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 fourth fiscal quarter ended September 26.
Key highlights of the company’s financial results versus prior year include:
- Same store sales for company-owned Good Times restaurants increased 3.9% for the quarter and increased 2.1 percent for the year on top of last year’s increase of 0.3% for the year
- Same store sales for company-owned Bad Daddy’s restaurants increased 1.4% for the quarter and 1.6% for the year on top of last year’s increase of 1.9% for the quarter and 3.3% for the year
- Total revenues increased 31% to $22,584,000 for the quarter and increased 23% to $79,080,000 for the year, which reflects the addition of one new Good Times restaurant and six Bad Daddy’s restaurants during the year
- Subsequent to the year end two additional Bad Daddy’s opened during the first two weeks of October
- Income from Operations declined by $1,122,000 to a loss of $1,422,000 for the year, which includes the impact of $2,588,000 of new store preopening costs incurred in fiscal 2017.
- Restaurant Level Operating Profit (a non-GAAP measure) for Good Times restaurants improved to $1,333,000 for the quarter versus $1,313,000 in the same quarter last year
- Restaurant Level Operating Profit (a non-GAAP measure) for Bad Daddy’s restaurants improved 28% to $2,081,000 in the fourth quarter from $1,631,000 in the fourth quarter last year
- Total Restaurant Level Operating Profit (a non-GAAP measure) increased 16% to $3,414,000 for the quarter and increased 15% to $12,378,000 for the year
- Adjusted EBITDA (a non-GAAP measure) for the quarter increased 24% to $1,305,000 from $1,051,000 and increased 12% to $3,777,000 from $3,368,000 for the fiscal year
- The company ended the quarter with $4.3 million in cash and $5.3 million of long term debt
Boyd Hoback, President & CEO, says, “We are pleased with our results that were slightly ahead of our revised guidance for the fourth quarter, particularly given the intense discounting and value pricing environment in both segments and absorbing the spike in commodity costs that began in our third quarter. For the first nine weeks of our first quarter of fiscal 2018 same store sales are +4.3% for Good Times and +1.7% at Bad Daddy’s. Our class of 2017 new Bad Daddy’s are averaging above our systemwide sales average and we are pleased with their performance as they reach stabilized sales trends after their honeymoon sales periods.”
Hoback adds, “We opened two Bad Daddy’s on October 2 and October 9 in North Carolina that had been planned for the last two weeks of fiscal 2017 and expect to open an additional seven restaurants during the balance of fiscal 2018. We expect to open our next Bad Daddy’s in the Atlanta, Georgia market in very early January 2018 with additional units following in North Carolina, South Carolina, and Tennessee. We have eight Bad Daddy’s leases signed and expect to sign an additional four leases by the end of the calendar year for our fiscal 2018 and initial 2019 development.”
Fiscal 2018 Outlook:
- The company has confirmed and updated its guidance for fiscal 2018:
- Total revenues of approximately $100 million to $102 million with a year-end revenue run rate of approximately $109 million to $111 million
- Total revenue estimates assume same store sales of approximately +3% to +3.5% for Good Times consistently throughout the year and +1% to +2% for Bad Daddy’s.
- General and administrative expenses of approximately $7.8 million to $8.0 million, including approximately $700,000 of non-cash equity compensation expense
- The opening of 9 new Bad Daddy’s restaurants (including 2 joint venture units)
- Net loss of approximately $1.4 million, including pre-opening expenses of approximately $2.5 million
- Total Adjusted EBITDA* of approximately $5.0 million to $5.5 million
- Capital expenditures (net of tenant improvement allowances) of approximately $9.5 million including approximately $1.2 million related to fiscal 2019 development