GTIM Good Times Restaurants Inc

Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, today reported financial results for the fiscal fourth quarter and fiscal year ended September 24, 2024.

Highlights of the Company’s financial results include:

• Total Revenues increased 3.0% to $142.3 million for the year compared to the previous fiscal year
• Total Restaurant Sales for company-owned Good Times restaurants increased $0.5 million to $10.0 million for the fourth quarter compared to the same prior year fourth quarter and increased $3.0 million to $38.0 million for the year compared to the previous fiscal year
• Same Store Sales1 for Good Times restaurants decreased 0.1% for the fourth quarter compared to the prior-year fourth quarter and increased 2.9% for the year compared to the 2023 fiscal year
• Total Restaurant Sales for Bad Daddy’s restaurants increased $1.0 million to $25.6 million for the fourth quarter compared to the prior-year fourth quarter and increased $1.3 million to $103.5 million for the year compared to the previous fiscal year
• Same Store Sales1 for Bad Daddy’s restaurants increased 3.2% for the fourth quarter compared to the prior-year fourth quarter and decreased 1.2% for the year compared to the 2023 fiscal year
• Net Income Attributable to Common Shareholders was $0.2 million for the fourth quarter. Net Income Attributable to Common Shareholders was $1.6 million for the fiscal year
• Adjusted EBITDA2 (a non-GAAP measure) was $1.3 million for the fourth quarter and $5.4 million for the fiscal year
• During fiscal 2024, the Company repurchased 543,530 shares of its common stock under its share repurchase program and additionally repurchased 190,690 shares of its common stock through negotiated transactions with private individuals.

Ryan M. Zink, the Company’s Chief Executive Officer, said, “I am inspired by the turnaround in same store sales this year at Bad Daddy’s, a strong indication that our back-to-basics approach to brand execution is effectively attracting and retaining guests at our restaurants. Bad Daddy’s performance significantly beat the Black Box casual dining index for both sales and traffic during the quarter.”

“During this quarter, Good Times experienced softer sales, in part due to the return of extreme discounting in the quick service space, with many promotions from our much larger competitors centered around the five dollar price point. We continue to be focused on delivering value through high quality products and the uncompromising standards for our key suppliers of our all natural beef and chicken. History has shown that exaggerated discounting is a race to the bottom and an unprofitable strategy in the long-term, so we are choosing a different path,” Zink continued.

Mr. Zink concluded, “We are approaching the new year with a continuation of our strategy at Bad Daddy’s, and a similar back-to-basics approach to re-training our teams and reaching for even higher standards of operations excellence at Good Times. Our confidence in the Good Times brand is evidenced through the continuation of our brand evolution through our remodels, including updated signage with our refreshed logo, fresh technology for our employees and guests, and community art through our exterior murals.”

Share Repurchase

Additionally, the Company announced a $2 million expansion of its existing share repurchase program, which now provides authorization for a total of $7 million dollars of aggregate share repurchases. The Company has purchased approximately $4.8 million dollars under its existing share repurchase program which was originally announced February 3, 2022. This authorization to repurchase will continue until the maximum value of shares is purchased or the Company terminates the program. The Company intends to make all repurchases in compliance with applicable regulatory guidelines and to administer the plan in accordance with applicable laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities. The repurchase program does not obligate the Company to acquire any particular amount of common shares, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.

