GTIM - Earnings call transcript Q4 2017 | Good Times Restaurants Inc.

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Operator

Good afternoon ladies and gentlemen. And welcome to the Good Times Restaurants, Inc. Fiscal 2017 Fourth Quarter Earnings Call. By now, everyone should have access to the company's fourth quarter earnings release. If not, it can be found at www.goodtimesburgers.com, in the Investors section.

part meaning discussion of a statements include reminder, the within federal a of will today's forward-looking As securities laws. are not on statements therefore, forward-looking not future of These performance you should put them. reliance undue guarantees and These we that to cause uncertainties risks could on therefore, and, also investors statements from place actual what them. undue subject reliance are materially numerous and to differ expect results should not after circumstances this these And the statements update that company might events the to arise undertakes to or call. no reflect obligation refers could company recent and filings future The to you SEC of results for their discussion detailed the a financial operating impact more conditions. risks that our

to additional Lastly, in GAAP or discuss to for useful Boyd is information non-GAAP earnings be prepared go that Please during considered the can as will note and the with performance. be results ahead, the Hoback. I accordance now, in GAAP And believe reconciliation today's our in company measures, over sir. measures evaluating to a release. which the the call recorded. would The event available substitute this Please comparable should in call, not being isolation they our turn of like presentation

Boyd Hoback

trends our brands. generally of guidance this everyone results I'll the our and with Ryan year financial both provide industry for afternoon. William fiscal continued us fiscal our our developments the of and and as with again Ryan top-line and current additional our a Thank you, more our our on quarter for on With quarter well pleased and our will is, for particularly outpacing fourth summary sales Chief joining today thanks cover segment for the at again me some details Officer. again Zink, color Financial fourth XXXX. quarter We're as our results

Colorado, expecting some what of little XXXX. to impacting of January sales faced increases in costs in take the which another increase we we seen escalation again increases the and quarter cost on give we quarter more -- both margins. and have price elsewhere fourth we protein of our a on goal and primary particularly moderation we quarter of of plan our offset for continued our Bad disproportionate But aggressive our XXXX traffic. costs will and took that increases with in some and Ryan partially of increases will We than both the potentially cost detail brand, in August be beef guests’ maintaining of in fiscal for all first price anticipate Colorado small due Due brands. in labor our on pricing are to X more fiscal operating sales August baking during increase However, our Xst our small beyond Daddy’s XXXX. costs in to brands

or improvement million, in increased given guidance one a last revenues is million of increased for to increased the which Times quarter operating $XX.XXX versus sales last approximately and Our we XX% the profit, during plus of of XX% quarter. non-GAAP of when the X% comp location X.X% at The total percent as the sales. Creek straight with factor marks Bad slightly sequential Daddy’s at $X.X over and XX.X% quarter Daddy's million that’s year were fifth the Cherry Bad than Sales for quarter quarter to a little out of Times. the increased $XX better increasing Good the level comp our measures for to Good they XX.X% sales, restaurant and sales X.X%

of Carolina target $X.X approximately stores unit profit restaurant $X.X margin. average to our sales XX% XX% average stores a profit million, North stated million, on As operating calls, prior volume approximately of new our and volume level our restaurant stabilized we approximately in a current have XX% a of is operating an

next kids far natural offerings but choice at same-store strong Good for the based our investment now our that will free fiscal ran supports raised store as of sales Times will XXXX, it trends Burger we continued pre-open of operating X second anticipate store net to all of these that a most introduction price be of sustain similar promotional menu a quarter, for sales we $X on deliver structure. wider on over they open or the results Good the with and in see the XX% We’ve that I preposition. on new all but we very way much token our our Coast of since the $X.XX continue we items, on on including quarter combo in $X part wage burgers out in new sales a million custard product continues But of helps that $X.XX thereafter the it’s margins each side. $X, stores and fourth if introduced and approximately cash investment product. October quarter, our we prices be states level happened Bad end and as on the our That a cash rolled last seven value quarter as plus and West cup stores at Times the not that costs. core on our Daddy’s $X chicken So kids, excluding the this a all are in improved at mix those we the through anticipate we cone. end but reflects to X% with return positioning core mentioned to so And

