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Good Times lives up to its name in Q1 financials

February 13, 2017

Good Times Restaurants had a relatively good trip through 2017 first quarter, according to financial results released this month.  

The company is the parent of regional QSR Good Times Burgers and Frozen Custard, as well as full-service sibling brand, Bad Daddy's Burger Bar.

Total revenues were up 20 percent, while restaurant-level operating profit grew 17 percent in Q1 2017 which ended Dec. 27, 2016. according to a press release.

Key highlights include:

• Company-owned Good Times restaurants same store sales down 0.5 percent for the quarter on top of last year's increase of 4.8 percent
• Big Daddy's grew 2 percent for the quarter on top of last year's increase of 6.5 percent.
• Adjusted EBITDA (a non-GAAP measure) for the quarter increased 93 percent to $472,000 from $245,000 for the quarter
• The company ended the quarter with $3.5 million in cash and virtually no long-term debt

Good Times Restaurants CEO Boyd Hoback said that in his company's case, the more upscale brand has actually been the sales leader over the last quarter, as opposed to the QSR brand. That is a reversal of the overall trend for the restaurant industry over recent months, when QSR brands have typically driven far more traffic than casual or upscale dining chains. 

"Given the ongoing macro consumer spending and competitive discounting challenges in both segments in which we operate, we are right on track with our expectations for our same store sales and operating margins," Hoback said in the release.

As far as guidance for the remaining three quarters of FY2017, the company said it expects: 

• Total revenues of approximately $78 million to $80 million with a year-end revenue run rate of approximately $92 million to $94 million.
• Total revenue estimates assume same store sales growth of 1 to 2 percent for Good Times, ranging from -1 to +1 percent in Q1 and Q2, and +3 to 3.5 percent in Q3 and Q4. Big Daddy's same store sales growth is pegged at 1 to 2 percent this year. 
• Total Adjusted EBITDA of $4 to $4.5 million

Good Times Restaurants operates 37 QSR locations, primarily located in Colorado, and 20 full-service Bad Daddy's Burger Bar restaurants.