Good Times Restaurants Inc. · NASDAQ:GTIM
Good Times Restaurants — Investor Presentation (July 2013)
22 slides from Good Times Restaurants's investor presentation, Jul 29, 2013
Slide 1: Investor Presentation
Investor Presentation $6 million Common Stock and Warrant Units July 2013 Confidential
Slide 2: Safe Harbor
Safe Harbor The presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, and such statements are subject to the safe harbors created thereby. A forward-looking statement is neither a prediction nor a guarantee of fu
Slide 3: Table of Contents
Table of Contents Page Investment Highlights 4 Offering Summary 5 Management Team 6 Use of Funds & Capitalization 7 Targeted Growth Plan 9 Good Times Burgers & Frozen Custard 11 Bad Daddy’s Burger Bar 17 Business Strategy 22 Good Times Restaurants, Inc. 3
Slide 4: Investment Highlights
Investment Highlights Good Times is a 25 Year Old Platform Company Stable, debt free company with positive EBITDA (Earnings before Interest, Taxes, Depreciation & Amortization) on a trailing twelve month and current basis Same store sales accelerating to double digit growth in April – June 201
Slide 5: Offering Summary
Offering Summary Issuer ………………… Good Times Restaurants Inc. (“GTIM” or the “Company” or “Good Times”) Exchange/Ticker …… Nasdaq Capital Market: GTIM Issue ………………….. $6 million common stock and warrants (excluding over allotment option) Distribution …………. Underwritten offering g Use of Proceeds ……...
Slide 6: Highly Experienced Management Team
Highly Experienced Management Team Good Times Restaurants Inc. Bad Daddy’s Franchise Development LLC Boyd Hoback – President, CEO Dennis Thompson – Co-Chairman, Founder 40 years in the restaurant business Founder of Firebird Firebird’ss Wood Fired Grill (sold to Angelo With Good Times since in
Slide 7: Use of Funds & Capital Stock
Use of Funds & Capital Stock Use of Funds Fees & Expenses $600,000 G d Times Good Ti Drive D i Thru Th Inc. I $800 000 $800,000 Current C Store S Reimages R i & Remodels R d l Bad Daddy's Colorado LLC $3,850,000 New Stores in Denver DMA Bad Daddy's Franchise Development LLC $750,000 Working Capital,
Slide 8: Good Times Financial Snapshot
Good Times Financial Snapshot Income Statement FYE 2011 FYE 2012 TTM 3/31/13 (Audited) (Audited) (Unaudited) (2) (3) Total Net Revenues $$20,603,000 , , $$19,706,000 , , $$20,161,000 , , Restaurant Level Operating Income (1) 1,259,000 6.2% 1,689,000 8.8% 1,736,000 9.0% Restaurant Level Cash Flow (1)
Slide 9: Targeted Growth Goals
Targeted Growth Goals Good Times Restaurants Inc. Good Times Drive Thru Inc. BD of Colorado Bad Daddy’s Franchise Development LLC (wholly owned sub) (wholly owned sub) (48% owned) 26 Co. 13 Franchised New Co. Owned Bad Daddy’s Franchise Target Owned Good Times Bad Daddy’s Markets Good S Stores Store
Slide 10: 3 Tiered Growth Platform
3 Tiered Growth Platform Good Times Restaurants Inc. (“GTIM”) Good Times Drive Thru Inc. Inc (Wholly Owned Subsidiary) Cash flow from existing assets on continued comp sales growth Low risk growth in existing market with new stores planned Infrastructure in place for operational & marketing ef
Slide 11: Good Times Burgers & Frozen Custard Overview
Good Times Burgers & Frozen Custard Overview 25 year history with strong brand loyalty operating and franchising 39 restaurants Ranked #1 in Colorado for quality, freshness & friendliness (based on Sandelman Quicktrack) Differentiation leading to acceleration in growth Only QSR with steroid-
Slide 12: Sales Momentum