it’s we meals what the kids at average more also families our have calendar doing pricing strong of of back than in $X.XX of with our the the the We so checks meal driving incidence plan kids the intended take we on doubled to normal first to year. and

same-store been trends prior impact the that the Creek sales Cherry and to Daddy’s increases We under sales hotel The Bad there we store. pleased in to over with were during levels that quarter to at again has XXXX. construction excludes open and again certainly And in construction. X.X% return the are of March negative profit also of continued that is to scheduled next of hope our we

comp sustaining same are increases so We far Bad at quarter sales about also into that store Daddy’s year. first rate this of our

menu We well are quarter smaller hour lunch of price carte margins. lower revised I mentioned the happy as in have with test al last of improved point portion menu. cost food in which as And both sales our

end evaluated goal fiscal and peak to have expect guests those in the We of by quarter. our driving stores. up parts first tests into completed select traffic refined with and a implementation day this both of of Again

are happy Our those stores above a now with that have settling including class opened most extraordinarily trends. far periods those, into were really of with few and eight high so generate honeymoon sales stabilize of sales, XXXX sales we volume initial their average to during continue

XXXX to two and projected Oklahoma senior by slightly but We North debt. August, October So those in two additional week in to operations XXXX. weeks in in above from of funded two opened weeks additional our restaurant for stores first a of we fiscal them originally into in out seven We week and a open Norman cash pushed of maintain one September, average some slated last respectively. volume plan stores flow fiscal Carolina the got the

this Atlanta development company during XXXX. that two our as but Ryan 'XX four ready development minimum and with opening maintaining of sign will finally Charlotte line store states. with our as to sixth and development stores at new will million little South our Colorado markets our store signed the in opened, current the second leases we're eight one initial for review in the of Cadence will stores few $XX the development some of weeks additional by additional Carolina, to more and stores over will second in bit, we Bank that Greenville, Tulsa, to as initial South bit all our be that XXXX are that We've being to expanded quarter seven in a wage we our a of City, comprises quarter shifted third next Atlanta detail. metropolitan be little lower operated improve fiscal area and overall have followed then Chattanooga, XX continue adjusted we funding those Carolina EBITDA in schedules week and in well our of be store first around that in in for our Atlanta store and anticipate planned development sales Atlanta in again then our our be North the the and expect Nashville XXXX credit We operating plan for Oklahoma margins and Carolina schedule. plan. will prior store a to those our guidance stores first We XXXX. a our January anticipate end of the Greenville, new We that With year, areas fiscal Chattanooga will the there,

quarter. pricing, sales we that absorbed addition cost on some accelerated trends ease we months estimate line. think our We working is this $XXX,XXX hit sales unplanned at the what quite improving price increases, still absorbed and first an our increases in taking approach both over during also average that's at to we In continuing brands. but a we're to positive of couldn't of XXXX operating fiscal above that we cost last to somewhat hard seven We price over. commodity Again begun the margins

over year seen and XX at only Our so. rate cost weighted Good index or product a fiscal before in during that's last that the Times the year, last of we've increase years twice X% increased

continue months. to environment quarter further to beer competitors an excellence and is the push and continue our pricing our to a Bad last leverage of environment faced, in in segments it last grow on and as ways fiscal operating turn -- Daddy's agreement other fiscal our liquor in industry from now to cost. seven to fixed for labor the Daddy's, G&A from our on in we're into over going percentage expense distribution to extraordinary as a exploiting and efficiencies the we Colorado, each deep continue And difficult and during of we our we the ever to refining macro decline refining of total this Bad 'XX or as improvements X.X% revenues around rates services think focus anticipate front in will spike of items fiscal more review I lower and the concepts we we've about it's house in less top-line. competitive supervision approximately our labor meaningful the carrying really some most line like Most as open him our expenses we to on as differentiating in our new try year model entering to more Bad environment this the to Daddy's, support X.X% provide importantly drive as So and at at continue new and we to financial based year. continue guidance details culture can. I'd values Ryan results XXXX, our for to both We're

