GTIM - Earnings call 1 2024 | Good Times Restaurants Inc.

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Operator

Good afternoon, ladies and gentlemen. Welcome to the Good Times Restaurants Inc. Fiscal 2024 First Quarter Earnings Call. By now, everyone should have access to the company's earnings release, which is available in the Investors Section of the company's website.

As a reminder, a part of today's discussion will include forward-looking statements within the meaning of federal securities laws. not put future undue are you and statements not should reliance forward-looking guarantees performance, of therefore, These on them.

known results from involve the by statements and which statements. risks, These may the company's forward-looking actual expressed to results materially differ or implied unknown cause

with of XX, credit affecting the restaurants, filings XXXX, Section minimum annual other and Times the and regulations credit economic restaurants; company's SEC other provide and nature state company; of and and the pandemics the of tip associated plans or business uncertain risks and year public of chain changes opportunities new with weather, discussed to of opening on restaurants; include, plans the associated ended share our of the products; other disruption matters or conditions; the local and the development nature to the ability risks or inflation; duration price uncertainties time our new or and implement to impact the to and those restaurants in from and from program; food risks at Form and of reasons; filed increases the fiscal because September other and impact the of Factors cost of permitting cost increased things, flows laws investment prevailing supply Such market competition; the restaurants; health and capital shortages the local Good emergencies; repurchase operation restaurant staffing wage XX-K to acquisition the SEC. our report developing under the cash Risk including of facility other other additional our other among of raw adequacy borrowings in with stock operating current federal, availability with time; the in and presented for liquidity; general integrate regulations constraints constraints delays

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

Ryan Zink

you, Christina, today. the us joining you thank for all call Thank and on

mentioned, everyone have As to now release. our should quarter first access earnings

appointed pleased engaged the August. last few Senior Joining Accounting, me recently Keri of We opportunities Keri she a join with more Vice Finance understand immediately the me finance have to be identify structure, a leadership quarter's relationships In results. and consulting in quickly peers today review team. impressed will [indiscernible] she is senior our and and arrangement I her quickly within couldn't as team. part accounting our company's President build our of minutes, ability and her August, with to

Top to this line with and level as reported quarter continuing quarter, were sales Good Times strong we margins. unit growth the same generate much last year-over-year results

turning at to same-store Daddy's, around While at declines. work Bad we continue sales

in encouraging. weekly single-store quarter, which of records. the even results saw Our we sales week in sales stores, posted at December And first were several results the exceptional second

in and cold have Huntsville, not the county weather, winter and both market, the part and city also and are where with interestingly, January due to excess deal closed but to snow with ice the softened on due sales Colorado the runways. Alabama which experienced even snow extreme airport equipped in Tennessee has to snow our roads, the on and in in

November. X Index And the the Index with in Nevertheless, X full U.S.A. staying for Bad past performance Box the softer below only we to Sales at brands, the improved Denver the sales versus days. the not now Daddy's row. beat significantly nearly has Comp Black weeks Colorado, In contributed gap mark narrowed, extreme have a from but degree cold both X has

In on a this last hour extra and other basis. particular, the attribute now to sales, the our in dinner hour last as experience same-store daypart the day. sales operations prior nearly the year nicely hour of We of with dining has in same focus hour recovered sales on of delivering half achieving any

X On where with along Drink - we January Hour, XX, have Specials, the we each launched discounted day. Happy during business Last concept last Call wide hours the of apps Daily

seasonal Additionally, our on day. specials same winter that began

that now of are specials capabilities to seasonal well. way the offerings Daddy's, our key and extends beverage a which Bad as in unique culinary Our we demonstrate

back season, the on pandemic, hummus winter and as featured during that We're a & cranberry and to the with topping Ginger, out eliminated side. been the and for rounded has the requested our those offerings getting Mojo an the chocolate bringing Bad Chili interpretations food is a Burger the with cherry which and individually season. that Crunch bacon [indiscernible] we is Cowboy the round excellent long it a menu Daddy's burger tequila fit Mule and shake out the rum-based Blood called for Silver mocktail [indiscernible]

X% Atlanta a and rest the Colorado menu country the price took being X% value Bad in January price culinary Our and in currently are sensitive our about end price become known on and Colorado insanely for will the with for create next at mass are and We both increase low Daddy's to of are our increase those January points providing end approximately that who markets. for of burgers the those price has high year-over-year options looking iteration for. year-over-year innovation burgers, and and in sitting for menu price blended less limited X.X% large seeking of of

the driven of and market the cost market by system in we in the statutory pressures market-based Colorado with of be pressure. operate, to terms and wage continues rest falling highest which Colorado between wage Atlanta in our

of a ago. Huntsville perform release well restaurant, remarkably Madison continues a couple Our weeks notwithstanding, in discussed we press weather to as

was very few in the have and Madison capable, restaurants We highly dedicated restaurant that Huntsville of the extreme in during very not close team a our did one that weather. restaurant,

