Good Times Restaurants Inc.(Nasdaq: GTIM) announced that it has signed agreements for two new Good Times restaurants and is in final lease term negotiations for a third. The Company also announced that it has been approved and is finalizing loan documents for $2.1 million in senior term debt financing.
“While there are still normal contract contingencies to work through, we expect to open two of the new Good Times that are conversions of existing fast food concepts prior to the end of 2014 and the third, which is a newly developed site, in 2015,” said Boyd Hoback, President and CEO. “Our strategy for Good Times is to build out the Colorado market where we have marketing and operating efficiencies as we update our existing facilities. All three new sites are in prime, higher income trade areas that fill gaps in the Denver market for us and based on our strong sales performance over the past few years and other Good Times that are in similar demographic areas, we expect each of these sites to be high volume opportunities.”
Commenting on the new senior debt agreement, Gary Heller, the Company’s interim Chief Financial Officer said, “Due to our increasing cash flows from operations and being debt free, now is a great time for us to put in place a senior debt facility for the development of new restaurants and the implementation of a new point of sale system in all of our Good Times restaurants. We are using our cash on the balance sheet and proceeds from the exercise of outstanding B Warrants for the development of new Bad Daddy’s restaurants and the remodeling and reimaging of existing Good Times restaurants."
Good Times Restaurants Inc. (GTIM) operates Good Times Burgers & Frozen Custard, a regional chain of quick service restaurants located primarily in Colorado, in its wholly owned subsidiary, Good Times Drive Thru Inc. Good Times provides a menu of high quality all natural hamburgers, 100% all natural chicken tenderloins, fresh frozen custard, fresh cut fries, fresh lemonades and other unique offerings. Good Times currently operates and franchises 37 restaurants.
GTIM owns and operates Bad Daddy’s Burger Bar restaurants through its wholly owned subsidiary, BD of Colorado LLC and will franchise Bad Daddy’s Burger Bar restaurants through its 48% ownership of Bad Daddy’s Franchise Development LLC. Bad Daddy’s Burger Bar is a full service, upscale, “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.
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