Ryan Zink

At slightly in our comps sales were the The Boyd. current the of opened from to fourth quarter quarter X.X% plus increased year, comps year brand Times year. last those Good sales the the than Thanks, guidance new Greeley X.X% the for $X,XXX,XXX X%. in XX.X% our our restaurants driven in strong better by during $X,XXX,XXX

approximately year-over-year menu at a traffic comparable we price about X.X%. quarter, our X.X% increased the units For of have increase and

for were in This last year the sales of commodities, year, alluded sales Most cost of the cost the Times this from increase approximately at key Food was last continued for in by the experience year XX.X% to and X% year X.X% XXXX. in increase and packaging current increased at market to X.X%. $X,XXX,XXX XX.X% XX% the year. Total an and and For of the primarily sequential again X.X% as the the Greeley pricing labor XXXX. by the increase to increased XX.X% comparable versus due and versus quarter fourth the relates last we of above performance fiscal the year in for our Good in driven XX.X% restaurant. Times driven $XX,XXX,XXX rate to, to Good average of increased which Colorado. baking fourth beef for quarter year's fiscal and in an reflected the X.X% and This average increase quarter our versus to XX.X% for here extremely quarter to year the competitive wage for continue is Boyd XX.X% quarter of the was versus labor in

wage minimum measures $X,XXX,XXX well $XX,XXX the as as past to increased the XX% at of the XXXX. in calls, during non-GAAP Restaurant increase operating $X,XXX,XXX of in again the level a mentioned at quarter. Good we've statutory profit, beginning that As Colorado last year Times place took calendar from

quarter, restaurant by for quarter negative year to restaurants level XX% last which drivers fiscal six previous million Daddy's $X.XXX sales versus store slightly use margin the respectively, of notice the restaurant base XXXX. the year-over-year Times XXXX. were our for quarter. versus fiscal Bad weeks XX% Daddy's due As of the and of during additional year XX resulting were opened prior a the doubling and with the three first one And Daddy's, base. X.X% enter for to in fourth we've and the Bad over $XX.XXX percent at saw our of quarter year. XXX excluding Bad increased what We Bad the and declined the of fiscal primary sales the in with the X.X% or was store operating achieved At quarter, for last is included experienced will of quarter quarter, that and last the by comp Good more comp new positive sales, quarter, these Daddy's. we year's we year, the weeks was guidance from increase quarter same units and actually comp X.X% the at increase versus to million proteins year. year's million an item XX beginning increased the X.X% more input versus an Costs last base a fourth since comps. of cost of This quarter in XXXX $XX.XXX quarter more the million sequential $XX.XXX in bacon the last for flat in cost in that And to compared fourth stores end X.X%. this Also and comps for entered from XXXX sequentially significant specifically our XX.X% were the of quarter, the increases produced beef concept, key at quarter. that Consistent entire avocado versus a

XXXX. cost was Boyd higher mentioned. at that labor of to year. versus as XX.X% decrease XX.X% for These XX.X% about year as sales of or locations. Colorado year Bad restaurant Bad in unfavorable Daddy's due subsequent the our for to year. last in wage employee at seen in flat cost we was For XX.X% all mentioned for we've point mentioned, statutory over of XX.X% year, sales stores those hourly Daddy's three quarter and from and market concept on in $X,XXX,XXX some the calls I previously of the or I these XX.X% profit and mix wage Colorado. of impactful has tipped quarter, in than $XXX,XXX to last basis wages mentioned a have January increases were This year-end the accretion last particularly XX.X% the the was cost XX% of year, for labor as increased increased minimum increase Colorado significantly X Daddy's with compared a net tight that's And the both as Bad the in last and Boyd and Overall, level XXX $X,XXX,XXX commodity previously,

