Good Times Restaurants Reports Third Fiscal Quarter Same Store Sales

Rhea-AI Summary

Good Times Restaurants (Nasdaq: GTIM) reported a 5.8% increase in same store sales for its Good Times brand and a 1.2% increase for its Bad Daddy’s brand for the third fiscal quarter ending June 25, 2024. Average weekly sales were $31,780 for Good Times and $52,555 for Bad Daddy’s. CEO Ryan Zink highlighted the strength of the Good Times brand, the successful remodel of a Lakewood, Colorado restaurant, and the acquisition of a restaurant in Parker, Colorado. The company has also implemented a new point-of-sale system in eleven of its twenty-six Good Times locations. Zink emphasized the company's strategy of reinvesting in existing restaurants, cautious new-unit development, and returning capital to shareholders through share repurchases.

Positive

• 5.8% increase in same store sales for Good Times brand.
• 1.2% increase in same store sales for Bad Daddy’s brand.
• Successful remodel of a Lakewood, Colorado restaurant.
• Acquisition of a new restaurant in Parker, Colorado.
• Implementation of new point-of-sale system in 11 out of 26 Good Times locations.

Negative

• None.

Financial Analyst

Good Times Restaurants Inc. reported a 5.8% increase in same-store sales for its Good Times brand and a 1.2% increase for its Bad Daddy’s brand, indicating a modest yet positive growth trajectory. Average weekly sales were recorded as $31,780 for Good Times and $52,555 for Bad Daddy’s. These figures suggest that the company is experiencing some level of recovery and stable consumer demand.

The company’s strategy of reinvesting in its existing restaurants and focusing on operational improvements seems to be paying off, particularly evidenced by the successful remodel of a Good Times restaurant in Lakewood and the purchase of another in Parker, Colorado. Additionally, the deployment of a new point-of-sale system in eleven of its twenty-six company-owned locations may further streamline operations and enhance customer experience.

However, the growth percentages, while positive, are not eye-catching and suggest a gradual rather than rapid recovery. This might imply a conservative but stable outlook for the near-term. Investors should be mindful of the broader economic factors that could influence consumer spending behavior and any potential challenges in scaling this moderate growth.

Market Research Analyst

The restaurant industry has been under significant pressure due to inflation and changing consumer behaviors post-pandemic. Good Times Restaurants' incremental same-store sales growth reflects relative strength, especially given the competitive quick-service and casual dining segments. The incremental growth in sales for both brands indicates sustained consumer interest and effective brand positioning.

Good Times' strategy to reinvest in its existing restaurants and cautious expansion is a prudent approach. The completed remodel and acquisition in Colorado illustrate the company’s commitment to enhancing its market presence and optimizing operational performance. The next-generation point-of-sale system installation is another forward-thinking move that points toward improving efficiency and customer service quality.

While the growth is steady, it’s important to consider the external economic factors and potential market saturation. Investors should keep an eye on future quarters to see if this trend continues or if there are any disruptions.

Retail Analyst

From a retail perspective, Good Times Restaurants’ performance is a good sign of consumer loyalty and brand strength. The 5.8% and 1.2% same-store sales growth could suggest steady foot traffic and potentially increased average ticket sizes. The company’s focus on remodeling and new acquisitions also highlights a strategy to attract more customers and keep the brand fresh and appealing.

The new point-of-sale system could potentially enhance the ordering process, reducing wait times and improving overall customer satisfaction. This technological upgrade might also provide valuable data analytics that can help in better understanding customer preferences and optimizing the menu and promotions accordingly.

However, the modest growth percentages indicate that while the brands are performing well, they are not immune to market challenges. Investors should be cautious but optimistic, as the company seems to be making the right moves to secure long-term stability.

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 increased 5.8% for its Good Times brand and increased 1.2% for its Bad Daddy’s brand compared to the same prior-year fiscal quarter and average weekly sales² were $31,780 and $52,555 for its Good Times and Bad Daddy’s brands, respectively, for its third fiscal quarter ended June 25, 2024.

Ryan Zink, President and CEO, said, “The positive same store sales trends at Good Times demonstrate the strength of the brand. In May, we completed the remodel of one of our restaurants in Lakewood, Colorado and we closed on the purchase of the Good Times restaurant in the Denver suburb of Parker, Colorado and are extremely pleased with its first few weeks of operations as a company-owned restaurant. Further, as of the first day of the fourth fiscal quarter, we have installed our next generation point-of-sale system in eleven of our twenty-six company-owned Good Times Restaurants.”

“The improvement in Bad Daddy’s sales performance is encouraging, with the concept generating same store sales gains for the quarter. We are seeing progressive improvements in sales across all geographic regions, the result of a sharp focus on the guest and elevated operating standards,” Zink continued.

Mr. Zink concluded, “Our strategy continues to combine re-investment in our existing restaurants to drive organic sales growth, cautious and measured new-unit development, and return of capital to shareholders through share repurchases. We continue to believe that the market will ultimately recognize the value we are creating with this disciplined approach centered around delivering enjoyable and memorable guest experiences through excellent operations.”

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 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. Same store sales do not include the impact of revenue recognition related to the GT Rewards loyalty program which is immaterial and exclude restaurants closed for remodel in the current or prior year, during the fiscal periods of full or partial period closure.
2		Average weekly sales include all company-owned restaurants open for the full fiscal quarter.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240709307525/en/

GOOD TIMES RESTAURANTS INC CONTACTS:

Ryan M. Zink, President and Chief Executive Officer (303) 384-1432

Christi Pennington (303) 384-1440

Source: Good Times Restaurants Inc.

FAQ

What were the same store sales growth for Good Times Restaurants in Q3 2024?

Good Times Restaurants reported a 5.8% increase in same store sales for its Good Times brand and a 1.2% increase for its Bad Daddy’s brand in the third fiscal quarter of 2024.

What were the average weekly sales for Good Times and Bad Daddy's in Q3 2024?

In Q3 2024, average weekly sales were $31,780 for Good Times and $52,555 for Bad Daddy’s.

What strategic developments did Good Times Restaurants report in Q3 2024?

Good Times Restaurants reported the remodel of a Lakewood, Colorado restaurant, the acquisition of a restaurant in Parker, Colorado, and the implementation of a new point-of-sale system in 11 of its 26 Good Times locations.

How is Good Times Restaurants planning to enhance shareholder value?

Good Times Restaurants plans to enhance shareholder value through reinvesting in existing restaurants, cautious new-unit development, and share repurchases.