開之日，Bad Daddy's 第四季度的同店銷售額繼續以較低的個位數增長，並且我們相對於 Black Box 休閒餐飲指數的表現繼續呈現良好趨勢。

Smashed patty burgers have been a trend this quarter and Bad Daddy's nailed this trend, releasing its own smashed burgers as a limited time offer for the summer season. Our classic smash is a familiar build with shredded lettuce, our house made kick back sauce, sliced onions and American cheese with a single quarter pound aggressively smashed patty.

碎肉餅漢堡已成為本季的流行趨勢，Bad Daddy's 抓住了這一趨勢，推出了自己的碎肉漢堡作為夏季限時優惠。我們的經典粉碎是一種熟悉的結構，包括切碎的生菜、我們自製的反沖醬、切片洋蔥和美國奶酪，以及四分之一磅的強力粉碎肉餅。

Our Steakhouse Smash Burger features the same patty, with house made grilled onion aioli, shredded lettuce, A1 onion rings and sharp cheddar cheese. Both burgers demonstrate our culinary prowess, but at a significant value to our guests with a price point starting at $8.50 for a single patty classic smash.

我們的 Steakhouse Smash Burger 採用相同的肉餅，配有自製烤洋蔥蒜泥蛋黃醬、切絲生菜、A1 洋蔥圈和鋒利的切達乾酪。這兩款漢堡都展示了我們的烹飪實力，而且對我們的客人來說也具有巨大的價值，單一經典漢堡的起價為 8.50 美元。

We expect the Classic Smash to continue on this into the fall, as our guests have demonstrated their excitement over this method of cooking burger. We further expect both the Classic Smash and the Steakhouse Smash to ultimately become permanent items on the full menu.

我們預計經典大亂鬥活動將持續到秋季，因為我們的客人已經對這種烹飪漢堡的方法表現出了興奮。我們進一步期望經典大亂鬥和牛排館大亂鬥最終成為完整菜單上的永久項目。

The sales stabilization in the Atlanta market that I mentioned last quarter has continued. And although individual store performance has varied, I would now consider this the sales recovery in the markets. Our restaurant operations have improved from where they were 12 months ago and follow our passion for excellence means that we have more work to do, I believe that we have significantly improved our guest experience in this market.

我上個季度提到的亞特蘭大市場的銷售穩定仍在繼續。儘管個別商店的業績有所不同，但我現在認為這是市場銷售的復甦。我們的餐廳營運比 12 個月前有所改善，遵循我們對卓越的熱情意味著我們還有更多工作要做，我相信我們已經顯著改善了這個市場的賓客體驗。

Labor continues to be an ongoing challenge. In most markets, the number of applicants has increased and the experience and skills of applicants for both team member and management roles has improved somewhat.

勞動力仍然是一個持續的挑戰。在大多數市場中，申請人數增加，團隊成員和管理職位申請人的經驗和技能也有所提高。

However, wage and salary pressures are not abating, attracting the employees who demonstrate the right skills, the right focus on the guest and the strong work ethic that's required at Bad Daddy's has required higher starting wages or salaries than ever before. Average pay for restaurant staff and management continues to increase despite the greater slack that's been reported to exist in the overall labor market.

然而，薪資和薪水壓力並沒有減輕，為了吸引那些表現出正確技能、對客人有正確關注以及Bad Daddy's所需的強烈職業道德的員工，這需要比以往更高的起薪或薪水。儘管據報導整個勞動市場有更大的閒置狀況，但餐廳員工和管理人員的平均薪資仍在持續成長。

Given the continuing challenges in the labor market and despite the rising tide of broad based sales recovery, we had a few restaurants in our portfolio of assets continually to perpetually underperform on the top line.

鑑於勞動力市場持續面臨的挑戰，儘管銷售復甦勢頭廣泛，我們的資產組合中仍有幾家餐廳的營收始終表現不佳。

As we continue to evaluate the underlying real estate and each restaurant's historical sales performance, including pre-pandemic sales peaks, we may choose to make the difficult decision to close certain restaurants that have not participated in the sales recovery that our overall system has experienced.

當我們繼續評估基礎房地產和每家餐廳的歷史銷售業績（包括疫情前的銷售高峰）時，我們可能會選擇做出艱難的決定，關閉某些未參與我們整個系統經歷的銷售復甦的餐廳。

Our Madison, Alabama restaurant continues to perform well, and I'm excited about the continuity of the highly capable management team that we have in that restaurant. It continues to be a top quartile store in terms of overall sales performance.