fourth to our a XXXX, fiscal in just year's administrative the increased in expenses of this the an the we and of level a owned spending store’s in $X.X and and of of only for as fiscal and $X $XXX,XXX during to for level to QX portfolio continue of expand G&A Times company entire quarter We of decline of in X.X% restaurant the last same of $X,XXX,XXX revenue or was increased and Good fiscal Restaurants lived million This $X,XXX,XXX XXXX over negative for fiscal assets. of XXXX will the percent a G&A based beyond in X.X% even restaurant our as over non-cash XXXX XX.X%. declined or volumes guidance from fiscal we the restaurant X.X% total anticipate from million cash was in fourth represents net key a areas. charge charge General as quarter long entire impairment with million for our value XXXX flow G&A $X expenses in in percent to below revenue quarter recorded profit quarter the increase restaurant year was book versus just of from the substantially in the restaurants, Good from approximately $X,XXX,XXX $X,XXX,XXX one with X.X% This of XXXX. G&A in $X,XXX,XXX For to XX% fiscal as Times XXXX. down we XXXX with average. for our XXXX. company the of fiscal year, prior expenses line write

Our a net as from year year an quarter, impairment year, fourth last in in $XX,XXX versus to mainly costs $XXX,XXX to well the was $XXX,XXX $XXX,XXX increase aforementioned loss for the preopening of net last the due quarter loss charge. as this

year guidance for year compares loss expenses with nearly primarily for of increase the the preopening year of of of net this slightly in $XXX,XXX is loss the $X,XXX,XXX charge. and were $X.X XXXX. $X,XXX,XXX a the in result impairment $X,XXX,XXX Preopening our $XXX,XXX the million. Again For costs fiscal our above of

slightly $X,XXX,XXX of adjusted XXXX guidance for Our $X.X million. in to our XXXX from EBITDA million and fiscal $X,XXX,XXX increased exceeded $X.X to

of $XXX estimate our guidance million million, EBITDA include our each XXXX. approximately updated of at an fiscal X% earnings In XXXX. end annualized rate consistent revenue rate a rate $XXX confirm million. XXXX. being the same-store and $X million sales quarter. run for to between Good $X.X rate run X.X% release, to revenue at end end We in for range is That estimated the revenue fiscal Daddy’s, the and sales estimate annualized $XX the $XXX the of year relatively our X% current million of guidance in million with same-store assumptions at we at increasing we Bad expectations prior to $XXX run for to Our XXXX million the of X% approximately the with revenues for The and Times run of

venture restaurants In remaining we additional two restaurants units Daddy’s October of XXXX, addition a open being opened joint Bad seven in one seven the expect during fiscal to with to those unit.

also We million. $X adjusted $X.X the EBITDA to guidance prior confirm our in of million range of

approximately to G&A in non-cash includes million million which $X.X compensation the expect of We during approximately $X.X $XXX,XXX expenses expense. year, equity

preopening between $X.X $X.X $X.X We and million. also expect and million capital expenses million of expenditures total approximately

balance expect debt end $XX.X the on and We to credit our a $XX of with senior million. of line between drawn year million

cash XXXX stores, finished have of line. $X.X with through our coupled drawn units XXXX. million our excess facility fiscal and CapEx of $XX our our existing credit total needs CapEx We our to end with and in the minor maintenance believe recurring flow We balance and cash fiscal $X.X remodels from related support will credit cash million million new

into or Boyd. additional would back enter undue in secure call will again credits at facility. obtaining development whether a challenges our to With with through credit, our be over That to such it I’ll support the we need turn replacing debt to senior fiscal said being we larger expanding that anticipate we that As facility XXXX, by current pace. don’t such current

