Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad
Daddy’s Burger Bar and Good Times Burgers & Frozen Custard
restaurant brands, today reported financial results for the 2024
first fiscal quarter ended December 26, 2023.
Key highlights of the Company’s financial results
include:
- Total Revenues for the quarter decreased 0.8% to $33.1 million
compared to the first quarter of fiscal 2023
- Total Restaurant Sales for Bad Daddy’s restaurants were $24.1
million for the quarter
- Same Store Sales1 for company-owned Bad Daddy’s restaurants
decreased 6.2% for the quarter
- Total Restaurant Sales for Good Times restaurants were $8.8
million for the quarter
- Same Store Sales for company-owned Good Times restaurants
increased 4.1% for the quarter
- Net Loss Attributable to Common Shareholders was $0.6 million
for the quarter
- Adjusted EBITDA2 (a non-GAAP measure) for the quarter was $0.3
million
- The Company ended the quarter with $3.5 million in cash and
$1.3 million of long-term debt
Ryan M. Zink, the Company’s Chief Executive Officer, said, “Our
Good Times brand has continued to deliver top line results, we
believe, in part, due to the results of our multi-year investments
into that brand. That strength in sales has translated into 13.5%
restaurant-level operating profit3 during our first fiscal quarter.
We have completed remodels of three Good Times restaurants that
include fresh paint, including murals by local artists, new awnings
and umbrellas, new signage, and complete overhauls of the parking
lot and driving surfaces. This is in addition to the installation
of digital menu boards in both the drive-thru and walk-up windows
which has been completed at all of our Good Times locations. In
addition to refreshing the physical restaurants, we continue to
make investments in our mobile app and GT Rewards loyalty program,
which we expect to enhance, with stored value capability, in the
next major update to the app.”
Mr. Zink continued, “The work we are doing to turn around Bad
Daddy’s sales has already resulted in improved operations and we
have seen the gap to the Black Box, an industry-known benchmark
service, same store sales index narrow considerably beginning in
late November. Further, management of controllable costs in the
restaurants improved from November to December, and we expect those
improvements to continue throughout the balance of this year. These
efforts started with a mindset shift by recapturing the culture of
operations excellence which had lost intensity during the past two
years. We have more changes planned that we expect to return Bad
Daddy’s to peak performance, which includes a re-intensified focus
on bar execution which will complement what we believe is already
the segment-leading culinary performance. But the larger
opportunity is to continue to increase the level of hospitality and
salesmanship in the front of house, and we are making investments
in training, learning, and development of both our front-of-house
team members and our management teams.”
“Macro trends are currently favoring the QSR segment over the
casual dining segment and the Company is well positioned to
capitalize on such cyclical changes by owning relevant
burger-focused brands in both segments,” Zink concluded.
Conference Call: Management will host a conference call
to discuss its first quarter 2024 financial results on Wednesday,
January 31, 2024 at 3:00 p.m. MT/5:00 p.m. ET. Hosting the call
will be Ryan M. Zink, its Chief Executive Officer and Keri A.
August, its Senior Vice President of Finance and Accounting.
The conference call can be accessed live over the phone by
dialing 844-210-2831, participant code 3024033. The conference call
will also be webcast live from the Company's corporate website
www.goodtimesburgers.com. An archive of the webcast will be
available at the same location on the corporate website shortly
after the call has concluded.
Good Times Restaurants Inc. (Nasdaq: GTIM)
Good Times Restaurants Inc. owns, operates, and licenses 41 Bad
Daddy’s Burger Bar restaurants through its wholly owned
subsidiaries. Bad Daddy’s Burger Bar is a full-service “small box”
restaurant concept featuring a chef-driven menu of gourmet
signature burgers, chopped salads, appetizers and sandwiches with a
full bar and a focus on a selection of craft beers in a high-energy
atmosphere that appeals to a broad consumer base. Additionally,
through its wholly owned subsidiaries, Good Times Restaurants Inc.
owns, operates and franchises 31 Good Times Burgers & Frozen
Custard restaurants primarily in Colorado. Good Times is a regional
quick-service concept featuring 100% all-natural burgers and
chicken sandwiches, signature wild fries, green chili breakfast
burritos and fresh frozen custard desserts.
Forward Looking Statements
This press release contains forward looking statements within
the meaning of federal securities laws. The words “intend,” “may,”
“believe,” “will,” “should,” “anticipate,” “expect,” “seek”, “plan”
and similar expressions are intended to identify forward looking
statements. These statements involve known and unknown risks, which
may cause the Company’s actual results to differ materially from
results expressed or implied by the forward-looking statements.
Such risks and uncertainties include, among other things, the
market price of the Company's stock prevailing from time to time,
the nature of other investment opportunities presented to the
Company, the disruption to our business from pandemics and other
public health emergencies, the impact and duration of staffing
constraints at our restaurants, the impact of supply chain
constraints and the current inflationary environment, the uncertain
nature of current restaurant development plans and the ability to
implement those plans and integrate new restaurants, delays in
developing and opening new restaurants because of weather, local
permitting or other reasons, increased competition, cost increases
or shortages in raw food products, other general economic and
operating conditions, risks associated with the acquisition of
additional restaurants, the adequacy of cash flows and the cost and
availability of capital or credit facility borrowings to provide
liquidity, changes in federal, state, or local laws and regulations
affecting the operation of our restaurants, including minimum wage
and tip credit regulations, and other matters discussed under the
Risk Factors section of Good Times’ Annual Report on Form 10-K for
the fiscal year ended September 26, 2023 filed with the SEC, and
other filings with the SEC.
