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 today announced its preliminary unaudited financial results for the first fiscal quarter ended December 27.
Key highlights of the company’s financial results include:
- Same store sales for company-owned Good Times restaurants decreased 0.5 percent for the quarter on top of last year’s increase of 4.8 percent
- Same store sales for company-owned Bad Daddy’s restaurants increased 2 percent for the quarter on top of last year’s increase of 6.5 percent
- Total revenues increased 20 percent to $16,555,000 for the quarter
- The company opened one new Bad Daddy’s restaurants during the quarter and has opened one additional restaurant after the quarter ended
- Sales for the Bad Daddy’s restaurants for the quarter were $9,511,000 and Bad Daddy’s Restaurant Level Operating Profit (a non-GAAP measure) was $1,419,000 or 14.9 percent as a percent of sales
The cmpany ended the quarter with $3.5 million in cash and virtually no long-term debt
Boyd Hoback, president & CEO says: “Given the ongoing macro consumer spending and competitive discounting challenges in both segments in which we operate, we are right on track with our expectations for our same store sales and operating margins. For the first six weeks of our second fiscal quarter, Bad Daddy’s same store sales are +2.3 percent and Good Times are -1.6 percent. We’ve opened two new Bad Daddy’s so far this year, with our latest in Fayetteville opening at near record sales volumes. We have two more Bad Daddy’s under construction in Colorado, one under construction in Raleigh, North Carolina with two leases awaiting developer turnover to us in Charlotte, North Carolina, and we are finalizing leases in Atlanta, Nebraska and Oklahoma for fiscal 2017 and 2018 development. We have one new Good Times under construction in Greeley, Colorado that will open in March.”
Commenting on the company’s guidance for fiscal 2017, Hoback says: “We’ve modified our fiscal 2017 guidance based on adjusting our planned store weeks from our original forecast based on our Midwest and Southeast development, but we have accelerated our site development for the balance of this year and next year in several markets. We don’t anticipate that will be material to our longer term sales and profitability growth as we anticipate we will capture much more advantageous operating margins due to much lower front of the house labor costs in these new markets.”
Fiscal 2017 Outlook:
- The company provides 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 +1 percent to +2 percent for Good Times ranging from -1 percent to +1 percent in Q1 and Q2 and +3 percent to +3.5 percent in Q3 and Q4 and +1 percent to +2 percent for Bad Daddy’s
- General and administrative expenses of approximately $7 million to $7.2 million, including approximately $800,000 of non-cash equity compensation expense
- The opening of eight to 9 new Bad Daddy’s restaurants (including two joint venture units) and one new Good Times restaurant
