January 07, 2014 // Franchising.com // GOLDEN, CO - Good Times Restaurants Inc. (Nasdaq - GTIM), a regional restaurant company focused on operating and developing Good Times Burgers & Frozen Custard and Bad Daddy’s Burger Bar restaurants, today announced its same store sales for its Good Times restaurants increased 17.4% for the Company’s first fiscal quarter. This is the fourteenth consecutive quarter of same store sales increases, representing a 22.6% increase over two years ago. The Company also reported that same store sales increased 12.3% for the month of December on top of a 12.8% same store sales increase in the prior year, even with record cold temperatures for one week of the month this year.
Boyd Hoback, President & CEO said "Breakfast sales totaled approximately 7.9% of sales during the month last year and are still running just shy of 10% this year, so we continue to see significant growth in our core menu sales, most of which is coming from increased transactions and not average check or pricing. To reiterate our previously released comments on earnings, we are realizing an increasing flow through percentage from these sales gains to our Income from Operations and expect that the first fiscal quarter profitability for our core Good Times business will be significantly improved over prior year, at an increased level over the improved fourth quarter results reported for the fourth quarter of fiscal 2013. We continue to invest in the preopening and ramp-up for the growth of our own company-owned Bad Daddy’s Burger Bar restaurants as well as the infrastructure for franchised growth."
The Company said that it is on track to open its first Bad Daddy’s Burger Bar in Cherry Creek North in Denver, Colorado on February 3 with additional sites in the pipeline for 2014 development.
Hoback added, "There are currently seven Bad Daddy’s restaurants open in North and South Carolina plus a licensed restaurant in the Charlotte airport. The stores that have been open over a year continue to perform exceptionally well and we are very pleased with the initial sales of the new stores that have opened this last quarter. If we can attain the same level of sales in our Colorado stores, we anticipate that they will add significant additional cash flow to our fiscal 2014 results. At present, we have one additional store under development and are negotiating the final details on two more leases for 2014 and additional leases for 2015. While average annual revenues for Bad Daddy's restaurants have varied based on location, typical Bad Daddy's locations open more than a year have annual revenues in the $2.3 to $2.5 million range."
Good Times Restaurants Inc. (GTIM) is a regional chain of quick service restaurants located primarily in Colorado providing a menu of high quality all natural hamburgers, 100% all natural chicken tenderloins, fresh frozen custard, fresh cut fries, fresh lemonades and other unique offerings. Good Times currently operates and franchises 37 restaurants.
Bad Daddy’s Burger Bar is a full service, upscale, "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 microbrew beers in a high energy, family friendly atmosphere. Bad Daddy’s has received both local and national accolades for the quality and originality of its food and was most recently named a top 25 burger in the U.S. by USA Today.
This press release contains forward looking statements within the meaning of federal securities laws. The words "intend," "may," "believe," "will," "should," "anticipate," "expect," "seek" and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, which may cause Good Times’ actual results to differ materially from results expressed or implied by the forward looking statements. These risks include such factors as the uncertain nature of current restaurant development plans and the ability to implement those plans, 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, and other matters discussed under the "Risk Factors" section of Good Times’ Annual Report on Form 10-K for the fiscal year ended September 30, 2013 filed with the SEC. Although Good Times may from time to time voluntarily update its forward looking statements, it disclaims any commitment to do so except as required by securities laws.
Boyd E. Hoback
President and CEO
Porter, LeVay & Rose
Gary J. Heller