Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad
Daddy’s Burger Bar and Good Times Burgers & Frozen Custard
restaurant brands, today reported financial results for the 2024
third fiscal quarter.
Key highlights of the Company’s financial results
include:
- Total Revenues for the quarter increased 6.5% to $37.9 million
compared to the third quarter of fiscal 2023
- Same Store Sales1 for company-owned Bad Daddy’s restaurants
increased 1.2% for the quarter compared to the third quarter of
fiscal 2023
- Same Store Sales for company-owned Good Times restaurants
increased 5.8% for the quarter compared to the third quarter of
fiscal 2023
- Net Income Attributable to Common Shareholders was $1.3 million
for the quarter
- The Company ended the quarter with $4.8 million in cash and
$0.8 million of borrowings under its credit facility with Cadence
Bank
- The Company repurchased 263,516 shares of its common stock
during the quarter, including approximately 171,000 shares in a
privately negotiated purchase
Ryan M. Zink, the Company’s Chief Executive Officer, said, “The
Good Times brand produced strong same store sales again this
quarter, and we are extremely pleased with the bottom line results
the concept continues to generate. During the quarter, we
accomplished several significant reinvestment milestones including
completion of our fourth remodel, this one much more extensive,
including structural repairs. The restaurant was closed for nearly
six weeks during construction. Additionally, as previously
reported, in April we began the pilot phase of our next-generation
point-of-sale system. We quickly realized the benefits of this new
system, assessed the test results, addressed minor issues, and
moved to the rollout phase of the project and as of the end of
July, the system has been installed in nineteen locations, with
seven Company-owned locations yet to be installed. Those
restaurants will be completed within the next four weeks, with our
Denver-area franchise restaurants expected to be converted shortly
thereafter. We also acquired a franchisee-owned restaurant in
Parker, Colorado during the quarter, and made quick improvements to
the facility, including new awnings, overhauled the parking lot and
landscaping, and have both digital menu boards and new signage
scheduled for installation.”
Mr. Zink continued, “I am also thrilled with the improvement in
same store sales at Bad Daddy’s, with positive same store sales for
the quarter. We have continued the trend of improved performance
compared to the Black Box casual dining benchmark. Competition in
the casual dining, burger-focused segment continues to be intense
as our guests look for value through reasonable prices without
compromises on service, quality, or portions. While we continue to
look to creating value through drink specials and targeted
discounting, late in the quarter we introduced new limited time
burgers featuring quarter-pound, smashed patties. These burgers
were an immediate success, and we had to dip into reserve stock and
quickly recover as purchase velocity was more than double our
expectation. Though this product offering is currently slated to
end post-Labor Day, we expect these burgers to return and likely
will have a permanent place on Bad Daddy’s menu. As foodies at
heart, our operators are focused on cooking up unique, indulgent
burger builds, coupled with an inviting and engaging experience
that differentiates Bad Daddy’s from others in casual dining and
delivers on the value expectations of our guests.”
“In addition to our concept-level initiatives, we have continued
to focus on a multi-faceted approach to creating value, including
share repurchases. In addition to our share repurchase program,
during the quarter we completed a privately negotiated share
repurchase bringing the total shares repurchased during the quarter
to approximately 264,000 shares. At the same time, the cash
generated by the business enabled us to complete that purchase,
continue reinvesting in our restaurants, reduce our already limited
borrowings on our credit facility, with sequential quarterly growth
in ending cash reserves. I believe our operations and capabilities
leaders are focused on creating enjoyable and memorable experiences
for our guests through excellent restaurant operations and
authentic, genuine hospitality, and that in doing so, we grow the
value of our brands and operations for our shareholders,” Zink
concluded.
Conference Call: Management will host a conference call
to discuss its third quarter 2024 financial results on Thursday,
August 1, 2024 at 3:00 p.m. MT/5:00 p.m. ET. Hosting the call will
be Ryan M. Zink, its Chief Executive Officer and Keri A. August,
its Senior Vice President of Finance and Accounting.
The conference call can be accessed live over the phone by
dialing (888) 210-2831, conference ID: 3024033. The conference call
will also be webcast live from the Company's corporate website
www.goodtimesburgers.com. An archive of the webcast will be
available at the same location on the corporate website shortly
after the call has concluded.
Good Times Restaurants Inc. (Nasdaq: GTIM)
Good Times Restaurants Inc. owns, operates, and licenses 41 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 beers in a high-energy
atmosphere that appeals to a broad consumer base. Additionally,
through its wholly owned subsidiaries, Good Times Restaurants Inc.
owns, operates and franchises 31 Good Times Burgers & Frozen
Custard restaurants primarily in Colorado. Good Times is a regional
quick-service concept featuring 100% all-natural burgers and
chicken sandwiches, signature wild fries, green chili breakfast
burritos and fresh frozen custard desserts.
