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Burger King® Company to Acquire Carrols Restaurant Group
Burger King to remodel acquired restaurants over the next 5 years, accelerating Burger King's path to modern image
Over time, Burger King to refranchise large majority of newly remodeled restaurants to smaller franchisee groups
TORONTO, Jan. 16, 2024 /PRNewswire/ -- Restaurant Brands International Inc. ("RBI" or the "Company") (TSX: QSR) (NYSE: QSR) (TSX: QSP) and Carrols Restaurant Group, Inc. ("Carrols") (NASDAQ: TAST) today announced that they have reached an agreement for RBI to acquire all of Carrols issued and outstanding shares that are not already held by RBI or its affiliates for $9.55 per share in an all cash transaction, or an aggregate total enterprise value of approximately $1.0 billion, representing a 23.1% premium to Carrols 30-day volume-weighted average price as of January 12, 2024 and a 13.4% premium to the January 12, 2024 closing price.
Carrols is the largest Burger King® franchisee in the United States today, operating 1,022 Burger King restaurants in 23 states that generated approximately $1.8 billion of system sales during the twelve-months ended September 30, 2023. Carrols also owns and operates 60 Popeyes® restaurants in six states.
Tom Curtis, President of Burger King U.S. and Canada commented, "Carrols has demonstrated strong and improving restaurant operations over the years. This acquisition is an exciting accelerator to our Reclaim the Flame plan that is focused on relentlessly pursuing a better experience for our Guests. We are going to rapidly remodel these restaurants over the next five years or so and put them back into the hands of motivated, local franchisees to create amazing experiences for our Guests."
Deborah Derby, President and CEO of Carrols said, "Today's announcement is a testament to our more than 24,000 Carrols team members who have helped drive the company to record levels of profitability over the past 12 months. These results have allowed us, through this transaction, to deliver immediate and certain value to Carrols shareholders at an attractive premium to the Company's current and historical share prices. Additionally, we believe our team members will now have additional opportunities as part of the greater RBI family – in our office, in the field and especially in our restaurants, including for long-time managers who may want to become franchisees themselves. We look forward to working closely with Tom and the rest of the Burger King team in the months and years ahead."
Josh Kobza, CEO of RBI added, "This is a terrific example of our commitment to put our capital to work to accelerate growth and support Tom and his team in their broader efforts to have a more competitive Burger King restaurant base. The strategic merits of this acquisition are very compelling and consistent with our objective to invest our capital in long-term, high-return opportunities."
Strategic Rationale and Future Plans for Portfolio The transaction is part of Burger King's Reclaim the Flame plan to accelerate sales growth and drive franchisee profitability. The transaction follows the brand's initial $400 million investment announced in September 2022 to drive high quality remodels, improve operations, enhance marketing and support ongoing technology and digital priorities.
Burger King expects to significantly accelerate Carrols' current rate of remodels to bring the acquired portfolio to modern image over the next five years. To accomplish this, the team plans to invest approximately $500 million of capital, funded by Carrols' operating cash flow, to remodel approximately 600 acquired restaurants that are not currently considered modern image.
Carrols has a team of strong, experienced operators who, in partnership with Burger King's operations teams, will operate the acquired restaurants. Burger King ultimately plans to refranchise the vast majority of the portfolio to new or existing smaller franchise operators who live in their local communities. Following refranchising the acquired restaurants, which we expect will be completed in five to seven years, Burger King will maintain a company restaurant portfolio of a couple of hundred restaurants for strategic innovation, training, and operator development purposes.
Transaction Details Under the terms of the merger agreement, RBI will acquire all of Carrols issued and outstanding shares that are not already held by RBI or its affiliates for $9.55 per share in an all-cash transaction. This represents a premium of 23% to Carrols' 30 trading-day volume-weighted average price as of January 12, 2024, and implies a total enterprise value of approximately $1.0 billion. RBI and its affiliates currently hold approximately 15% of Carrols outstanding equity.
