Good Times Restaurants Inc. · NASDAQ:GTIM
Good Times Restaurants — Investor Presentation (January 2017)
29 slides from Good Times Restaurants's investor presentation, Jan 10, 2017
Slide 1: Investor Presentation January 2017
Nasdaq Capital Market: GTIMInvestor PresentationJanuary 2017
Slide 2: Disclaimer
Disclaimer 2 Forward-Looking InformationThis presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. The words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “in
Slide 3: Investment Highlights
3 Investment Highlights Two Differentiated and Complementary ConceptsExcellent Cash-on-Cash Return ModelsMomentum Driven by Successful Execution Across Multiple GeographiesSignificant Opportunity for Continued Growth in Both BrandsExperienced Leadership TeamSophisticated Systems and Proven Operation
Slide 4: Company Overview
Company Overview 4 Founded in 2008Acquired by Good Times in 2015 acquisition of high-growth platformFull-service, upscale, chef-inspired restaurant conceptFounded by an award-winning entrepreneur founder of numerous successful conceptsOperates, licenses and franchises 20 restaurants in North Carolin
Slide 5: Bad Daddy's Burger Bar
Bad Daddy’s Burger Bar 5 Bad Daddy’s Burger Bar (“BDBB”) is a 20-unit full service concept with a high-energy, chef-driven, burger- and bar-focused positioning17 Company-owned stores, 2 franchise stores, 1 licensed storeFY 2016 sales for 10 company owned stores open for 12 months averaged $2.6mm$17
Slide 6: Good Times Burgers and Frozen Custard
Good Times Burgers and Frozen Custard 6 Good Times Burgers and Frozen Custard (“GTBFC”) is the only QSR concept with steroid-free, hormone-free, vegetarian-fed, humanely-raised chicken and beef“Fresh, Handcrafted, All-Natural” position27 Company-owned stores, 10 franchise stores$1.1mm AUV$6.75 avera
Slide 7: Superior Positioning and Quality
Superior Positioning and Quality 7 Bringing cool to the suburbs Fast casual quality, QSR speed of service QSR Fast Casual Casual Dining Polished Casual High Average Check Low Average Check
Slide 8: How We Win Business
How We Win 8 Business Differentiated Service Friendly, high-touch serviceExtensive training to make customers feel welcome and communicate brand attitudeEfficient but personalized Dedicated to offering incredible food and unparalleled service in QSR environment High-quality, Segment-Leading Food Qua
Slide 9: Bad Daddy's Burger Bar
Bad Daddy’s Burger Bar
Slide 10: "Bringing Cool to the Suburbs"
“Bringing Cool to the Suburbs” 10 Full-service, full-bar gourmet burger concept founded in Charlotte, NC in 2008High energy conceptIrreverent personality displayed in both food and décor Committed to Full Service ModelTargets upscale suburban retail trade areasUSA Today Top 25 Burger in US, Zagat Ra
Slide 11: Menu
Menu 11 Simple, high-quality ingredients executed at a high levelHouse-made sauces and dressings“Create Your Own” burgers and saladsMonthly chef specialsFeatured proteins include beef, chicken, turkey, buffalo and tunaBar sales averaged 16.5% of mix for FY 16 (ranged from 13 – 22%)17 – 20 local micr
Slide 12: Marketing Approach and Strategy
Marketing Approach and Strategy 12 Brand Voice & Personality:“We brought cool to the suburbs”Irreverent but not offensive, non-chain, Classic RockBad ass, fun, informal, high-energyCulture of “yes”It’s all about the food: culinary driven conceptKey Messages:Scratch-made, artisan ingredients, unique
Slide 13: Marketing Approach and Strategy
Marketing Approach and Strategy 13
Slide 14: Core Growth Philosophy
Bad Daddy’s Burger Bar “brings cool to the suburbs”High-traffic suburban areas with lunch and dinner trafficMetropolitan areas of Tier II cities Take an ever-larger share of wallet through displacement of competing conceptsTake share from full service concepts Look for smaller box spaces with potent
Slide 15: History of Successful Growth Since Acquisition