Forward Looking Statements
This press release contains forward looking statements within
the meaning of federal securities laws. The words “intend,” “may,”
“believe,” “will,” “should,” “anticipate,” “expect,” “seek”, “plan”
and similar expressions are intended to identify forward looking
statements. These statements involve known and unknown risks, which
may cause the Company’s actual results to differ materially from
results expressed or implied by the forward-looking statements.
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 disruption to our business from pandemics and other
public health emergencies, the impact and duration of staffing
constraints at our restaurants, the impact of supply chain
constraints and the current inflationary environment, the uncertain
nature of current restaurant 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, other general economic and
operating conditions, risks associated with the acquisition of
additional restaurants, the adequacy of cash flows and the cost and
availability of capital or credit facility borrowings to provide
liquidity, changes in federal, state, or local laws and regulations
affecting the operation of our restaurants, including minimum wage
and tip credit regulations, and other matters discussed under the
Risk Factors section of Good Times’ Annual Report on Form 10-K for
the fiscal year ended September 26, 2023 filed with the SEC, and
other filings with the SEC.
Category: Financial
Good Times Restaurants
Inc.
Unaudited Supplemental
Information
(In thousands, except per share
amounts)
Quarter Ended (13
weeks)
Year-to-Date (39
weeks)
June 25, 2024
June 27, 2023
June 25, 2024
June 27, 2023
NET REVENUES:
Restaurant sales
$
37,742
$
35,376
$
105,953
$
103,123
Franchise revenues
200
256
568
706
Total net revenues
37,942
35,632
106,521
103,829
RESTAURANT OPERATING COSTS:
Food and packaging costs
11,698
10,923
32,624
32,185
Payroll and other employee benefit
costs
12,635
11,940
36,525
35,477
Restaurant occupancy costs
2,580
2,432
7,698
7,318
Other restaurant operating costs
5,195
4,811
15,028
14,129
Pre-opening costs
-
80
-
110
Depreciation and amortization
960
919
2,813
2,740
Total restaurant operating costs
33,068
31,105
94,688
91,959
General and administrative costs
2,680
2,377
7,791
7,070
Advertising costs
749
751
2,665
2,423
Impairment of long-lived assets
199
965
199
1,041
Loss (gain) on restaurant and equipment
asset sale
18
(10
)
12
(32
)
Litigation contingencies
-
-
(332
)
-
INCOME FROM OPERATIONS:
1,228
444
1,498
1,368
Interest and other expense, net
(27
)
(18
)
(101
)
(56
)
NET INCOME BEFORE INCOME TAXES:
1,201
426
1,397
1,312
Provision for income taxes
197
551
198
10,503
NET INCOME:
1,398
977
1,595
11,815
Income attributable to non-controlling
interests
(77
)
(135
)
(212
)
(479
)
NET INCOME ATTRIBUTABLE TO COMMON
SHAREHOLDERS
$
1,321
$
842
$
1,383
$
11,336
NET INCOME PER SHARE, ATTRIBUTABLE TO
COMMON SHAREHOLDERS:
Basic
$
0.12
$
0.07
$
0.12
$
0.96
Diluted
$
0.12
$
0.07
$
0.12
$
0.95
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic
10,933,758
11,700,044
11,149,181
11,853,441
Diluted
11,034,487
11,769,286
11,246,353
11,910,491
Good Times Restaurants
Inc.
Unaudited Supplemental
Information
(In thousands)
Balance Sheet Data
June 25, 2024
September 26, 2023
Cash and cash equivalents
$
4,819
$
4,182
Current assets
$
7,709
$
6,521
Total assets
$
90,077
$
91,088
Current liabilities
$
16,543
$
14,890
Shareholders’ equity
$
33,018
$
32,994
Supplemental Information for
Company-Owned Restaurants (dollars in thousands):
Bad Daddy’s Burger Bar
Good Times Burgers &
Frozen Custard
Third Quarter (13
weeks)
Year-to-Date (39
weeks)
Third Quarter (13
weeks)
Year-to-Date (39
weeks)
2024
2023
2024
2023
2024
2023
2024
2023
Restaurant sales
$
27,327
$
26,085
$
77,896
$
77,592
$
10,415
$
9,291
$
28,057
$
25,531
Restaurants open at beginning of
period
40
39
40
40
25
23
25
23
Restaurants opened or acquired during
period
-
-
-
-
1
-
1
-
Restaurants closed during period
-
-
-
1
-
-
-
-
Restaurants open at period end
40
39
40
39
26
23
26
23
Restaurant operating weeks
520.0
504.0
1560.0
1530.5
324.5
299.0
974.5
897.0
Average weekly sales per restaurant
$
52.6
$
51.8
$
49.9
$
50.7
$
32.1
$
31.1
$
28.8
$
28.5
Reconciliation of Non-GAAP Measurements to U.S. GAAP
Results
Reconciliation of Non-GAAP
Restaurant-Level Operating Profit to Income from Operations
(In thousands, except percentage
data)
Bad Daddy’s Burger Bar
Good Times Burgers &
Frozen Custard
Good Times Restaurants
Inc.
