Good Times Restaurants (NASDAQ: GTIM) reported Q2 EPS of ($0.03), $0.01 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $23.5 million versus the consensus estimate of $22.4 million.

• Same store sales for company-owned Good Times restaurants increased 7.1% for the quarter
• Same store sales for company-owned Bad Daddy’s restaurants increased 0.2% for the quarter on top of last year’s increase of 3.2%
• Total revenues increased 29% to $23,509,000 for the quarter from the prior year
• The Company opened one new Bad Daddy’s restaurant during the quarter, the fourth of the year
• Restaurant Sales for the Bad Daddy’s restaurants for the quarter increased 42.6% to $15,953,000 from the prior year with Bad Daddy’s Restaurant Level Operating Profit* (a non-GAAP measure) increasing to 16.9% of sales for the quarter
• Adjusted EBITDA* (a non-GAAP measure) for the quarter increased 88.5% to $1,167,000 from $619,000 for the same quarter last year and increased 89.8% year to date over the prior year
• The Company ended the quarter with $3.9 million in cash and $5.1 million drawn against its senior credit facility, with approximately $6.9MM of availability on the facility

Boyd Hoback, President & CEO, said, “Good Times’ sales were quite impressive during the quarter as we continue to see a general overall increase due to the better burger initiatives implemented a year ago. We were only on television media for 3 weeks out of the quarter and we had comparable weather to last year, so we believe there is a renewed underlying strength in the brand as we are seeing traffic growth along with taking price increases.” Regarding Bad Daddy’s, Hoback added, “We saw some near-term cannibalization of a couple of existing stores in Charlotte and one in Raleigh from the opening of new, very high-volume stores earlier this year in each market, which impacted the same store sales percentage growth on our very small base of stores in the index, but even with that we posted our twelfth consecutive quarter of same store sales growth. What is particularly gratifying is the continued sales performance of our class of 2017 and 2018 new stores versus our system average. We opened our Chattanooga store during the quarter and are opening our second Atlanta store in early June with two additional North Carolina stores, one South Carolina store and the third Atlanta store to open this summer.”

Commenting on the Company’s guidance for fiscal 2018, Ryan Zink, Chief Financial Officer, stated, “Strong same-store sales at our Good Times brand and our recently-opened Bad Daddy’s restaurants, coupled with easing of commodity costs and improving controls around labor scheduling, have enabled us to generally reaffirm our guidance for fiscal 2018, despite being slightly under our guidance for Bad Daddy’s same-store sales for the second quarter. We continue to project 2018 revenues of approximately $100 million, and are slightly raising the lower end of our Adjusted EBITDA guidance, which is now between $5.2 and $5.5 million. We are maintaining our comparable sales guidance for Good Times at approximately 3.0% - 3.5% and 0.5% - 1.0% for Bad Daddy’s through the end of fiscal 2018. We anticipate an annualized Adjusted EBITDA run rate as of the end of the fiscal year of approximately $7 million.”

For earnings history and earnings-related data on Good Times Restaurants (GTIM) click here.