Good Times Restaurants (NASDAQ:GTIM), the owner of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, beat Wall Street’s forecasts and reported a jump in sales for its fiscal fourth quarter on the back of bustling traffic to its restaurants.
In its latest quarter ended on September 25, the restaurant chain’s revenue came to $26.8 million, up from $22.6 million in the year-ago period and ahead of the Street’s consensus estimate of $26.26 million.
The restaurant chain's net loss also narrowed in the quarter, shrinking to $324,000 from $664,000.
Same-store sales for company-owned Good Times restaurants jumped 0.5% for the quarter and were up 4.2% for the year on top of last year’s increases of 3.9% for the quarter and 2.1% for the year.
“Even though labor costs continue to be a pressure point on our operating margins, Bad Daddy’s Restaurant Level Operating Profit margin improved to 17% for the year from 15.8% last year,” noted CEO Boyd Hoback in a statement.
“We are very pleased with our results for the quarter and fiscal year, including our adjusted EBITDA that was slightly ahead of the upper end of our guidance for the fiscal year," Hoback added.
By the end of its fiscal year, two Bad Daddy’s restaurants were opened in the Atlanta, Georgia area and in Greenville, South Carolina.
Revenues of about $112 million to $114 million are expected for fiscal 2019 as is a net loss of $0.9 million.
During the first fiscal quarter of 2019, Good Times and Bad Daddy’s sales have been hurt by inclement weather, according to Hoback.
"As a result, we expect our first fiscal 2019 quarter’s results to be negatively impacted which is reflected in our overall fiscal 2019 guidance,” he said.
Good Times operates Good Times Burgers & Frozen Custard, a regional chain of quick-service restaurants located mainly in Colorado. It also owns and licenses Bad Daddy’s Burger Bar which features gourmet burgers, chopped salads and craft microbrew beers.
Good Times shares popped by 2.7% to finish at $3.80 on Thursday.