-------------------------------------Quarter Ended (13
Weeks)-------------------------------------
June 25, 2024
June 27, 2023
June 25, 2024
June 27, 2023
June 25, 2024
June 27, 2023
Restaurant sales
$
27,327
100.0
%
$
26,085
100.0
%
$
10,415
100.0
%
$
9,291
100.0
%
$
37,742
$
35,376
Restaurant operating costs (exclusive of
depreciation and amortization and preopening, shown separately
below):
Food and packaging costs
8,517
31.2
%
8,106
31.1
%
3,181
30.5
%
2,817
30.3
%
11,698
10,923
Payroll and benefits costs
9,227
33.8
%
9,054
34.7
%
3,408
32.7
%
2,886
31.1
%
12,635
11,940
Restaurant occupancy costs
1,727
6.3
%
1,700
6.5
%
853
8.2
%
732
7.9
%
2,580
2,432
Other restaurant operating costs
3,945
14.4
%
3,750
14.4
%
1,250
12.0
%
1,061
11.4
%
5,195
4,811
Restaurant-level operating profit
$
3,911
14.3
%
$
3,475
13.3
%
$
1,723
16.5
%
$
1,795
19.3
%
$
5,634
$
5,270
Franchise revenues
200
256
Deduct - Other operating:
Depreciation and amortization
960
919
General and administrative
2,680
2,377
Advertising costs
749
751
Impairment of long-lived assets
199
965
Loss (gain) on restaurant and equipment
asset sales
18
(10
)
Pre-opening costs
-
80
Total other operating
4,606
5,082
Income from operations
$
1,228
$
444
Certain percentage amounts in the
table above may not total due to rounding as well as the fact that
restaurant operating costs are expressed as a percentage of
restaurant revenues (as opposed to total revenues).
Reconciliation of Non-GAAP Measurements to U.S. GAAP
Results
Reconciliation of Non-GAAP
Restaurant-Level Operating Profit to Income (Loss) from
Operations
(In thousands, except percentage
data)
Bad Daddy’s Burger Bar
Good Times Burgers &
Frozen Custard
Good Times Restaurants
Inc.
--------------------------------Year-to-Date Period Ended (39
weeks)--------------------------------
June 25, 2024
June 27, 2023
June 25, 2024
June 27, 2023
June 25, 2024
June 27, 2023
Restaurant sales
$
77,896
100.0
%
$
77,592
100.0
%
$
28,057
100.0
%
$
25,531
100.0
%
$
105,953
$
103,123
Restaurant operating costs (exclusive of
depreciation and amortization, and preopening, shown separately
below:
Food and packaging costs
24,156
31.0
%
24,131
31.1
%
8,468
30.2
%
8,054
31.5
%
32,624
32,185
Payroll and benefits costs
27,040
34.7
%
26,951
34.7
%
9,485
33.8
%
8,526
33.4
%
36,525
35,477
Restaurant occupancy costs
5,188
6.7
%
5,124
6.6
%
2,510
8.9
%
2,194
8.6
%
7,698
7,318
Other restaurant operating costs
11,421
14.7
%
11,084
14.3
%
3,607
12.9
%
3,045
11.9
%
15,028
14,129
Restaurant-level operating profit
$
10,091
13.0
%
$
10,302
13.3
%
$
3,987
14.2
%
$
3,712
14.5
%
$
14,078
$
14,014
Franchise revenues
568
706
Deduct - Other operating:
Depreciation and amortization
2,813
2,740
General and administrative
7,791
7,070
Advertising costs
2,665
2,423
Litigation contingencies
(332
)
-
Impairment of long-lived assets
199
1,041
Loss (gain) on restaurant and equipment
asset sales
12
(32
)
Pre-opening costs
-
110
Total other operating
13,148
13,352
Income from operations
$
1,498
$
1,368
Certain percentage amounts in the
table above may not total due to rounding as well as the fact that
restaurant operating costs are expressed as a percentage of
restaurant revenues (as opposed to total revenues).
