News

An up-and-down third quarter for two Good Times chains

July 6, 2016

Good times Restaurants, Inc. reported its third-quarter same store sales this week for the Good Times Burgers & Frozen Custard quick-service chain and the upscale concept, Bad Daddy’s Burger Bar. For the third fiscal quarter, which ended June 30, Bad Daddy’s same store sales increased 3.6 percent, while Good Times’ same store sales fell 2 percent during the quarter over the prior year’s increase of 4.8 percent. That equates to a three-year compound growth of 14.6 percent for the company. 

"We again exceeded our expectations for Bad Daddy’s … but fell short of our plans on Good Times, primarily due to the aggressive competitive discounting environment," said the company's President and CEO Boyd Hoback. "In early June we rolled out our new breakfast sandwiches and began our free Pawbender promotion and advertising that is planned to run through the end of July, both of which have been very well received by our customers.

"We are continuing to work on elevating the quality of our core products with new systems and equipment in test and we have other new products in development, but believe we are being negatively impacted by approximately 3 to 4 percent in our sales trends due to the aggressive pricing by the larger competitors."

The company said it has signed six leases for new Bad Daddy’s developments next year, with six more sites in final negotiations. 

"We have a good pipeline of sites for fiscal 2017 and 2018 development that we believe will put us on pace for our goal of a run rate of approximately $100 million in total revenues by the end of fiscal 2017," Hoback said. "Out of the total twelve sites signed or in negotiation, five of them are in two new markets, with the remainder in our existing core markets of Colorado and North Carolina."

Good Times Burgers & Frozen Custard is a QSR chain situated primarily in Colorado that features burgers, chicken and frozen custard at 37 current sites. The company also licenses 18 Bad Daddy's Burger Bar restaurants which offer upscale, full-service dining.