Birmingham We're X under Rewards. are are pipeline we GT other Times, At Charlotte. working both currently on loyalty development leases negotiation. Good are opportunities and several We're in customer and at that LOIs focused have our adoption platform, on negotiating the and of looking

believe We with digital that is we improve and at points By continue our satisfaction. accuracy reducing all customer in at speed, customers our to momentum. ultimately, engagement continuing can sales Good to the transaction, Times friction critical

at boards windows the the our company-owned all restaurants, merchandising We've system. at installed digital company-owned across eliminating walk-up

enable boards, and weather-enabled near general yet to have to full pricing, will We daypart which pricing promotion opportunities and in strategies, capability time. of adjust the product digital decisions real merchandising merchandising realize other the and

remodeled still have are X franchise walk-up boards, do to drive-thru restaurants, of year. by to legacy John's. restaurants and digital new We've Taco those, new X walk-up Good the we last X Times not at a to boards with convert of of franchise including with digital murals and signage. install board Of commitments restaurants the franchisee this have X our which digital Colorado commitment local artists, awnings co-branded

complete has a never less Lakewood. suburb is We that one of remodel Denver had Good one extensive an that in X is efficient. one remodel a the has more to expect and This prior this kitchen Times of older year, layout more

remodel of include X the this We expect closure for to the weeks. restaurant to X

program, turnaround per the at our Good have We flow, good we share. generate trading in prices at repurchase stock, shares confidence shareholders. our during an generates a reliable for purchased $X.XX We strategy price the of over return continues and quarter to average share believe that Bad current Daddy's. particularly for XXX,XXX Times cash for just

low of currently Our is greater stock true we below trading per believe cash the value multiple is share market flow. than it. the of And a currently valuing is book that and what the value business

review we quarter. over authorized of our under quarter, the million current had At the the $X.X program. Keri as turn I performance the for the to call will approximately end repurchase now remaining to

Keri August

Thank your the Total thanks today kind the results. review quarter's approximately was words XXXX. $X.X from several the Cherry team. markets, year, I'm associated for for million I'll an million opened earlier. the Total The be sales key happy approximate revenues sales and reduced now restaurant be X.X% Daddy's of this quarter as restaurant, for Bad of quarter. to the here decreased you, of with restaurant million. customer to X.X% $XX.X to sales reduced Madison, and the in by prior for $XX.X decreased part offset decline traffic which to well restaurants happy a in Ryan, partially sales of Creek as combination quarter menu closure Alabama fourth increase price during

point Daddy's ground last sales recently, Daddy's quarter the end. were X.X% half we at quarter, the Though a basket. year's and with basis in our across of XX.X% purchase XX beef the period food-based for the year base Same-store for for goods to from experienced XX benefits prior second Bad commodities fiscal the sales quarter expect with declined prices quarter decrease and at Cost Bad paper in increase food versus cost other XXXX. from have lower comp of we

sales prior higher basis of a costs costs. percentage XX.X% for as the the Bad management by to year maintenance, Daddy's costs quarter to Bad compared and the Bad This lower Occupancy costs year Daddy's basis labor result XX.X% reflects quarter. by and delivery impact increased increase lower for commissions. other on quarter sales to XX increased expenses, XXX prior and technology operating offset repair the deleveraging Daddy's points increased wage at points to XX by of to primarily the quarter, compared points X.X%. utility basis increased of rates the

or XX.X% operating the restaurant million last increased quarter approximately measure, was the company-owned for Good restaurant-level $X.X Restaurants the Times quarter for million approximately sales to of $X.X year. year Overall, quarter. $X.X compared for prior Daddy's Bad million to non-GAAP to $X.X compared for Total or first profit, first sales a million XX.X%

increase XX.X% prior packaging lower the basket year's prices the quarter Same-store costs with the for year commodity XX for The Good were quarter in the X.X% price we Times quarter, basis comp as points at for of a Times quarter in base XXX the was Food experienced to and over average approximately last sales X.X% to period. year prior menu for Restaurants end. our quarter purchase same compared increased compared Good decrease the quarter.

