Good Times Restaurants Inc. Announces Repayment of All of the Company’s Term Debt

  Good Times Restaurants Inc. Announces Repayment of All of the Company’s Term

Business Wire

GOLDEN, Colo. -- March 4, 2013

Good Times Restaurants Inc. (Nasdaq:GTIM) today announced it has paid off all
of its term debt after the closing of its most recent sale leaseback

Boyd Hoback, President and CEO said, “Our recent sale leaseback transactions
over the past three months combined with the continued improvement in our cash
flow from operations has enabled us to repay 100% of our bank and term debt so
that the Company is now debt free, with the exception of a few smaller
capitalized equipment leases and maintenance truck loans. The combination of
the sustained improvement in our sales trends and cash flow from operations, a
debt free balance sheet and cash on our balance sheet from our recent
preferred stock transaction allows us more opportunity for growth through the
development of new stores and the potential acquisition for another growth
concept that we’ve diligently been pursuing.”

The Company said that the most recent sale leaseback transaction was on a
restaurant recently purchased from a franchisee. Hoback added, “Due to the
profitability of the restaurant we purchased and the value we were able to
recognize in the 1031 exchange sale leaseback market, we expect that our
return on investment on the remaining operating asset investment will be close
to 100% per year with a conservative lease value relative to the sales of the
restaurant. We have successfully repositioned our existing base of restaurants
through the sale of a few underperforming stores for cash and the repurchase
and sale leaseback of select stores and as a result we expect continued
improvement in our operating margins through this fiscal year.”

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
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
Executive Assistant
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