我們位於阿拉巴馬州麥迪遜的餐廳繼續表現良好，我對該餐廳擁有的高能力管理團隊的連續性感到興奮。就整體銷售業績而言，它仍然是前四分之一的商店。

And as we approach the one year anniversary of that restaurant's opening, the honeymoon impact we've seen has been nearly the payments of any Bad Daddy's opening since the original three in Charlotte over a decade ago.

隨著這家餐廳開業一周年的臨近，我們所看到的蜜月影響幾乎相當於十多年前在夏洛特開設三家「壞爸爸」餐廳以來的任何一家餐廳的費用。

I remain optimistic that when the restaurant enters the comp base following its 18th month of operations next spring that it will do so growing sales on an already strong sales base. At Good Times, our sales growth has been significantly weighted to dinner and late night sales.

我仍然樂觀地認為，當餐廳在明年春天運營第 18 個月後進入競爭基礎時，它將在本已強勁的銷售基礎上實現銷售額的增長。在 Good Times，我們的銷售成長很大程度上取決於晚餐和深夜銷售。

Additionally, our sales growth has been supported by strong sales trends at the two restaurants we purchased late in fiscal 2023, as well as by restaurants that have been remodeled. Early into the fourth quarter, our competitors have increased their promotional activity with the prevalence of $5 value meals.

此外，我們在 2023 財年末購買的兩家餐廳以及經過改造的餐廳的強勁銷售趨勢也支撐了我們的銷售成長。進入第四季初期，我們的競爭對手增加了促銷活動，5 美元超值餐食盛行。

This is cut into our same-store sales performance a bit and how we've traditionally shied away from deep discounts were highly attuned to the operating environment and expect some additional value-oriented promotional activity, but without engaging into deep discounting that many of our competitors are.

這對我們的同店銷售業績有所影響，我們傳統上避免大幅折扣的方式與營運環境高度協調，並期望一些額外的以價值為導向的促銷活動，但沒有像我們的許多公司那樣進行大幅折扣。競爭對手是。

We closed on the purchase of the Good Times in Parker, Colorado during the quarter. This restaurant has a dining room and does a larger footprint than most of our Good Times, which are typically double drive-through formats. This restaurant was reasonably well maintained with new equipment and an interior that was already clean and in good condition.

本季我們完成了對科羅拉多州帕克市 Good Times 的收購。這家餐廳設有餐廳，佔地面積比我們大多數的「好時光」餐廳都要大，而「好時光」餐廳通常採用雙人免下車模式。這家餐廳維護得相當好，配備了新設備，內部已經乾淨且狀況良好。

But after 20 years of operations, some TLC was due. We immediately replace the awnings, painted the building, completely refurbished the parking lot, and performed landscape overhaul. We've added digital menu boards and have our new sign package in flight. We're excited about the sales potential of this restaurant in a suburb of Denver is experiencing strong population growth.

但經過 20 年的運營，一些細心呵護是應該的。我們立即更換了遮陽篷，粉刷了建築，徹底翻新了停車場，並對景觀進行了大修。我們新增了數位菜單板，並推出了新的標誌包。我們對這家位於人口強勁增長的丹佛郊區的餐廳的銷售潛力感到興奮。

We also completed the remodel of Good Times in Lakewood, Colorado, and have experienced a significant turnaround in sales at this restaurant. Pre-remodel sales were positive or were trending double digit negative and are now generally trending double digit positive on a year-over-year basis. This more extensive remodels required a six week closure and more substantial CapEx than we've typically been spending on our remodels. This is the fourth remodel of our traditional double drive-thru units.

我們也完成了科羅拉多州萊克伍德的 Good Times 餐廳的改建，這家餐廳的銷售也出現了顯著的改善。改造前的銷售額呈正數或呈兩位數負數趨勢，而現在與去年同期相比，整體呈現兩位數正數趨勢。這種更廣泛的改造需要六週的關閉時間和比我們通常在改造上花費的更多的資本支出。這是我們傳統的雙得來速單元的第四次改造。

Digital engagement remains a focus for us. And as we discussed last quarter, the challenges involved in guest adoption of a new loyalty program and a primarily drive-through concept are manifesting slower than desired growth in member activity.