a the last wage other the from level. on increased beef as price partially Total by longer-term from higher costs resumed offset Good to XX.X%, XX.X% increase the basis during we productivity, As case due Times decreased point the is with current decrease Bad year's rates. menu food as forecast Daddy's, X.X% ran and prices quarter, indicates for XXX well labor pressure

million. of quarter. Occupancy costs Times other a year basis the $X.X XX due from Times operating by points were prior utility to quarter, and profit basis Times $X.X to XX.X% maintenance increase delivery an repair the and for Good Good primarily increased well increased expenses. costs for were as X.X%, XX operating increased the points, at million commissions Good of as decrease Restaurant-level quarter

As versus sales, a profit and in food primarily percent operating to points of due last year restaurant-level improvement packaging costs. XX.X%, basis by XXX increased the to

administrative were the of and a XX $X.X total Combined million general from expenses X% quarter during last year. revenues, basis point decrease or

a was $X.X million expense of the net quarter the to million, $X.XX common loss $X.X share the $X.X reported net per for first million quarter share income quarter. loss last tax of Our was in versus during shareholders or of Approximately per $X.XX loss year.

in We will Adjusted Ryan. that, $X.X was $X.X long-term call $X.X $X.X of With of I million the XXXX. million with to and compared the turn the back to quarter quarter finished the first EBITDA for million million debt. quarter for cash

Ryan Zink

open Thank you, we for the can now call Keri. Christina, questions.

Operator

from Our Instructions] comes investor. question [Operator first [indiscernible]

Unknown Attendee

think wanted touched it. I talk so aspect on the I cash of about flow you -- Ryan, to

How kind I it for the this year? that Is $X think is 'XX flow for So about looking cash year? fiscal of this projection operating was million. year

Ryan Zink

Yes.

full than So my the think the of from and on terms $X order between million. head last bit was year year going adjusted little top say $X EBITDA, that to million that. less of I'm I in was a of

we I think and behind for last year, EBITDA. off year this started year's have adjusted obviously, flow the cash

future from produced for what quarter. quarters we're improvement what -- we in this I do from expect

any that is offering probably guidance, on expect so official last for year for my although reasonable the projection best same of And is that, not to I this order year. think really we're

Unknown Attendee

half for of Daddy's, second And year? the you fiscal still Okay. are expecting sales Bad same-store the increase in

Ryan Zink

projections, wasn't So on by the had year last be second the that of that call I we I half that but any that that the had I I official had, might possible. that, hoped said making think

segment. some things the casual the with a that's if deterioration Box of I Black been think which restaurant the one in industry noticed is to in is specific service that NavTrac, benchmarking and there's we've the you're dining numbers, that also familiar

somewhat so And affected that. that's point around my of view

of has that attribute our in about index my compared Black remarks, on a However, as some improved. call I I talked to performance mentioned this that improvement on to I substantial prepared our amount initiatives the do think And relative we the last do call. Box, to and that earlier

back And where half I'm prepared this to from we so get prognosticate directionally, comps I of the sales comp to not year, quarter. back to math the see positive for while we're by going the reported improving think, that we

Unknown Attendee

you Okay. And all for you feel to been things I bit? addressed a being of And do mean, now? feel Daddy's, identify you've like those Bad where are do operationally, able slipped

Ryan Zink

I place during would business hospitality. in the focus terms those, did And that to improve our we aspect slipped going had specifically in have had call of the related we So those address to we felt quarter, of last both say, the things, of programs bit. several on a bar forward.

have with was Specials, had the of the we or aspect specifically Daily return big for and think we bar I Happy think progress, made some that Hour quite already been one I time. missing Drink

and have the the operations, on learning and bartenders. to have, released. be servers, well help That's as we new mentioned another [indiscernible] their resources in particular, doing our going of their then of in hosts of their their a bar improve We as the beverage what training, menu their also we people of in assessment teams, to in prior very training improve we're invested the that but is to development in as and believe that operating training call, soon in element development front house. in terms And new are

of our where And But so the continue advancements. right changed already make believe bit that of it this switch. point of a I and of And to a I be. has we have operators really is the where a in light not process terms place of the needs flip in think programs in terms to have a been and shift mindset view of performance we at to

Operator

Swartz comes question of David next from Our Morningstar. from line the

David Swartz

cannot margins? So restaurant-level been to higher why to they reach operating higher be than reported that there what same-store in the looking reason past numbers sales years, would would you and reach you any that at the given the have expenses historical levels? report historical is operating just And are margins you that need restaurant-level

Ryan Zink

Yes.

