Good Times Restaurants Inc.
(Nasdaq: GTIM), a regional restaurant company focused on operating and developing Good Times Burgers & Frozen Custard and Bad Daddy’s Burger Bar restaurants, today announced its same store sales for its Good Times restaurants increased 17.4% for the Company’s first fiscal quarter. This is the fourteenth consecutive quarter of same store sales increases, representing a 22.6% increase over two years ago. The Company also reported that same store sales increased 12.3% for the month of December on top of a 12.8% same store sales increase in the prior year, even with record cold temperatures for one week of the month this year.
Boyd Hoback, President & CEO said, “Breakfast sales totaled approximately 7.9% of sales during the month last year and are still running just shy of 10% this year, so we continue to see significant growth in our core menu sales, most of which is coming from increased transactions and not average check or pricing. To reiterate our previously released comments on earnings, we are realizing an increasing flow through percentage from these sales gains to our Income from Operations and expect that the first fiscal quarter profitability for our core Good Times business will be significantly improved over prior year, at an increased level over the improved fourth quarter results reported for the fourth quarter of fiscal 2013. We continue to invest in the preopening and ramp-up for the growth of our own company-owned Bad Daddy’s Burger Bar restaurants as well as the infrastructure for franchised growth.”
The Company said that it is on track to open its first Bad Daddy’s Burger Bar in Cherry Creek North in Denver, Colorado on February 3 with additional sites in the pipeline for 2014 development.
Hoback added, “There are currently seven Bad Daddy’s restaurants open in North and South Carolina plus a licensed restaurant in the Charlotte airport. The stores that have been open over a year continue to perform exceptionally well and we are very pleased with the initial sales of the new stores that have opened this last quarter. If we can attain the same level of sales in our Colorado stores, we anticipate that they will add significant additional cash flow to our fiscal 2014 results. At present, we have one additional store under development and are negotiating the final details on two more leases for 2014 and additional leases for 2015. While average annual revenues for Bad Daddy's restaurants have varied based on location, typical Bad Daddy's locations open more than a year have annual revenues in the $2.3 to $2.5 million range.”