Conference Call

Management will host a conference call to discuss its fiscal fourth quarter and year ended September 24, 2024, financial results on Thursday, December 12, 2024, at 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 888-210-2831, access 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 40 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 30 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 24, 2024 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 Quarter Ended

 

Fiscal Year Ended

 

September 24, 2024

 

September 26, 2023

 

September 24, 2024

 

September 26, 2023

NET REVENUES:

 

 

 

 

 

 

 

Restaurant sales

$

35,602

 

 

$

34,106

 

 

$

141,555

 

 

$

137,229

 

Franchise revenues

 

192

 

 

225

 

 

760

 

 

931

 

Total net revenues

 

35,794

 

 

 

34,331

 

 

 

142,315

 

 

 

138,160

 

 

 

 

 

 

 

 

 

RESTAURANT OPERATING COSTS:

 

 

 

 

 

 

 

Food and packaging costs

 

11,080

 

 

 

10,725

 

 

 

43,704

 

 

 

42,910

 

Payroll and other employee benefit costs

 

12,164

 

 

 

12,072

 

 

 

48,689

 

 

 

47,549

 

Restaurant occupancy costs

 

2,389

 

 

 

2,289

 

 

 

10,087

 

 

 

9,607

 

Other restaurant operating costs

 

5,260

 

 

 

4,884

 

 

 

20,288

 

 

 

19,013

 

Preopening costs

 

-

 

 

 

374

 

 

 

-

 

 

 

484

 

Depreciation and amortization

 

942

 

 

923

 

 

3,755

 

 

3,663

 

Total restaurant operating costs

 

31,835

 

 

 

31,267

 

 

 

126,523

 

 

 

123,226

 

 

 

 

 

 

 

 

 

General and administrative costs

 

2,725

 

 

 

2,095

 

 

 

10,516

 

 

 

9,165

 

Advertising costs

 

863

 

 

 

835

 

 

 

3,528

 

 

 

3,258

 

Impairment of long-lived assets

 

499

 

 

 

548

 

 

 

698

 

 

 

1,589

 

Loss (gain) on restaurant and equipment asset sales

 

(10

)

 

(9

)

 

2

 

 

(41

)

Litigation contingencies

 

-

 

 

-

 

 

(332

)

 

-

 

 

(LOSS) INCOME FROM OPERATIONS:

 

(118

)

 

 

(405

)

 

 

1,380

 

 

 

963

 

 

 

 

 

 

 

 

 

Other Expenses:

 

 

 

 

 

 

 

Interest and other expense, net

 

(24

)

 

 

(22

)

 

 

(125

)

 

 

(78

)

 

NET (LOSS) INCOME BEFORE INCOME TAXES:

 

(142

)

 

 

(427

)

 

 

1,255

 

 

 

885

 

Provision for income taxes

 

426

 

 

284

 

 

624

 

 

10,787

 

 

NET INCOME (LOSS):

$

284

 

$

(143

)

 

$

1,879

 

$

11,672

 

Income attributable to non-controlling interests

 

(54

)

 

 

(107

)

 

(266

)

 

 

(586

)

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

230

 

$

(250

)

$

1,613

 

$

11,086

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE, ATTRIBUTABLE TO COMMON SHAREHOLDERS:

Basic

$

0.02

 

 

$

(0.02

)

 

$

0.15

 

 

$

0.94

 

Diluted

$

0.02

 

 

$

(0.02

)

 

$

0.14

 

 

$

0.94

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

 

10,741

 

 

 

11,531

 

 

 

11,047

 

 

 

11,773

 

Diluted

10,851

11,531

11,148

11,828

Good Times Restaurants Inc.

Unaudited Supplemental Information

(In thousands)

 

 

September 24, 2024

 

September 26, 2023

Selected Balance Sheet Data:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,853

 

 

 

$

4,182

 

 

 

 

 

 

 

 

 

Current Assets

 

$

6,557

 

 

 

$

6,521

 

 

 

 

 

 

 

 

 

Total assets

 

$

87,118

 

 

 

$

91,088

 

 

 

 

 

 

 

 

 

Current Liabilities

 

$

15,687

 

 

 

$

14,890

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

$

33,088

 

 

$

32,994

Supplemental Information for Company-Owned Restaurants (dollars in thousands):

 

 

Bad Daddy’s Burger Bar

 

Good Times Burgers & Frozen Custard

 

Fourth Fiscal Quarter

 

Fiscal Year Ended

 