數位參與仍然是我們的重點。正如我們上季度討論的那樣，賓客採用新的忠誠度計劃和主要的得來速概念所面臨的挑戰表明，會員活動的增長速度低於預期的增長速度。

That said, growth in member activity again accelerated after a low end near the end of Q2. And we've created some team member and management incentives to ensure the right focus at the restaurant level on growing GT rewards.

儘管如此，會員活動的成長在第二季末達到低點後再次加速。我們也制定了一些團隊成員和管理層激勵措施，以確保餐廳層面正確關注不斷增長的 GT 獎勵。

We are near the end of our rollout of our next generation point-of-sale system. Toast, which is the leading most feature rich cloud centric point-of-sale system. We've seen significant improvement in order taking and payment processing with this new system, which has provided greater time for order takers and cashiers to focus on value added interactions with our guests, including highlighting GT rewards.

我們下一代銷售點系統的推出已接近尾聲。Toast，這是領先的、功能最豐富的以雲端為中心的銷售點系統。我們看到這個新系統在接單和付款處理方面有了顯著改善，這為接單員和收銀員提供了更多的時間來專注於與客人的增值互動，包括強調 GT 獎勵。

We're conducting a similar evaluation of Bad Daddy's, and it is likely that a test and possible rollout of the Toast system will be forthcoming during our next fiscal year. We repurchased 92,240 shares during the quarter under our share repurchase program.

我們正在對 Bad Daddy 進行類似的評估，並且很可能會在我們的下一財年對 Toast 系統進行測試並可能推出。本季我們根據股票回購計畫回購了 92,240 股股票。

Additionally, we executed a privately negotiated purchase of approximately 171,000 shares at an average price of $2.60 per share. We continue to believe that the market is not adequately valuing our business and that the share repurchase program generates a strong return for shareholders who choose to hold their shares.

此外，我們還以每股 2.60 美元的平均價格私下協商購買了約 171,000 股股票。我們仍然認為，市場沒有充分評估我們的業務，而股票回購計畫為選擇持有股票的股東帶來了豐厚的回報。

At the end of the quarter, we had approximately $1.5 million remaining on the repurchase authorization. At the present rate of repurchases in current market price, we still have a few months left on the existing authorization and assuming market factors remain similar, we expect the authorization to be expanded sometime prior to the exhaustion of the current authorization.

截至本季末，我們的回購授權剩餘約 150 萬美元。按照當前市場價格的目前回購速度，我們的現有授權還剩下幾個月的時間，假設市場因素保持相似，我們預計授權將在當前授權用完之前的某個時候擴大。

With that, I will now turn the call back over to Keri to review our performance for the quarter.

現在，我將把電話轉回給 Keri，以回顧我們本季的業績。

Thank you, Ryan. Let's review this quarter's results. Total revenues increased approximately 6.5% for the quarter to $37.9 million. Total restaurant sales for Bad Daddy's restaurants increased $1.2 million to $27.3 million for the quarter. The sales increase was a result of the fourth quarter 2023 Madison, Alabama restaurant opening.

謝謝你，瑞安。讓我們回顧一下本季的業績。該季度總營收成長約 6.5%，達到 3,790 萬美元。Bad Daddy's 餐廳本季的餐廳總銷售額增加了 120 萬美元，達到 2,730 萬美元。銷售額成長的原因是 2023 年第四季阿拉巴馬州麥迪遜餐廳開業。

The prior year remodel temporary closure of the Greenville, South Carolina restaurant, as well as an approximate 4.4% menu price increase, partially offset by reduced customer traffic. Same-store sales increased 1.2% for the quarter, with 39 Bad Daddy's in the comp base at quarter end.

去年，南卡羅來納州格林維爾餐廳因臨時關閉而進行了改造，菜單價格上漲了約 4.4%，但部分被客流量減少所抵消。本季同店銷售額成長 1.2%，季末共有 39 家 Bad Daddy's 入圍。

Cost of sales at Bad Daddy's were 31.2% for the quarter, a 10 basis point increase from last year's quarter. The increase is primarily attributable to higher purchase prices in our commodity basket compared to the prior year quarter, partially offset by the impact of the 4.4% average increase in menu pricing.