A special transaction committee of Carrols' Board of Directors comprised of independent directors unaffiliated with RBI (the "Special Committee"), advised by independent legal and financial advisors, was formed to conduct a deliberate and thoughtful process to evaluate this proposal. Transaction negotiations were led by the Special Committee and following its unanimous recommendation, the Carrols Board of Directors (other than directors affiliated with RBI) unanimously approved the merger agreement with RBI and agreed to recommend that Carrols stockholders vote to adopt the merger agreement. The definitive merger agreement includes a 30-day "go shop" period that will allow the Company to affirmatively solicit alternative proposals from interested parties.
The transaction is expected to be completed in the second quarter of 2024 and is subject to expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as well as other customary closing conditions, including approval by the holders of a majority of common stock held by Carrols stockholders excluding shares held by RBI and its affiliates and officers of Carrols in addition to approval by holders of a majority of outstanding common stock of Carrols.
The transaction is not subject to a financing contingency and is expected to be financed with cash on hand and term loan debt for which RBI has received a financing commitment.
RBI expects the transaction to be approximately neutral to Adjusted Earnings per Share. Net leverage giving effect to the transaction will increase minimally and the Company will remain on track to reach its previously stated net leverage target of mid-four times by the end of 2024.
Affiliates of Cambridge Franchise Holdings, LLC, who in aggregate own or control approximately 17% of outstanding Carrols shares and approximately 20% of outstanding Carrols shares held by stockholders unaffiliated with RBI, have entered into a voting agreement pursuant to which they have agreed, among other things, to vote their shares of common stock of Carrols in favor of the transaction.
Advisors J.P. Morgan acted as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison acted as legal advisors to RBI. Jefferies LLC acted as financial advisor and Milbank LLP acted as legal advisor to the Special Committee of the Carrols Board of Directors.
Investor Conference Call RBI will host an investor conference call and webcast at 8:30 a.m. Eastern Time on Tuesday, January 16, 2024. The call will be broadcast live via RBI's investor relations website at http://investor.rbi.com and a replay will be available for 30 days following the release. The dial-in number is 1 (833)-470-1428 for U.S. callers, 1 (833)-950-0062 for Canadian callers, and 1 (929)-526-1599 for callers from other countries. For all dial-in numbers please use the following access code: 075361.
About Carrols Restaurant Group, Inc. Carrols is one of the largest restaurant franchisees in North America. It is the largest Burger King® franchisee in the United States, currently operating 1,022 Burger King® restaurants in 23 states as well as 60 Popeyes® restaurants in six states. Carrols has operated Burger King® restaurants since 1976 and Popeyes® restaurants since 2019. For more information, please visit the Company's website at www.carrols.com.
About Burger King® Founded in 1954, the Burger King® brand is the second largest fast food hamburger chain in the world. The original Home of the Whopper®, the Burger King® system operates more than 19,000 locations in more than 100 countries and U.S. territories. Almost 100 percent of Burger King® restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. To learn more about the Burger King® brand, please visit the Burger King® brand website at www.bk.com or follow us on Facebook, X and Instagram.
About Restaurant Brands International Inc. Restaurant Brands International Inc. is one of the world's largest quick service restaurant companies with over $40 billion in annual system-wide sales and over 30,000 restaurants in more than 100 countries. RBI owns four of the world's most prominent and iconic quick service restaurant brands – Tim Hortons®, Burger King®, Popeyes®, and Firehouse Subs®. These independently operated brands have been serving their respective guests, franchisees and communities for decades. Through its Restaurant Brands for Good framework, RBI is improving sustainable outcomes related to its food, the planet, and people and communities. To learn more about RBI, please visit the company's website at www.rbi.com.
