Good Times Restaurants Reports Fourth Fiscal Quarter Same Store Sales

Rhea-AI Summary

Good Times Restaurants Inc. (Nasdaq: GTIM) reported mixed same store sales results for its fourth fiscal quarter ended September 24, 2024. The Good Times brand experienced a 0.1% decrease in same store sales, while the Bad Daddy's brand saw a 3.2% increase compared to the prior-year fiscal quarter.

For the entire 2024 fiscal year, Good Times brand's same store sales increased by 2.9%, while Bad Daddy's brand decreased by 1.2% compared to the previous fiscal year. CEO Ryan Zink noted that the Good Times brand faced challenges due to deep discounting in the quick-service sector. The company plans to focus on promoting its Bambinos sliders and introduce a -time Bambino Supremo three-pack in November. Bad Daddy's performance improved towards the end of the fiscal year, attributed to a focus on basic operations and relevant -time offers.

Positive

• Bad Daddy's brand saw a 3.2% increase in same store sales for Q4 2024
• Good Times brand's same store sales increased by 2.9% for the full fiscal year 2024
• Introduction of new -time offer (Bambino Supremo) to potentially boost sales

Negative

• Good Times brand experienced a 0.1% decrease in same store sales for Q4 2024
• Bad Daddy's brand's same store sales decreased by 1.2% for the full fiscal year 2024
• Challenging quick-service environment due to deep discounting by competitors

Insights

Financial Analyst

The latest quarterly results from Good Times Restaurants show a mixed performance across their two main brands. The Bad Daddy's brand demonstrated resilience with a 3.2% increase in same-store sales, outperforming the casual dining sector which has faced challenges. This growth suggests effective operational strategies and menu offerings.

However, the Good Times brand saw a slight 0.1% decrease in same-store sales, primarily due to intense competition and discounting in the quick-service segment. The company's commitment to quality over deep discounting may impact short-term sales but could protect margins and brand value long-term.

For the fiscal year 2024, Good Times brand showed a 2.9% increase in same-store sales, while Bad Daddy's experienced a 1.2% decrease. The introduction of new menu items like the Bambino Supremo and the focus on value options could help drive sales in the coming quarters. Investors should monitor how these strategies impact both top-line growth and profitability in the highly competitive restaurant industry.

GOLDEN, Colo.--(BUSINESS WIRE)-- Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, today announced that same store sales¹ decreased 0.1% for its Good Times brand and increased 3.2% for its Bad Daddy’s brand for its fourth fiscal quarter ended September 24, 2024, compared to the prior-year fiscal quarter. For the 2024 fiscal year, same store sales increased 2.9% and decreased 1.2% for its Good Times and Bad Daddy’s brands, respectively, compared to the prior fiscal year.

Ryan Zink, President and CEO, said, “Our Good Times brand has been negatively impacted by the return of deep discounting in the quick-service environment. We remain committed to our quality position and cannot match the low-price points of the mass market competition. Bambinos, our signature sliders, represent a great value option on our menu. We intend to more prominently feature both the single and three-pack options. We are also excited about the introduction of a Bambino Supremo three-pack in November for a limited time, which includes pickles, bacon, and white American cheese.

“I am pleased with the way in which Bad Daddy’s finished the fiscal year, growing same store sales during what has been an incrementally challenging period in casual dining. We believe that our focus on back-to-basics restaurant operations along with relevant food and beverage limited time offers has significantly improved trends.”

About Good Times Restaurants Inc.: Good Times Restaurants Inc. 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 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 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.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241015446594/en/

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

Christi Pennington (303) 384-1440

Source: Good Times Restaurants Inc.

FAQ

What were Good Times Restaurants Inc.'s (GTIM) same store sales results for Q4 2024?

For Q4 2024, Good Times brand's same store sales decreased by 0.1%, while Bad Daddy's brand's same store sales increased by 3.2% compared to the prior-year quarter.

How did GTIM's same store sales perform for the full fiscal year 2024?

For fiscal year 2024, Good Times brand's same store sales increased by 2.9%, while Bad Daddy's brand's same store sales decreased by 1.2% compared to the previous fiscal year.

What new product is Good Times Restaurants (GTIM) introducing in November 2024?

Good Times Restaurants is introducing a -time Bambino Supremo three-pack in November 2024, which includes pickles, bacon, and white American cheese.

What challenges did Good Times Restaurants (GTIM) face in the quick-service environment?

Good Times brand was negatively impacted by the return of deep discounting in the quick-service environment, making it difficult to match low-price points of mass market competition while maintaining quality.