Good Times Plans to Open Eight Bad Daddy’s Burger Bar in 2016
Good Times Restaurants Inc., operator of Good Times Burgers & Frozen Custard, a regional quick service restaurant chain focused on fresh, high quality, all natural products and Bad Daddy’s Burger Bar, a full service, upscale concept, announced its preliminary unaudited financial results for the first fiscal quarter ended December 31, 2015.
Key highlights of the company’s financial results include:
- Same store sales for company-owned Good Times restaurants increased 4.8 percent for the quarter on top of last year’s increase of 8 percent, which makes 22 consecutive quarters of same store sales growth.
- Same store sales for company-owned Bad Daddy’s restaurants increased 6.5 percent for the quarter.
- Total revenues increased 76 percent to $13,838,000 for the quarter.
- Restaurant Level Operating Profit (a non-GAAP measure) for Good Times restaurants increased $60,000 or 5.8 percent over last year for the quarter.
- The company opened two new Bad Daddy’s restaurants during the quarter and has opened one additional restaurant after the quarter ended.
- Sales for the Bad Daddy’s restaurants for the quarter were $6,709,000 and Bad Daddy’s Restaurant Level Operating Profit (a non-GAAP measure) was $976,000 or 14.5 percent as a percent of sales.
- Adjusted EBITDA (a non-GAAP measure) for the quarter increased 109 percent to $245,000 from $117,000 for the quarter.
- The company ended the quarter with $9 million in cash.
Boyd Hoback, president and CEO says, “We continue to make good progress in both brands and in laying the foundation for accelerated growth. Our growth in Good Times’ same store sales this quarter represents a three year compound growth rate of approximately 33 percent, so we are obviously very happy with that and, as expected, our growth rate is moderating to the low to mid-single digits.”
Hoback concludes, “We have opened three new Bad Daddy’s restaurants so far this fiscal year. While it’s still early, we are pleased with the performance of the new stores and anticipate that the average sales of the three new stores opened so far will meet or exceed the average sales of the system, with two above and one below that average.”
The Company currently anticipates and reiterates the following for fiscal 2016:
- Total revenues of around $67 million to $69 million.
- Total revenue estimates assume same store sales growth of approximately 4 percent for the Good Times concept and low single digits for the Bad Daddy’s concept.
- General and administrative expenses of approximately $6.1 million to $6.2 million, including around $800,000 of non-cash equity compensation expense.
- The opening of one Good Times restaurant.
- The opening of eight Bad Daddy’s restaurants (three have already opened, and one restaurant is expected to open on February 15, one in late March, and three during the balance of the fiscal year).
- Total Adjusted EBITDA of approximately $4.2 million to $4.5 million.
- Restaurant pre-opening expenses of around $2.6 million to $2.7 million.
- Capital expenditures (net of tenant improvement allowances) of approximately $10 million to $11 million.