GOLDEN, Colo. – Good Times Restaurants Inc. (NASDAQ: GTIM), known for its Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, has reported an increase in same store sales for its third fiscal quarter which ended on June 25, 2024.
The Good Times brand saw sales climb by 5.8%, while the Bad Daddy’s brand experienced a more modest rise of 1.2% compared to the same quarter of the previous year. Additionally, the company disclosed average weekly sales figures of $31,780 for Good Times and $52,555 for Bad Daddy’s.
Ryan Zink, President and CEO of Good Times Restaurants, linked the positive trend for Good Times to the brand's robust appeal. He highlighted recent operational developments, including the completion of a restaurant remodel in Lakewood, Colorado in May and the acquisition of a location in Parker, Colorado. Zink expressed satisfaction with the early performance of the Parker restaurant since its transition to company ownership.
For Bad Daddy’s, Zink observed encouraging progress with sales gains across all regions. He attributed this to a concerted effort to enhance customer experience and operational excellence.
Looking ahead, Zink outlined the company’s strategy, which focuses on reinvesting in existing outlets to stimulate organic sales growth, prudent expansion, and delivering shareholder value through share repurchases. He conveyed confidence in the company’s disciplined approach aimed at providing memorable experiences and superior operations, anticipating recognition of the created value in the market.
Good Times Restaurants Inc. owns, operates, and licenses 41 Bad Daddy’s Burger Bar restaurants and 31 Good Times Burgers & Frozen Custard establishments, with a concentration in Colorado. The former is a full-service concept known for gourmet burgers and craft beers, while the latter is a regional quick-service chain offering natural burgers and frozen custard.
The information in this article is based on a press release statement from Good Times Restaurants Inc.
In other recent news, Good Times Restaurants Incorporated disclosed a mixed performance in its fiscal 2024 second-quarter earnings call. The company reported its eighth consecutive quarter of same-store sales growth with a modest 0.9% increase.
However, Bad Daddy's, another brand under the company's umbrella, saw a 3.2% decline in same-store sales, even though it showed an improvement from the first quarter. Total revenues for Good Times experienced a slight rise of 1.9% to $35.4 million for the quarter.
Good Times is also making strategic moves to bolster its market position. The company is finalizing the purchase of a franchised restaurant and enhancing its loyalty and point-of-sale systems to improve customer engagement. Despite labor challenges, the company has increased average pay and is closely monitoring market compensation indicators.
InvestingPro Insights
Amidst the reported sales growth, Good Times Restaurants Inc. (NASDAQ: GTIM) presents a complex investment landscape. One of the notable InvestingPro Tips highlights that the company has been aggressively buying back shares, a move that typically signals management's confidence in the company's future and can often lead to increased earnings per share. Additionally, Good Times Restaurants Inc. has been recognized for its high shareholder yield, suggesting that the company is returning a significant amount of capital to its shareholders relative to its share price.
On the financial side, the latest InvestingPro Data indicates a market capitalization of $27.29 million USD, with an adjusted P/E ratio for the last twelve months as of Q2 2024 standing at 19.31. This suggests that investors are willing to pay a higher price for earnings, possibly due to expectations of future growth or a reflection of the company's recent positive sales performance. Moreover, the company's revenue for the same period was reported at $138.51 million USD, with a gross profit margin of 10.95%, which could be an area for improvement when compared to industry standards.
For investors looking to delve deeper into Good Times Restaurants Inc.'s financial health and investment potential, additional InvestingPro Tips are available, providing a comprehensive analysis of the company's valuation multiples, profit margins, stock price volatility, and liquidity concerns. With a total of 9 additional InvestingPro Tips, investors can gain a clearer understanding of the risks and opportunities associated with GTIM. To explore these insights and make more informed investment decisions, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
The company's next earnings date is scheduled for August 8, 2024, which will be a critical moment for investors to watch as it could provide further indications of the company's trajectory and the effectiveness of its strategic initiatives.
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