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Papa Johns Announces Back to Better 2.0 Ahead of 26th Annual ICR Conference, and Provides Preliminary 2023 Sales and Unit Development
Long-term strategic initiatives focused on driving comparable sales growth and higher average unit volumes (AUVs) through increased investments in North America marketing; improving North America restaurant-level margins; increasing North America net new unit development; and, strengthening international operational effectiveness
Preliminary global system-wide sales increase approximately 5%(1) for fiscal year 2023 on 210 net new units, including 57 in North America, and a preliminary 1% increase in North America comparable sales
Papa Johns’ CEO, CFO and VP of Investor Relations plan to discuss these items during an analyst-led fireside chat at the 26th Annual ICR Conference tomorrow, January 9, 2024 at 8:00 am ET
LOUISVILLE, Ky.--(BUSINESS WIRE)--Papa John’s International, Inc. (NASDAQ: PZZA) (“Papa Johns®”) today provided updates on long-term strategic initiatives designed to drive North America development, accelerate comparable sales growth and restaurant-level profitability in North America, as well as International profitability and long-term development. The Company also reported preliminary sales and unit development information for the fourth quarter and the full year ended December 31, 2023.
“It is our ambition to continue our positive momentum and to become the QSR pizza brand of choice for customers and franchisees around the world,” said Rob Lynch, Papa Johns president and CEO. “We are excited about Papa Johns’ future as the initiatives that we are undertaking, combined with our premium positioning in the marketplace, supportive franchisee base, and proven leadership team, will enable us to achieve our vision and deliver meaningful long-term value creation for all stakeholders.”
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First Watch Restaurant Group, Inc. Reports Preliminary Operational Metrics for the Fourth Quarter and Fiscal Year 2023
January 08, 2024 07:05 ETFollow
BRADENTON, Fla., Jan. 08, 2024 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. (NASDAQ: FWRG) (“First Watch” or the “Company”), the Daytime Dining concept serving breakfast, brunch and lunch, today reported certain preliminary operational results for the fourteen weeks ended December 31, 2023 (“fourth quarter”) and fiscal year ended December 31, 2023 (“2023”).
Management Commentary
“First Watch is the clear category leader in the fast-growing Daytime Dining segment, and we delivered on our same restaurant sales and traffic expectations for 2023. Our dining room traffic growth improved sequentially in Q4, which is a reflection of the exceptional experiences that our teams create for our customers each day. Furthermore, the restaurants enjoyed better food and labor cost than we previously projected,” said Chris Tomasso, First Watch CEO and President. “Our expanding system grew 11% in 2023 versus 2022 as we opened a total of 51 system-wide restaurants across 19 states. We also view franchise acquisitions as an important part of our growth strategy, and since May 2023 have acquired, or announced agreement to acquire, 44 franchise-owned restaurants.”
Sales and Traffic Highlights
| Fourth Quarter |
| 2023 |
| |
Same-Restaurant Sales Growth (*) | +5.0 | % |
| +7.6 | % |
Same-Restaurant Sales Growth compared to 2019 (**) | +35.2 | % |
| +38.9 | % |
Same-Restaurant Traffic Growth (*) | -1.3 | % |
| +0.2 | % |
Same-Restaurant Traffic Growth compared to 2019 (**) | +6.2 | % |
| +7.5 | % |
___________________
Comparison to the fourteen weeks ended January 1, 2023, and 53 weeks ended January 1, 2023, is provided for enhanced comparability.* Comparison to the fourteen weeks ended January 5, 2020, and 53 weeks ended January 5, 2020, is provided for enhanced comparability.
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Denny’s Corporation Releases Preliminary Financial Results for Fourth Quarter and Fiscal Year 2023
SPARTANBURG, S.C., Jan. 08, 2024 (GLOBE NEWSWIRE) -- Denny’s Corporation (the "Company") (NASDAQ: DENN), owner and operator of Denny's Inc. ("Denny's") and Keke's Inc. ("Keke's") today reported selected preliminary and unaudited results for its fourth quarter and fiscal year ended December 27, 2023.
