Good Times Restaurants Inc., operator of Good Times Burgers & Frozen Custard, a regional quick service restaurant chain focused on fresh, high quality, all natural products, and Bad Daddy’s Burger Bar, a full service, upscale concept, announced its preliminary unaudited financial results for the second fiscal quarter ended March 28, 2017.
Key highlights of the company’s financial results include:
Same store sales for company-owned Good Times restaurants increased 0.1 percent for the quarter on top of last year’s increase of 0.5 percent. Excluding the days that the Good Times’ restaurants were closed for kitchen remodels to add new production line equipment, same store sales increased 0.5 percent for the quarter. Year to date, same store sales decreased 0.2 percent versus last year’s increase of 2.6 percent.
Same store sales for company-owned Bad Daddy’s restaurants increased 3.2 percent for the quarter on top of last year’s increase of 1.9 percent. Year to date, same store sales increased 2.6 percent versus last year’s increase of 4 percent.
Total revenues increased 19 percent to $18,239,000 for the quarter.
The company opened one new Bad Daddy’s restaurant during the quarter and has opened one additional restaurant after the quarter ended for a total of three new Bad Daddy’s restaurants opened so far in fiscal 2017 and expects five more to open by fiscal year end.
The company opened one new Good Times restaurant during the quarter.
Sales for the Bad Daddy’s restaurants for the quarter increased 33 percent versus last year to $11,187,000 and Restaurant Level Operating Profit (a non-GAAP measure) increased 35percent to $1,803,000 or 16.1 percent as a percent of sales.
Adjusted EBITDA (a non-GAAP measure) for the quarter was $619,000 versus $639,000 last year.
The company ended the quarter with $4.8 million in cash and $1.4 million of long-term debt
Boyd Hoback, President & CEO, says, “We are very pleased with both our same store sales trends and the sales from our new restaurants. As a result, we remain confident in our expectations for our same store sales and operating margins, as we’ve seen some acceleration in Good Times’ sales subsequent to the quarter’s end from the rollout of our Better Burger and West Coast Burger initiatives. Our most recent store openings’ sales in both brands have exceeded our expectations, including the new Good Times restaurant that has set sales records for any Good Times restaurant and our two newest Bad Daddy’s that look like they will both settle in above our average restaurant sales and above our target of $2.5 million. We are also on track for five new Bad Daddy’s to open in May, June, August and September and are building our pipeline for fiscal 2018.”
Fiscal 2017 Outlook:
The company reiterated the following guidance for fiscal 2017:
Total revenues of approximately $78 million to $80 million with a year-end revenue run rate of approximately $92 million to $94 million
Total revenue estimates assume same store sales of approximately +3 percent to +3.5 percent for Good Times and +1 percent to +2 percent for Bad Daddy’s in Q3 and Q4
General and administrative expenses of approximately $7.0 million, including approximately $800,000 of non-cash equity compensation expense
The opening of a total of 8 new Bad Daddy’s restaurants (including 2 joint venture units) and 1 new Good Times restaurant
Total Adjusted EBITDA of approximately $4.0 million to $4.5 million
Restaurant pre-opening expenses of approximately $3 million
Capital expenditures (net of tenant improvement allowances) of approximately $12 million including approximately $2 million related to fiscal 2018 development
Fiscal year end long term debt of approximately $6 million.