Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar, a full-service premium burger bar concept, and Good Times Burgers & Frozen Custard, a regional quick-service restaurant chain, today reported financial results for the fiscal first quarter ended December 31, 2019.
Key highlights of the Company’s financial results include:
- Total Revenues increased 21.5% to $30.8 million for the quarter
- Total Restaurant Sales for Bad Daddy’s restaurants increased 25.0% to $22.8 million for the quarter
- The Company opened two Bad Daddy’s restaurants during the first quarter, in Charleston and Columbia, South Carolina
- Same Store Sales for company-owned Bad Daddy’s restaurants decreased 3.4% for the quarter
- Total Restaurant Sales for Good Times restaurants increased $0.9 million for the quarter to $7.8 million
- Same Store Sales for company-owned Good Times restaurants increased 5.8% for the quarter
- Net Loss Attributable to Common Shareholders was $0.8 million for the quarter
- Adjusted EBITDA* (a non-GAAP measure) for the quarter was $1.5 million
- The Company ended the quarter with $3.3 million in cash and $14.4 million drawn against its senior credit facility
Ryan M. Zink, the Company’s Acting Chief Executive Officer, said, “I am pleased with the progress our team is making in turning our near-term primary focus towards service, hospitality, and operational excellence within our existing restaurants. Our first quarter of fiscal 2020 saw the addition of two new Bad Daddy’s restaurants, which continue to perform well as our operators embrace the objective to serve our guests with unmatched hospitality from day one. Additionally, we continue to experience same-store sales strength at our Good Times Burgers and Frozen Custard concept as we improve our service speed and order accuracy, while still providing the same high-quality, all-natural burgers our customers have come to expect.”
Mr. Zink continued, “Although we still experienced year-over-year margin erosion in our quarterly results, we made improvements sequentially throughout the quarter and significantly narrowed the year-over-year margin gap from where we ended fiscal 2019. We expect to make additional progress throughout the rest of this year. As a result of our fiscal calendar, we had an extra operating week during the first quarter, which in the current year consisted of fourteen weeks. This extra week contributed approximately $2.5 million of incremental revenues, contributed $0.3 million of incremental adjusted EBITDA, and reduced net loss by $0.2 million for the quarter. Same store sales at Bad Daddy’s continues to be an opportunity that we are keenly focused on, and to support this, beyond our operations initiatives we expect to moderately increase our advertising spending during the second and third fiscal quarters.”
Fiscal 2020 Outlook:
Additionally, the Company updated its guidance for fiscal 2020:
- Total revenues of approximately $120 to $123 million
- Total revenue estimates assume generally flat same store sales at Bad Daddy’s initially decreasing by approximately 3% but trending flat by the end of the fiscal year, and at Good Times increasing by an average of approximately 3.5% during the remainder of the fiscal year
- General and administrative expenses of approximately $8.5 to $8.7 million including approximately $400,000 to $450,000 of non-cash equity compensation expense
- The opening of up to one additional Bad Daddy’s Burger Bar during the fourth quarter
- Net loss of approximately $0.3 to $0.5 million, including approximately $1.2 million of pre-opening costs
- Total adjusted EBITDA* between $6.3 and $6.5 million
- Capital expenditures (net of tenant improvement allowances) of approximately $2.8 million including approximately $0.7 million related to the two restaurants opened in October and December 2019.
- Fiscal year-end long-term debt of approximately $12.2 to $12.7 million
About Good Times Restaurants Inc.: Good Times Restaurants Inc. (GTIM) owns, operates, franchises and licenses 39 Bad Daddy’s Burger Bar restaurants through its wholly owned subsidiaries. Bad Daddy’s Burger Bar is a full-service “small box” restaurant concept featuring a chef-driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar and a focus on a selection of craft microbrew beers in a high-energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly owned subsidiaries, Good Times Restaurants Inc. operates and franchises a regional quick-service restaurant chain consisting of 33 Good Times Burgers & Frozen Custard restaurants focused on fresh, high quality, all-natural products which are located primarily in Colorado.