- The Good Times Restaurants Inc. (NASDAQ: GTIM) share price increased more than 20% before market launch. That’s why it happened.
The stock price of Good Times Restaurants Inc. (NASDAQ: GTIM) – the operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard – has risen more than 20% before market. Investors are responding positively to the company’s third fiscal quarter ended June 29, 2021.
Here are the highlights:
– Total revenues increased by 39.4% to reach $ 33.9 million for the quarter compared to the same quarter of the previous fiscal year
– Total sales at Bad Daddy’s restaurants increased from $ 9.5 million to $ 24.4 million for the quarter
– Compared to Q3 2019, sales in the quarter increased 14.3% at Good times and 0.7% at Bad Daddy’s among restaurants open throughout the quarter in both years
– Same-store sales at company-owned Bad Daddy’s restaurants increased 61.4% for the quarter
– Total restaurant sales for Good Times restaurants were $ 9.3 million for the quarter
– Comparable store sales for company-owned Good Times restaurants increased 2.9% for the quarter
– Net income attributable to common shareholders was $ 13.6 million for the quarter, including approximately $ 11.8 million in forgiveness of principal and interest on Paycheck Protection Program (âPPPâ) loans. )
– Adjusted EBITDA (a non-GAAP measure) for the quarter was $ 3.1 million
– The company ended the quarter with $ 10.3 million in cash and no outstanding borrowings under its senior credit facility
Outlook for fiscal year 2021 and fiscal year 2022:
– As previously announced, due to the persistence of unprecedented economic conditions associated with the ongoing COVID-19 pandemic and the unpredictable nature of COVID-19 and the government’s responses to the evolving situation, the company had not previously provided a full financial outlook for the remainder of 2021 fiscal year. But based on improved cash flow and stabilized operations, the Company provides the following expectations for fiscal 2021:
– Opening of a new additional Bad Daddy’s restaurant during the fourth quarter
– Total net income attributable to common shareholders between $ 16.5 million and $ 17.0 million
– Total capital expenditures of approximately $ 3.3 million to $ 3.5 million, including capitalized maintenance expenses and expenses related to new stores
– Total adjusted EBITDA between $ 9.5 and $ 10.0 million. In light of the lingering uncertainty surrounding COVID-19, the company is not providing a full financial forecast for fiscal 2022 at this point, but the company plans to open two Bad Daddy restaurants, likely at the end of the second half of the year. and estimates its current annualized net current income attributable to common shareholders to be between $ 4.0 million and $ 4.5 million, including the recent increase in food and labor costs.
– Even though all Bad Daddy dining rooms are currently open and capacity restrictions have been lifted in some locations, temporary closures and / or capacity restrictions may be put in place with limited notice. If such restrictions were to be enforced, or if customer behaviors were to be changed by changing public health guidelines or perceptions related to COVID-19, the company could lower development or financial performance expectations.
âOur strong comparable store sales of both brands, along with 2019 sales levels from July at Bad Daddy’s, are the result of the commitment and dedication of our restaurant chefs and team members who embrace our mission to serve our customers and perform optimally. restaurants despite the pressures and challenges arising from a difficult recruiting environment.
âAs many other restaurant companies have expressed, we have seen cost pressures, both in commodities and in the job market. We expect these pressures to continue for the remainder of the year and probably at least until the end of the calendar year. We expect to be able to manage increases in commodity costs through targeted menu price adjustments.
– Ryan M. Zink, President and CEO of the Company
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