Good Times Reports 1st Quarter Results

  Good Times Reports 1st Quarter Results

      Restaurant-Level Operating Profit More Than Doubles from Last Year
         First Bad Daddy’s Burger Bar in Colorado to Open February 3
 Company Reports Fourteenth Consecutive Quarter of Increased Same Store Sales

Business Wire

GOLDEN, Colo. -- January 22, 2014

Good Times Restaurants Inc. (NASDAQ:GTIM), operator of Good Times Burgers &
Frozen Custard, a regional quick service restaurant chain focused on fresh,
high quality, all natural products and of Bad Daddy’s Burger Bar, a full
service, upscale concept today announced its unaudited financial results for
the first fiscal quarter ended December 31, 2013.

Key highlights of the Company’s report include:

  *Same store sales for company-owned restaurants increased 17.4% for the
    quarter, which was the fourteenth consecutive quarter of increasing same
    store sales
  *Restaurant-Level Operating Profit (see schedule below) increased 112% or
    $466,000 over last year during the quarter
  *The restaurant level operating margin increased by 610 basis points to
    14.9% from 8.8% last year during the quarter (see schedule below)
  *Preopen costs related to the development of the first Colorado Bad Daddy
    Burger Bar restaurants were $148,000 during the quarter
  *The Affiliate Investment Loss from the Company’s 48% ownership of Bad
    Daddy’s Franchise Development LLC was $72,000 during the quarter related
    to initial development costs for the Bad Daddy’s franchise program
  *Loss from Operations decreased to ($86,000) from ($297,000) in the prior
    year, including an increase in General & Administrative expenses this year
    related to the Company’s expanded Investor Relations expenses and Bad
    Daddy’s of Colorado administrative expenses

“We are very pleased with our continuing sales trends and the dramatic
increases we’ve had over the last two years and we’re are now seeing a
corresponding increase in our profitability,” said Boyd Hoback, Good Times
Restaurants Inc. President and CEO. “We’re still relatively early in our
reimaging and remodeling process of older restaurants which we believe will
provide additional sales momentum this year. Our operations, marketing and
product development initiatives have come together in a powerful way,
heightening our competitive differences that we believe the large quick
service hamburger chains can’t and won’t match.”

Hoback added, “We have a firm date of February 3, 2014 for the opening of our
first Bad Daddy’s Burger Bar in Colorado with one additional store under
development and other leases in negotiation. We hope to have four open in 2014
with several more committed for 2015 as we lay the foundation for accelerated
franchise development with multi-unit operators in Bad Daddy’s Franchise
Development LLC. There are seven traditional Bad Daddy’s restaurants open
today in North and South Carolina with one licensed restaurant in the
Charlotte airport and we plan to have several franchise development agreements
signed early in 2014 for development of restaurants late in 2014, accelerating
into 2015 as we continue to build our own company owned restaurants.”

About Good Times Restaurants Inc.

Good Times Restaurants Inc. (NASDAQ: GTIM) operates Good Times Burgers &
Frozen Custard, a regional chain of quick service restaurants located
primarily in Colorado, in its wholly owned subsidiary, Good Times Drive Thru
Inc. Good Times provides a menu of high quality all natural hamburgers, 100%
all natural chicken tenderloins, fresh frozen custard, fresh cut fries, fresh
lemonades and other unique offerings. Good Times currently operates and
franchises 37 restaurants.

GTIM will also own and operate Bad Daddy’s Burger Bar restaurants through its
wholly owned subsidiary, BD of Colorado LLC and will franchise Bad Daddy’s
Burger Bar restaurants through its 48% ownership of Bad Daddy’s Franchise
Development LLC. Bad Daddy’s Burger Bar is a full service, upscale, “small
box” restaurant concept featuring a chef driven menu of gourmet signature
burgers, chopped salads, appetizers and sandwiches with a full bar and a focus
on a selection of craft microbrew beers in a high energy atmosphere that
appeals to a broad consumer base.

Good Times Forward-Looking Statements

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 the Company’s 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, 2013 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.
Unaudited Supplemental Information
(In thousands, except per share amounts)
                                                       
                                                       Three Months Ended
                                                       December 31,
Statement of Operations                                2013        2012
Net Revenues:                                                     
Restaurant sales                                       $ 5,906      $ 4,722
Area development and franchise fees                      0            0
Franchise revenues                                      82        95     
Total net revenues                                       5,988        4,817
                                                                    
Restaurant Operating Costs:
Food and packaging costs                                 1,939        1,600
Payroll and other employee benefit costs                 1,982        1,738
Restaurant occupancy costs                               830          740
Other restaurant operating costs                         274          229
New store preopening costs                               148          0
Depreciation and amortization                           143       202    
Total restaurant operating costs                         5,316        4,509
                                                                    
General and administrative costs                         508          386
Advertising costs                                        234          210
Franchise costs                                          22           15
Loss (Gain) on disposal of restaurants and equipment    (6     )   (6     )
Loss from Operations                                     (86    )     (297   )
                                                                    