Boyd Hoback

probably maybe assets. improved of Form profitability focus aware build believe an with to We near-term aware of some two the initiatives to our track shareholders. of existing new evaluation A productivity slate or XXD their existing strategic are and Thanks, of we Ryan. directors our an value suggesting our a with filed significant on measure some all a amendment on for along board partial

we not understand your cooperatively ideas I’d with future. members, team to work do maximize with members both the fully of on to have to existing and strategic are near-term with Daddy's. we'll that, their the thank profitability annual Bad their resolution in our very working like with the for growth we and term nor being operator have the shareholder the them proposed near call opportunity to but today. meeting, to We Board yet the shareholder and management our for also balancing have us and open impact slate, Appreciate Board hard including value. of longer hope opportunity again schedule questions. at to time suggested that our We commitment take their for them Good do really all Times initiatives With

Operator

Thank you.

will go be We will begin Please [Operator Stephens Instructions] And Will session. the the Slabaugh with now today question-and-answer ahead. first Inc. question

Hugh Gooding

that Hugh first my can Will any continue changes Good for and what taking around value? given actually will your afternoon, to you value value give competitive like early and and guys consumer specifically some question question. proposition centers the color focus will preferences on on look And dynamics today. is for XXXX? on for my thanks This it Just maybe appears

Boyd Hoback

calendar that we probably will anticipate it year. that yes beginning year every the particularly tends Sure, the after of again do to as intensify

$X.XX on sustain propositions a three couple sales and continue the One our Coast XXX Our at those over price strong that's breakfast West primary is our They help had mix West $X.XX, sustain points $X. with mix Double, fold. are really to continue and value $X we'll of the proposition key that as and and part a competitive promote The last we a strong of value to Burritos, proposition. have really years. and our value promotional price of really a and Coast we those breakfast

been the incidents. be running value $X a that even in at a product expanded and of a have the very we we've it's menu of new specifically We $X.XX, and for QSR while have that's quite new meaningful highest Sandwiches not to and again family plan promotion a drawing that we a in value traffic. kids is at chicken competitive which bit on spicy sandwich, think also think don't meals, introduction. on the currently, we one going kids introducing We that's

$X, we've benders, the we've which is free a pod resonated spring side, done little clustered and LTOs as move And dogs, selective permanently is in where really meaningful little custard our strongly any $X traffic. the we'll next the for side. series driven custard spring a avoiding which and summer, summer around $X, On offered still points range. and price we into We're do low

X you in or any that X done the competitively. things bundling haven't all for see X We for X X the or for X and

sustain we've far able been so sales. to our in same-store traffic And our

So differences. we're bang continue our going to to on points quality the of drum

Our burger Good of month program the at Times.

on by and we test impacted On the haven't Daddy’s the with we much that on portion Bad side But side, value some too promotions lunch points the going $X.XX in that really been Robin and offers with both lower Chilies. menu Red options. price are lower

the And And periods. we'll for here peak that meaningful so we Happy roll our see while Hour far the that's of going out expansion the if first not after then well year. that

in good choice Our our our think layered to price that some the adding X just close, significant lunch menu West at with portion the with got Hour have of Hour which price from of menu. specifically will it's with and taken that And always in to low we've a Happy some nice runs Good our points test X good a On addition we so X again in premium mid-price, Happy we're Times new then to our We've low tiers of Daddy's be day. choice. choice to three the offer more along bambinos price trying Coast. the at our attack the Bad end is sandwiches, menu we price

Hugh Gooding

prepared talked a on I a you color whole? this one or to expecting in provide outlook you. see remarks. Thank updates cost little great. bit more of of any bit as if could inflation Thanks, in you're could, XXXX on what labor goods But And more the you just little about a your