Kelli Valade, Chief Executive Officer, stated, "We were pleased to deliver solid Denny’s domestic system-wide same-restaurant sales* in the fourth quarter, reflecting sequential improvement throughout the quarter, while also achieving results at the high-end of our previously guided range for the full year. Despite a persistently challenging operating environment, we enter 2024 with growing momentum towards our key strategies and the accelerated development of the Keke’s brand.”
Preliminary Results
Denny's fourth quarter domestic system-wide same-restaurant sales* were 1.3% compared to the equivalent fiscal period in 2022, including 1.5% at domestic franchised restaurants and (1.2)% at company restaurants.
Denny's fiscal year domestic system-wide same-restaurant sales* were 3.5% compared to the equivalent fiscal period in 2022, including 3.6% at domestic franchised restaurants and 2.7% at company restaurants.
In 2023, the Company opened 32 restaurants, including 11 international locations, and closed 57 restaurants, bringing the year-end total restaurant count to 1,631.
In the fourth quarter, the Company allocated $16.2 million to share repurchases, resulting in $52.1 million allocated to share repurchases for the full year. As of December 27, 2023, the Company had approximately $100 million remaining under its existing repurchase authorization.
The Company expects to release financial and operating results for its fourth quarter and fiscal year ended December 27, 2023, along with financial guidance for 2024, after the market closes on Tuesday, February 13, 2024.
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Carrols Restaurant Group, Inc. Reports Preliminary Sales Results for the Fourth Quarter and Full Year 2023
Company To Host Meetings at 26th Annual ICR Conference
January 08, 2024 07:00 ETFollow
SYRACUSE, N.Y., Jan. 08, 2024 (GLOBE NEWSWIRE) -- Carrols Restaurant Group, Inc. (“Carrols” or the “Company”) (Nasdaq: TAST), the largest BURGER KING® franchisee in the United States, today reported its preliminary sales results for the fourth quarter and full year 2023.
Preliminary sales results for the Fourth Quarter of 2023 versus the Fourth Quarter of 2022 include:
Total restaurant sales increased 5.7% to $470.4 million compared to $445.1 million in the fourth quarter of 2022;
Comparable restaurant sales for the Company’s Burger King® restaurants increased 7.2%; and
Comparable restaurant sales for the Company’s Popeyes® restaurants increased 7.6%.
Preliminary sales results for the Full Year 2023 versus the Full Year 2022 include:
Total restaurant sales increased 8.4% to $1.88 billion compared to $1.73 billion in the full year of 2022;
Comparable restaurant sales for the Company’s Burger King® restaurants increased 9.3%; and
Comparable restaurant sales for the Company’s Popeyes® restaurants increased 10.1%.
Management Commentary Deborah M. Derby, President and Chief Executive Officer of Carrols, commented “Our strong Burger King comparable restaurant sales growth of 7.2% in the fourth quarter of 2023 was driven by average check growth of 4.2%, along with a 2.9% increase in traffic. This result was primarily due to the combination of the continued operational improvement efforts by the Carrols' team and the positive impact of our franchisor's Reclaim the Flame initiative, as well as a benefit from the timing of the holidays as compared to last year. Our Popeye's restaurants also continued to perform well as comparable restaurant sales grew 7.6% in the fourth quarter. We expect to see continued momentum at both of our brands in 2024.”
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BurgerFi Provides Fiscal Year 2023 Business Update
Sets Initial Business Outlook for Fiscal Year 2024
Focused on Five Key Strategic Initiatives
FORT LAUDERDALE, Fla., Jan. 08, 2024 (GLOBE NEWSWIRE) -- BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) (“BurgerFi” or the “Company”), owner of the high-quality, casual dining pizza brand under the name Anthony’s Coal Fired Pizza & Wings (“Anthony’s”) and one of the nation’s leading fast-casual “better burger” dining concepts through the BurgerFi brand, today reported preliminary results for the fiscal year 2023 which ended on January 1, 2024. The Company also set its initial business outlook for fiscal year 2024 as it focuses on five key strategic initiatives.
