Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| Also, again, I appreciate, I think that your strong balance sheet will help you out, and happy holidays to you guys |
| And I think if we execute the operations, strategies, and tactics that I've outlined on this call, that we're going to be in a good position to compete against our casual dining peers now and in the future |
| We are currently growing year-over-year sales at both restaurants, and both restaurants are profitable and contributing to the brand's overall results |
| I know as does our leadership team and our operations leaders and Bad Daddy’s, the sales and profitability improvements are needed at that brand and that the best marketing is strong operations, which we are laser focused on |
| As our highest volume restaurant in Somerville, South Carolina continues to post positive year-over-year sales, Our second highest volume restaurant in Charlotte, North Carolina is also delivering positive sales growth, as our several other restaurants |
| And the long-term outlook for that site is extremely strong once the construction is finished |
| In addition to the positive sales, we were able to improve margins compared with prior year, primarily through the benefit of lower food and packaging costs |
| We have long excelled in our back of house execution, and we continue to excel in that area |
| I'm encouraged by the continued strength that Good Times has manifested over my tenure with the company |
| And the same-store sales trend, which had further deteriorated in October and November, has improved sequentially with significant gains in the dinner and late night day parts |
| I have great confidence in the future of the Bad Daddy's brand, as the passion this team has for the brand is unlike the passion I've seen anywhere in my past |
| That said, I think it's beneficial to have a portfolio that includes concepts both in the full service and in the QSR segment, because I think the QSR segment does tend to perform better when there are recessionary pressures |
| Additionally, our new restaurant in Madison, Alabama is continuing to deliver top quartile average weekly sales three full months into operations |
| As a percent of sales, restaurant level operating profit increased by 90 basis points versus last year to 16.2%, due primarily to higher sales and the improvement in food and packaging costs |
| We've invested heavily in management development, new management where necessary, and additional hourly labor to improve our reputation in the market |
| We serve remarkable food and our employees throughout the brand, including both management and hourly team members, have so much passion around serving up great burgers |
| And finally, adjusting financial system incentives, AKA bonus, for our restaurant management teams to better incentivize a combination of long-term profitability and sales growth, along with period-by-period guest satisfaction, financial controls, and operations excellence |
| With that, I would say we continue to believe in the Good Times brand and I would say that if we continue to see strong sales that accompany the investments that we've made and the continued investments that we will make in some of the light refreshes, the remodels that I described earlier in the call, the possibility exists for future development of that brand |
| Ryan Zink I'm grateful to lead a talented team of people, who have the same commitment to our brands and passion for industry and for our guests as I do |
| We believe that the convenience, value, and technology enablement that our app now delivers to our guests is critical to the continued relevance of our brand, and our ability to capture incremental share in the QSR Burger space |
| I thank them for their continued hard work and meaningful contribution to our brands |
| The extended operating hours have already begun to pay dividends as sales during the last two operating hours of each day have measurably increased |
| With sales growth in five of the six years I've been part of this organization |
| I’m nor predicting that it will be turned around by then to the point whoever posting positive same-store sales |
| GT Rewards is a points-based loyalty offering that provides our guests an opportunity to earn deals and other rewards driven by the purchasing behavior |
| Same store sales increased 2.4% for the quarter |
| Menu prices during the quarter were approximately 4.4% higher than the prior year |
| Restaurant level operating profit for Good Times increased by $0.1 million for the quarter to $1.5 million |
| Total restaurant sales for company-owned good times restaurants increased by approximately $0.6 million to $9.5 million for the fourth quarter, compared to the same prior year fourth quarter and increased $1.0 million to $35.0 million for the year, compared to the 2022 fiscal year |
| However, the revisions to the plan better balance all of these and reduce incentives to prioritize behaviors that improve single period results, but could have negative full-year or longer term impacts |
| Statement |
|---|
| At Bad Daddy's, operating results deteriorated from the prior quarter |
| We also failed to pivot back to the bar side of our business as pandemic behavior faded and our bar execution has lacked |
| Sales have further continued to be soft into the first quarter of the new year, and as a result, changes within the Bad Daddy’s organization have been made |
| The sales decline was a combination of reduced sales associated with the closure of the Cherry Creek restaurant earlier in the year, the temporary closure of approximately three weeks during the third quarter for the remodel of the formerly franchised Greenville South Carolina restaurant and the decline in same-store sales of 4.9% during the quarter, with 39 Bad Daddy's restaurants in the comp base at the end of the quarter |
| Total restaurant sales for Bad Daddy's restaurants decreased $1.4 million to $24.6 million for the fourth quarter, compared to the prior fourth quarter and decreased $1.0 million to $102.2 million for the year, compared to the 2022 fiscal year |
| Our Atlanta market discussed on prior calls has continued to prove to be a challenge |
| And so I think our performance, while disappointing, is not entirely surprising, compared -- considering some of the results that have been reported by similar concepts |
| This weather activity has muted the strong trend we had been experiencing early in the quarter |
| Total revenues decreased approximately 2.5% for the quarter to $34.3 million and decreased approximately 0.1% to $138.1 million for the year, compared to fiscal 2022 |
| As was the case with Bad Daddy's, the longer-term forecast indicates resumed pressure on beef prices from current levels |
| The Bad Daddy results, I mean, I'm -- you know, I know this is anecdotal, but following a lot of restaurants, feeling like there's recessionary pressures, kind of, on that type of restaurant |
| However, that same passion had declined in our front of house and the level of hospitality we have been providing was not meeting our customers' wants or needs |
| We expect same-store sales to be mid-single-digit negative for the first quarter of fiscal 2024 |
| There are our main entrance has been blocked off, access to the site is extremely compromised |
| I do believe that if you look at other burger-centric casual dining brands, there are pressures there |
| We recorded impairment charges of approximately $0.5 million, primarily related to the Greenville, North Carolina restaurant, which has long been marginally profitable, but has seen some trade area deterioration over the past six months |
| And though there were the typical transition and integration inefficiencies that initially accompanied the acquisition of these restaurants |
| While there has been some honeymoon effect, the typical peak to trough decline experienced in new Bad Daddy's new store openings has not manifested that same decline here |
| Resetting expectations and standards of our multi-unit leaders and re-systematizing their roles with appropriate tools, systems, and accountability that had become lacking and was resulting in lower than desired standards in the front of the house |
| This increase as a percentage of sales reflects higher wage rates, higher levels of staffing, compared to 2022, the deleveraging impact of lower sales on management costs, and additionally reflects post-opening labor inefficiencies and extended training team presence in our new restaurant in Madison, Alabama |
Please consider a small donation if you think this website provides you with relevant information