GOLDEN, Colo.--(BUSINESS WIRE)--Good Times Restaurants Inc. (NASDAQ:GTIM), operator of Good Times Burgers & Frozen Custard, a regional quick service restaurant chain focused on fresh, high quality, all natural products and of Bad Daddy’s Burger Bar, a full service, upscale concept today announced that its Good Times’ same store sales increased 12.5% in its third fiscal quarter ending June 30, 2014 over the prior year’s increase of 15.2%. June same store sales increased 10.6% over the prior year’s increase of 17.8%.
Boyd Hoback, President & CEO said, “We are maintaining our two year trend of double digit sales growth on top of double digit growth and are only 50% of the way through our remodeling process of older stores. We believe that as we bring all stores to our current brand standards through fiscal 2015 complemented by continued product innovation and brand level marketing we will continue to reap additional sales growth, but the pace of growth may begin to moderate.”
Commenting on the current commodity environment, Hoback added, “Beef, bacon and dairy costs are at historic highs and will have some impact on our gross profit margin for the balance of the year. However, we have taken a series of smaller price increases to mitigate the impact and the flow-through on our incremental sales to restaurant operating profits so far this year has been approximately 50% which has overshadowed the small margin hit from the commodity costs. We anticipate that we will continue to show significant and accelerating operating profit margin expansion for the third and fourth quarters of the fiscal year and we plan to provide more detail in our third quarter earnings release.”
The Company reported that three large shareholders have, with the Company’s concurrence, exercised their contractual rights arising from their acquisition of the shares to request that their shares be registered for possible future sale. The Company is cooperating with those requests and the shareholders have not communicated any specific plan for the sale of the shares following the registration.
The Company also reiterated that it expects to open one or two additional Good Times restaurants this calendar year and its second Bad Daddy’s Burger Bar restaurant in Colorado on or about July 28 and is planning a third Bad Daddy’s to open prior to the end of this calendar year. Bad Daddy’s restaurants opened by the Company are as a licensee of the concept through its wholly owned subsidiary BD of Colorado LLC.
About Good Times Restaurants Inc.: Good Times Restaurants Inc. (NASDAQ:GTIM) operates Good Times Burgers & Frozen Custard, a regional chain of quick service restaurants located primarily in Colorado, in its wholly owned subsidiary, Good Times Drive Thru Inc. Good Times provides a menu of high quality all natural hamburgers, 100% all natural chicken tenderloins, fresh frozen custard, fresh cut fries, fresh lemonades and other unique offerings. Good Times currently operates and franchises 36 restaurants.
GTIM owns and operates Bad Daddy’s Burger Bar restaurants as a licensee through its wholly owned subsidiary, BD of Colorado LLC and plans to franchise Bad Daddy’s Burger Bar restaurants through its 48% ownership of Bad Daddy’s Franchise Development LLC. Bad Daddy’s Burger Bar is a full service, upscale, “small box” restaurant concept featuring a chef driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar and a focus on a selection of craft microbrew beers in a high energy atmosphere that appeals to a broad consumer base.
Good Times Forward-Looking Statements: This press release contains forward-looking statements within the meaning of federal securities laws. The words “intend,” “may,” “believe,” “will,” “should,” “anticipate,” “expect,” “seek” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from results expressed or implied by the forward-looking statements. These risks include such factors as the uncertain nature of current restaurant development plans and the ability to implement those plans, delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, and other matters discussed under the “Risk Factors” section of Good Times’ Annual Report on Form 10-K for the fiscal year ended September 30, 2013 filed with the SEC. Although Good Times may from time to time voluntarily update its forward-looking statements, it disclaims any commitment to do so except as required by securities laws.