Bad Daddy's 本季的銷售成本為 31.2%，比去年同期增加了 10 個基點。這一增長主要歸因於與去年同期相比，我們商品籃子的採購價格上漲，但部分被菜單定價平均上漲 4.4% 的影響所抵消。

During the current quarter, we began to experience elevated costs across the various proteins in our basket. In particular, wholesale ground beef prices have increased and following the end of the quarter increased to an all-time record, and we expect them to continue to remain elevated during the fourth fiscal quarter of 2024, as will likely be the case for other proteins and food based commodities.

在本季度，我們開始經歷購物籃中各種蛋白質的成本上漲。特別是，碎牛肉批發價格已經上漲，並在本季度末上漲至歷史最高紀錄，我們預計它們在 2024 年第四財季將繼續保持高位，其他蛋白質的情況也可能如此和食品類商品。

Bad Daddy's labor costs decreased by 90 basis points compared to the prior year quarter to 33.8% for the quarter. This decrease as a percentage of sales is attributable to greater labor productivity. Occupancy costs at Bad Daddy's decreased 20 basis points to 6.3%.

與去年同期相比，Bad Daddy 的勞動成本下降了 90 個基點，至本季的 33.8%。佔銷售額百分比的下降歸因於勞動生產力的提高。Bad Daddy's 的入住成本下降了 20 個基點至 6.3%。

Bad Daddy's other operating costs were flat compared to the prior year quarter at 14.4% for the quarter. Overall restaurant level operating profit, a non-GAAP measure for Bad Daddy's was approximately $3.9 million for the quarter or 14.3% of sales compared to $3.5 million or 13.3% last year.

Bad Daddy 的其他營運成本與去年同期持平，為 14.4%。Bad Daddy's 本季餐廳整體營業利潤（以非公認會計準則衡量）約為 390 萬美元，佔銷售額的 14.3%，而去年為 350 萬美元，佔銷售額的 13.3%。

Total restaurant sales for company owned Good Times Restaurants increased approximately $1.1 million to $10.4 million for the quarter compared to the prior year third quarter. The average menu price increase for the quarter was approximately 3.9% over the same prior year quarter.

與去年第三季相比，該公司旗下 Good Times Restaurant 的餐廳總銷售額增加了約 110 萬美元，達到 1,040 萬美元。本季菜單平均價格較去年同期上漲約 3.9%。

Same store sales increased 5.8% for the quarter with 26 Good Times Restaurants in the comp base at quarter end. Food and packaging costs for Good Times were 30.5% for the quarter, an increase of 20 basis points compared to last year's quarter. The increase is primarily attributable to higher purchase prices on food and paper goods, partially offset by the impact of 3.9% average increase in menu pricing.

本季同店銷售額成長 5.8%，截至季末，Good Times 餐廳數量為 26 家。本季 Good Times 的食品和包裝成本為 30.5%，與去年同期相比增加了 20 個基點。這一增長主要歸因於食品和紙製品採購價格的上漲，但部分被菜單定價平均上漲 3.9% 的影響所抵消。

As in the case of Bad Daddy's, we expect continued pressure on beef and other food prices in the last quarter of the fiscal year. Total labor costs for Good Times increased to 32.7%, a 160 basis point increase from the 31.1% we ran during last year's quarter due to labor associated with three additional company owned restaurants and increase in operating hours caused by later closing times in nearly every restaurant and higher average wage rates resulting from market forces and the CPI index minimum wage in Denver and the state of Colorado.

與「壞爸爸」的情況一樣，我們預計本財年最後一個季度牛肉和其他食品價格將繼續面臨壓力。Good Times 的總勞動成本增加至 32.7%，比去年季度的 31.1% 增加了 160 個基點，原因是與另外三家公司自營餐廳相關的勞動力以及幾乎每家餐廳關門時間較晚導致營業時間增加市場力量和丹佛州和科羅拉多州消費者物價指數最低工資導致平均工資率上升。

Occupancy costs at Good Times were 8.2%, an increase of 30 basis points from the prior year quarter. The increase was primarily due to costs incurred for three additional company owned restaurants as well as real property tax increases resulting from higher property values.

Good Times 的入住成本為 8.2%，較去年同期增加 30 個基點。這一增長主要是由於公司自營的另外三家餐廳產生的成本以及由於房產價值上漲而導致的房地產稅增加。

Good Times other operating costs were 12% for the quarter, an increase of 60 basis points, primarily due to costs associated with three additional company owned restaurants as well as increased repair and maintenance, credit card fees and customer delivery fees.

