News

Good Times turns in 22-percent increase in restaurant-level operating profit

December 9, 2014

Good Times Restaurants Inc., parent company of Good Times Burgers & Frozen Custard and licensee of Bad Daddy’s Burger Bar, today announced its preliminary financial results for Q4 and the fiscal year.

Highlights include:

• Same-store sales for company-owned Good Times restaurants increased 11.9 percent for the quarter on top of last year’s increase of 18.2 percent, which was the 17th consecutive quarter of increasing same-store sales.
• Restaurant-level operating profit for Good Times restaurants increased 22 percent, or $208,000 over last year during the quarter and increased 57.2 percent, or $1,552,000 over the prior year to $4,266,000 for the fiscal 2014 year.
• The restaurant-level operating margin for Good Times restaurants increased by 170 basis points to 16.7 percent, from 15 percent last year during the quarter and by 450 basis points to 16.5 percent, from 12 percent last year for the fiscal year.

In a press release, CEO Boyd Hoback said the newest Good Times restaurant opened at record sales levels, as did the newest Bad Daddy's restaurant. Accordingly, the company expects operating margins to continue to improve.

"We anticipate using the majority of our cash flow generated from Good Times to complete the remodeling of existing restaurants in fiscal 2015 and early 2016 and allocate most of our cash on hand for the development of new Bad Daddy’s restaurants. That being said, the continued growth in Good Times’ sales and the opening of our latest store at very high sales volume creates a very compelling model for accelerating its growth and development. We anticipate opening another Good Times restaurant in mid-spring 2015 and are negotiating on additional Good Times sites to the extent we can find high quality, retail pad sites in our remaining trade areas along the front range of Colorado," he said.