Good Times Restaurants Reports Results for the Second Fiscal Quarter Ending March 28, 2023
Total Revenues for the quarter increased 3.5% to $34.8 million compared to fiscal 2022 second quarter
Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard restaurant brands, yesterday reported financial results for the second fiscal quarter ended March 28, 2023.
Key highlights of the Company’s financial results include:
- Total Revenues for the quarter increased 3.5% to $34.8 million compared to fiscal 2022 second quarter
- Total Restaurant Sales for Bad Daddy’s restaurants were $26.3 million for the quarter
- Same Store Sales1 for company-owned Bad Daddy’s restaurants increased 4.6% for the quarter
- Total Restaurant Sales for Good Times restaurants were $8.2 million for the quarter
- Same Store Sales for company-owned Good Times restaurants increased 7.6% for the quarter
- Net Income Attributable to Common Shareholders was $10.6 million for the quarter, including a $10.0 million income tax benefit
- Adjusted EBITDA2 (a non-GAAP measure) for the quarter was $1.5 million
- The Company ended the quarter with $5.4 million in cash and no long-term debt
Ryan M. Zink, the Company’s Chief Executive Officer, said, “I am pleased to report a strong second fiscal quarter with positive same store sales and improved year-over-year growth at both brands and improved profit and EBITDA.”
Mr. Zink continued, “Subsequent to the end of the quarter we amended and restated our credit facility with Cadence Bank which extended the term for five years. Though we are not currently in a borrowing position, this facility will provide us with committed capital for discretionary use. We recently began construction on our upcoming Bad Daddy’s in Huntsville, Alabama, for which we anticipate a late summer opening. We are entering the second half of the year from a position of strength and we are looking towards a strong summer at both brands that will continue to demonstrate our relevance with our guests as well as our strong and mindful commitment to our brands.”
“I once again thank our management and restaurant teams who continue to impress our guests with great food and beverage and stellar service, and our positive sales at both brands are evident of their continued commitment,” Zink concluded.
About Good Times Restaurants Inc.: Good Times Restaurants Inc. (GTIM) owns, operates, and licenses 40 Bad Daddy’s Burger Bar restaurants through its wholly-owned subsidiaries. Bad Daddy’s Burger Bar is a full-service “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 beers in a high-energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly owned subsidiaries, Good Times Restaurants Inc. owns, operates and franchises 31 Good Times Burgers & Frozen Custard restaurants primarily in Colorado.
| Good Times Restaurants Inc. Unaudited Supplemental Information (In thousands, except per share amounts) | |||||||||||||||
|
| Quarter Ended (13 weeks) |
| Year-to-Date (26 weeks) | ||||||||||||
|
| March 28, 2023 |
| March 29, 2022 |