Good Times 本季其他營運成本為 12%，增加了 60 個基點，主要是由於與另外三家公司自營餐廳相關的成本以及維修和保養、信用卡費用和客戶送貨費用的增加。

Good Times restaurant level operating profit decreased by $0.1 million for the quarter to $1.7 million. As a percent of sales, restaurant level operating profit decreased by 280 basis points versus last year to 16.5%. Combined general and administrative expenses were $2.7 million during the quarter or 7.1% of total revenues, an increase of 40 basis points from the prior year quarter.

本季 Good Times 餐廳營運利潤減少 10 萬美元，至 170 萬美元。餐廳層級的營業利潤佔銷售額的百分比比去年下降了 280 個基點，至 16.5%。該季度的綜合管理費用為 270 萬美元，佔總收入的 7.1%，比去年同期增加了 40 個基點。

Our net income to common shareholders for the quarter was $1.3 million or income of $0.12 per share versus net income of $0.8 million, $0.07 per share in the third quarter last year. There was approximately $0.2 million of income tax benefit recorded during the current quarter versus $0.6 million in the prior year quarter.

我們本季普通股股東的淨利潤為 130 萬美元，即每股收益 0.12 美元，而去年第三季的淨利潤為 80 萬美元，即每股收益 0.07 美元。本季錄得約 20 萬美元的所得稅優惠，而去年同期為 60 萬美元。

Adjusted EBITDA for the quarter was $2.1 million compared to $2.1 million for the third quarter of 2023. We finished the quarter with $4.8 million in cash and $1.1 million of long term debt.

本季調整後 EBITDA 為 210 萬美元，而 2023 年第三季為 210 萬美元。本季末，我們擁有 480 萬美元現金和 110 萬美元長期債務。

And now I will turn the call back to Ryan.

現在我將把電話轉回給瑞安。

Thank you, Keri. Our operator's name is also Keri. And so at this time, we will turn our call back over to our operator Keri for questions at this time.

謝謝你，凱裡。我們的接線生的名字也是 Keri。所以此時，我們會將電話轉回給我們的接線生 Keri 詢問此時的問題。

(Operator Instructions) [Roger Lipton].

（操作員說明）[羅傑·利普頓]。

Yes, good afternoon, guys. Question with the rising beef prices that maybe you made a quick comment on it, but if so, I missed it. Do you expect to have to raise menu prices to offset the higher beef prices at both concepts?

是的，下午好，夥計們。關於牛肉價格上漲的問題，也許你對此做出了快速評論，但如果是這樣，我錯過了。您是否預計必須提高菜單價格以抵消這兩個概念的牛肉價格上漲？

Yeah, Roger, thanks, thanks for dialing in, and thanks for the question. We evaluate prices in various lenses, and one of those is certainly what the competitor environment is doing. And there's certainly a customer demand for value right now. And so we certainly have to manage to certain costs and to address our costs.

是的，羅傑，謝謝，謝謝你撥電話，謝謝你提出這個問題。我們評估各種鏡頭的價格，其中之一肯定是競爭對手環境正在做的事情。現在客戶肯定有對價值的需求。因此，我們當然必須設法控制某些成本並解決我們的成本問題。

But I think just because we have beef prices at the moment that are high, I would not necessarily say, oh, that's going to be a Q4 price increase. Now what I would say is that especially as the year rolls over, the calendar year rolls over, the labor costs will likely increase again.

但我認為，僅僅因為目前我們的牛肉價格很高，我不一定會說，哦，第四季價格將會上漲。現在我要說的是，特別是隨著歲月的推移，日曆年的推移，勞動成本可能會再次增加。

And so right now at the moment, I'd say for both concepts, we're really targeting the end of fiscal quarter one for our next price increase, although the environment is dynamic, and so we'll remain dynamic and make and adjust as we speak.

因此，目前，我想說，對於這兩個概念，我們實際上的目標是在第一財季末進行下一次提價，儘管環境是動態的，因此我們將保持活力並做出和調整正如我們所說。

I will also say, Roger, that based on the commodity reports that we get, the long term prognosis for beef of all sorts, not just ground beef is somewhat negative from a cost standpoint. In other words, continued elevation of costs in the long term. And so there's probably an issue that the entire segment's going to have to deal with for a little bit of time.