Category: Financial
Good Times Restaurants
Inc.
Unaudited Supplemental
Information
(In thousands, except per share
amounts)
Fiscal First Quarter
2024
2023
Statement of Operations
(13 weeks)
(13 weeks)
NET REVENUES:
Restaurant sales
$
32,946
$
33,179
Franchise revenues
186
215
Total net revenues
33,132
33,394
RESTAURANT OPERATING COSTS:
Food and packaging costs
10,327
10,607
Payroll and other employee benefit
costs
11,624
11,548
Restaurant occupancy costs
2,505
2,458
Other restaurant operating costs
4,728
4,492
Depreciation and amortization
927
910
Total restaurant operating costs
30,111
30,015
General and administrative costs
2,313
2,378
Advertising costs
1,092
894
Gain on restaurant and equipment asset
sales
(10
)
-
(LOSS) INCOME FROM OPERATIONS
(374
)
107
OTHER EXPENSE:
Interest expense, net
(32
)
(12
)
NET (LOSS) INCOME BEFORE INCOME TAXES
$
(406
)
$
95
Provision for income taxes
(77
)
-
NET (LOSS) INCOME
(483
)
95
Income attributable to non-controlling
interests
(73
)
(222
)
NET LOSS ATTRIBUTABLE TO COMMON
SHAREHOLDERS
$
(556
)
$
(127
)
NET LOSS PER SHARE, ATTRIBUTABLE TO COMMON
SHAREHOLDERS:
Basic and Diluted
$
(.05
)
$
(.01
)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic
11,377,579
12,041,628
Diluted
11,377,579
12,041,628
Good Times Restaurants
Inc.
Unaudited Supplemental
Information
(In thousands)
Balance Sheet Data
December 26, 2023
September 26, 2023
Cash and cash equivalents
$
3,515
$
4,182
Current assets
$
6,978
$
6,521
Total assets
$
90,121
$
91,088
Current liabilities
$
15,478
$
14,890
Shareholders’ equity
$
32,082
$
32,994
Supplemental Information for
Company-Owned Restaurants (dollars in thousands):
Bad Daddy’s Burger Bar
Good Times Burgers &
Frozen Custard
Fiscal First Quarter
2024 (13 weeks)
2023
(13 weeks)
2024 (13 weeks)
2023
(13 weeks)
Restaurant sales
$
24,120
$
25,165
$
8,826
$
8,014
Restaurants opened during period
-
-
-
-
Restaurants closed during period
-
-
-
-
Restaurants open at period end
40
40
25
23
Restaurant operating weeks
520.0
520.0
325.0
299.0
Average weekly sales per restaurant
$
46.4
$
48.4
$
27.2
$
26.8
Reconciliation of
Non-GAAP Measurements to U.S. GAAP Results
Reconciliation of Non-GAAP
Restaurant-Level Operating Profit to Income from Operations
(In thousands, except percentage
data)
Bad Daddy’s Burger Bar
Good Times Burgers &
Frozen Custard
Good Times Restaurants
Inc.
---------- Fiscal First
Quarter Ended ----------
December 26, 2023 (13
weeks)
December 27, 2022 (13
weeks)
December 26, 2023 (13
weeks)
December 27, 2022 (13
weeks)
Dec 26, 2023 (13 wks)
Dec 27, 2022 (13 wks)
Restaurant sales
$
24,120
100.0
%
$
25,165
100.0
%
$
8,826
100.0
%
$
8,014
100.0
%
$
32,946
$
33,179
Restaurant operating costs (exclusive of
depreciation and amortization and preopening, shown separately
below):
Food and packaging costs
7,608
31.5
%
7,973
31.7
%
2,719
30.8
%
2,634
32.9
%
10,327
10,607
Payroll and benefits costs
8,641
35.8
%
8,754
34.8
%
2,983
33.8
%
2,794
34.9
%
11,624
11,548
Restaurant occupancy costs
1,719
7.1
%
1,732
6.9
%
786
8.9
%
726
9.1
%
2,505
2,458
Other restaurant operating costs
3,581
14.8
%
3,521
14.0
%
1,147
13.0
%
971
12.1
%
4,728
4,492
Restaurant-level operating profit
$
2,571
10.7
%
$
3,185
12.7
%
$
1,191
13.5
%
$
889
11.1
%
$
3,762
$
4,074
Franchise revenues
186
215
Deduct - Other operating:
Depreciation and amortization
927
910
General and administrative
2,313
2,378
Advertising costs
1,092
894
Gain on restaurant asset sale
(10
)
-
Total other operating
4,322
4,182
(Loss) Income from operations
$
(374
)
$
107
The Company believes that restaurant-level operating profit is
an important measure for management and investors because it is
widely regarded in the restaurant industry as a useful metric by
which to evaluate restaurant-level operating efficiency and
performance. The Company defines restaurant-level operating profit
to be restaurant revenues minus restaurant-level operating costs,
excluding restaurant closures and impairment costs. The measure
includes restaurant-level occupancy costs, which include fixed
rents, percentage rents, common area maintenance charges, real
estate and personal property taxes, general liability insurance and
other property costs, but excludes depreciation. The measure
excludes depreciation and amortization expense, substantially all
of which is related to restaurant level assets, because such
expenses represent historical sunk costs which do not reflect
current cash outlay for the restaurants. The measure also excludes
selling, general and administrative costs, and therefore excludes
occupancy costs associated with selling, general and administrative
functions, and pre-opening costs. The Company excludes restaurant
closure costs as they do not represent a component of the
efficiency of continuing operations. Restaurant impairment costs
are excluded, because like depreciation and amortization, they
represent a non-cash charge for the Company’s investment in its
restaurants and not a component of the efficiency of restaurant