| March 28, 2023 |
| March 29, 2022 | ||||||||
| NET REVENUES: |
|
|
|
|
|
|
| ||||||||
| Restaurant sales | $ | 34,568 |
|
| $ | 33,364 |
|
| $ | 67,747 |
|
| $ | 66,040 |
|
| Franchise revenues |
| 217 |
|
| 233 |
|
| 432 |
|
| 473 |
| |||
| Total net revenues |
| 34,785 |
|
|
| 33,597 |
|
|
| 68,179 |
|
|
| 66,513 |
|
|
|
|
|
|
|
|
|
| ||||||||
| RESTAURANT OPERATING COSTS: |
|
|
|
|
|
|
| ||||||||
| Food and packaging costs |
| 10,655 |
|
|
| 10,457 |
|
|
| 21,262 |
|
|
| 20,683 |
|
| Payroll and other employee benefit costs |
| 11,989 |
|
|
| 11,555 |
|
|
| 23,537 |
|
|
| 22,732 |
|
| Restaurant occupancy costs |
| 2,428 |
|
|
| 2,377 |
|
|
| 4,886 |
|
|
| 4,705 |
|
| Other restaurant operating costs |
| 4,826 |
|
|
| 4,667 |
|
|
| 9,318 |
|
|
| 8,805 |
|
| Preopening costs |
| 30 |
|
|
| - |
|
|
| 30 |
|
|
| 50 |
|
| Depreciation and amortization |
| 911 |
|
| 1,013 |
|
| 1,821 |
|
| 1,997 |
| |||
| Total restaurant operating costs |
| 30,839 |
|
|
| 30,069 |
|
|
| 60,854 |
|
|
| 58,972 |
|
|
|
|
|
|
|
|
|
| ||||||||
| General and administrative costs |
| 2,297 |
|
|
| 2,577 |
|
|
| 4,672 |
|
|
| 5,282 |
|
| Advertising costs |
| 778 |
|
|
| 812 |
|
|
| 1,672 |
|
|
| 1,453 |
|
| Franchise costs |
| - |
|
|
| 6 |
|
|
| 3 |
|
|
| 11 |
|
| Impairment of long-lived assets |
| 76 |
|
|
| 1,753 |
|
|
| 76 |
|
|
| 1,753 |
|
| Gain on restaurant asset sale and lease termination |
| (22 | ) |
| (43 | ) |
| (22 | ) |
| (657 | ) | |||
| Litigation contingencies |
| - |
|
| 332 |
|
| - |
|
| 332 |
| |||
|
| |||||||||||||||
| INCOME (LOSS) FROM OPERATIONS: |
| 817 |
|
|
| (1,909 | ) |
|
| 924 |
|
|
| (633 | ) |
|
|
|
|
|
|
|
|
| ||||||||
| Interest and other expense, net |
| (26 | ) |
|
| (11 | ) |
|
| (38 | ) |
|
| (29 | ) |
|
| |||||||||||||||
| NET INCOME (LOSS) BEFORE INCOME TAXES: |
| 791 |
|
| (1,920 | ) |
| 886 |
|
| (662 | ) | |||
|
| |||||||||||||||
| Provision for income taxes |
| 9,952 |
|
| - |
|
| 9,952 |
|
| (8 | ) | |||
|
| |||||||||||||||
| NET INCOME (LOSS): | $ | 10,743 |
| $ | (1,920 | ) |
| $ | 10,838 |
| $ | (670 | ) | ||
| Income attributable to non-controlling interests |
| (122 | ) |
|
| (230 | ) |
| (344 | ) |
|
| (1,150 | ) | |
|
|
|
| |||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 10,621 |
| $ | (2,150 | ) | $ | 10,494 |
| $ | (1,820 | ) | |||
|
|
|
|
|
|
|
|
| ||||||||
| NET INCOME (LOSS) PER SHARE, ATTRIBUTABLE TO COMMON |
|
|
|
|
|
|
| ||||||||
| Basic | $ | 0.90 |
|
| $ | (0.17 | ) |
| $ | 0.88 |
|
| $ | (0.15 | ) |
| Diluted | $ | 0.89 |
|
| $ | (0.17 | ) |
| $ | 0.88 |
|
| $ | (0.15 | ) |
|
|
|
|
|
|
|
|
| ||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
| ||||||||
| Basic |
| 11,818,651 |
|
|
| 12,527,625 |
|
|
| 11,930,140 |
|
|
| 12,525,048 |
|
| Diluted |
| 11,884,123 |
|
|
| 12,527,625 |
|
|
| 11,985,254 |
|
|
| 12,525,048 |
|
| Good Times Restaurants Inc. Unaudited Supplemental Information (In thousands) | |||||||||
| Balance Sheet Data | March 28, 2023 |
| September 27, 2022 | ||||||
| Cash and cash equivalents |
| $ | 5,367 |
|
|
| $ | 8,906 |
