Good Times Restaurants Announces the Purchase of Membership Interests From Its Partners in Five Bad Daddy’s Burger Bar Restaurants
January 30 2023 - 7:30AM
Business Wire
Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad
Daddy’s Burger Bar and Good Times Burgers & Frozen Custard
restaurant brands, today reported its purchase of the limited
liability company membership interests from its partners in five
previous joint-venture Bad Daddy’s restaurants in Winston-Salem,
Fayetteville, Greenville and Greensboro, North Carolina and
Greenville, South Carolina. Each joint-venture entity is now
wholly-owned by the Company. The aggregate cash purchase price of
approximately $4.4 million was funded out of cash reserves.
The Winston-Salem location brings a superior culture of
hospitality and exceeding guest expectations while Greensboro is
best known for a vibrant, energetic, and exciting atmosphere and in
Fayetteville, it’s our honor to serve our military families.
Greenville, North Carolina has a local, loyal, smalltown community
feel and in Greenville, South Carolina we are “the Burger
Boutique.”
Ryan M. Zink, the Company’s Chief Executive Officer, said: “We
are really excited about officially having full ownership of these
locations. We have operated Winston-Salem since 2015 and the other
four since their openings in 2017 and 2018 so they are already
family as former joint-venture restaurants, and we have deep
familiarity with the operating history in each location. This
acquisition is a key strategic milestone for us as it consolidates
the ownership of all traditional Bad Daddy’s locations under our
ownership.”
Additionally, the Company has amended its current credit
facility (the “Credit Facility”) to extend its maturity date to
April 30, 2023, provide lender consent required under the Credit
Facility for the acquisition of these membership interests, and
provide EBITDA credit under the facility for a portion of the
approximately $850,000 of full-year EBITDA (as that term is defined
under the Credit Facility) that was previously allocated to the
non-controlling members of the joint-venture entities.
About Good Times Restaurants Inc.: Good Times Restaurants
Inc. (GTIM) 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 Disclaimer: 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 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
Company's financial performance and its cash flows from operations,
general economic conditions, which could adversely affect the
Company's results of operations and cash flows. These risks also
include such factors as the disruption to our business from the
COVID-19 pandemic and the impact of the pandemic on our results of
operations, financial condition and prospects which may vary
depending on the duration and extent of the pandemic and the impact
of federal, state and local governmental actions and customer
behavior in response to the pandemic, 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, and other matters discussed
under the Risk Factors section of Good Times’ Annual Report on Form
10-K for the fiscal year ended September 27, 2022 filed with the
SEC, and other filings with the SEC.
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GOOD TIMES RESTAURANTS INC. Ryan M. Zink, Chief Executive
Officer (303) 384-1432 Christi Pennington (303) 384-1440
Good Times Restaurants (NASDAQ:GTIM)
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