Management Commentary
Carl Bachmann, Chief Executive Officer of BurgerFi stated, “Since joining the Company in July, I have been working diligently to fix the foundations of both brands, to ensure the next best turnaround story in the restaurant space, is a success. Both these founder brands (Anthony’s and BurgerFi) are what attracted me to this opportunity and despite some near-term challenges, my view of the brands and the opportunity hasn’t changed. Leveraging my prior experience in turnaround situations at burger and pizza concepts, we have implemented five key strategic priorities that should drive long-term, profitable growth. Notably, we have begun to see early leading indicators that these efforts are already taking hold. Across both brands, we continue to see a decrease in hourly and management turnover, coupled with an increase in consumer satisfaction scores and faster ticket times. We also introduced new menu items at BurgerFi and Anthony’s and the feedback has been resounding.”
Bachmann continued, “In December, we celebrated the grand opening of our first-ever co-branded BurgerFi and Anthony’s restaurant in Kissimmee, Florida. This location, which includes the inaugural Anthony’s franchise agreement, is part of a three-unit deal with a new franchisee, NDM Hospitality. We also expanded our footprint through a nontraditional venue with the opening of a BurgerFi within Apple Cinemas in Rochester, New York. This new growth channel helps increase our visibility and brand awareness, and we will look to open additional nontraditional locations in the future. Finally, later this month, BurgerFi will return to New York City with the grand reopening of our flagship, company-owned, BurgerFi restaurant and Better Burger Lab.”
Christopher Jones, Chief Financial Officer of BurgerFi, noted, “We have started to see early signs of improvement across the business. During the fourth quarter we saw encouraging trends, despite the larger headwinds that the industry has experienced in Southern Florida, with strong performance from the Anthony’s brand during the holidays, including a positive sequential improvement in sales and traffic in 4Q23 vs 3Q23. Performance continues to be volatile at BurgerFi, though followed a similar positive trend with sequential improvement in traffic and comp store sales at both company and franchise locations.”
“Looking forward, we expect the BurgerFi concept to generate positive same store sales and EBITDA in the second half of 2024 and for Anthony’s to deliver positive same-store sales and EBITDA throughout 2024. We are also in discussions with several interested parties for a multi-unit Anthony’s franchise deal.”
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Kura Sushi USA Announces Fiscal First Quarter 2024 Financial Results
IRVINE, Calif., Jan. 04, 2024 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today announced financial results for the fiscal first quarter ended November 30, 2023.
Fiscal First Quarter 2024 Highlights
Total sales were $51.5 million, compared to $39.3 million in the first quarter of 2023;
Comparable restaurant sales increased 3.8% for the first quarter of 2024 as compared to the first quarter of 2023;
Operating loss was $2.8 million, compared to operating loss of $2.2 million in the first quarter of 2023;
Net loss was $2.0 million, or $(0.18) per diluted share, compared to net loss of $2.1 million, or $(0.21) per diluted share, in the first quarter of 2023;
Restaurant-level operating profit* was $10.1 million, or 19.5% of sales;
Adjusted EBITDA* was $1.8 million; and
Four new restaurants opened during the fiscal first quarter of 2024.
* Restaurant-level operating profit and Adjusted EBITDA are non-GAAP measures and are defined below under “Key Financial Definitions.” Please see the reconciliation of non-GAAP measures accompanying this release. See also “Non-GAAP Financial Measures” below.
Hajime Uba, President and Chief Executive Officer of Kura Sushi, stated, “Fiscal 2024 is off to an exceptionally strong start, with meaningful improvements in restaurant-level operating profit margin and Adjusted EBITDA, as well as six new units opened to date with another seven under construction. Our goals for this fiscal year remain the same as last year: maintain excellent operations, continue to rapidly grow the number of our restaurants, and leverage our G&A against our increasingly large restaurant base. I’m pleased to say that we are already making excellent progress on all three fronts.”
