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Press Release: Good Times Restaurants Reports Results for the First Quarter Ending December 29, 2020

· 02/04/2021 16:05
Good Times Restaurants Inc. Unaudited Supplemental Information (In thousands, except per share amounts) Fiscal First Quarter ------------------------------ (13 weeks) (14 weeks) Statement of Operations 2021 2020 -------------- -------------- Net revenues: Restaurant sales $ 27,081 $ 30,593 Franchise revenues 215 221 --- -------- ------- Total net revenues 27,296 30,814 Restaurant Operating Costs: Food and packaging costs 7,841 9,306 Payroll and other employee benefit costs 8,881 11,979 Restaurant occupancy costs 2,195 2,438 Other restaurant operating costs 3,469 3,002 Pre-opening costs 39 802 Depreciation and amortization 929 1,079 --- -------- ------- Total restaurant operating costs 23,354 28,606 General and administrative costs 2,174 2,053 Advertising costs 509 546 Franchise costs 5 - Gain on disposal of restaurants and equipment (9) (19) --- -------- ------- Income (Loss) from operations 1,263 (372) Interest expense, net (98) (227) Net income (loss) 1,165 (599)-- Total Revenues decreased 11.4% to $27.3 million for the 13-week quarter, compared against a 14-week quarter in fiscal 2020 -- Total Restaurant Sales for Bad Daddy's restaurants were $18.7 million for the quarter -- Same Store Sales1 for company-owned Bad Daddy's restaurants decreased 11.8% for the quarter, impacted by dining room closures in our Colorado restaurants -- Total Restaurant Sales for Good Times restaurants increased $0.6 million to $8.4 million -- Same Store Sales for company-owned Good Times restaurants increased 22.1% for the quarter -- Net Income Attributable to Common Shareholders was $0.8 million for the quarter -- Adjusted EBITDA2 (a non-GAAP measure) for the quarter was $1.8 million -- The Company ended the quarter with $10.0 million in cash, $4.0 million outstanding under its senior credit facility and $11.6 million in outstanding Paycheck Protection Program loansDENVER--(BUSINESS WIRE)--February 04, 2021--

Good Times Restaurants Reports Results for the First Quarter Ending December 29, 2020

Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy's Burger Bar and Good Times Burgers & Frozen Custard, a regional quick-service restaurant chain, today reported financial results for the fiscal quarter ended December 29, 2020.

Key highlights of the Company's financial results include:

Ryan M. Zink, the Company's Chief Executive Officer, said, "I am pleased with our performance for the quarter. We increased Net Income of the Company to $0.8 million, continued to experience strong same store sales for the Good Times brand, and maintained restaurant-level operating profit(3) (a non-GAAP measure) for the Bad Daddy's brand. We believe our results compared to 2020 are even more impressive when considering that this year's quarter has one fewer operating week than did 2020 and that our Colorado Bad Daddy's were required to close their indoor dining rooms mid-way through November and were closed for the remainder of the quarter. We have since re-opened dining rooms and Bad Daddy's sales have meaningfully improved in the new calendar year, with that brand reporting same stores sales of (8.3%) for our fiscal January. Good Times continues its streak of double-digit same store sales, posting +24.6% for January."

Mr. Zink continued, "At Good Times, we continue to focus on speed and accuracy in the drive-thru. We intend to introduce a new shake program mid-year and continue to generate "new news" through rotating seasonal features that have proven successful. We continue to utilize radio as our primary advertising medium but are also now actively using targeted digital and social ad placements to actual customers using the same technology platform we began using in Bad Daddy's during 2020. At Bad Daddy's, we implemented new packaging to enhance temperature hold times and the quality of food served in to-go and delivery formats, are testing a new Carnitas Nachos appetizer that showcases the scratch-made nature of our kitchen, and have twenty-four restaurants running our virtual brand, Bad Mama's Chicken. Sales from Bad Mama's account for approximately two percent of sales in restaurants where we have rolled out the virtual brand, in-line with our target. We are on-track to open two restaurants during the remainder of our fiscal year, in the greater-Atlanta and Montgomery designated market areas (DMAs)."

"Above all, I continue to be thankful for the high-performing team that is executing each of our concepts and the restaurant support team who together are responsible for delivering these results. We have a mission to delight every guest; we achieve that at Good Times through a focus on speed and accuracy with an all-natural platform, and at Bad Daddy's through dedication to scratch cooking in our kitchens and genuine, southern-rooted hospitality. In both cases, we believe that, by living these principles, we will create emotional connections to our brands, and in the long-run, drive consistent sales increases," Zink concluded.

Fiscal 2021 Outlook:

Due to continuing unprecedented economic conditions associated with the ongoing COVID-19 pandemic and unpredictable nature of COVID-19 and government responses to the evolving situation, the Company has not provided a financial outlook for the remainder of the 2021 fiscal year. In late November 2020, all twelve of the Company's Bad Daddy's locations in Colorado had additional restrictions imposed upon them resulting in the closure of dining rooms in those locations. Although these dining rooms have since re-opened and no other states have at this time similarly restricted inside dining where the Company has Bad Daddy's restaurants, the possibility remains that such restrictions might be put in place with limited notice. At the current time, the Company is therefore still unable to reasonably estimate the full impact of the continuing pandemic to ongoing operations and results and is unable to provide a financial outlook for the remainder of fiscal 2021.

Conference Call: Management will host a conference call to discuss its first quarter 2021 financial results on Thursday, February 4, 2021 at 3:00 p.m. MT/5:00 p.m. ET. Hosting the call will be Ryan M. Zink, its Chief Executive Officer.

The conference call can be accessed live over the phone by dialing (888) 339-0806 and requesting the Good Times Restaurants (GTIM) call. 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.

About Good Times Restaurants Inc.: Good Times Restaurants Inc. (GTIM) owns, operates, franchises and licenses 39 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 microbrew beers in a high-energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly-owned subsidiaries, Good Times Restaurants Inc. operates and franchises a regional quick-service restaurant chain consisting of 32 Good Times Burgers & Frozen Custard restaurants located primarily in Colorado.

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. These risks include such factors as the disruption to our business from the novel coronavirus (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 lack of assurance that the full amount of the PPP loans will be forgiven, 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 29, 2020 filed with the SEC, and other filings with the SEC . Good Times disclaims any obligation or duty to update or modify these forward-looking statements.

Category: Financial

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February 04, 2021 16:05 ET (21:05 GMT)