Ladies and gentlemen, welcome to the Good Times Restaurants Inc. Fiscal 2022 Third Quarter Earnings Call. By now, everyone should have access to the company’s earnings release, which is available in the Investors section of the company’s website. 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. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect, and therefore, investors should not place undue reliance on them, and the company undertakes no obligation to update these statements to reflect the events or circumstances that might arise after this call. 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 company’s financial performance and its cash flows from operations, general economic conditions, which could adversely affect the company’s results of operations and cash flows. These risks also include such factors as the disruption to our business from the novel coronavirus COVID-19 pandemic and the impact of the pandemic on our results of operations, financial condition and prospects which may vary depending on the duration and extent of the pandemic and the impact of federal, state and local governmental actions and customer behavior in response to the pandemic. The impact and duration of staffing constraints at our restaurants, the uncertain nature of current restraints, 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, supply chain and inflationary factors due to the unknown impacts of the war in Ukraine and other matters discussed under the Risk Factors section of Good Times annual report on Form 10-K for the fiscal year ended September 28, 2021, filed with the SEC and other filings with the SEC. During today’s call, the company will discuss non-GAAP measures, which they 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 reconciliation to comparable GAAP measures available in our earnings release. And now I would like to turn the call over to Ryan. Please go ahead, sir.

Thank you, Josh, and thank you all for joining us on the call today. As mentioned, you should have access to our earnings release and 10-Q filing. As we discussed last quarter, our results for this third fiscal quarter continue to reflect the inflationary pressures that are impacting the businesses nationwide. Our focus throughout this time period at both brands has been to pay wages, sufficient staff or restaurants, focus on the development of our people and maintain high levels of product quality, hospitality and well-maintained facilities to deliver an outstanding overall guest experience. The results have been the return of positive same-store sales at Good Times and a continuance of positive same-store sales at Bad Daddy’s, where we have been beating the Black Box Intelligence benchmark for casual dining. Average weekly sales at Bad Daddy’s this quarter were $52,300 up from $50,400 the same quarter in 2021 and up from $49,100 in the same quarter of 2019. Similarly, average weekly sales at Good Times this quarter were $30,400 up from $29,800 in 2021 and up from $24,000 in 2019. This represents an all-time high for any quarter. We saw cost pressures across the restaurant P&L driven by high product costs, partially offset by a 6.8% year-over-year menu price increase at Bad Daddy’s and an 8.2% year-over-year menu price increase at Good Times. In addition to significant product and wage cost increases, we’ve also experienced higher other restaurant operating costs due primarily to our investment in technology to expand digital orders. We continue to experience high levels of orders coming through third-party delivery aggregators at Bad Daddy’s, and we have seen increased volume of delivery orders at Good Times as we have more aggressively pursued that channel of the business. Protein costs, namely beef and bacon, have shown some price…

Thank you, Ryan. Total revenues increased 7.5% to $36.5 million for the quarter compared to the prior year quarter. Total restaurant sales for Bad Daddy’s restaurants increased $2.8 million to $27.1 million for the quarter. The increase in sales was due to higher demand for dine-in restaurant occasions as well as the continued strength in delivering online orders along with an additional 36 restaurant weeks associated with two new restaurants that opened in the third and fourth quarters of 2021 and the purchase of the Greenville, South Carolina, Bad Daddy’s restaurants. Same-store sales increased 5.3% during the quarter with 38 Bad Daddy’s in the comp base at the end of the quarter. Cost of sales at Bad Daddy’s were 32.5% for the quarter, a 280 basis point increase from last year’s quarter, the result of significantly higher food and packaging costs as seen through inflationary and supply chain pressure. Bad Daddy’s labor costs decreased by 10 basis points compared to the prior quarter to 34.2% for the quarter. The slight decrease as a percentage of sales reflects improved productivity, mostly offset by a significant increase in hourly wage rates. Among same-stores back-of-house hourly wage rates increased from $13.96 in the prior year quarter to $15.64 in the current year quarter, which is a 12% increase. Occupancy cost at Bad Daddy’s increased 10 basis points to 6.2%. The nominal increase is due to lease costs associated with newly opened restaurants toward the end of fiscal 2021 and lease costs associated with the restaurant acquired from a former franchisee and increased real property tax assessments. Other operating costs were 13.8% for the quarter, which is an increase of 180 basis points, primarily due to higher increased spending on restaurant technology and repair and maintenance expenses. Overall, restaurant-level operating profit, a non-GAAP measure,…

Thank you, Matthew, for the review of our financials for the quarter. And with that, Josh, we can open the call for questions, please.

[Operator Instructions] Your first question comes from the line of Brian Lonergan [UBS]. Your line is open.

Hey guys. Yes, the quarter was impressive to me given the environment. I was just wondering if you guys could maybe provide some guidance on seasonality going forward, having a tough time kind of getting a beat on it given the pandemic over the past few years and the mix of Bad Daddy’s and the Good times.

Certainly. I mean I think it’s a really thoughtful question because our business, particularly at Good Times, but also Bad Daddy’s has followed a similar seasonal pattern. And that’s been somewhat changed over the past couple of years as the pandemic has affected customer behavior. I think what we’re seeing is a return to the level of seasonality that we had prior to the pandemic, where typically between December and February, in particular, but maybe also in November, sales tend to decline and that tends to be the lowest indexing period. And the summer months really beginning in March – the spring and summer months, I should say, beginning in March and extending through say, mid-August tend to be some of the higher indexing months. I would say that July, despite being in the middle of summer tends to index a little more softly than the other summer months.

Okay. Yes, that’s extremely helpful. Just kind of a small follow-up on that. I’m wondering, do you think you’re going to get any kind of kick or benefit during Christmas going forward?

I think it’s – that also is a very interesting question, and I think it is one that we’re excited to and we’re anticipating highly. We do have a couple of more traditional mall restaurants, particularly at Bad Daddy’s. And I think that’s where we would see any pop, if you will. The short answer is we don’t know. We’re certainly hoping that’s the case. But I think that’s a question in light of how consumer behaviors changed. And is there going to be a return to some of the more normal patterns we see with holiday shopping. I know that’s a long-winded way to say I don’t really know. I’d say I think we’re hoping it is, but we’ll have to wait and see.

Okay, I’ll appreciate the candidness. Thanks again.

You’re welcome. Thank you.

[Operator Instructions] There are no further questions at this time. I’d like to turn the call back to Ryan.

Thank you, Josh. Though our performance this year continues to be impacted by severe cost pressures and we expect those pressures to have similar impact at least through the end of the fiscal year, our focus, along with the focus of our operators and their teams is to concentrate on running great restaurants, delighting customers and providing our guests with memorable experiences through great suit at both of our unique concepts. As always, I want to express my sincere thanks and appreciation for the entire team of people who all work exceptionally hard to execute both of our brands. With that, we’ll conclude today’s call. I thank you all for joining us today.

This concludes today’s conference call. You may.