Other Income (Expenses):
Interest expense, net                                    2            (32    )
Other income (expense)                                   (3     )     (1     )
Affiliate investment loss                               (72    )   0      
Total other expenses, net                               (73    )   (33    )
Net Loss                                                (159   )   (330   )
Income attributable to non-controlling interest          (64    )     (10    )
Net Loss attributable to Good Times Rest Inc            (223   )   (340   )
Preferred stock dividends                                (30    )     (30    )
Net Loss attributable to common shareholders            ($253  )   ($370  )
                                                                    
Basic and diluted income (loss) per share:
Net Loss attributable to common shareholders             ($0.05 )     ($0.14 )
                                                                    
Weighted Average Common Shares Outstanding:
Basic and Diluted                                        4,926        2,726
                                                                             

                                                     Dec 31,     Sept 30,
Balance Sheet Data                                    2013        2012
                                                      (In thousands)
Cash & cash equivalents                               $ 5,206         $  6,143
Current assets                                          5,601            6,641
Property and Equipment, net                             3,476            2,851
Total assets                                          $ 9,792         $  9,875
Current liabilities, including capital lease            1,948            1,807
obligations and long-term debt due within one year
Long-term debt due after one year                       17               20
Capital lease obligations due after one year            66               74
Total liabilities                                     $ 2,681         $  2,554
Stockholders’ equity                                  $ 7,111         $  7,321
                                                                         

    Reconciliation of Non-GAAP Restaurant-Level Operating Profit to Income
                        from Operations and Net Income
                    (In thousands, except percentage data)

The Company believes that restaurant-level operating profit is an important
measure for management and investors because it is widely regarded in the
restaurant industry as a useful metric by which to evaluate restaurant-level
operating efficiency and performance. The Company defines restaurant-level
operating profit to be restaurant revenues minus restaurant-level operating
costs, excluding restaurant closures and impairment costs. The measure
includes restaurant level occupancy costs, which include fixed rents,
percentage rents, common area maintenance charges, real estate and personal
property taxes, general liability insurance and other property costs, but
excludes depreciation. The measure excludes depreciation and amortization
expense, substantially all of which is related to restaurant level assets,
because such expenses represent historical sunk costs which do not reflect
current cash outlay for the restaurants. The measure also excludes selling,
general and administrative costs, and therefore excludes occupancy costs
associated with selling, general and administrative functions, and pre-opening
costs. The Company excludes restaurant closure costs as they do not represent
a component of the efficiency of continuing operations. Restaurant impairment
costs are excluded, because, similar to depreciation and amortization, they
represent a non-cash charge for the Company’s investment in its restaurants
and not a component of the efficiency of restaurant operations.
Restaurant-level operating profit is not a measurement determined in
accordance with generally accepted accounting principles (“GAAP”) and should
not be considered in isolation, or as an alternative, to income from
operations or net income as indicators of financial performance.
Restaurant-level operating profit as presented may not be comparable to other
similarly titled measures of other companies. The table below sets forth
certain unaudited information for the three months ended December 31, 2013 and
December 31, 2012, expressed as a percentage of total revenues, except for the
components of restaurant operating costs, which are expressed as a percentage
of restaurant revenues.

                                     
                                       Three Months Ended
                                       December 31, 2013       December 31, 2012
Restaurant revenues                    $ 5,906    98.6 %      $ 4,722    98.0 %
                                                                               
Restaurant Operating Costs
(exclusive of depreciation and
amortization
shown separately below):
Food and packaging costs                 1,939     32.8 %            1,600     33.9 %
Payroll and other employee benefit       1,982     33.6 %            1,738     36.8 %
costs
Restaurant occupancy costs               830       14.1 %            740       15.7 %
Other restaurant operating costs        274     4.6  %       229     4.8  %
Restaurant-level operating profit        881       14.9 %            415       8.8  %
                                                                               
Add - Franchise royalties and fees       82        1.4  %            95        2.0  %
Deduct - Other operating:
Depreciation and amortization            143       2.4  %            202       4.2  %
General and administrative               508       8.5  %            386       8.0  %
Advertising costs                        234       3.9  %            210       4.4  %
Franchise costs                          22        0.4  %            15        0.3  %
Gain on disposal of restaurants and      (6    )   (.1  %)           (6    )   (0.1 %)
equipment
Preopening costs                        148     2.5  %       0       0.0  %
Total other operating                    1,049     17.5 %            807       16.8 %
                                                                               
Loss from Operations                     (86   )   (1.4 %)           (297  )   (6.2 %)
                                                                               
Interest income (expense), net           2         0.0  %            (32   )   (0.7 %)
Other income (expense)                   (3    )   0.0  %            (1    )   0.0  %
Affiliate investment loss               (72   )  (1.2 %)      0       0.0  %
Total other                              (73   )   (1.2 %)           (33   )   (0.7 %)
                                                                               
Net Loss                                 ($159 )   (2.7 %)           ($330 )   (6.9 %)
____________________________________
                                                                               

Certain percentage amounts in the table above do not total due to rounding as
well as the fact that restaurant operating costs are expressed as a percentage
of restaurant revenues, as opposed to total revenues.

Contact:

Good Times Restaurants Inc.
INVESTOR RELATIONS CONTACTS:
Boyd E. Hoback, 303-384-1411
President and CEO
or
Christi Pennington, 303-384-1440
or
Gary Heller, 914-813-8547
or
Porter, LeVay & Rose
Mike Porter, 212-546-4700