pressures, One couple particularly that. there think I a to are of elements in Colorado. is the labor

seen to certain managers wage pressure, in extent, among a Although, markets. particularly our salaried also have we other

if XXXX, that And depending in so referring I think upon peak in what you're the that to, don't know are realizable. the margins to, you're attained XXXX I referring peak say, we

was moment I in that think time. a

order on X%. less where would same-store particularly so XX% But XX%, of are in in is that to profit, to a X.X% restaurant-level the southeast take improve to the going wage pressures the margins vision XX% of operating range. our sales is so, I closer less to the country restaurant-level and That part little maybe say blended to

as prior turning same-store handful margins. the had is we of applies discussed that have those a stores restaurants, would this, those identifying calls, as improving And for we think other sales to that, element approach sales. it to solutions have which same-store our in be well, around of restaurant-level declines part sequential other in I or of

David Swartz

the until the over off Bad stores the years? development That's couple looking at next plan, are opening for new results Daddy's holding more on outlook current what's Or of helpful. you And improve? the

Ryan Zink

Yes.

are developing pipeline. we a So

maybe outside the really we of which concept. aspects of upon, which the I believe have of reengineering is cost less think control can the cost we less operating of over development current concerning than and we results, improve construction,

new take for reasonably ability do develop that to reasons. units. both and to slow We our want We are operating confident financial in

I economics, quarter, And making make so that our I That develop as taking very we that's of expected approach view. we measured costs sure we're development one last to and said, sense. and in think had said still the point XXXX, the fiscal of including a think

David Swartz

this, were missed what quarter the I the buybacks maybe but [indiscernible] stock stock And buybacks? in

Ryan Zink

shares We -- XXX,XXX back the to repurchased repurchased my let quarter. remarks. prepared that we So in during page me go

Operator

Our next the question is [indiscernible], comes personal of a who line from investor.

Unknown Attendee

you Good that rather you've of And going in the be significant investments you then that kind million to at you'd Times which is the some made somewhere earlier, in running Good last stock joint also over of mentioned Times. and significant the that year, around just X made investments forward. repurchase, include discussed. $X The cash a flow target probably So purchase, you've looking purchase venture

as the the from standpoint Times What you where on of at activities? put at Any Good items a ticket color in perspective can XXXX of redevelopment-related we a here you're these looking that? kind far as big are CapEx from to

Ryan Zink

of say the a CapEx, different couple would I terms down ways. of break we'll in just in Yes. that CapEx maintenance so

for of maintenance budget we CapEx. X% CapEx, about In terms ongoing generally sales of maintenance routine

had significant our We have of of full remodels a completed want of X restaurants. we done X project at, of signage We've say, And I to have more amount CapEx. those.

XX% over, XXX,XXX a of remodels just XX,XXX being with signage So say, little are order the that. the on system. on to top of Those of

X remodels are remarks described in time those one XXXX restaurants over And over fiscal similar fiscal more to XXXX. over my -- the of looking prepared to need our next and we the schedule maybe today. extensive I

will to be other be and I think flow really for end that. entire determine of fiscal get my cash but able use the remodeled hope system to the opportunities would XXXX, by capital

So did your question? answer that

Unknown Attendee

I'm a the and recognized the growth about perhaps stock going state operating the and BADY, now. company change, you book lines, Bad the along kind Have brand stock have considered right where then point Times of more the forward a forward? and in at name something you those draw the talked but would vehicle vehicle some the great going right And Daddy's have of those below reflect discussed along in kind sure being you more being doing being is value ever and Colorado past, too, symbol a B-A-D-Y, in or with is where you did. limited things the states, additional of something or It lines, stock value now, better like interest Good with price that

Ryan Zink

Yes.

was came considered described. actually company we change past, the we ticker changed. as in the rename pre-pandemic, the pandemic So and the just That had of somewhat and of the had symbol a and things you

an point of in are vehicle. think Bad that growth question our view right is Times terms I Good interesting well. because performing of Nevertheless, you it's Daddy's the remarkably is

And think an of it's so topic conversation. I ongoing

I business But the that of around think the around going not is think something results. really more itself community. we and It's really drive to in optics investment

something bat we say that around, have on. can't And we action And the plans I so any future. any continue it's specific do to taken haven't something that to that like near in but

Operator

further no turn I'd to like to floor with back questions, And the Ryan. over

Ryan Zink

Bad like you our at again been performance food team great thank large to Thank brands, of great that I'm to making Times experiences managers believe in strong guests create brand I would all are we've the Good organization of every remain confident is part for throughout that and both I today. joining recent day. by generating. and the for and encouraged more our our a the leaders call our than X,XXX members, and Daddy's investments performance at

Operator

again, call. conclude today's Once this conference you. Thank does

disconnect. now may You

Good Times Restaurants (GTIM) 31 Jan 242024 Q1 Earnings call transcript