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Ark Restaurants Announces Financial Results for the Fourth Quarter and Fiscal Year Ended 2023
December 18, 2023 04:20 PM Eastern Standard Time
NEW YORK--(BUSINESS WIRE)--Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the fourth quarter and fiscal year ended September 30, 2023.
The Company’s fiscal year ends on the Saturday nearest September 30. The fiscal years ended September 30, 2023 and October 1, 2022 both included 52 weeks and the quarters ended September 30, 2023 and October 1, 2022 both included 13 weeks.
Financial Results
Total revenues for the 13 weeks ended September 30, 2023 were $44,400,000 versus $46,884,000 for the 13 weeks ended October 1, 2022.
Total revenues for the year ended September 30, 2023 were $184,793,000 versus $183,674,000 for the year ended October 1, 2022. As required by our lease, Gallagher's Steakhouse at the New York-New York Hotel and Casino in Las Vegas, NV was substantially closed for renovation for the period from February 5, 2023 through April 27, 2023. Revenues for the period of closure were $1,026,000 as compared to $3,251,000 for the comparable prior period.
Company-wide same store sales decreased 4.7% for the 13-weeks ended September 30, 2023 as compared to the same period of last year. For the year ended September 30, 2023, company-wide same store sales, excluding Gallagher's Steakhouse which was closed for part of the year, increased 1.4% as compared to last year.
The Company's EBITDA, excluding a non-cash goodwill impairment charge in the amount of $10,000,000 (as explained below) and adjusted for other items all as set out in the table below, for the 13 weeks ended September 30, 2023 was $585,000 versus $2,352,000 for the 13 weeks ended October 1, 2022. Net loss attributable to Ark Restaurant Corp. for the 13 weeks ended September 30, 2023, which includes the goodwill impairment charge and related tax benefit, was $(10,364,000) or $(2.88) per basic and diluted share compared to net income of $762,000 or $0.21 per basic and diluted share, for the 13 weeks ended October 1, 2022. EBITDA is a Non-GAAP Financial Measure. Please see "Non-GAAP Financial Information" at the end of this news release.
The Company's EBITDA, excluding the non-cash goodwill impairment charge of $10,000,000, gains on the forgiveness of Paycheck Protection Program Loans (the "PPP Loan Forgiveness") and adjusted for other items all as set out in the table below, for the year ended September 30, 2023 was $9,266,000 versus $13,987,000 for the year ended October 1, 2022. Net loss attributable to Ark Restaurant Corp. for the year ended September 30, 2023, which includes the goodwill impairment charge and related tax benefit and PPP Loan Forgiveness of $272,000, was $(5,928,000), or $(1.65) per basic and diluted share, compared to net income of $9,281,000, which includes PPP Loan Forgiveness of $2,420,000, or $2.61 and $2.58 per basic and diluted share, respectively, for the year ended October 1, 2022. EBITDA is a Non-GAAP Financial Measure. Please see "Non-GAAP Financial Information" at the end of this news release.
As of September 30, 2023, the Company had cash and cash equivalents of $13,415,000 and total outstanding debt of $7,222,000.
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Darden Restaurants Reports Fiscal 2024 Second Quarter Results; Declares Quarterly Dividend; And Updates Fiscal 2024 Financial Outlook
ORLANDO, Fla., Dec. 15, 2023 /PRNewswire/ -- Darden Restaurants, Inc. (NYSE:DRI) today reported its financial results for the second quarter ended November 26, 2023.
