Good Times Restaurants: Consumers Getting More Comfortable
Sales at Good Times Burgers & Frozen Custard increased 10.0% during the fiscal fourth quarter and 7.9% for the full fiscal year.
Good Times Restaurants Inc. believes consumers are becoming more comfortable with on-premises dining, which is reflected in the company’s fiscal fourth quarter and full-fiscal year results.
The Denver-based company, which operates Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, said its year-over-year same store sales for its Good Times brand increased 10.0% for its fiscal fourth quarter and 7.9% for the full fiscal year ended Sept. 29 when compared to the same periods last year. While year-over-year same store sales at its Bad Daddy’s concept decreased 12.2% during the quarter and 17.7% for the full fiscal year because of the COVID-19 pandemic and associated government restrictions related to restaurant dining rooms, Bad Daddy’s same store sales improved throughout the fiscal fourth quarter. Both brands were affected in September by one of the earliest snowfalls in Colorado history.
As of the end of the quarter, the company had opened all of the dining rooms in its Bad Daddy’s restaurants, and during the quarter had re-introduced some of Bad Daddy’s signature menu items that had been temporarily removed from the menu during dining room closures. The company said it’s operating under normal terms with all of its vendors and landlords and ended the fiscal year with about $11 million in cash and equivalents, $5.5 million drawn on its revolving credit facility, and $11.6 million of Paycheck Protection Program (PPP) loans. The company said it intends to seek forgiveness for the maximum portion of the PPP loans for which it is eligible for under the CARES Act and other applicable legislation.
“This year has been dynamic and challenging, and our collective team of restaurant staff, restaurant management and restaurant support employees have met that challenge with amazing success,” said Ryan Zink, president and CEO of Good Times Restaurants. “We ended the year on a high note, with same store sales that have exceeded industry benchmarks for both of our concepts … despite the ongoing pandemic. Although risks related to the COVID-19 pandemic continue to persist, we have shifted our posture from one of short-term liquidity management and cash preservation to a long-term mission of growing sales at both brands and providing meaningful roles and development opportunities for our team members as we work to exceed our guests’ expectations at both Good Times and Bad Daddy’s.”
Good Times Restaurants owns, operates, franchises and licenses 39 Bad Daddy’s Burger Bar restaurants in North Carolina, South Carolina, Oklahoma, Georgia, Tennessee and Colorado. Bad Daddy’s Burger Bar is a full-service “small box” restaurant concept featuring a chef-driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar. The company also operates and franchises a regional quick-service restaurant chain consisting of 33 Good Times Burgers & Frozen Custard restaurants in Colorado and Wyoming.