Boyd Hoback

We're and cost in proteins and goods think pricing pricing down bacon our down core and in to while plan effect be taken are we of little will a Sure. do projected are have positive are where being stable to big is our to the third maintain actually The and particularly ones that some be traffic little we've beef stable take that. a fairly to we expecting aggressive bit, obviously goal our ran expecting and from quarter bit. fourth I we fairly and those

So to we're pricing in of we're slightly is lower wage planning ran to taking in on sales than Colorado. the that minimum we Most absorb XXXX XXXX. cost increase the really in

again for the price than planning as I a are on increase balance little XXXX a think and less Bad Ryan said, of We X.X% Daddy’s.

that on will biggest on to impactful. less margin we and Colorado as difference the will and you take Bad So the the less impact see of hit open become Daddy’s we labor continue stores margin

because margin both brands, We it effect we Labor about expansion but X.X% driven obviously lower that most in operating we escalation Colorado, but Southeast our seeing increase in restaurants on we’re still in and are in of is tends that same to overall. paying anticipating above less are volume some never run that, in minimum overall labor the our a labor of lower the do the that we is scale by the statutory Colorado.

states, year, escalation inflation. in is But still seeing seeing significant. and inflation the to Colorado not as X% wage are market we some quite was which last very X% tight labor a but much We it minimum are is in and very, lower

Ryan Zink

I Ryan. would just add that of goods is costs this to sold. Hugh, on Hey, the

the by For both is Times ran roughly ran the QX a we are our Bad brands bit through at are over up for tell year guidance; total. if would stacks year, two much fiscal the higher entire little in and quarters is is that four for say that we the XXXX. what we would sales at both quarter way you that not cost at I we of and closer I Daddy’s same the quarter in assuming slightly below Good

Hugh Gooding

much color. so that thanks for Great,

Operator

next our with Dougherty from Jeremy ahead. Please go comes And Company. Hamblin & question

David Burdick

on for nice congrats this on for Hi, the quarter. Burdick Thanks and my David question is Jeremy. taking

maybe Bad Just the three and side start view walk just that the and opening QX on given in wanted of with you openings? remaining in specifically Daddy’s quarters then still the kind the units, the of XXXX or out two timing cadence two through the new QX to could to us the shifted

Ryan Zink

can sure that. I through walk Yes, David, you

quarter, the we openings. balance other this expect So do any for not of

And that to number so for QX be we expect we two will the open.

-- in guidance the of have each couple will we we the January then in the remaining opening provided, we three have our one open of QX of of have first will weeks be and beginning in We quarters. QX, near really in which

David Burdick

maybe two know performing. maybe been then as how have And you. openings opened locations I have provide these the well? thank you hoping those that And the it’s you great class maybe of kind two about talk October still then but performed on and was just Okay, of could XXXX on how could early they

Boyd Hoback

feel free one really I on of opening to the and on had openings But we jump we is in honeymoon surprises had Sure, the initial periods strong the the have Ryan. October just takes generally have of And it six volume. stores four their trends. some including into two to them settle the in that high typically to stabilized months the think at opened for have opened sales extraordinarily

remarks, have higher to on how for eight mentioned our As average. opened little they based prepared be in stores running than I we’re anticipating up the all a

So we are really happy with that.

as be but average, expect Colorado a right in the opening growing move it’s at one little average had we it into bit just have that’s XXXX. about under and to we We

we’re want do throughout can to next on generally seven stores certainly we in same ‘XX. and David on these add that. openings But You XXXX thing hope that

David Burdick

you you Cherry of construction but expected the site caught on maybe of timeline? Creek and I then said, sure on the the update location, us kind not the around progress the could And Okay. what

Ryan Zink

the I familiar of am. tell kind five-tenth think Cherry Creek because cost that relates Well, you could I Boyd on approximately it I’ll schedule What for X% to the you handle little you was of with let are sales. the to impact quarter, I as construction, more than

the entered on into have we -- store yes As sales, New I Year same apologize.