|
|
|
|
|
|
|
|
|
| ||
| Current assets |
| $ | 9,036 |
|
|
| $ | 11,875 |
|
|
|
|
|
|
|
|
|
| ||
| Total assets |
| $ | 91,896 |
|
|
| $ | 86,388 |
|
|
|
|
|
|
|
|
|
| ||
| Current liabilities |
| $ | 15,370 |
|
|
| $ | 12,897 |
|
|
|
|
|
|
|
|
|
| ||
| Shareholders’ equity |
| $ | 33,329 |
|
| $ | 27,788 | ||
| Supplemental Information for Company-Owned Restaurants (dollars in thousands):
| |||||||||||||||||||||||
|
| Bad Daddy’s Burger Bar |
| Good Times Burgers & Frozen Custard | ||||||||||||||||||||
|
| Second Quarter (13 weeks) |
| Year-to-Date (26 weeks) |
| Second Quarter (13 weeks) |
| Year-to-Date (26 weeks) | ||||||||||||||||
|
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
| Restaurant sales | $ | 26,342 |
| $ | 25,447 |
| $ | 51,507 |
| $ | 50,037 |
| $ | 8,226 |
| $ | 7,917 |
| $ | 16,240 |
| $ | 16,003 |
| Restaurants opened or acquired |
| - |
|
| 1 |
|
| - |
|
| 1 |
|
| - |
|
| - |
|
| - |
|
| - |
| Restaurants closed during period |
| 1 |
|
| - |
|
| 1 |
|
| - |
|
| - |
|
| 1 |
|
| - |
|
| 1 |
| Restaurants open at period end |
| 39 |
|
| 40 |
|
| 39 |
|
| 40 |
|
| 23 |
|
| 23 |
|
| 23 |
|
| 23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Restaurant operating weeks |
| 507 |
|
| 508 |
|
| 1,027 |
|
| 1,015 |
|
| 299 |
|
| 311 |
|
| 598 |
|
| 623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Average weekly sales per restaurant | $ | 52.0 |
| $ | 50.1 |
| $ | 50.2 |
| $ | 49.3 |
| $ | 27.5 |
| $ | 25.5 |
| $ | 27.2 |
| $ | 25.7 |
| Reconciliation of Non-GAAP Measurements to U.S. GAAP Results | |||||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Restaurant-Level Operating Profit to Income (Loss) from Operations | |||||||||||||||||||||||||||||||
| (In thousands, except percentage data) | |||||||||||||||||||||||||||||||
|
| Bad Daddy’s Burger Bar |
| Good Times Burgers & Frozen Custard |
| Good Times | ||||||||||||||||||||||||||
|
| ------------------------------------------Quarter Ended (13 Weeks)----------------------------------------- | ||||||||||||||||||||||||||||||
|
| March 28, |
| March 29, |
| March 28, |
| March 29, |
| March 28, |
| March 29, | ||||||||||||||||||||
| Restaurant sales | $ | 26,342 | 100.0 | % |
| $ | 25,447 | 100.0 | % |
| $ | 8,226 | 100.0 | % |
| $ | 7,917 | 100.0 | % |
| $ | 34,568 |
|
| $ | 33,364 |
| ||||
| Restaurant operating costs (exclusive of depreciation and amortization and preopening, shown separately below): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
| Food and packaging costs |
| 8,052 | 30.6 | % |
|
| 7,972 | 31.3 | % |
|
| 2,603 | 31.6 | % |
|
| 2,485 | 31.4 | % |
|
| 10,655 |
|
|
| 10,457 |
| ||||
| Payroll and benefits costs |
| 9,143 | 34.7 | % |
|
| 8,736 | 34.3 | % |
|
| 2,846 | 34.6 | % |
|
| 2,819 | 35.6 | % |
|
| 11,989 |
|
|
| 11,555 |
| ||||
| Restaurant occupancy costs |
| 1,693 | 6.4 | % |
|
| 1,679 | 6.6 | % |
|
| 735 | 8.9 | % |
|
| 698 | 8.8 | % |
|
| 2,428 |
|
|
| 2,377 |
| ||||
| Other restaurant operating costs |
| 3,811 | 14.5 | % |
| 3,670 | 14.4 | % |
| 1,015 | 12.3 | % |