Fourth Fiscal Quarter

 

Fiscal Year Ended

 

2024 (13 weeks)

 

2023 (13 weeks)

 

2024 (52 weeks)

 

2023 (52 weeks)

 

2024 (13 weeks)

 

2023 (13 weeks)

 

2024 (52 weeks)

 

2023 (52 weeks)

Restaurant sales

$

25,644

 

$

24,649

 

$

103,539

 

$

102,241

 

$

9,958

 

$

9,457

 

$

38,016

 

$

34,988

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants open at beginning of period

 

40

 

 

39

 

 

40

 

 

40

 

 

26

 

 

23

 

 

25

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants opened or acquired during period

 

-

 

 

1

 

 

-

 

 

1

 

 

-

 

 

2

 

 

1

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants closed during period

 

1

 

-

 

1

 

1

 

1

 

-

 

1

 

-

Restaurants open at period end

 

39

 

 

40

 

 

39

 

 

40

 

 

25

 

 

25

 

 

25

 

 

25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant operating weeks

 

514

 

 

512

 

 

2,074

 

 

2,042

 

 

335

 

 

313

 

 

1,309

 

 

1,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average weekly sales per restaurant

$

49.8

 

$

48.1

 

$

49.9

 

$

50.1

 

$

29.7

 

$

30.2

 

$

29.0

 

$

28.9

Margin Analysis:

 

 

Quarter Ended (13 Weeks)

 

Year-to-Date Period Ended (52 weeks)

 

September 24, 2024

 

September 26, 2023

 

September 24, 2024

 

September 26, 2023

Bad Daddy’s Burger Bar:

 

 

 

 

 

 

 

 

 

 

 

Restaurant sales

$

25,644

100.0

%

 

$

24,649

100.0

%

 

$

103,539

100.0

%

 

$

102,241

100.0

%

Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):

Food and packaging costs

 

7,999

31.2

%

 

 

7,839

31.8

%

 

 

32,155

31.1

%

 

 

31,972

31.3

%

Payroll and benefits costs

 

8,791

34.3

%

 

 

8,942

36.3

%

 

 

35,831

34.6

%

 

 

35,892

35.1

%

Restaurant occupancy costs

 

1,488

5.8

%

 

 

1,517

6.2

%

 

 

6,676

6.4

%

 

 

6,642

6.5

%

Other restaurant operating costs

 

3,875

15.1

%

 

 

3,749

15.2

%

 

 

15,296

14.8

%

 

 

14,834

14.5

%

Restaurant-level operating profit (a non-GAAP measure)

$

3,491

13.6

%

 

$

2,602

10.6

%

 

$

13,581

13.1

%

 

$

12,901

12.6

%

Good Times Burgers & Frozen Custard:

Restaurant sales

$

9,958

100.0

%

 

$

9,457

100.0

%

 

$

38,016

100.0

%

 

$

34,988

100.0

%

Restaurant operating costs (exclusive of depreciation and amortization and pre-opening costs):

 

 

 

Food and packaging costs

 

3,081

30.9

%

 

 

2,886

30.5

%

 

 

11,549

30.4

%

 

 

10,938

31.3

%

Payroll and benefits costs

 

3,373

33.9

%

 

 

3,130

33.1

%

 

 

12,858

33.8

%

 

 

11,657

33.3

%

Restaurant occupancy costs

 

901

9.0

%

 

 

772

8.2

%

 

 

3,411

9.0

%

 

 

2,965

8.5

%

Other restaurant operating costs

 

1,385

13.9

%

 

 

1,135

12.0

%

 

 

4,992

13.1

%

 

 

4,179

11.9

%

Restaurant-level operating profit (a non-GAAP measure)

$

1,218

12.2

%

 

$

1,534

16.2

%

 

$

5,206

13.7

%

 

$

5,249

15.0

%

 

 

 

 

Total restaurant-level operating profit (a non-GAAP measure)

$

4,709

13.2

%

 

$

4,136

12.1

%

 

$

18,787

13.3

%

 

$

18,150

13.2

%

Certain percentage amounts in the table above do not total due to rounding as well as the fact that restaurant operating costs are expressed as a percentage of restaurant revenues (as opposed to total revenues).

