Good Times Restaurants Inc. (NASDAQ:GTIM), operator of Good Times Burgers & Frozen Custard, a regional quick service restaurant chain focused on fresh, high quality, all natural products and of Bad Daddy’s Burger Bar, a full service, upscale concept today announced its financial results for the fourth fiscal quarter and fiscal year ended September 30, 2013.
Key highlights of the Company’s report include:
- Same store sales for company-owned restaurants increased 18.2% for the quarter and 11.9% for the fiscal year, including an 8.5% sales mix from the new breakfast daypart during the quarter, which was the thirteenth consecutive quarter of increasing same store sales
- Restaurant Level Operating Profit (see schedule below) increased 49% or $316,000 over last year during the quarter
- The restaurant level operating margin increased by 190 basis points from last year during the quarter (see schedule below)
- The Company had $6.1 million in cash and minimal long term debt as of the end of the fiscal year after the completion of its recent secondary offering of its common stock with a planned use of proceeds 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.
“Our sales trends continue to significantly exceed our industry peers, with most of the increase coming from increased transactions which is fueling the acceleration of the profitability of our core business in Good Times,” said President and CEO Boyd Hoback. “We anticipate that our cash flow from operations from Good Times in fiscal 2014 will be significantly higher than in fiscal 2013, including further acceleration in the first quarter of fiscal 2014 based on our current run rate and trends.”
Regarding Bad Daddy’s development, Hoback added, “We had $149,000 of expenses during the fourth quarter related to the development of our first Colorado Bad Daddy’s restaurant and from our 48% ownership in Bad Daddy’s Franchise Development LLC as we develop the platform for accelerated franchise growth. We plan to open our first Bad Daddy’s in Colorado the last week of January with the second store by early summer and we are working to finalize several other new store leases, which we anticipate will add incremental cash flow from operations later this year. We also anticipate that we will have several multi-unit development agreements for Bad Daddy’s franchise development signed with sophisticated, experienced operators of other concepts in early 2014 and we are excited about the initial responses we are getting for its longer term potential for super regional and national expansion.”