| 997 | 12.6 | % |
| 4,826 |
|
| 4,667 |
| |||||||||
| Restaurant-level operating profit | $ | 3,643 | 13.8 | % | $ | 3,390 | 13.3 | % | $ | 1,027 | 12.5 | % | $ | 918 | 11.6 | % | $ | 4,670 |
| $ | 4,308 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
| Franchise revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| 217 |
|
|
| 233 |
| ||||||||||||
| Deduct - Other operating: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
| 911 |
|
|
| 1,013 |
| ||||||||||||
| General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
| 2,297 |
|
|
| 2,577 |
| ||||||||||||
| Advertising costs |
|
|
|
|
|
|
|
|
|
|
|
|
| 778 |
|
|
| 812 |
| ||||||||||||
| Litigation contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
| - |
|
|
| 332 |
| ||||||||||||
| Franchise costs |
|
|
|
|
|
|
|
|
|
|
|
|
| - |
|
|
| 6 |
| ||||||||||||
| Impairment of long-lived assets |
|
|
|
|
|
|
|
|
|
|
|
|
| 76 |
|
|
| 1,753 |
| ||||||||||||
| Gain on restaurant asset sale and lease termination |
|
|
|
|
|
|
|
|
|
|
|
|
| (22 | ) |
|
| (43 | ) | ||||||||||||
| Pre-opening costs |
|
|
|
|
|
|
|
|
|
|
|
|
| 30 |
|
|
| - |
| ||||||||||||
| Total other operating |
|
|
|
|
|
|
|
|
|
|
|
|
| 4,070 |
|
|
| 6,450 |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
| Income (loss) from operations |
|
|
|
|
|
|
|
|
|
|
|
| $ | 817 |
|
| $ | (1,909 | ) | ||||||||||||
Certain percentage amounts in the table above may not total due to rounding as well as the fact that restaurant operating costs are expressed as a percentage of restaurant revenues (as opposed to total revenues).
| Reconciliation of Non-GAAP Measurements to U.S. GAAP Results | |||||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Restaurant-Level Operating Profit to Income (Loss) from Operations | |||||||||||||||||||||||||||||||
| (In thousands, except percentage data) | |||||||||||||||||||||||||||||||
|
| Bad Daddy’s Burger Bar |
| Good Times Burgers & Frozen Custard |
| Good Times | ||||||||||||||||||||||||||
|
| ------------------------------------------Year-to-Date Period Ended (26 weeks)--------------------------------- | ||||||||||||||||||||||||||||||
|
| March 28, |
| March 29, |
| March 28, |
| March 29, |
| March 28, |
| March 29, | ||||||||||||||||||||
| Restaurant sales | $ | 51,507 | 100.0 | % |
| $ | 50,037 | 100.0 | % |
| $ | 16,240 | 100.0 | % |
| $ | 16,003 | 100.0 | % |
| $ | 67,747 |
|
| $ | 66,040 |
| ||||
| Restaurant operating costs (exclusive of depreciation and amortization, and preopening, shown separately below: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
| Food and packaging costs |
| 16,025 | 31.1 | % |
|
| 15,784 | 31.5 | % |
|
| 5,237 | 32.2 | % |
|
| 4,899 | 30.6 | % |
|
| 21,262 |
|
|
| 20,683 |
| ||||
| Payroll and benefits costs |
| 17,898 | 34.7 | % |
|
| 17,154 | 33.3 | % |
|
| 5,639 | 34.7 | % |
|
| 5,578 | 34.9 | % |
|
| 23,537 |
|
|
| 22,732 |
| ||||
| Restaurant occupancy costs |
| 3,425 | 6.6 | % |
|
| 3,327 | 6.6 | % |
|
| 1,461 | 9.0 | % |
|
| 1,378 | 8.6 | % |
|
| 4,886 |
|
|
| 4,705 |
| ||||
