Good Times Restaurants Inc. (NASDAQ:GTIM) Q4 2019 Earnings Conference Call - Final Transcript

Dec 12, 2019 • 05:00 pm ET


Good Times Restaurants Inc. (NASDAQ:GTIM) Q4 2019 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen. Welcome to the Good Times Restaurants Incorporated Fiscal 2019 Fourth Quarter Earnings Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

By now, everyone should have access to the company's fourth quarter earnings release. If not, it can be found at in the Investors section.

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

Lastly, during today's call, the company will discuss non-GAAP measures, which they believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP and reconciliation to comparable GAAP measures available in our earnings release. [Operator Instructions]

And now I would like to turn the call over to Ryan Zink. Please go ahead, sir.

Ryan M. Zink

Thank you, Ben, and thanks, everyone, for joining us on the call today. I will begin with a high-level summary of the business and then review financial performance for the quarter.

We opened two new Bad Daddy's Burger Bars during the fourth fiscal quarter, one in a suburb of Nashville, Tennessee and one in Huntsville, Alabama, our first Bad Daddy's in each of those DMAs. In October, we opened our first Bad Daddy's in Greater Charleston, South Carolina. And just this past Monday, we opened our first in Columbia, South Carolina, bringing our total restaurants in South Carolina to four, including our one franchisee-owned Bad Daddy's Burger Bar. All four opened and are currently performing at sales volumes at or above our seasonally adjusted targets for a $2.5 million restaurant.

Comparable sales for Bad Daddy's decreased 1.3% for the quarter and 0.2% for the year. Our Good Times drive-throughs posted 7.2% comparable sales growth for the quarter, bringing the net decline of same-store sales for the year to 0.4%.

We rolled out DoorDash in our final four Bad Daddy's at the end of the fourth quarter, and with such, have rolled out DoorDash delivery in all of our restaurants. We have seen moderation in growth in delivery sales but generally, continue to see strong -- see growth in both delivery and total off-premise sales.

Shortly after the end of the year, we rolled out three new products at Bad Daddy's. Our California Chicken, which is an elevated grilled chicken sandwich, with