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 first fiscal quarter ended December 26, 2017.
Key highlights of the company’s financial results include:
Boyd Hoback, President & CEO, says, “During our first quarter, we continued to post very favorable same store sales results for both brands. Additionally, our new Bad Daddy’s stores that opened in fiscal 2017 and so far in fiscal 2018 are performing very well, averaging $54,000 per week during the quarter, or 12.3 percent above the system average with the two new North Carolina stores opening very strong in October. Our same store sales have remained on track so far during our second quarter and in addition to the two new Bad Daddy’s opened in October, we opened our first store in the Atlanta market in Chamblee, Georgia in early January. We have two more Bad Daddy’s under construction, one in Chattanooga, Tennessee, and a second Atlanta-area location, with three more expected to begin construction in the next couple of months. We have three additional leases signed awaiting landlord turnover with an additional five in the late stages of lease negotiation, all of which are in North Carolina, South Carolina, Georgia, Tennessee and Oklahoma. While labor is an industry pressure point, our Good Times labor as a percentage of sales only increased .4% and Bad Daddy’s labor decreased by .5 percent during the quarter compared to the prior year, reflecting the impact of additional Bad Daddy’s development in the southeast.”
Commenting on the company’s guidance for fiscal 2018, Ryan Zink, Chief Financial Officer, stated “We are reiterating our prior guidance for fiscal 2018 which calls for 2018 revenues of approximately $100 million, and adjusted EBITDA of between $5.0 and $5.5 million. We have slightly shifted our new store opening projections towards the back half of the year, and subsequent to the end of the quarter, we closed our lowest-volume Good Times restaurant, but strong unit-level performance during the first quarter and second quarter to-date have enabled us to retain our revenue and Adjusted EBITDA projections.”
Fiscal 2018 Outlook:
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