Good Times Restaurants Announces the Purchase of the Good Times Locations in Broomfield and Northglenn, Colorado

Rhea-AI Summary

Good Times Restaurants Inc. (NASDAQ: GTIM) has acquired two Good Times Burgers & Frozen Custard locations in Broomfield and Northglenn, Colorado from a franchisee. The restaurants underwent a brief two-day closure for upgrades, including new digital menu boards and next-generation point-of-sale systems. The company plans to remodel these locations within the next 18-24 months as part of their system refresh initiative.

Positive

• Expansion of company-owned restaurant portfolio through acquisition of two franchise locations
• Implementation of technological upgrades including digital menu boards and new POS systems
• Planned remodeling initiative to enhance restaurant facilities

Negative

• Temporary revenue loss during two-day closure for upgrades
• Future capital expenditure required for planned remodeling

Insights

Financial Analyst

The acquisition of two franchised locations in Colorado marks a strategic move for Good Times Restaurants. This consolidation strengthens their company-owned portfolio and provides direct control over operations and revenue streams. The immediate implementation of digital upgrades and POS systems indicates a commitment to modernization and operational efficiency. Key investment considerations include:

• Increased revenue capture from previously franchised locations
• Planned remodeling investment showcasing commitment to asset improvement
• Technology upgrades suggesting focus on operational efficiency and customer experience

The timing of remodeling within 18-24 months allows for gradual capital expenditure while maintaining current operations. This acquisition aligns with industry trends of franchisors buying back successful franchise locations to optimize profitability.

GOLDEN, Colo.--(BUSINESS WIRE)-- Good Times Restaurants Inc. (NASDAQ: GTIM) today announced that it has acquired the Good Times Burgers & Frozen Custard locations in Broomfield and Northglenn, Colorado, from a franchisee. The two restaurants were closed for two days for the installation of new digital menu boards at the walk-up window, installation of the brand’s next-generation point-of-sale system and retraining of all the team members. These restaurants have reopened to serve guests with renewed excitement.

Ryan Zink, President and CEO, said, “We are thrilled to add two more Good Times Burgers & Frozen Custard restaurants to our company owned and operated portfolio. We are also proud to have completed the menu board and point of sale initiatives throughout the state of Colorado. We expect the two acquired locations will be remodeled during the next eighteen to twenty-four months as part of our ongoing system refresh. We appreciate the wonderful customers in these great communities and look forward to earning their continued loyalty.”

About Good Times Restaurants Inc.: Good Times Restaurants Inc., through its wholly owned subsidiaries, owns, operates and franchises 30 Good Times Burgers & Frozen Custard restaurants primarily in Colorado. Good Times is a regional quick-service concept featuring 100% all-natural burgers and chicken sandwiches, signature wild fries, green chili breakfast burritos and fresh frozen custard desserts. The Company also 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241023997893/en/

GOOD TIMES RESTAURANTS INC CONTACTS:

Ryan M. Zink, President and Chief Executive Officer (303) 384-1411

Christi Pennington (303) 384-1440

Source: Good Times Restaurants Inc.

FAQ

How many Good Times restaurants did GTIM acquire in Colorado?

GTIM acquired two Good Times Burgers & Frozen Custard locations in Broomfield and Northglenn, Colorado from a franchisee.

What upgrades were implemented at the newly acquired GTIM locations?

The locations received new digital menu boards at the walk-up window and the brand's next-generation point-of-sale system.

When will GTIM remodel the newly acquired Broomfield and Northglenn locations?

The company plans to remodel these locations during the next eighteen to twenty-four months as part of their system refresh.

How long were the acquired GTIM restaurants closed for upgrades?

The restaurants were closed for two days to implement the upgrades and retrain team members.