Good Times Restaurants Reports First Fiscal Quarter Same Store Sales
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Insights
Same store sales are a critical indicator of a company's health and growth, particularly in the restaurant industry. They measure the sales performance of stores that have been open for a certain period, typically more than one year, which eliminates the impact of new store openings and closures on overall sales figures.
For Good Times Restaurants Inc., the mixed results with an increase in same store sales for the Good Times brand and a decrease for the Bad Daddy's brand suggest a divergence in brand performance. The increase for Good Times could indicate effective operational strategies and successful refresh programs. Conversely, the decline in Bad Daddy's brand could raise concerns about its market positioning and competitive challenges. These trends could influence the company's stock performance, as investors often look for consistent, positive same store sales as a sign of sustainable growth.
Moreover, the introduction of new menu items and drink specials is a common strategy to boost sales and attract customers. However, the effectiveness of these initiatives in driving long-term sales growth remains to be seen and will be closely monitored by investors and analysts alike.
The restaurant industry is highly competitive and consumer preferences can shift rapidly. Good Times Restaurants Inc.'s approach to expanding its menu to offer a broader price range could potentially attract a wider customer base looking for value. This strategy, coupled with the return of chef-created dishes, suggests an attempt to balance value with culinary innovation.
However, the mention of unseasonably strong sales in the previous year for Bad Daddy's in January implies that external factors such as weather, economic conditions, or one-time events might have influenced past performance, making year-over-year comparisons more complex. Analysts would consider whether this is a temporary setback or indicative of deeper issues. The setting of new sales records by some Bad Daddy’s locations could signal that operational excellence and location strategy are critical factors in performance variations.
The restaurant sector is often seen as a bellwether for discretionary consumer spending, which in turn is influenced by broader economic conditions. Good Times Restaurants Inc.'s mixed same store sales results could reflect economic headwinds such as inflation, changes in disposable income, or consumer confidence. These economic factors can have a disproportionate impact on different market segments and brands, potentially explaining the variance between the Good Times and Bad Daddy's brands.
Strategies to grow sales and traffic, such as the launch of system-wide drink specials and late night happy hour, could be seen as a response to a challenging economic environment where consumers are more sensitive to price. The company's ability to adapt its offerings and pricing strategy to changing economic conditions will be a key factor in maintaining and growing its customer base.
Ryan Zink, President and CEO, said “Our Good Times brand has continued to deliver positive same store sales in spite of a challenging operating environment, reflecting the strong company-owned restaurant operations and the impact of our restaurant refresh program. Bad Daddy’s sales during the first quarter reflects the challenges facing that brand, and though top line trends had improved throughout December, sales have softened again in January, which was an unseasonably strong month in the prior year, ranking third of all months of the 2023 fiscal year in average weekly sales for the concept.”
“We continue to execute strategies to profitably grow sales and traffic including launching system-wide drink specials and late night happy hour beginning on January 17, 2024, and a new cocktail lineup launching during the month of February as we renew our focus on bar execution. In addition to this coming spring’s established seasonal food and beverage specials, we anticipate the addition of new core menu items that will expand the price range covered by our menu, offering everyday value on products that still match the flavor, presentation, and overall culinary excellence expected of all of our menu items, and will mark the return of chef-created salmon and turkey `Non-Burger Burger' builds to our core menu,” Zink continued.
Mr. Zink concluded, “My confidence in both brands remains positive, reinforced by five Bad Daddy’s, in three different states, achieving new single-store weekly sales records, and our
About Good Times Restaurants Inc.: Good Times Restaurants Inc. owns, operates, and licenses 41 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 local and 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
Forward Looking Statements Disclaimer: This press release contains forward looking statements within the meaning of federal securities laws. The words “intend,” “may,” “believe,” “will,” “should,” “anticipate,” “expect,” “seek”, “plan” and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from results expressed or implied by the forward-looking statements. Such risks and uncertainties include, among other things, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company, the disruption to our business from pandemics and other public health emergencies, the impact and duration of staffing constraints at our restaurants, the impact of supply chain constraints and the current inflationary environment, the uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants, delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, other general economic and operating conditions, risks associated with our share repurchase program, risks associated with the acquisition of additional restaurants, the adequacy of cash flows and the cost and availability of capital or credit facility borrowings to provide liquidity, changes in federal, state, or local laws and regulations affecting the operation of our restaurants, including minimum wage and tip credit regulations, and other matters discussed under the Risk Factors section of Good Times’ Annual Report on Form 10-K for the fiscal year ended September 26, 2023 filed with the SEC, and other filings with the SEC.
Category: Financial
1 Same store sales include all Company-owned restaurants currently open with at least 18 full fiscal months of operating history and for Good Times includes currently open Company-owned restaurants acquired from former franchisees beginning with the first full fiscal month under Company ownership.
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Ryan M. Zink, President and Chief Executive Officer (303) 384-1432
Christi Pennington (303) 384-1440
Source: Good Times Restaurants Inc.
FAQ
What is the ticker symbol for Good Times Restaurants Inc.?
What were the same store sales percentages for Good Times and Bad Daddy’s brands in the first fiscal quarter of 2023?
What strategies is the company implementing to drive sales growth and traffic?
