Slide 1: Good Times Restaurants Inc. Investor Presentation June 2016
Good Times Restaurants Inc.(Nasdaq Capital Market: GTIM)Investor PresentationJune 2016
Slide 2: Disclaimer: Forward-Looking Information
Disclaimer 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,” “inte
Slide 3: Company Highlights
Company Highlights 2015 acquisition of high-growth platform companyTwo differentiated and complementary concepts Successful refresh and updating of Good Times yielding improved financial resultsStrong momentum in new Bad Daddy’s stores Excellent cash-on-cash return modelsSubstantial growth potential
Slide 4: Two Complementary & Differentiated Concepts
Two Complementary & Differentiated Concepts * Good Times Restaurants Inc. Only QSR with steroid-free, hormone-free, vegetarian fed, humanely raised beef, chicken and bacon“Fresh, Handcrafted, All-Natural” positionOperates and franchises 37 restaurants located primarily in the front-range communities
Slide 5: "You brought Cool to the suburbs"
Good Times Restaurants Inc. * “You brought Cool to the suburbs”
Slide 6: Bad Daddy's Burger Bar
Bad Daddy’s Burger Bar Full Service, Full Bar Gourmet Burger Concept founded in Charlotte, NC in 2008TTM sales for the ten (10) company-owned stores open all year = $2.59MIn-line and end-cap restaurants; 3,500-4,000 sf.~$18 Per Person Average Check including alcohol60% Dinner / 40% Lunch * Good Time
Slide 7: Bad Daddy's Burger Bar Locations
Bad Daddy’s Burger Bar * Good Times Restaurants Inc. Eighteen (18) restaurants currently open in seven metropolitan markets:Denver (7)Colorado Springs (1)Charlotte (5)Raleigh (2)Winston-Salem (1)Greenville (1)Knoxville (1)
Slide 8: The Non-Chain Chain
The Non-Chain Chain * Good Times Restaurants Inc. Unique look, feel and format to each store
Slide 9: The Non-Chain Chain
The Non-Chain Chain * Good Times Restaurants Inc. Menu with local ingredients, brand partners and micro local craft beers
Slide 10: Bad Daddy's Burger Bar – Concept Overview
Bad Daddy’s Burger Bar – Concept Overview Upscale restaurant concept featuring a chef driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches Simple, high quality ingredients executed at a high levelHousemade sauces and dressings“Create Your Own” burgers and saladsBi-week
Slide 11: Bad Daddy's Model
Bad Daddy’s Model * Source: SEC Filings, Company Information Good Times Restaurants Inc. Average Sales per Square Foot Targeted Cash on Cash Returns Casual Dining Avg.
Slide 12: Bad Daddy's Average Check
Bad Daddy’s Average Check * Source: SEC Filings, Company Information Good Times Restaurants Inc. Average Check
Slide 13: Bad Daddy's Strong Momentum
Bad Daddy’s Strong Momentum Comparable store sales at all units open more than 18 months have averaged +6.2% over the past four quartersAverage volumes of the new units opened in fiscal 2016 are above our $2.5M target 10 - 12 additional restaurants planned through the end of fiscal 2017 including th
Slide 14: Bad Daddy's Projected New Unit Economics
Bad Daddy’s Projected New Unit Economics Assumptions:3,600 sq. ft. 125 seat designEstimated cash investment = $900K to $1M net of landlord contribution Cash preopening costs = $265K-$280K expensed in Year 1 Year 2 Estimate Sales $2,500,000 Restaurant Operating Profit: 15% (CO min wage) to 18% (Fed m
Slide 15: Taking a Better Food Stand
Good Times Restaurants Inc. * Taking a Better Food Stand
Slide 16: Good Times - Concept Overview
Good Times - Concept Overview QSR Burger chain founded in Boulder, CO in 198727 Company-owned stores, 10 Franchise stores$1.1m AUV; $1.2m -$1.4m new store model; Fiscal 2015 system-wide sales of $39 million$6.50 Average per person check – upper end of national QSR competitorsFree-standing restaurant
Slide 17: A Highly Differentiated Concept in QSR
A Highly Differentiated Concept in QSR Multi-dimensional brand refresh initiated 5 years agoThe only “Fresh, All-Natural, Handcrafted” brand story at a QSR price pointMade to order quality with QSR speed of serviceRemodeling and reimaging program to upgrade facilitiesNew store model with upscale, fa
Slide 18: Brand Refresh Producing Sales Momentum
Brand Refresh Producing Sales Momentum Good Times Restaurants Inc. * 23 Quarters of Same Store Sales Growth at Good Times
Slide 19: Increasing Sales Has Increased Profits
Increasing Sales Has Increased Profits Good Times Restaurants Inc. * Average Unit Sales Volumes (000s) Average Restaurant Level Operating Profit (000s) Note: Restaurant Level Operating Profit is defined as Net Sales less all restaurant level operating, occupancy and advertising expenses but does not
Slide 20: Strong Growth Platform
Strong Growth Platform Good Times growth in Colorado with company-owned storesContinued same store sales growth through menu innovation, remodels and deepening the all-natural positioning at Good TimesBad Daddy’s – 2 markets with infrastructure to support concentric growth:Opening 6 stores in fiscal
Slide 21: Demonstrated Unit and Sales Growth
Demonstrated Unit and Sales Growth Good Times Restaurants Inc. * Total Company-Owned Restaurants Total Company Revenue (000s) Note: Fiscal 2016E restaurant count and total company revenue represents the low end of the Company’s guidance, per the most recent earnings release filed May 10, 2016.
Slide 22: Demonstrated Profit Growth
Demonstrated Profit Growth Good Times Restaurants Inc. * Restaurant-level EBITDA (000s) Adjusted EBITDA (000s) Note: See appendix for reconciliation to prior years’ Adjusted EBITDA and Restaurant-level EBITDA. Fiscal 2016E represents the low end of the Company’s guidance, per the most recent earning
Slide 23: Highly Experienced Management Team
Highly Experienced Management Team Boyd Hoback – President, CEO40 years in the restaurant business; with Good Times since inceptionImplemented sophisticated operating and management systems across all functional areasScott Lefever – Chief Operating Officer, Good Times35 years in the restaurant busin
Slide 24: Highly Experienced Management Team
Highly Experienced Management Team Mike Maloney – Director of Operations, Bad Daddy’s Former VP Ops Paragon Steakhouses, Regional VP Lonestar Steakhouse Executive & operational positions with Jimmy John’sTimothy Kast– Executive Chef, Bad Daddy’sFormer Executive Chef Partner – Seasons 52 (Darden)Culi
Slide 25: The Investment Opportunity
The Investment Opportunity Financial Highlights 23 quarters of SSS growth in Good Times3 year compound SSS growth of 28% in Good TimesTwo proven economic models with attractive returnsBad Daddy’s top tier sales per sq. ft., economic model @ $2.5M in salesStrong balance sheet with limited debt & $9M
Slide 26: Appendix: Restaurant-level EBITDA reconciliation
Appendix Good Times Restaurants Inc. * Restaurant-level EBITDA reconciliation (000s)
Slide 27: Appendix: Adjusted EBITDA reconciliation
Appendix Good Times Restaurants Inc. * Adjusted EBITDA reconciliation (000s)