Good Times Reports Q3 Same Store Sales +12.5%

  Good Times Reports Q3 Same Store Sales +12.5%

                         Two Year Increase of +27.7%

Business Wire

GOLDEN, Colo. -- July 8, 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 that its Good Times’ same store sales
increased 12.5% in its third fiscal quarter ending June 30, 2014 over the
prior year’s increase of 15.2%. June same store sales increased 10.6% over the
prior year’s increase of 17.8%.

Boyd Hoback, President & CEO said, “We are maintaining our two year trend of
double digit sales growth on top of double digit growth and are only 50% of
the way through our remodeling process of older stores. We believe that as we
bring all stores to our current brand standards through fiscal 2015
complemented by continued product innovation and brand level marketing we will
continue to reap additional sales growth, but the pace of growth may begin to
moderate.”

Commenting on the current commodity environment, Hoback added, “Beef, bacon
and dairy costs are at historic highs and will have some impact on our gross
profit margin for the balance of the year. However, we have taken a series of
smaller price increases to mitigate the impact and the flow-through on our
incremental sales to restaurant operating profits so far this year has been
approximately 50% which has overshadowed the small margin hit from the
commodity costs. We anticipate that we will continue to show significant and
accelerating operating profit margin expansion for the third and fourth
quarters of the fiscal year and we plan to provide more detail in our third
quarter earnings release.”

The Company reported that three large shareholders have, with the Company’s
concurrence, exercised their contractual rights arising from their acquisition
of the shares to request that their shares be registered for possible future
sale. The Company is cooperating with those requests and the shareholders have
not communicated any specific plan for the sale of the shares following the
registration.

The Company also reiterated that it expects to open one or two additional Good
Times restaurants this calendar year and its second Bad Daddy’s Burger Bar
restaurant in Colorado on or about July 28 and is planning a third Bad Daddy’s
to open prior to the end of this calendar year. Bad Daddy’s restaurants opened
by the Company are as a licensee of the concept through its wholly owned
subsidiary BD of Colorado LLC.

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 36 restaurants.

GTIM owns and operates Bad Daddy’s Burger Bar restaurants as a licensee
through its wholly owned subsidiary, BD of Colorado LLC and plans to 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.

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, 212-564-4700
 
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