Reconciliation of U.S. GAAP Results to Non-GAAP Measurements

 

Reconciliation of Income (Loss) from Operations to Non-GAAP Restaurant-Level Operating Profit

(In thousands)

 

 

Quarter Ended (13 Weeks)

 

Year-to-Date Period Ended (52 weeks)

 

September 24, 2024

 

September 26, 2023

 

September 24, 2024

 

September 26, 2023

Income (loss) from operations

$

(118

)

 

$

(405

)

 

$

1,380

 

 

$

963

 

Less:

 

 

 

 

 

 

 

Franchise revenues

 

192

 

 

 

225

 

 

 

760

 

 

 

931

 

Add:

 

 

 

 

 

 

 

General and administrative

 

2,725

 

 

 

2,095

 

 

 

10,516

 

 

 

9,165

 

Depreciation and amortization

 

942

 

 

 

923

 

 

 

3,755

 

 

 

3,663

 

Advertising costs

 

863

 

 

 

835

 

 

 

3,528

 

 

 

3,258

 

Impairment of long-lived assets

 

499

 

 

 

548

 

 

 

698

 

 

 

1,589

 

Litigation contingencies

 

-

 

 

 

-

 

 

 

(332

)

 

 

-

 

Loss (gain) on restaurant and equipment asset sales

 

(10

)

 

 

(9

)

 

 

2

 

 

 

(41

)

Pre-opening costs

 

-

 

 

374

 

 

 

-

 

 

 

484

 

Restaurant-level operating profit

$

4,709

 

 

$

4,136

 

 

$

18,787

 

 

$

18,150

 

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 (loss) 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.

 

Quarter Ended (13 Weeks)

 

Fiscal Year Ended (52 Weeks)

 

Sept. 24, 2024

 

Sept. 26, 2023

 

Sept. 24, 2024

 

Sept. 26, 2023

Calculation of Adjusted EBITDA

 

 

 

 

 

 

 

Net Income (loss), as reported

$

230

 

 

$

(250

)

 

$

1,613

 

 

$

11,086

 

Depreciation and amortization3

 

940

 

 

 

926

 

 

 

3,757

 

 

 

3,617

 

Interest expense, net

 

24

 

 

22

 

 

125

 

 

 

78

 

Provision for income taxes

 

(426

)

 

(284

)

 

(624

)

 

 

(10,787

)

EBITDA

 

768

 

 

 

414

 

 

 

4,871

 

 

 

3,994

 

Preopening expense

 

-

 

 

 

374

 

 

 

-

 

 

 

484

 

Non-cash stock-based compensation

 

28

 

 

 

28

 

 

 

134

 

 

 

131

 

Asset impairment

 

499

 

 

 

548

 

 

 

698

 

 

 

1,589

 

Gain on restaurant asset sales and lease termination3

 

(20

)

 

 

(9

)

 

 

(8

)

 

 

(41

)

Litigation contingencies

 

-

 

 

-

 

 

(332

)

 

-

 

Adjusted EBITDA

$

1,275

 

$

1,355

 

$

5,363

 

 

$

6,157

 

Adjusted EBITDA is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income (loss) 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 (loss) 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 Same 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 company-owned units open for at least 18 full fiscal months and use the comparable operating weeks from the prior year to the current year period’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 Depreciation and amortization and the gain on restaurant and equipment asset sales have been reduced by any amounts attributable to non-controlling interests.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241212818972/en/

Investor Relations Contacts: Ryan M. Zink, Chief Executive Officer (303) 384-1432 Christi Pennington (303) 384-1440