| Other restaurant operating costs |
| 7,333 | 14.2 | % |
| 6,955 | 13.9 | % |
| 1,985 | 12.2 | % |
| 1,850 | 11.6 | % |
| 9,318 |
|
| 8,805 |
| |||||||||
| Restaurant-level operating profit | $ | 6,826 | 13.3 | % | $ | 6,817 | 13.6 | % | $ | 1,918 | 11.8 | % | $ | 2,298 | 14.4 | % | $ | 8,744 |
| $ | 9,115 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
| Franchise revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| 432 |
|
|
| 473 |
| ||||||||||||
| Deduct - Other operating: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
| 1,821 |
|
|
| 1,997 |
| ||||||||||||
| General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
| 4,672 |
|
|
| 5,282 |
| ||||||||||||
| Advertising costs |
|
|
|
|
|
|
|
|
|
|
|
|
| 1,672 |
|
|
| 1,453 |
| ||||||||||||
| Litigation contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
| - |
|
|
| 332 |
| ||||||||||||
| Franchise costs |
|
|
|
|
|
|
|
|
|
|
|
|
| 3 |
|
|
| 11 |
| ||||||||||||
| Impairment of long-lived assets |
|
|
|
|
|
|
|
|
|
|
|
|
| 76 |
|
|
| 1,753 |
| ||||||||||||
| Gain on restaurant asset sale and lease termination |
|
|
|
|
|
|
|
|
|
|
|
|
| (22 | ) |
|
| (657 | ) | ||||||||||||
| Pre-opening costs |
|
|
|
|
|
|
|
|
|
|
|
|
| 30 |
|
|
| 50 |
| ||||||||||||
| Total other operating |
|
|
|
|
|
|
|
|
|
|
|
|
| 8,252 |
|
|
| 10,221 |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
| Income (loss) from operations |
|
|
|
|
|
|
|
|
|
|
|
| $ | 924 |
|
| $ | (633 | ) | ||||||||||||
Certain percentage amounts in the table above may not total due to rounding as well as the fact that restaurant operating costs are expressed as a percentage of restaurant revenues (as opposed to total revenues).
| Reconciliation of Net Income to Non-GAAP Adjusted EBITDA (Thousands of US Dollars) | |||||||||||||||
|
| Quarter Ended (13 weeks) |
| Year-to-Date (26 weeks) | ||||||||||||
|
| March 28, 2023 |
| March 29, 2022 |
| March 28, 2023 |
| March 29, 2022 | ||||||||
| Adjusted EBITDA: |
|
|
|
|
|
|
| ||||||||
| Net Income (Loss), as reported | $ | 10,621 |
|
| $ | (2,150 | ) |
| $ | 10,494 |
|
| $ | (1,820 | ) |
| Depreciation and amortization |
| 900 |
|
|
| 977 |
|
|
| 1,767 |
|
|
| 1,982 |
|
| Interest expense, net |
| 25 |
|
|
| 11 |
|
|
| 38 |
|
|
| 29 |
|
| Provision for income taxes |
| (9,952 | ) |
|
| - |
|
|
| (9,952 | ) |
|
| 8 |
|
| EBITDA |
| 1,594 |
|
|
| (1,162 | ) |
|
| 2,347 |
|
|
| 199 |
|
| Preopening expense |
| 30 |
|
|
| - |
|
|
| 30 |
|
|
| 50 |
|
| Non-cash stock-based compensation |
| 43 |
|
|
| 52 |
|
|
| 89 |
|
|
| 147 |
|
| Asset Impairment |
| 76 |
|
|
| 1,753 |
|
|
| 76 |
|
|
| 1,753 |
|
| GAAP rent-cash rent difference |
| (190 | ) |
|
| (110 | ) |
|
| (314 | ) |
|
| (182 | ) |
| Gain on restaurant asset sales and lease termination |
| (22 | ) |
|
| (35 | ) |
|
| (22 | ) |
|
| (519 | ) |
| One-time special allocation to Bad |
| - |
|
|
| - |
|
|
| - |
|
|
| 516 |
|
| Litigation contingencies |
| - |
|
|
| 332 |
|
|
| - |
|
|
| 332 |
|
| Adjusted EBITDA | $ | 1,531 |
|
| $ | 830 |
|
| $ | 2,206 |
|
| $ | 2,296 |
|
