Good Times(US:GTIM)2024-08-02 07:24Financial Data and Key Metrics Changes - Total revenues increased approximately 6.5% for the quarter to $37.9 million [17] - Net income to common shareholders for the quarter was $1.3 million or income of $0.12 per share compared to $0.8 million or $0.07 per share in the third quarter last year [22] Business Line Data and Key Metrics Changes - Bad Daddy's restaurant sales increased $1.2 million to $27.3 million for the quarter, with same-store sales increasing 1.2% [17][19] - Good Times restaurant sales increased approximately $1.1 million to $10.4 million for the quarter, with same-store sales increasing 5.8% [20][22] Market Data and Key Metrics Changes - Sales growth at Good Times was significantly weighted to dinner and late-night sales, supported by strong trends at recently purchased and remodeled restaurants [11] - The Atlanta market has shown sales recovery, although individual store performance has varied [7] Company Strategy and Development Direction - The company is focusing on enhancing guest experience and hospitality, particularly at Bad Daddy's, by investing in front-of-house labor [5] - The company is evaluating underperforming restaurants for potential closure as part of smart real estate management [9][32] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges in the labor market, with increased wage pressures despite a rise in applicant quality [8] - The company expects continued pressure on food prices, particularly beef, and is considering price adjustments in the future [24] Other Important Information - The company repurchased 92,240 shares during the quarter and executed a privately negotiated purchase of approximately 171,000 shares at an average price of $2.60 per share [15] - The company completed the remodel of a Good Times restaurant in Lakewood, Colorado, resulting in a significant turnaround in sales [13] Q&A Session Summary Question: Will menu prices need to be raised due to rising beef prices? - Management indicated that while they evaluate prices based on competitor actions and customer demand for value, a price increase is not immediately planned [23][24] Question: What was the advertising expense for the quarter? - Advertising expense was 2% of revenues for the quarter, amounting to $749,000 [25][26] Question: What is the status of the development pipeline? - Management is in the final stages of negotiating a lease in the Greater Charlotte DMA, with potential openings expected in late fiscal Q2 or early Q3 of 2025 [30][31] Question: Are the lowest performing stores currently unprofitable? - Yes, some stores under consideration for closure are negative contributors to restaurant level cash flow [33]