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    Weather Slows Good Times' Sales in Q2

  • Industry News May 10, 2019

    Good Times Restaurants Inc., operator of Bad Daddy’s Burger Bar, a full-service, upscale burger bar concept, and Good Times Burgers & Frozen Custard, a regional quick-service restaurant chain focused on fresh, high quality, all natural products, today announced its preliminary unaudited financial results for the second fiscal quarter ended March 26.

    Key highlights of the company’s financial results include:

    • Total revenues increased 15 percent to $27,172,000 for the quarter
    • Total Restaurant Sales for Bad Daddy’s restaurants increased 27.8 percent to $20,384,000 and Bad Daddy’s Restaurant Level Operating Profit (a non-GAAP measure) was $3,322,000 or 16.3 percent as a percent of sales
    • Same store sales for company-owned Bad Daddy’s restaurants increased 1.3 percent for the quarter on top of last year’s increase of 0.2 percent
    • The company opened one new Bad Daddy’s restaurant during the quarter
    • Total Restaurant Sales for Good Times restaurants were $6,570,000 and Good Times Restaurant Level Operating Profit (a non-GAAP measure) was $509,000 or 7.7 percent as a percent of sales
    • Net Loss Attributable to Common Shareholders was $450,000 for the quarter
    • Adjusted EBITDA (a non-GAAP measure) for the quarter was $1,148,000
    • The Company ended the quarter with $3.4 million in cash and $12.3 million drawn against its senior credit facility

    Boyd Hoback, president and CEO, says, “Similar to our first quarter’s results, we continued to post favorable same-store sales results for Bad Daddy’s but our Good Times same-store sales were significantly impacted by more inclement weather compared to the prior year and were down 5.9 percent during the second quarter, adjusted for the impact of store closures on March 13. However, subsequent to the end of the quarter we have returned to more seasonable weather and our same-store sales at Good Times have rebounded, up more than 4 percent so far in the third quarter, validating our assertion that the first and second quarter sales comps were largely the result of weather compared to the prior year. We opened one new Bad Daddy’s during the quarter, which continues to post sales significantly ahead of our system average, even as it moves out of its honeymoon period. We have three additional Bad Daddy’s under development that we expect to open this fiscal year and one that we expect to open shortly after the end of the fiscal year.”

    Commenting on the company’s earnings guidance, Ryan Zink, Chief Financial Officer, says, “We are reaffirming our guidance from the prior quarter, which calls for Adjusted EBITDA of approximately $6.0 to $6.5 million and the opening of five new Bad Daddy’s restaurants for the 2019 fiscal year. We have updated our same-store sales assumptions at Good Times to reflect a return to positive same-store-sales.”

    Fiscal 2019 Outlook:

    The Company reiterated its guidance for fiscal 2019:

    • Total revenues of approximately $112 million to $114 million with a year-end revenue run rate of approximately $120 million
    • Total revenue estimates assume same-store sales of approximately +1 to +2 percent for the balance of the year for Good Times and Bad Daddy’s
    • General and administrative expenses of approximately $8.4 million to $8.6 million, including approximately $500,000 of non-cash equity compensation expense
    • The opening of five new Bad Daddy’s restaurants
    • Net loss of approximately $1.0 million including pre-opening expenses of approximately $1.7 million
    • Total Adjusted EBITDA of approximately $6.0 million to $6.5 million
    • Capital expenditures (net of tenant improvement allowances) of approximately $7.0 to $7.5 million including approximately $0.6 million related to fiscal 2020 development. This does not include the use of approximately $3.0 million of cash in the previously disclosed acquisition of the non-controlling interest in three Bad Daddy’s restaurants.
    • Fiscal year-end long-term debt of approximately $13.5 to $14.0 million
    News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.
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