Good Times Restaurants Inc., operator of Bad Daddy’s Burger Bar, a full-service premium burger bar concept, and Good Times Burgers & Frozen Custard, a regional quick-service restaurant chain, reported financial results for the fiscal first quarter ended December 31, 2019.
Key highlights of the company’s financial results include:
- Total Revenues increased 21.5 percent to $30.8 million for the quarter
- Total Restaurant Sales for Bad Daddy’s restaurants increased 25 percent to $22.8 million for the quarter
- The company opened two Bad Daddy’s restaurants during the first quarter, in Charleston and Columbia, South Carolina
- Same Store Sales for company-owned Bad Daddy’s restaurants decreased 3.4 percent for the quarter
- Total Restaurant Sales for Good Times restaurants increased $0.9 million for the quarter to $7.8 million
- Same Store Sales for company-owned Good Times restaurants increased 5.8 percent for the quarter
- Net Loss Attributable to Common Shareholders was $0.8 million for the quarter
- Adjusted EBITDAm(a non-GAAP measure) for the quarter was $1.5 million
- The company ended the quarter with $3.3 million in cash and $14.4 million drawn against its senior credit facility
Ryan M. Zink, the Company’s Acting Chief Executive Officer, says, “I am pleased with the progress our team is making in turning our near-term primary focus toward service, hospitality, and operational excellence within our existing restaurants. Our first quarter of fiscal 2020 saw the addition of two new Bad Daddy’s restaurants, which continue to perform well as our operators embrace the objective to serve our guests with unmatched hospitality from day one. Additionally, we continue to experience same-store sales strength at our Good Times Burgers and Frozen Custard concept as we improve our service speed and order accuracy, while still providing the same high-quality, all-natural burgers our customers have come to expect.”
Zink continues, “Although we still experienced year-over-year margin erosion in our quarterly results, we made improvements sequentially throughout the quarter and significantly narrowed the year-over-year margin gap from where we ended fiscal 2019. We expect to make additional progress throughout the rest of this year. As a result of our fiscal calendar, we had an extra operating week during the first quarter, which in the current year consisted of fourteen weeks. This extra week contributed approximately $2.5 million of incremental revenues, contributed $0.3 million of incremental adjusted EBITDA, and reduced net loss by $0.2 million for the quarter. Same store sales at Bad Daddy’s continues to be an opportunity that we are keenly focused on, and to support this, beyond our operations initiatives we expect to moderately increase our advertising spending during the second and third fiscal quarters.”
