DENVER–(BUSINESS WIRE)–Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar, a full-service premium burger bar concept, and Good Times Burgers & Frozen Custard, a regional quick-service restaurant chain focused on fresh, high-quality, all-natural products, today reported financial results for the fiscal fourth quarter and year ended September 24, 2019.
Key highlights of the Company’s financial results include:
- Total Revenues increased 7.0% to $28.8 million for the quarter and 11.2% to $110.8 million for the year
- Total Restaurant Sales for Bad Daddy’s restaurants increased 7.0% to $20.0 million for the quarter and increased 18.3% to $79.8 million for the year
- The Company opened two Bad Daddy’s restaurants during the fourth quarter, bringing the total new development for the year to four restaurants
- Total Restaurant Sales for Good Times restaurants increased $0.6 million for the quarter to $8.5 million and decreased $1.1 million to $30.0 million for the year
- Same Store Sales for company-owned Bad Daddy’s restaurants decreased 1.3% for the quarter and decreased 0.2% for the year
- Same Store Sales for company-owned Good Times restaurants increased 7.2% for the quarter and decreased 0.4% for the year
- Net Loss Attributable to Common Shareholders was $4.2 million for the quarter including $2.8 million of asset impairment costs, $0.8 million of pre-opening costs, and $0.8 million of accrued non-recurring severance costs in connection with the separation of the Company’s former CEO in October 2019
- For the year, Net Loss Attributable to Common Shareholders was $5.1 million
- Adjusted EBITDA* (a non-GAAP measure) for the quarter was $1.5 million and $5.4 million for the year
- The Company ended the quarter with $2.7 million in cash and $12.9 million drawn against its senior credit facility
Ryan M. Zink, the Company’s Acting Chief Executive Officer, said, “Fiscal 2019 saw significant erosion in margins, primarily due to higher wage costs and significant opt-in by our customers to our third-party delivery option, as well as the de-leveraging impact of lower unit volumes at some of our class of 2018 and the first of our class of 2019 restaurants. Our focus during fiscal 2020 has shifted from unit growth to stabilization of margins and earnings growth through improving unit-level performance at our existing restaurants. We have opened four restaurants during the past three months, all of which are performing at or above our sales target for new restaurants. Our guidance for fiscal 2020 calls for Adjusted EBITDA of approximately $6.0 to $6.2 million, reflecting the expectation that we will stabilize EBITDA margins on a year-over-year basis with a view that such margins will be expansionary in future years, coupled with new restaurant development resuming in fiscal 2021.”
Fiscal 2020 Outlook:
Additionally, the Company provided guidance for fiscal 2020:
- Total revenues of approximately $120 to $123 million
- Total revenue estimates assume generally flat same store sales for the year for Bad Daddy’s and same store sales increases of approximately 3.5% for Good Times
- General and administrative expenses of approximately $8.5 to $8.7 million including approximately $400,000 to $450,000 of non-cash equity compensation expense
- No additional restaurant openings during fiscal 2020
- Net loss of approximately $0.5 to $0.7 million, including approximately $0.9 million of pre-opening costs
- Total Adjusted EBITDA* between $6.0 and $6.2 million
- Capital expenditures (net of tenant improvement allowances) of approximately $1.7 million including approximately $0.6 million related to the two stores opened in October and December 2019.
- Fiscal year-end long-term debt of approximately $10.7 to $11.2 million
*For a reconciliation of restaurant level operating profit and Adjusted EBITDA to the most directly comparable financial measures presented in accordance with GAAP and a discussion of why the Company considers them useful, see the financial information schedules accompanying this release.