Good Times Restaurants Reports Q4 2018 and Fiscal Year End Results
Total Revenues for Fiscal 2018 Increased 25% to $99 Million – Net Loss for the Year Narrowed to $1.0 Million
Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar, a full-service, upscale burger bar concept, and Good Times Burgers & Frozen Custard, a regional quick-service restaurant chain focused on fresh, high-quality, all-natural products, today announced its preliminary unaudited financial results for the fourth fiscal quarter ended September 25, 2018.
Key highlights of the Company’s financial results vs prior year include:
- Total revenues increased 19% to $26,796,000 for the quarter and increased 25% to $99,240,000 for the year, which reflects the addition of nine new Bad Daddy’s restaurants during the year
- Same store sales for company-owned Good Times restaurants increased 0.5% for the quarter and increased 4.2% for the year on top of last year’s increases of 3.9% for the quarter and 2.1% for the year
- Adjusted for the impact of Hurricane Florence, same store sales for company-owned Bad Daddy’s restaurants increased 0.7% for the quarter and 0.8% for the year on top of last year’s increases of 1.4% for the quarter and 1.6% for the year
- The company opened five restaurants during the fiscal fourth quarter, bringing the total new restaurants opened during fiscal 2018 to nine
- Income from Operations improved from a loss of $1,422,000 to income of $372,000 for the year, which includes the impact of $2,784,000 of new store preopening costs incurred in fiscal 2018
- Restaurant Level Operating Profit (a non-GAAP measure) for Bad Daddy’s restaurants improved 50% to $3,136,000 in the fourth quarter from $2,081,000 in the fourth quarter last year*
- Total Restaurant Level Operating Profit (a non-GAAP measure) increased 26% to $4,318,000 for the quarter and increased 30% to $16,111,000 for the year*
- Net Loss Attributable to Common Shareholders for the year narrowed to $324,000 for the quarter and $1,034,000 for the full fiscal year
- Adjusted EBITDA (a non-GAAP measure) for the quarter increased 38% to $1,805,000 and increased 52% to $5,758,000* for the fiscal year
- The Company ended the year with $3.5 million in cash and $7.5 million of long term debt
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Applebee’s Neighborhood Grill & Bar Purchases 69 Restaurants In Franchise Transaction
Company announces successful transaction of 69 restaurants in North and South Carolina; Comes to resolution with RMH franchise group following court decision.
Yesterday, Applebee’s Grill and Bar announced the closing of the transaction purchasing 69 restaurants in North and South Carolina. The restaurants will be operated under industry veteran and Applebee’s chief operating officer, Kevin Carroll.
“Through the third quarter of 2018, Applebee’s business performance has been the best it’s been in more than a decade as we continue to lead the casual dining category,” says John Cywinski, Applebee’s brand president. “I’m pleased with this transaction and confident in our plans to evolve and selectively refine our restaurant portfolio. We are consistently reviewing our portfolio and making strategic decisions to better position our brand for the future.”
Applebee’s same-restaurant sales increased 7.7 percent in the third quarter, a majority of which was driven by traffic, resulting in a third quarter year-to-date comp sales increase of 5.5 percent.
The transaction closed on December 12, 2018. The Corporation intends to own and operate these restaurants for the foreseeable future; however, we will assess and monitor opportunities to refranchise these restaurants under favorable circumstances.
Applebee’s is also pleased to announce that Dine Brands Global, Inc. has reached a settlement with RMH Franchise Holdings Inc. and its affiliates (“RMH”), an Applebee’s franchisee. As previously disclosed in the Corporation’s periodic filings, RMH filed for Chapter 11 bankruptcy in May 2018. The terms of the settlement, among other things, require RMH to pay Applebee’s all past due royalty and advertising fees. The Corporation will also receive in part, reimbursement of termination fees related to restaurant closures. Additionally, as a result of the settlement, all outstanding litigation between the parties will be dismissed.
“We’re pleased to have come to a resolution with RMH and its owners,” Cywinski said. “We remain confident and look forward to 2019.”
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FLYNN RESTAURANT GROUP LP ACQUIRES 368 ARBY’S RESTAURANT LOCATIONS IN THE U.S. FROM UNITED STATES BEEF CORPORATION (US BEEF)
December 5th, 2018
Significant Acquisition Cements Flynn Restaurant Group’s Position as Largest Franchise Operator and
Top 20 Foodservice Company in America Generating $2.3 Billion in Sales
SAN FRANCISCO, CA (December 5, 2018) – RB American Group LLC, a wholly-owned subsidiary of Flynn Restaurant Group LP, today announced that it has acquired 368 Arby’s® restaurants throughout the U.S. from United States Beef Corporation (US Beef). Arby’s, the second largest sandwich restaurant brand in the world, is a perfect fit for Flynn Restaurant Group, whose portfolio includes household names like Applebee’s®, Panera Bread® and Taco Bell®. RB American Group will be Flynn Restaurant Group’s fourth prominent restaurant brand.
With this acquisition, Flynn Restaurant Group will own and operate a combined total of 1,245 quick-service, fast casual and casual dining restaurants, generating $2.3 billion in sales and employing approximately 50,000 people in 33 states. Flynn Restaurant Group’s subsidiaries include Apple American Group LLC, the largest Applebee’s franchisee; Pan American Group LLC, the second largest Panera Bread franchisee; and Bell American Group, the third largest Taco Bell franchisee. This significant deal will add $400 million in sales to Flynn’s current $1.9 billion, and just as Flynn was the first franchise operator to exceed $1 billion in sales in 2012, it is now the first to exceed $2 billion in sales. This acquisition also establishes FRG as one of the top 20 foodservice companies of any kind in the country.
“We are extremely pleased to announce the addition of these Arby’s locations to our portfolio of restaurants,” said Greg Flynn, Founder, Chairman and Chief Executive Officer of Flynn Restaurant Group. “The Davis family and their team of great operators built a fantastic business over 50 years and we’re privileged to be the ones to shepherd the US Beef restaurants into their next phase. In addition, standing in a category of its own, the Arby’s brand aligns perfectly with our preference for brands that are truly differentiated and ‘best in breed’ in their segments. Benefiting from very strong leadership, the Arby’s brand has achieved great momentum these past few years and we are truly excited about the opportunities that lie ahead.”
About Flynn Restaurant Group LLC
Founded by Chairman and CEO Greg Flynn in 1999, Flynn Restaurant Group LP is the largest franchise operator, and one of the top 20 largest foodservice companies of any kind, in the United States. Flynn Restaurant Group owns and operates 460 Applebee’s Neighborhood Grill & Bar restaurants, 386 Arby’s restaurants, 280 Taco Bell and related Yum! Brand restaurants, and 135 Panera Bread bakery-cafes across 33 states, generating $2.3 billion in sales and employing approximately 50,000 people. More information is available at www.flynnrg.com.
Arby’s, founded in 1964, is the first nationally franchised sandwich restaurant brand, with more than 3,300 restaurants worldwide. The Arby’s brand purpose is “Inspiring Smiles Through Delicious Experiences®.” Arby’s restaurants feature Fast Crafted® service, a unique blend of quick-serve speed and value combined with the quality and made-for-you care of fast casual. Arby’s Restaurant Group, Inc. is the parent company of the franchisor of the Arby’s brand and is headquartered in Atlanta, Ga. Visit Arbys.com for more information.
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