operations. Restaurant-level operating profit is not a measurement
determined in accordance with generally accepted accounting
principles (“GAAP”) and should not be considered in isolation, or
as an alternative, to income from operations or net income as
indicators of financial performance. Restaurant-level operating
profit as presented may not be comparable to other similarly titled
measures of other companies. The tables above set forth certain
unaudited information for the current and prior year fiscal
quarters and year-to-date periods for fiscal 2024 and fiscal 2023,
expressed as a percentage of total revenues, except for the
components of restaurant operating costs, which are expressed as a
percentage of restaurant revenues.
Reconciliation of Net Loss to Non-GAAP
Adjusted EBITDA (Thousands of US Dollars)
Fiscal First Quarter
Ended
December 26, 2023 (13
weeks)
December 27, 2022 (13
weeks)
Net loss, as reported
$
(556
)
$
(127
)
Depreciation and amortization 4
929
867
Interest expense, net
32
12
Provision for income taxes
77
-
EBITDA
482
752
Non-cash stock-based compensation
38
46
GAAP rent-cash rent difference 4
(163
)
(124
)
Gain on restaurant asset sales and lease
termination
(10
)
-
Adjusted EBITDA
$
347
$
674
Adjusted EBITDA is a supplemental measure of operating
performance that does not represent and should not be considered as
an alternative to net income or cash flow from operations, as
determined by GAAP, and our calculation thereof may not be
comparable to that reported by other companies. This measure is
presented because we believe that investors' understanding of our
performance is enhanced by including this non-GAAP financial
measure as a reasonable basis for evaluating our ongoing results of
operations.
Adjusted EBITDA is calculated as net income before interest
expense, provision for income taxes and depreciation and
amortization and further adjustments to reflect the additions and
eliminations presented in the table above.
Adjusted EBITDA is presented because: (i) we believe it is a
useful measure for investors to assess the operating performance of
our business without the effect of non-cash charges such as
depreciation and amortization expenses and asset disposals, closure
costs and restaurant impairments, and (ii) we use Adjusted EBITDA
internally as a benchmark for certain of our cash incentive plans
and to evaluate our operating performance or compare our
performance to that of our competitors. The use of Adjusted EBITDA
as a performance measure permits a comparative assessment of our
operating performance relative to our performance based on our GAAP
results, while isolating the effects of some items that vary from
period to period without any correlation to core operating
performance or that vary widely among similar companies. Companies
within our industry exhibit significant variations with respect to
capital structures and cost of capital (which affect interest
expense and income tax rates) and differences in book depreciation
of property, plant and equipment (which affect relative
depreciation expense), including significant differences in the
depreciable lives of similar assets among various companies. Our
management believes that Adjusted EBITDA facilitates
company-to-company comparisons within our industry by eliminating
some of these foregoing variations. Adjusted EBITDA, as presented,
may not be comparable to other similarly titled measures of other
companies, and our presentation of Adjusted EBITDA should not be
construed as an inference that our future results will be
unaffected by excluded or unusual items.
_______________ 1 Sales store sales are a metric used in
evaluating the performance of established restaurants and is a
commonly used metric in the restaurant industry. Same store sales
for our brands are calculated using all units open for at least 18
full fiscal months and use the comparable operating weeks from the
prior year to the current year quarter’s operating weeks. 2 For a
reconciliation of Adjusted EBITDA to the most directly comparable
financial measures presented in accordance with GAAP and a
discussion of why the Company considers them useful, see the
financial information schedules accompanying this release. 3 For a
reconciliation of restaurant-level operating profit to the most
directly comparable financial measures presented in accordance with
GAAP and a discussion of why the Company considers them useful, see
the financial information schedules accompanying this release. 4
Depreciation and amortization and the difference between GAAP rent
and cash rent have been reduced by any amounts attributable to
non-controlling interests.
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version on businesswire.com: https://www.businesswire.com/news/home/20240131879615/en/
Ryan M. Zink, Chief Executive Officer (303) 384-1432 Christi
Pennington (303) 384-1440
Grafico Azioni Good Times Restaurants (NASDAQ:GTIM)
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