of of of weeks one-tenth the of nine first -- our of approximately is Cherry has Creek sales the in And approximately had entered is sales the cost we've one-tenth and X%. Creek to into the year-over-year of impact number As the less New performance the the location. due that been has of Year both relative of the location stores X% on same-store impact significantly to Cherry due also period,

Boyd Hoback

comments in disruptive up the the so. is in opening really with were months those the our for right to closed be last really weather because and summer anticipating of normal. this it street way And prior the two That's last has due open street didn't again. which the pedestrian made get been comes and most the we our March to to to as And to completed around back of that that patio we're or that to line that's hopefully I traffic get traffic and to time our by our back which front backed grand all comes have -- back hotel patio -- our nine is been spring of get

sales year that anticipate from sales very hopefully So, we're us. Hotel pure spring We the same-store quite turn really should the lapping so positive door come to great. last while when Jacquard as isn't impact opens time next

David Burdick

where Okay, going the see you guys be to efficiency. great. may just And hours hear. of any and to there opportunity on kind the side forward, maybe a can managing of kind areas and you margins Good follow-up see margins business if an operation is then to improve on wanted

Just trying FYXX how margins an and to in of get think idea beyond? to about of kind

Boyd Hoback

of We little lean and run our Bad the all back management house so have times front right folks a a very it's on position most outer our Bad of it's different. of store of Daddy's we and position. both are meaning diligently different on We're Daddy’s. management bit the little model pretty bit our where in labor and production the now on working managing Yes, refining of house good time.

example scratch that can associated very products at the prep items looking can intensive prep outsourced be we're not looking that credit for, ease hours we're with we and getting that we from at maybe do We’re for those.

Where a four with run the our Our and go it's think hours but we're to server to a most still really a tablets scheduling that as we not our the working our of already refining opportunity, those we we on We hour on we to process of our very our fan our it line the tough concept nor in functions, have modify at we're lean out host those fits table. the little do house the bit, with table times. house, peak standpoint front more and on the and try believe time. looking on hours, we're up productivity the bar in the stations and back of of times much is fringe from come

money, that We certain during energy we now to are to them allowing better stations -- have servers that allows restaurant. more staff we are table experienced in the to make to go times more five

yes, continue there we're got overall we going full is and really do dropping will long a to as efficiently maybe we think certainly an we're be we've there on I management find leveraged -- The The think little again refine our tenth software opportunity. some And but can every think year. be statement, -- Daddy’s margin that and more I both we've we half there and I find unless is on some as to distribution labor continue got well a in to. new the as purchasing out as this can side add And will is from out item Bad that point be anticipate Bad to in-store haven't mentioned to and we the think we we We're where side a there we that and non-Colorado on a yet new been our the line Daddy’s some single a looking margin percentage agreement point help. It's trying here of at we the leverage on not year and as story we five is the in opportunity. big are well. momentum throughout is management run level point salary figuring concept that. able that to careful G&A about impact think a labor and operating very some but We’ve efficiencies the very then at healthy use hard, a squeezing is is efficient their dump couple and there model that want short as So, not we to bit points, we to how to not place can fully store an down have there side. impact by to time too I those how efficiencies the we when top-line be additional management four a

Ryan Zink

in some Boyd focus of taking specifically Bad try some half the But committed sales XX being want of we're as from will terms costs would a significantly modeled the of just greater labor that are XXX about about as impact that offset and echo efficiently time, between Carolina. the we And in don't modeled just cost cheap the at not are higher and hope We pricing. points model. concept, efficiencies We to same to run more both to deflation damage points and Daddy’s of say So, concept as point guidance of cost the labor specific combination that cost leveraging provided ops talked menu A in would approach we of gain on I there. and also the Colorado, had basis of be excellence. full and labor by Boyd we've as by well well in development service a better we've able say inflation, that’s at too in to initiatives North pricing there. a about heightened what focus basis to the of able I the guidance. but us

