UPDATE: Good Times Restaurants (GTIM) Tops Q3 EPS by 2c, Revenues Beat; FY18 Revenue Mid-Point Outlook Above Consensus, Offers FY19 Revenue Views
Good Times Restaurants (NASDAQ: GTIM) reported Q3 EPS of $0.02, $0.02 better than the analyst estimate of $0.00. Revenue for the quarter came in at $26.18 million versus the consensus estimate of $25.34 million.
- Same store sales for company-owned Good Times restaurants increased 3.8% for the quarter on top of last year’s increase of 3.7%. Year to date, same store sales increased 4.9% versus last year’s increase of 1.2%
- Bad Daddy’s same store sales increased 0.5% during the quarter over the prior year’s increase of 0.1%. Year to date, same store sales increased 0.5% versus last year’s increase of 1.7%. Same store sales exclude the weeks during which the original Bad Daddy’s in Charlotte, NC was closed for remodeling. Total revenues increased 20% to $26,175,000 for the quarter
- The Company opened two new Bad Daddy’s restaurants during the quarter for a total of five new restaurants opened through the third quarter of 2018. Subsequent to the end of the quarter, the Company opened an additional two restaurants and expects to open two more before the end of the fiscal year for a total of nine new restaurants in fiscal 2018
- Sales for the Bad Daddy’s restaurants for the quarter increased 37% versus last year to $17,765,000
- Restaurant Level Operating Profit (a non-GAAP measure) increased 26.8% to $4,779,000 (18.4% as a percent of sales) from $3,770,000 (17.5% as a percent of sales)*
- Adjusted EBITDA (a non-GAAP measure) for the quarter increased 36.6% to $1,907,000 from $1,396,000 last year*
- The Company ended the quarter with $3.2 million in cash and $5.1 million of long-term debt
Boyd Hoback, President & CEO, said, “We are very pleased with our continued growth in same store sales at both brands as well as our improved operating margins. Our class of 2018 Bad Daddy’s openings have been very strong on average and we anticipate they will be settling into a sales trend post-honeymoon at or above our system average. We are now operating in seven different metropolitan areas and are on track to enter three to four additional new areas in fiscal 2019, as we continue our expansion focused primarily on the Southeast.”
Regarding initial fiscal 2019 guidance, Ryan Zink, Chief Financial Officer, commented, “The strength of our new Bad Daddy’s restaurants opened during the 2018 fiscal year has generated cash for development which has limited our need to incur any significant incremental debt, and that has created a strong foundation on which to continue development in 2019. With this growth, we expect Adjusted EBITDA of between $7.6 and $8.1 million for the 2019 fiscal year, with an estimated run rate at the end of the fiscal year that approaches $10 million, consistent with our prior commentary projecting continued 40% annual growth in our Adjusted EBITDA.”
GUIDANCE:
Good Times Restaurants sees FY2018 revenue of $99-100 million, versus the consensus of $99.63 million.
Good Times Restaurants sees FY2019 revenue of $120-123 million, versus the consensus of $126.64 million.
For earnings history and earnings-related data on Good Times Restaurants (GTIM) click here.