ood Times Restaurants Inc. (Nasdaq: GTIM), the operator behind Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, announced its financial results for the fiscal fourth quarter and full fiscal year ended September 24, 2024.
Financial Highlights
For the fiscal year 2024, the company saw a 3.0% increase in total revenues, reaching $142.3 million compared to the previous fiscal year. Restaurant sales for company-owned Good Times restaurants rose by $0.5 million to $10.0 million during the fourth quarter. For the entire year, sales at these locations grew by $3.0 million, totaling $38.0 million, compared to the prior fiscal year.
Same-store sales at Good Times restaurants were slightly down by 0.1% for the fourth quarter, but showed a notable 2.9% increase for the year, reflecting positive growth when compared to fiscal 2023.
Bad Daddy’s restaurants reported a more robust performance, with total restaurant sales increasing by $1.0 million to $25.6 million for the fourth quarter. For the full fiscal year, Bad Daddy’s sales reached $103.5 million, an increase of $1.3 million over the previous year.
Same-store sales at Bad Daddy’s increased by 3.2% for the fourth quarter, outperforming the prior year. However, for the fiscal year, same-store sales at Bad Daddy’s saw a slight decline of 1.2% compared to fiscal 2023.
For the fourth quarter, the company posted a net income attributable to common shareholders of $0.2 million, while for the full fiscal year, net income totaled $1.6 million. Adjusted EBITDA, a non-GAAP measure, stood at $1.3 million for the fourth quarter and $5.4 million for the entire fiscal year.
Operational Developments and Strategy
During fiscal 2024, Good Times Restaurants repurchased 543,530 shares of its common stock under its share repurchase program. In addition, the company repurchased 190,690 shares through negotiated transactions with private individuals, reflecting a commitment to enhancing shareholder value.
Ryan M. Zink, the CEO of Good Times Restaurants, commented on the company’s performance, stating, “I am encouraged by the positive turnaround in same-store sales at Bad Daddy’s. This success underscores the effectiveness of our back-to-basics approach to brand execution, which has been successful in attracting and retaining guests. Bad Daddy’s significantly outperformed the Black Box casual dining index in both sales and traffic during the quarter.”
Regarding the performance of Good Times restaurants, Zink noted that while the brand experienced softer sales in the fourth quarter, this was partly due to the return of aggressive discounting in the quick-service restaurant (QSR) sector. Many larger competitors implemented heavy promotions, including five-dollar deals, which the company did not engage in. Zink emphasized that Good Times continues to focus on delivering exceptional value through high-quality products, especially its all-natural beef and chicken offerings, and will avoid the unsustainable path of extreme discounting, which he believes leads to unprofitable long-term outcomes.
Looking forward, Zink expressed confidence in the continued success of the company’s strategy. “We are committed to maintaining the momentum at Bad Daddy’s, and we are implementing a similar back-to-basics approach to enhance operations at Good Times,” he stated. “This includes re-training our teams and striving for higher operational standards. We are also continuing our brand evolution through remodels, which include updated signage with our refreshed logo, new technology for both employees and guests, and community art with exterior murals.”
Share Repurchase Program Expansion
In a separate announcement, the company revealed an expansion of its share repurchase program. The existing program was increased by $2 million, bringing the total authorization for share repurchases to $7 million. The company has already repurchased approximately $4.8 million worth of shares under this program, which was originally announced on February 3, 2022.
The expanded program will remain in effect until the full $7 million is repurchased or the program is terminated. Repurchases will be conducted in accordance with regulatory guidelines, including Rule 10b-18 of the Securities Exchange Act of 1934. The company emphasized that the timing and amount of shares repurchased will depend on several factors, including market conditions and the availability of alternative investment opportunities. Additionally, the program does not obligate the company to repurchase any specific number of shares and may be suspended or discontinued at any time at the company’s discretion.
