Good Times Restaurants (GTIM) Updates on Q3 Comps, New Lease Signings

Good Times Restaurants Inc. (Nasdaq: GTIM) announced that its Bad Daddy’s same store sales increased 3.6% in its third fiscal quarter ended June 30, 2016 and its Good Times’ same store sales decreased 2% during the quarter over the prior year’s increase of 4.8% for a three-year compound growth of 14.6%. The Company also announced that it has signed six leases for new Bad Daddy’s restaurants in fiscal 2017 with six additional sites under letters of intent or in final negotiation.

Boyd Hoback, President & CEO, said, “We again exceeded our expectations for Bad Daddy’s same store sales during the quarter but fell short of our plans on Good Times, primarily due to the aggressive competitive discounting environment. In early June we rolled out our new breakfast sandwiches and began our free Pawbender promotion and advertising that is planned to run through the end of July, both of which have been very well received by our customers. We are continuing to work on elevating the quality of our core products with new systems and equipment in test and we have other new products in development but believe we are being negatively impacted by approximately 3-4% in our sales trends due to the aggressive pricing by the larger competitors.”

The Company also said that it has signed six leases for new Bad Daddy’s development in fiscal 2017 with an additional six sites in final stages of negotiation. Hoback added, “We have a good pipeline of sites for fiscal 2017 and 2018 development that we believe will put us on pace for our goal of a run rate of approximately $100 million in total revenues by the end of fiscal 2017. Out of the total twelve sites signed or in negotiation, five of them are in two new markets with the remainder in our existing core markets of Colorado and North Carolina.”

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