Good Times Restaurants Reports Third Quarter Same Store Sales

Rhea-AI Summary

Good Times Restaurants Inc. (Nasdaq: GTIM) reported a 2.9% increase in same-store sales for its Good Times brand and a remarkable 61.4% increase for Bad Daddy's in Q3 2021 compared to the previous year. The increases were attributed to lower COVID-19 restrictions and a recovery in dining habits. Compared to 2019, sales grew by 14.3% at Good Times and 0.7% at Bad Daddy's. The company opened its 40th Bad Daddy's location in Atlanta, achieving initial sales targets. Staffing constraints continue to affect operational hours.

Positive

• Good Times brand same-store sales rose 2.9% year-over-year.
• Bad Daddy's brand saw a significant 61.4% increase in same-store sales compared to last year.
• Sales at Good Times increased 14.3% compared to 2019.
• Sales at Bad Daddy's grew by 0.7% compared to 2019.
• Opened the 40th Bad Daddy's restaurant successfully in Atlanta.

Negative

• Staffing constraints are causing restaurants to operate at reduced hours.
• Compared to the previous fiscal quarter, Bad Daddy's sales decreased by 3.3% in May and 5.6% in June.

Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, today announced that year-over-year same store sales for its Good Times brand increased 2.9% for its third fiscal quarter ended June 29, 2021. Year-over-year same store sales at its Bad Daddy’s brand increased 61.4% during the quarter compared to its fiscal 2020 third quarter, driven by reductions in COVID-19-related restrictions and the rollover of prior-year impacts of the pandemic. Compared to 2019, sales during the third quarter of 2021 increased by 14.3% at Good Times and by 0.7% at Bad Daddy’s restaurants, among restaurants that were open for the full third quarter in both years. Same store sales and average weekly sales at Bad Daddy’s and Good Times for each month of the quarter are as follows:

		Good Times Burgers & Frozen Custard				Bad Daddy’s Burger Bar
Fiscal Period		Same Store Sales1		Average Weekly Sales2		Same Store Sales1		Average Weekly Sales2
April (4 weeks)		25.1%		29,613		130.6%		49,318
May (4 weeks)		-3.3%		30,289		73.4%		50,061
June (5 weeks)		-5.6%		29,517		26.9%		51,508
Third Quarter 2021		2.9%		29,784		61.4%		50,397
YTD 2021		14.7%		27,300		16.4%		44,306

1		Same store sales include all company-owned restaurants currently open with at least 18 full fiscal periods of operating history.
2		Average weekly sales include all company-owned restaurants.

Ryan Zink, President and CEO, said, “We have seen an increased preference for the full-service restaurant experience as vaccines have become more widely available and customers have become more comfortable in group settings with reduced COVID-19-related restrictions. Due to hourly staffing constraints that are common in the industry today, both of our concepts are still operating at reduced hours, with most of our restaurants closing one hour earlier, compared to 2019. We continue to prioritize higher-levels of customer service and improved working hours for our employees over maximizing operating hours. We are pleased with the sales results from both brands, as sales have returned to 2019 levels at Bad Daddy’s and at Good Times are seeing only marginal year-over-year sales declines as we lap dining room restrictions from last year. Additionally, during the quarter we opened our 40^th Bad Daddy’s restaurant in the greater Atlanta market. The restaurant opened as the leading sales restaurant for us in this market and is achieving our target for new restaurant volumes.”

About Good Times Restaurants Inc.: Good Times Restaurants Inc. owns, operates, franchises 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, Good Times Restaurants Inc. operates and franchises a regional quick-service drive-thru restaurant chain consisting of 32 Good Times Burgers & Frozen Custard restaurants located primarily in Colorado.

Forward-Looking Statements: This press release contains forward-looking statements within the meaning of federal securities laws. The words “intend,” “may,” “believe,” “will,” “should,” “anticipate,” “expect,” “seek” 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. These risks include such factors as the disruption to our business from the novel coronavirus (COVID-19) pandemic and the impact of the pandemic on our results of operations, financial condition and prospects which may vary depending on the duration and extent of the pandemic and the impact of federal, state and local governmental actions and customer behavior in response to the pandemic, the impact and duration of staffing constraints at our restaurants, 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, and other matters discussed under the Risk Factors section of Good Times’ Annual Report on Form 10-K for the fiscal year ended September 29, 2020 filed with the SEC, and other filings with the SEC. Good Times disclaims any obligation or duty to update or modify these forward-looking statements.

Category: Financial

View source version on businesswire.com: https://www.businesswire.com/news/home/20210715005154/en/

FAQ

What were the same-store sales results for Good Times Restaurants in Q3 2021?

Good Times Restaurants reported a 2.9% increase in same-store sales for its Good Times brand.

How did Bad Daddy's same-store sales perform compared to last year?

Bad Daddy's brand experienced a 61.4% increase in same-store sales compared to the same quarter last year.

What is the sales comparison of Good Times and Bad Daddy's to 2019?

Sales for Good Times increased by 14.3% and Bad Daddy's by 0.7% compared to 2019.

How many Bad Daddy's restaurants does Good Times operate?

Good Times operates 40 Bad Daddy's Burger Bar restaurants.

What operational challenges is Good Times facing currently?

Staffing constraints are leading to reduced operational hours across their restaurants.