Good Times Restaurants (GTIM) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01Our operations are susceptible to the cost of, and changes in, food availability which could adversely affect our operating results
2. 02Macroeconomic conditions and inflation could affect our operating results
3. 03Tariffs that are implemented or merely threatened may increase the cost of commodities we purchase for use in our restaurantsNew
4. 04Price increases may impact customer visits
5. 05Labor shortages could slow our growth or harm our business
6. 06Labor organizing could adversely affect our operations and harm our competitive position in the restaurant industry, which could harm our financial performanceNew
7. 07The outbreak of, and local, state and federal governmental responses to, pandemics or other future health concerns have previously significantly disrupted and could disrupt our business again in the future, which has and could materially affect our financial condition and operating results
8. 08The failure of banks where we maintain deposits in excess of the limits insured by FDIC or other government, or quasi-government agencies could materially affect our financial position and operating results
9. 09International conflicts could disrupt our business and could materially affect our financial condition and operating results
10. 10We have accumulated losses and cannot guarantee future profits52% rewritten
11. 11If we are unable to continue to increase same store sales at existing restaurants, our ability to attain profitability may be adversely affected
12. 12New restaurants, when and if opened, may not be profitable, if at all, for several months
13. 13The hamburger restaurant market is highly competitive
14. 14Sites for new restaurants may be difficult to acquire
15. 15Our franchisees could take actions that could harm our business
16. 16We depend on key management employees44% rewritten
17. 17Security breaches of confidential customer information in connection with our electronic processing of credit and debit card transactions may adversely affect our business50% rewritten
18. 18Information technology system failures or breaches of our network security could interrupt our operations and harm our business, financial condition and results of operations
19. 19We are subject to extensive government regulation that may adversely hinder or impact our ability to govern various aspects of our business including our ability to expand and develop our restaurants
20. 20Concerns relating to food safety, food-borne illness, pandemics and other diseases could reduce customer traffic to our restaurants, or cause us to be the target of litigation, which could materially adversely affect our financial performance
21. 21The inability of the company to successfully negotiate extended terms on leases reaching end-of-term may reduce future profitability
22. 22If we are unable to protect our reputation, the value of our brands and sales at our restaurants may be negatively impacted, which may materially adversely affect our financial performance
23. 23Ongoing capital expenditures at existing restaurants will require significant capital expenditures and remodel initiatives may not result in increased sales
24. 24Our ability to succeed with the Bad Daddy’s Burger Bar restaurant concept will require significant capital expenditures and management attention
25. 25Our growth, including the development of Bad Daddy’s Burger Bar restaurants, may strain our management and infrastructure
26. 26Bad Daddy’s Burger Bar is subject to all of the risks of a relatively new business, including competition, and there is no guarantee of a return on our capital investment
27. 27Costs associated with our employee health care programs continue to escalate and we may not be able to fully pass along those cost increases to employees
28. 28Our business is subject to evolving corporate governance and public disclosure regulations, including environmental, social and governance (“ESG”) matters, that could expose us to numerous risks30% rewritten

Risks Related to the Ownership of Our Common Stock

1. 29Our business could be negatively affected as a result of significant shareholders or potential shareholders attempting to effect changes or acquire control over our company, which could cause us to incur significant expense, hinder execution of our business strategy and impact the trading value of our securities
2. 30A future ownership change as defined by Section 382 of the Internal Revenue Code (“IRC”) could limit our ability to utilize tax loss and credit carryforwards to offset our taxable income
3. 31Future changes in financial accounting standards may cause adverse unexpected operating results and affect our reported results of operations
4. 32Currently we qualify as a “smaller reporting company” under SEC rules. A smaller reporting company prepares and files SEC reports and registration statements using the same forms as other SEC reporting companies, though the information required to be disclosed may differ and be less comprehensive
5. 33The price of our common stock may fluctuate significantly
6. 34Sales of a substantial number of shares of our common stock in the public market by our existing shareholders could cause our stock price to fall
7. 35There may be future sales or other dilution of our equity, which may adversely affect the market price of the shares of our common stock and/or dilute the value of shares of our common stock
8. 36Provisions in our articles of incorporation and bylaws and provisions of Nevada law may prevent or delay an acquisition of our company, which could decrease the trading price of our common stock