Second Quarter 2024 Financial Highlights, Comparisons Versus Same Fiscal Quarter Last Year
Total sales increased 9.7% to $2.7 billion, driven by a blended same-restaurant sales* increase of 2.8% and sales from the addition of 78 company-owned Ruth's Chris Steak House (Ruth's Chris) restaurants and 45 other net new restaurants
Same-restaurant sales
Consolidated Darden* | 2.8 % | ||||
Olive Garden | 4.1 % | ||||
LongHorn Steakhouse | 4.9 % | ||||
Fine Dining* | (1.7) % | ||||
Other Business | (1.1) % |
Reported diluted net earnings per share from continuing operations were $1.76
Excluding $0.08 of Ruth's Chris transaction and integration related costs, adjusted diluted net earnings per share from continuing operations were $1.84, an increase of 21.1%**
The Company repurchased $181 million of its outstanding common stock
* Will not include Ruth's Chris Steak House until they have been owned and operated by Darden for a 16-month period (Q2 Fiscal 2025) |
** See the "Non-GAAP Information" below for more details |
"We continued to profitably grow market share again this quarter as we outperformed industry same-restaurant sales and traffic," said Darden President & CEO Rick Cardenas. "We remain focused on managing our business for the long term and driving strong operating fundamentals in our restaurants. The holidays are the busiest time of year for our restaurant teams, and I would like to thank them for everything they do to delight our guests and help create special holiday memories."
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Good Times Restaurants Reports Results for the Fourth Quarter and Fiscal Year Ended September 26, 2023
December 14, 2023 04:05 PM Eastern Standard Time
GOLDEN, Colo.--(BUSINESS WIRE)--Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, today reported financial results for the fiscal fourth quarter and fiscal year ended September 26, 2023.
Highlights of the Company’s financial results include:
Total Revenues decreased 0.1% to $138.1 million for the year compared to the 2022 fiscal year
Total Restaurant Sales for company-owned Good Times restaurants increased $0.6 million to $9.5 million for the fourth quarter compared to the same prior year fourth quarter and increased $1.0 million to $35.0 million for the year compared to the 2022 fiscal year
Same Store Sales for company-owned Good Times restaurants increased 2.4% for the fourth quarter compared to the prior year fourth quarter and increased 3.7% for the year compared to the 2022 fiscal year
Total Restaurant Sales for Bad Daddy’s restaurants decreased $1.4 million to $24.6 million for the fourth quarter compared to the prior year fourth quarter and decreased $1.0 million to $102.2 million for the year compared to the 2022 fiscal year
Same Store Sales1 for company-owned Bad Daddy’s restaurants decreased 4.9% for the fourth quarter compared to the prior year fourth quarter and increased 0.1% for the year compared to the 2022 fiscal year
Net Loss Attributable to Common Shareholders was $0.3 million for the fourth quarter. Net Income Attributable to Common Shareholders was $11.1 million for the year
Adjusted EBITDA2 (a non-GAAP measure) was $1.1 million for the fourth quarter and $5.5 million for the year
The Company ended the fourth quarter with $4.2 million in cash and $0.8 million of long-term debt
Ryan M. Zink, the Company’s Chief Executive Officer, said, “We are thrilled about the continued same store sales increases that we are seeing at Good Times. We are on the path to modernizing and re-energizing this 36-year-old regional brand and we believe the financial results this year, especially considering the unusual level of input cost inflation, demonstrate the impact that our investments in technology and in our facilities is making on the business.”
“Unfortunately, Bad Daddy’s did not perform to our expectations during the fourth quarter, and we know that this quarter’s results are not consistent with what the brand is capable of. We have never compromised on our food, and during this year we have only improved the quality and relevance of our product selection. We have missed the mark in the front-of-house, including at the bar, and we have identified specific priorities to address these opportunities and to improve the brand’s operational and financial performance.” Zink continued.
Mr. Zink concluded, “We made significant investments this year in both brands, including our purchase of the interests in certain Bad Daddy’s restaurants that were held by unaffiliated partners; the opening of a new Bad Daddy’s in Madison, Alabama; and our purchase of two Good Times restaurants from franchisees. I am optimistic about the continued strength of both of our brands and in the anticipated sales turnaround at Bad Daddy’s.”
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