羅傑，我還要說，根據我們獲得的商品報告，從成本的角度來看，各種牛肉（而不僅僅是碎牛肉）的長期預測都有些負面。換句話說，從長遠來看，成本持續上升。因此，整個細分市場可能需要花一點時間來處理一個問題。

Right. Did you mention your advertising expense in the quarter? Probably you did, I missed it.

正確的。您提到本季的廣告費用了嗎？也許你做到了，我錯過了。

Keri, do you have at your disposal, the advertising expense for the quarter?

Keri，您可以支配本季的廣告費用嗎？

I do, we had $700,000 -- what's that Ryan?

我知道，我們有 70 萬美元——瑞安那是什麼？

Go ahead Keri.

凱裡，繼續吧。

Okay. Advertising expense was 2% of revenues for the quarter, $749,000..

好的。廣告費用佔本季營收的 2%，為 749,000 美元。

Okay. We expect that to remain roughly the same order magnitude in Q4?

好的。我們預計第四季將保持大致相同的數量級？

So Roger, I would say for Q4, that's probably the case. Q1 is always a little bit of an elevated number because we do a lot of gift cards through large box retailers. And so Q1 tends to have outsized advertising expense with the other quarters generally being similar in nature to each other. And so yeah, for Q4, I'd say probably 2% up, give or take is a good estimate.

所以羅傑，我想說第四季的情況可能就是這樣。第一季的數字總是有點高，因為我們透過大型零售商製作了很多禮品卡。因此，第一季的廣告費用往往過高，而其他季度的廣告費用通常在性質上相似。所以，是的，對於第四季度，我想說可能會上漲 2%，無論是給予還是接受都是一個不錯的估計。

Okay. And lastly, your best guess in terms of store level margins in this current quarter, will you -- how do you think they'll look or what's your best guess is that with how it might look compared to the quarter just ended 13th, 14th and 16th quarter?

好的。最後，您對本季度商店層面利潤率的最佳猜測，您認為它們會是什麼樣子，或者您最好的猜測是與剛結束的 13、14 季度相比，它可能會是什麼樣子和第16季度？

Yeah, certainly. Seasonally, this Q3 tends to be from a sales standpoint, the highest volumes quarter of the fiscal year. And so I think just in terms of some sales deleverage, that's a result of seasonality, we'll see a little bit of compression. I expect generally speaking that margins will -- that the margin trend year over year will be similar to what we saw this quarter,

是的，當然。從季節角度來看，從銷售角度來看，第三季往往是本財年銷售量最高的季度。因此，我認為僅就一些銷售去槓桿化而言，這是季節性的結果，我們會看到一點壓縮。我預計，一般來說，利潤率將——同比利潤率趨勢將與我們本季看到的類似，

The margin trend -- they -- how do you -- could you --

利潤率趨勢——他們——你怎麼做——你能嗎--

(multiple speakers) Sure I think from a cost of sales standpoint, we'll see a little bit of elevation in cost of sales. I think labor will be a little bit elevated, but the other costs will be rather similar.

（多個發言者）當然，我認為從銷售成本的角度來看，我們會看到銷售成本略有上升。我認為勞動力會稍微增加一點，但其他成本會相當相似。

Got it, got it, okay, good. All right, good luck (inaudible) making some good progress, so good to see. So that's all I've got for now. Thank you.

明白了，明白了，好的，好的。好吧，祝你好運（聽不清楚）取得一些良好的進展，很高興看到。這就是我現在所擁有的一切。謝謝。

Thanks again Roger.

再次感謝羅傑。

(Operator Instructions) [Mark Schuller].

（操作員說明）[馬克·舒勒]。

Hi Ryan, great quarter. Just a quick. Could you just give us an update on where things stand with the things that are in the development pipeline right now?

嗨瑞安，很棒的季度。只是快點。您能否向我們介紹目前正在開發的專案的最新情況？

Sure. So we have -- we are at the final stages of negotiating a lease in the Greater Charlotte DMA. And while things can always fall apart and I'll caveat it with that, we do have one lease that's very, very close. We would expect that if we're able to get that across the finish line, we would be able to open that probably late fiscal Q2 of 2025, possibly early fiscal Q3. So I'd say in the late March, April time line of next year.