David Burdick

and guys, XXXX. Great in thanks for questions taking good luck my

Boyd Hoback

David. Thanks,

Operator

Maxim will be Please Steven with our And questioner Instructions]. Group. [Operator next go ahead. Anderson

Steven Anderson

I of but your cost with at missed expect fiscal follow-up. all I a inflation rate that afternoon. you of first 'XX what good of how labor to call I part for And kind wanted compared earlier, 'XX? of have the look Yes,

Ryan Zink

percent percent, outside similar range as about XXX between a Bad XX I is sales increase then for somewhere full five-tenth side, percent and Times on of two-tenth improvement And Good in in modeled it to a very the it's the just at think of a we're as so. points. Daddy's as of Bad again I way Colorado percent in we've mentioned, sales labor modeled Well Colorado looking what the Daddy's in we've in Colorado. Bad of of to basis Daddy's a

Steven Anderson

online in either to for and Good sense. some makes maybe And have the Don't maybe know my that follow-up some or looked the you there Times of to your increased you know Times. I is see Daddy's throughput. Good for maybe maybe but a get of -- just in wanted off-premise already that of portion Okay, sales. opportunity business, large question more use opportunities potential for in back of wanted Bad to sales mobile to are your if any house technology the at if go for you operations you to get that efficient

Boyd Hoback

time just going in is on going there in locations Yes, there Bad I've delivery kind step business amount work there. with locations. test at in to take think check, now very definitely. change is urban that is prior with there. to We're that opportunity make think right as a It right to really nature We're much There a than of better I we locations. now. in sales Colorado tends certain and average that of Daddy's. But said suburban is two in calls an opportunities enormous DoorDash One really gain dynamics of work is meaningful the here to

on developing we be in can that that can We're now ordering, we it takeout more full platform efficient online fair will of or end to increase now, month driven we close takeout Right of now. right we that us we lot but opportunity business, much I don't with Some only how a websites done different store. providers so and we is amount simply efficiency right average give we job do delivery, which the this be. by because online have by store. will a ordering would by anticipate sales of an we mid-January do in that that not more we're about. But the know don't of say think an is takeout exactly our efficient to delivery, being have we know how on

restaurant on that's and have the create to at leveraging overtime. spaces a then our that us at takeout looking of number in opportunity our maybe volume how number we're line for really dedicated for an and tables we're looking so restaurants, And handle dedicated with moderating delivery of much in more section versus can efficiency the the kitchen seats to the we

Steven Anderson

sales do Okay. Daddy's? Bad takeout what at And reference, you my just get of for percentage from

Boyd Hoback

in of the we're kind Overall, single-digits. low-to-mid

happen be coincidentally that type locations. and that have stores real a in are We of to the couple mid-teens urban not

And opportunity of there. so few going from X% there probably X% points a to is

model that as think whole overtime, is business think much I larger opportunity. gets there figured I out,

still and opportunity of growing takeout is focus there think we walls because four incrementally still areas Our in think as trade delivery the opportunity. built. our I brand have in lots sales we But awareness our an the is

Ryan Zink

is that at other a order disadvantage. have competitive Steven currently we us on not The thing our would and puts online website I do say

first provider, an X location in quarter one in the with ordering agreement in in online least test by that say next the At we we anticipate have having completed that XX would leading point signed time. a During to I weeks.

Steven Anderson

thanks. Great,

Operator

closing remarks. further no over there would are question-and-answer to the Hoback conclude turn so I questions, like back session. will for any conference And the this to Boyd

Boyd Hoback

to forward today, fiscal Thank listening you. and for your for thanks Thanks questions look XXXX.

Operator

Thank all now is you conference the attending for And concluded. presentation. today's

may You now disconnect.

Good Times Restaurants (GTIM) 7 Dec 172017 Q4 Earnings call transcript