History of Successful Growth Since Acquisition 15 Year over Year Revenue Growth Gross Margin Improvement Since acquiring Bad Daddy’s International in May 2015, the acquired units have performed extremely wellFor the six units open for a full 12 months prior to acquisition, AUV has increased 6.5% sin
Slide 16: New Unit Development
New Unit Development 16 Leases in progress Future likely markets Markets under consideration 9 - 11 2017 New Units Source: U.S. Department of the Census
Slide 17: Strong Unit Economic Model
Strong Unit Economic Model 17 Target Unit Economics Targeted cash-on-cash return of ~46%$2.5mm targeted AUV with $1.0mm build cost net of landlord contributionBad Daddy’s Burger Bar seeks in-line and end-cap locations ranging from 3,500 – 4,000 sf. with 140 seats plus patioTargets $700 sales / sf.Ty
Slide 18: Good Times Burgers and Frozen Custard
Good Times Burgers and Frozen Custard
Slide 19: The Good Times Burgers and Frozen Custard Difference
The Good Times Burgers and Frozen Custard Difference 19 The only “Fresh, All Natural, Handcrafted” brand story at a QSR price pointPositioned as a “Principled Brand”Made-to-order quality with QSR speed of serviceRemodeling and reimaging program to upgrade facilities – fast casual level finishes We T
Slide 20: Menu
Menu 20 All-Natural: No hormones, steroids or antibiotics; humanely raisedMeyer all-natural Angus beefHand-breaded Springer Mountain all-natural chicken tendersFresh, Hand-Crafted: Only at Good TimesFrozen custard made fresh every few hours with all-natural cream and eggsNatural-cut fries cooked to
Slide 21: Industry Headwinds and Company Responses
CPI cost of at-home dining has fallen 2.4% in the last yearFalling grocery prices and increased prepared foods impacting restaurant traffic generally Consumer confidence is mutedIncreased non-discretionary costs (e.g. healthcare)Stalled wages and rising cost of livingLimited price elasticity Use of
Slide 22: Strong Unit Economic Model
Strong Unit Economic Model 22 Target Unit Economics Store Level EBITDA is defined as restaurant level cash flow less advertising plus non-cash rent and D&A. New Prototype Design Opening March 2017 Good Times Burgers and Frozen Custard seeks free standing drive through with dining room setups880 – 1,
Slide 23: Remodel Program
Remodel Program 23 Remodeled 15 stores over the past five years to reflect new brand image rolled out in 2012Store refresh program adds a sleek, modern look and fast casual finishesAverage cost per remodelReimaging: $60KMajor Remodel: $300 – 400KExpected spend on remodels in 2017 is $420KOne reimagi
Slide 24: Unit Remodel – Before and After
Unit Remodel – Before and After 24 After Before
Slide 25: Marketing Approach and Strategy
Marketing Approach and Strategy 25 Brand Voice & Personality:The Jester: never look or feel like the big guysA principled brand: we do the right thing because “that’s the kind of company we are”Go to lengths the other guys don’t & won’tKey Messages:100% all-natural beef & chicken: no hormones, no st
Slide 26: Financial Review
Financial Review
Slide 27: Bad Daddy's Burger Bar Summary Financials
Bad Daddy’s Burger Bar Summary Financials 27 Systemwide Units Store Level EBITDA ($ in Millions) ($ in Millions) ($ in Millions) Total Net Revenue Adjusted EBITDA (1) FY17P represents the midpoint of the Company’s guidance, per the most recent earnings release filed December 8, 2016. (1) (1) (1) (1)
Slide 28: Good Times Brand Summary Financials
Good Times Brand Summary Financials 28 Systemwide Units Total Net Revenue Store Level EBITDA Adjusted EBITDA(2) ($ in Millions) ($ in Millions) ($ in Millions) (1) FY17P represents the midpoint of the Company’s guidance, per the most recent earnings release filed December 8, 2016.(2) GTBFC Adjusted
Slide 29: Consolidated GTIM Summary Financials
Consolidated GTIM Summary Financials 29 Total Systemwide Restaurants Total Net Revenue Adjusted EBITDA Adjusted EBITDA Margin ($ in Millions) ($ in Millions) FY13 – FY16 CAGR: 41.2% (1) (1) FY17P represents the midpoint of the Company’s guidance, per the most recent earnings release filed December 8
Good Times Restaurants — Investor Presentation (January 2017) on 6ix