It’s not all good times at Good Times Restaurants.
Two board members resigned earlier this month amid a monthslong fight over the company’s profitability, according to a U.S. Securities and Exchange Commission filing submitted Tuesday by the brand.
Both former directors are vowing to use their new outsider status to become activists to “achieve the change necessary to unlock stockholder value at Good Times,” according to the resignation letters of Robert Stetson and Charles Jobson.
The two assert board members and company executives ignored their proposals for increasing profits and stock prices at the parent company of Good Times Burgers & Frozen Custard as well as Bad Daddy’s Burger Bar.
In the SEC filing, the board says it disputes the allegations made by Stetson and Jobson, including claims their business plans were “scoffed at.” Board members said the proposals needed to undergo confidential in-depth review, according to the filing, but the two departed board members would not agree and instead began lobbying shareholders themselves to push for the changes—potentially disclosing sensitive company information.
Good Times reported last month that it expects to see a loss of $1.4 million for fiscal year 2018.
The company, which currently operates 38 quick-service Good Times units,acquired full-service Bad Daddy’s in 2015 for $21 million.
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