News

Good Times see 8% increase in same-store sales for Q1

Good Times Restaurants Inc., operator of Good Times Burgers & Frozen Custard, announced its preliminary unaudited financial results for the first fiscal quarter ended Dec. 31.

February 19, 2015

Good Times Restaurants Inc., operator of Good Times Burgers & Frozen Custard, announced its preliminary unaudited financial results for the first fiscal quarter ended Dec. 31.

Key highlights of the company’s financial results include:

• Same store sales for company-owned Good Times restaurants increased 8 percent for the quarter and 13 percent in January 2015 on top of last year’s increases of 17 percent and 14 percent, respectively, including the eighteenth consecutive quarter of increasing same store sales
• The new Good Times restaurant that opened on November 21, 2014 continues to generate average weekly sales that are 40 percent - 50 percent greater than the system sales average
• Restaurant level operating profit for Good Times restaurants increased 8 percent, or $67,000 over last year during the quarter despite an unprecedented spike in commodity costs 
• The restaurant level operating profit margin for Good Times restaurants decreased by 50 basis points to 14.6 percent from 15.1 percent last year despite an increase of 2.6 percent in food and packaging costs during the quarter 
• Preopening costs related to the development of new Bad Daddy’s Burger Bar restaurants in Colorado and a new Good Times restaurant were $237,000 during the quarter
• Net Loss for the quarter increased to $361,000 from $159,000 last year, with an increase in general and administrative expenses of $211,000 from last year related to Bad Daddy’s development, management bonuses, stock compensation expense, an increase in investor relations expenses and with preopening expenses $89,000 higher than in the same quarter last year
• The company ended the quarter with $11.5 million in cash with long term debt of $530,000

Boyd Hoback, president and CEO said in a statement, "As we expected and reported last quarter, we experienced an unprecedented spike in commodity costs during our first quarter combined with a shift in our annual Juvenile Diabetes Research Foundation charitable promotional campaign to earlier in the year, which negatively impacted our cost of sales. However, also as expected, we have already seen bacon, dairy, produce and oil costs decline significantly, and we took a small menu price increase at Good Times in January. As a result, we anticipate our food and packaging costs will decline meaningfully as a percentage of sales during our second fiscal quarter, but they will probably remain slightly higher than last year due to continued high beef costs.

"We anticipate opening a new prototype design Good Times restaurant in spring 2015. We are also in the design and engineering process for the remodel of several of our older dining room stores, as we have only reimaged our older drive thru only stores to-date. Because our Good Times concept continues to deliver significant top line growth and a compelling unit level economic model, we are evaluating how best to grow the concept beyond Colorado."