News

Good Times sales up again, eyes potential acquisitions

June 20, 2012

Good Times Restaurants Inc. has announced that it has entered into a Stock Purchase Agreement with Small Island Investments Ltd. for the sale of 473,934 shares of a new series of its preferred stock at a price per share of $4.22, for an aggregate purchase price of approximately $2 million.

SII is currently the company's largest shareholder and David Dobbin, chairman of the company's board of directors, is a principal of SII. The closing of the investment transaction under the Purchase Agreement is subject to the receipt of stockholder approval of the transaction by Sept. 30, 2012, the end of the company's current fiscal year.

"We anticipate that this capital infusion along with our continued improvement in operating results will allow us to regain compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market as well as providing a stronger balance sheet for pursuing acquisitions of other restaurant concepts," said Good Times' president & CEO, Boyd Hoback.

The company, he added, is currently evaluating several concepts for possible acquisition. If completed, it would allow Good Times to further leverage its G&A structure as a multi-brand company and accelerate growth.

The company also reported that its same store sales increased 4.6 percent in May compared to the prior year, its 23rd consecutive monthly increase.

"We are maintaining our sales growth through both permanent and seasonal menu innovation with limited broadcast advertising and this, when combined with the sale of a few underperforming restaurants, is resulting in improved operating margins and cash flow from operations," Hoback said.

Good Times is currently marketing one restaurant for a sale and leaseback. If completed, the company will be debt-free and further positioned to acquire another restaurant concept.

Good Times is a regional QSR chain located primarily in Colorado and operates and franchises 41 restaurants.

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