Good Times Restaurants Announces the Purchase of Membership Interests From Its Partners in Five Bad Daddy's Burger Bar Restaurants

Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard restaurant brands, today reported its purchase of the limited liability company membership interests from its partners in five previous joint-venture Bad Daddy’s restaurants in Winston-Salem, Fayetteville, Greenville and Greensboro, North Carolina and Greenville, South Carolina. Each joint-venture entity is now wholly-owned by the Company. The aggregate cash purchase price of approximately $4.4 million was funded out of cash reserves.

The Winston-Salem location brings a superior culture of hospitality and exceeding guest expectations while Greensboro is best known for a vibrant, energetic, and exciting atmosphere and in Fayetteville, it’s our honor to serve our military families. Greenville, North Carolina has a local, loyal, smalltown community feel and in Greenville, South Carolina we are “the Burger Boutique.”

Ryan M. Zink, the Company’s Chief Executive Officer, said: “We are really excited about officially having full ownership of these locations. We have operated Winston-Salem since 2015 and the other four since their openings in 2017 and 2018 so they are already family as former joint-venture restaurants, and we have deep familiarity with the operating history in each location. This acquisition is a key strategic milestone for us as it consolidates the ownership of all traditional Bad Daddy’s locations under our ownership.”

Additionally, the Company has amended its current credit facility (the “Credit Facility”) to extend its maturity date to April 30, 2023, provide lender consent required under the Credit Facility for the acquisition of these membership interests, and provide EBITDA credit under the facility for a portion of the approximately $850,000 of full-year EBITDA (as that term is defined under the Credit Facility) that was previously allocated to the non-controlling members of the joint-venture entities.