The Company believes that restaurant-level operating profit is
an important measure for management and investors because it is
widely regarded in the restaurant industry as a useful metric by
which to evaluate restaurant-level operating efficiency and
performance. The Company defines restaurant-level operating profit
to be restaurant revenues minus restaurant-level operating costs,
excluding restaurant closures and impairment costs. The measure
includes restaurant-level occupancy costs, which include fixed
rents, percentage rents, common area maintenance charges, real
estate and personal property taxes, general liability insurance and
other property costs, but excludes depreciation. The measure
excludes depreciation and amortization expense, substantially all
of which is related to restaurant level assets, because such
expenses represent historical sunk costs which do not reflect
current cash outlay for the restaurants. The measure also excludes
selling, general and administrative costs, and therefore excludes
occupancy costs associated with selling, general and administrative
functions, and pre-opening costs. The Company excludes restaurant
closure costs as they do not represent a component of the
efficiency of continuing operations. Restaurant impairment costs
are excluded, because, like depreciation and amortization, they
represent a non-cash charge for the Company’s investment in its
restaurants and not a component of the efficiency of restaurant
operations. Restaurant-level operating profit is not a measurement
determined in accordance with generally accepted accounting
principles (“GAAP”) and should not be considered in isolation, or
as an alternative, to income from operations or net income as
indicators of financial performance. Restaurant-level operating
profit as presented may not be comparable to other similarly titled
measures of other companies. The tables above set forth certain
unaudited information for the current and prior year fiscal
quarters and year-to-date periods for fiscal 2024 and fiscal 2023,
expressed as a percentage of total revenues, except for the
components of restaurant operating costs, which are expressed as a
percentage of restaurant revenues.
Reconciliation of Net Loss to Non-GAAP
Adjusted EBITDA (Thousands of US Dollars)
Quarter Ended (13
weeks)
Year-to-Date (39
weeks)
June 25, 2024
June 27, 2023
June 25, 2024
June 27, 2023
Adjusted EBITDA2:
Net Income, as reported
$
1,321
$
842
$
1,383
11,336
Depreciation and amortization
959
924
2,817
2,691
Interest expense, net
27
18
101
56
Provision for income taxes
(197
)
(551
)
(198
)
(10,503
)
EBITDA
2,110
1,233
4,103
3,580
Preopening expense
-
80
-
110
Non-cash stock-based compensation
28
15
106
104
Asset Impairment
199
965
199
1,041
GAAP rent-cash rent difference
(211
)
(135
)
(537
)
(450
)
Loss (gain) on restaurant and equipment
asset sales
18
(10
)
12
(32
)
Litigation contingencies
-
-
(332
)
-
Adjusted EBITDA
$
2,144
$
2,148
$
3,551
$
4,353
Adjusted EBITDA is a supplemental measure of operating
performance that does not represent and should not be considered as
an alternative to net income or cash flow from operations, as
determined by GAAP, and our calculation thereof may not be
comparable to that reported by other companies. This measure is
presented because we believe that investors' understanding of our
performance is enhanced by including this non-GAAP financial
measure as a reasonable basis for evaluating our ongoing results of
operations.
Adjusted EBITDA is calculated as net income before interest
expense, provision for income taxes and depreciation and
amortization and further adjustments to reflect the additions and
eliminations presented in the table above.
Adjusted EBITDA is presented because: (i) we believe it is a
useful measure for investors to assess the operating performance of
our business without the effect of non-cash charges such as
depreciation and amortization expenses and asset disposals, closure
costs and restaurant impairments, and (ii) we use Adjusted EBITDA
internally as a benchmark for certain of our cash incentive plans
and to evaluate our operating performance or compare our
performance to that of our competitors. The use of Adjusted EBITDA
as a performance measure permits a comparative assessment of our
operating performance relative to our performance based on our GAAP
results, while isolating the effects of some items that vary from
period to period without any correlation to core operating
performance or that vary widely among similar companies. Companies
within our industry exhibit significant variations with respect to
capital structures and cost of capital (which affect interest
expense and income tax rates) and differences in book depreciation
of property, plant and equipment (which affect relative
depreciation expense), including significant differences in the
depreciable lives of similar assets among various companies. Our
management believes that Adjusted EBITDA facilitates
company-to-company comparisons within our industry by eliminating
some of these foregoing variations. Adjusted EBITDA, as presented,
may not be comparable to other similarly titled measures of other
companies, and our presentation of Adjusted EBITDA should not be
construed as an inference that our future results will be
unaffected by excluded or unusual items.
_________________________
1 Same store sales are a metric used in evaluating the
performance of established restaurants and is a commonly used
metric in the restaurant industry. Same store sales for our brands
are calculated using all units open for at least 18 full fiscal
months and use the comparable operating weeks from the prior year
to the current year quarter’s operating weeks.
2 Depreciation and amortization, the difference between GAAP
rent and cash rent and the loss (gain) on restaurant and equipment
asset sales have been reduced by any amounts attributable to
non-controlling interests.
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GOOD TIMES RESTAURANTS INC. CONTACTS: Ryan M. Zink, Chief
Executive Officer (303) 384-1432 Christi Pennington (303)
384-1440
Good Times Restaurants (NASDAQ:GTIM)
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