Good Times Restaurants Inc. Announces Purchase of Top Franchise Restaurant
GOLDEN, Colo. -- January 4, 2013
Good Times Restaurants Inc. (NASDAQ: GTIM) today announced it has acquired the
real and personal property related to a high volume restaurant that has been
operated by one of its franchisees for a total purchase price of $1,250,000.
Boyd Hoback, President and CEO, said, “This was a great opportunity for our
franchisee to take advantage of 2012 tax rates and create a liquidity event
based on the hard work he’s put in over the last several years. It’s a great
opportunity for us to acquire at a reasonable cost a high volume, very
profitable restaurant that has been maintained and operated at a very high
The Company said it plans to sell the real estate underlying the restaurant in
a sale leaseback transaction that it anticipates will yield approximately
$1.1m in net proceeds. Hoback added, “Our return on investment on the
operating asset investment will be far in excess of what we could expect to
earn on a new restaurant, even net of the royalties we were receiving from our
franchisee. It will be immediately accretive and is a part of the overall
rationalization of our existing store base to maximize current and future
profitability, including the recent sale a few underperforming stores for
cash, reimaging and remodeling of older stores and preparing to build new
stores in the Colorado market as opportunities become available.”
The Company also announced it expects to close on another sale leaseback
transaction next week that, in combination with the sale leaseback of the
recently purchased franchise restaurant, will enable it to pay down all of its
remaining term debt.
Good Times is a regional chain of quick service restaurants located primarily
in Colorado providing a menu of high quality all natural hamburgers, 100%
breast of chicken sandwiches, fresh frozen custard, fresh cut fries, fresh
squeezed lemonades and other unique offerings. Good Times currently operates
and franchises 39 restaurants.
This press release contains forward looking statements within the meaning of
federal securities laws. The words “intend,” “may,” “believe,” “will,”
“should,” “anticipate,” “expect,” “seek” and similar expressions are intended
to identify forward looking statements. These statements involve known and
unknown risks, which may cause Good Times’ actual results to differ materially
from results expressed or implied by the forward looking statements. These
risks include such factors as the uncertain nature of current restaurant
development plans and the ability to implement those plans, delays in
developing and opening new restaurants because of weather, local permitting or
other reasons, increased competition, cost increases or shortages in raw food
products, and other matters discussed under the “Risk Factors” section of Good
Times’ Annual Report on Form 10-K for the fiscal year ended September 30, 2012
filed with the SEC. Although Good Times may from time to time voluntarily
update its forward looking statements, it disclaims any commitment to do so
except as required by securities laws.
Good Times Restaurants Inc.
Boyd E. Hoback, 303-384-1411
President and CEO
Christi Pennington, 303-384-1440
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