Good Times Restaurants Inc. (Nasdaq: GTIM), a regional quick service restaurant chain focused on fresh, high quality, all natural products today announced its financial results for the third fiscal quarter ended June 30, 2013.
Key highlights of the Company’s third quarter report include:
- Same store sales for Company owned restaurants increased 15.2% for the quarter, including 7.2% from the new breakfast day-part introduced in November, 2012, the twelfth consecutive quarter of increasing same store sales
- Income from restaurant operations (see schedule below) increased 44% or $309,000 over last year
- The restaurant level operating margin increased by 210 basis points from last year (see schedule below)
- Net Income increased to $208,000 from $37,000 last year, including expenses and investment losses totaling $52,000 this year related to the start-up of the Bad Daddy’s Burger Bar subsidiary and franchise company
- The Company has registered for a public offering of its common stock with a use of proceeds planned for the acceleration of remodeling older Good Times Burgers & Frozen Custard restaurants and the development of Company-owned and franchised Bad Daddy’s Burger Bar restaurants.
“This is the first full quarter this year that we’ve been able to realize the full profit flow through on the significant same store sales increases we’ve had the last several months, including our new breakfast day-part that is performing above expectations,” said President and CEO Boyd Hoback. “It is particularly important that most of our sales increases are coming from increased traffic and not pricing or an increased average check as we continue to compound our growth year over year.
“Our operating team has refined the labor model for the breakfast day-part, we have significantly increased our chicken category sales with the introduction of our hand-breaded, all natural chicken platform, the new television marketing campaign is resonating with our customers and our cost of sales has improved from our new distribution agreement, purchasing improvements and further menu engineering. Our goal is to continue to drive top line sales increases while optimizing the profitability of those incremental sales.