Good Times closes 2 Bad Daddy's units; lender relaxes leverage covenant to 5.65x

Good Times Restaurants Inc.

Closure of Bad Daddy's in Roswell, GA and Broomfield, CO; lease terminations with $250k maximum EBITDA addback.
Consolidated Leverage Ratio covenant raised to 5.65:1 for quarters ending Sep 2025 through Mar 2026, then 5.25:1.
Restricted period through Dec 29, 2026 bans dividends, share repurchases, and other restricted payments.
EBITDA phased addbacks of $280k (Sep 2025), $210k (Dec 2025), $140k (Mar 2026), $70k (Jun 2026) from closures.
Applicable Rate fixed at 3.25% (SOFR) and 2.25% (Base) for fiscal quarters through Jun 2026, then performance-based.

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