Sales Momentum • 2 ½ years of same store sales growth exceeding QSR category comps (Source: Nation’s Restaurant News) Good Times Qtrly Same Store Sales Variance (FYE 9/30) 17.0% 15.20% 15.0% 13.4% 13.0% 11 0% 11.0% 9.0% 7.3% 6.96% 7.0% 5.7% 6.1% 5.14% 5.0% 3 4% 3.4% 3 41% 3.41% 3.0% 0.7% 1.0% -1.0%
Slide 13: Good Times Menu Initiatives Driving SSS Growth
Good Times Menu Initiatives Driving SSS Growth Good Times Restaurants, Inc. 13
Slide 14: Average Store Sales & Cash Flow Increasing
Average Store Sales & Cash Flow Increasing Rationalized Store Base (Company owned restaurant sales net of closures) Good Times’ Avg Store Sales • Menu Initiatives • Remodels (early stage) • Elim’d underperforming stores $880,000 • Breakfast Intro $860,000 • New marketing $840,000 $820,000 $800,000 $
Slide 15: Financial Summary for Good Times
Financial Summary for Good Times Growth in Income from Operations from PY Sales Mix $1,400,000 Annual $ Improvement- Income from Operations $1 200 000 $1,200,000 Drinks 14.16% $1,000,000 Burgers Custard 32.88% $800,000 11.64% $600,000 Breakfast $400,000 7.10% Chicken Sides $200,000 13.84% 19.11% $0
Slide 16: Initiatives for Sustained Growth
Initiatives for Sustained Growth Innovation New Product Brand Story Development New TV Ad Reinvestment No Hormones Campaigns No Steroids Local Ingredients Low Cost Reimaging No Antibiotics Social Media New POS System Vegetarian Fed Connection Full Remodels in Select Stores Humanely Raised Fresh, All
Slide 17: Bad Daddy's - A Big Market Opportunity
Bad Daddy’s - A Big Market Opportunity Small box dining is the smallest, yet fastest growing portion of fast and full-service casual dining, reflecting years of evolution and innovation. Fast casual has exhibited the majority of the growth in the restaurant industry over the last decade and repr
Slide 18: Bad Daddy's Burger Bar Overview
Bad Daddy’s Burger Bar Overview Bad Daddy’s operates in the emerging small box, grill and bar segment. A suburban gastropub. A higher average check than fast casual concepts such as Five Guys and Smashburger, but below polished casual or sport themed big box concepts such as BJ’s, Buffalo Wild W
Slide 19: Bad Daddy's Growth
Bad Daddy’s Growth Average restaurant sales are in excess of $700 per sf out of an average of 3500 sf (based on unaudited financial information from existing restaurants) 4 restaurants open, 1 airport concession, 3 restaurants under development, 1 franchise signed BDI developing NC & VA, BD of
Slide 20: Bad Daddy's Efficient Store Model
Bad Daddy’s Efficient Store Model 2012 Sales Per Restaurant Location (in millions) $5.7 $6.0 2012 Total Annual Sales per Sq Ft $5.0 $1,000 $715 $767 $704 $4.0 $3 6 $3.6 $800 $550 $534 $532 $600 $472 $3.0 $2.5 $2.0 $400 $2.0 $1.6 $1.1 $1.2 $200 $1.0 $0 Bad Five Guy's Chipotle Noodle's BJ's Rest's Cas
Slide 21: Top Tier Unit Economics Comps
Top Tier Unit Economics Comps 2012 Restaurant Level EBITDA Margin 30% 26% 25% 22% 20% 18% 17% 20% 16% 15% 10% 5% 0% Five Guy's Chipotle Noodle's BJ's Rest's Casual Dining Fast Casual Avgg Avgg 2012 Average Cash on Cash ROI 70% 65% 60% 50% 50% 44% 40% 40% 35% 29% 30% 20% 10% 0% Five Guy's Chipotle No
Slide 22: Business Strategy & Objectives
Business Strategy & Objectives Continue to grow Good Times’ profitability with comp sales growth, remodels & new stores in Colorado Develop company-owned Bad Daddy’s in Colorado, Kansas & Arizona Leverage Good Times’ existing overhead structure through Management A Agreementt with ith B Bad dD
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