當然。因此，我們正處於大夏洛特 DMA 租賃談判的最後階段。雖然事情總是會崩潰，我會警告這一點，但我們確實有一個非常非常接近的租約。我們預計，如果我們能夠跨越終點線，我們將能夠在 2025 年第二財季末、第三財季初開始營業。所以我想說的是明年三月下旬、四月的時間線。

And then we have some other LOIs and markets that we're looking at. I would say our current cadence is generally one every 12 months, approximately, maybe a second one. That said, we have enough CapEx allocated towards our remodels at Good Times that we think is really important to reinvest in our existing restaurants and our general approach around conservatism with respect to debt that we think one over the next 12 months will be sufficient.

然後我們還有一些其他的意向書和市場正在研究。我想說，我們目前的節奏通常是每 12 個月一次，大約是，也許是第二次。也就是說，我們為Good Times 的改造分配了足夠的資本支出，我們認為這對我們現有餐廳的再投資非常重要，而且我們在債務方面採取的保守主義態度非常重要，我們認為未來12 個月就足夠了。

Okay, thank you. And then just kind of a follow up on your mentioning the possibility of some closures. I mean, are we talking a couple? Are we talking more than that kind of thing that you're potentially looking at?

好的，謝謝。然後只是對你提到的一些關閉的可能性進行跟進。我的意思是，我們是在談論情侶嗎？我們談論的內容是否超出了您可能關注的範圍？

I think we're talking very low single digits. And I think, you know, there's not really anything there in terms of like, oh, this is that we're going to close massive amounts of stores. But rather just to kind of alert our investors, hey, we may be closing one or two, and that's not an indication of anything bad, it's just an indication of smart and timely real estate management.

我認為我們正在談論非常低的個位數。我認為，你知道，實際上並沒有什麼，哦，我們將關閉大量商店。但只是為了提醒我們的投資者，嘿，我們可能會關閉一兩個，這並不是什麼壞事的跡象，這只是明智而及時的房地產管理的跡象。

Okay. Appreciate it, great quarter.

好的。欣賞它，偉大的季度。

(multiple speakers) thanks again.

（多位發言者）再次感謝。

David Schwartz.

大衛·施瓦茨。

Yes, thanks for taking my question. So on the last -- following up on the last question, and I know your comments earlier, are some of the lowest performing stores currently unprofitable on a four wall basis, meaning have they been actually detracting from profitability?

是的，感謝您提出我的問題。那麼，在最後一個問題上，我知道您之前的評論，一些業績最低的商店目前是否在四牆基礎上無盈利，這意味著它們實際上是否降低了盈利能力？

So yes, the store two that we are considering closing are negative, negative restaurant, what we would call internally restaurant level cash flow at what I think we say in the investment community is restaurant level operating profit, though for those individual stores they're negative contributors. And ultimately while some -- a couple of them may have a little bit of life left on the leaf, the goal would be that ultimately closing those become income accretive.

所以，是的，我們正在考慮關閉的兩家商店是負的，負餐廳，我們稱之為內部餐廳水平現金流，我認為我們在投資界所說的是餐廳水平營業利潤，儘管對於那些個別商店來說，他們是負貢獻者。最終，雖然其中一些——其中一些可能已經只剩下一點生命了，但我們的目標是最終關閉這些項目能夠增加收入。

Okay. Thanks again and thanks for all the information on today's call.

好的。再次感謝您在今天的電話會議上提供的所有資訊。

Thanks, David.

謝謝，大衛。

There are no further questions at this time. I'll hand over the call back over to Ryan.

目前沒有其他問題。我會把電話轉回給瑞安。

I am very optimistic about the future for both brands. We have exciting initiatives that will translate into both guest and employee engagement at both concepts. Our strong operating momentum is promising. These improvements are driven by our team members, managers, and leaders, throughout our company. This focus on hospitality, customer service, and pride in their work and in our concepts is evident every shift of every day. I want to again thank you all for joining us today.

我對這兩個品牌的未來都非常樂觀。我們推出了令人興奮的舉措，這些舉措將轉化為賓客和員工對這兩個概念的參與度。我們強勁的經營勢頭令人鼓舞。這些改進是由我們整個公司的團隊成員、經理和領導者所推動的。這種對熱情好客、客戶服務的關注以及對他們的工作和我們的理念的自豪感在每一天的每一個轉變中都很明顯。我想再次感謝大家今天加入我們。

Thank you for your participation. That does conclude today's conference. You may now disconnect.

感謝您的參與。今天的會議到此結束。您現在可以斷開連線。