Good Times Restaurants Inc.
Q3 2020 Earnings Call Transcript
Published:
- Operator:
- Good afternoon, ladies and gentlemen. Welcome to the Good Times Restaurants Inc. Fiscal 2020 Third Quarter Earnings Call. By now, everyone should have access to the company’s earnings release, which is available in the Investors section of the company’s website. As a reminder, a part of today’s discussion will include forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not guarantees of future performance, and therefore, you should not put undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect, and therefore, investors should not place undue reliance on them, and the company undertakes no obligation to update these statements to reflect the events or circumstances that might arise after this call.
- Ryan Zink:
- Thank you, Grant. I would like to thank all of you for joining us on the call today. The past few months have been interesting to say the least. And I’d like to start by offering my thanks to the entire team here at Good Times, including our hourly and management team members at both our Good Times and Bad Daddy’s restaurants, as well as our restaurant support team. I’m so thankful to work with the team with such capability and grit. Though an unprecedented challenge to the business, this pandemic has served as a catalyst to help bind the team and align us towards a common goal of developing relevant restaurant concepts and operating those restaurants profitably. At the outset of the pandemic here in the U.S., we took immediate actions, as we discussed on our last call. Throughout the quarter, as our sales increased and conditions improved and upon the receipt of PPP funds, we resort pay to employees, rehired individuals to handle our increased sales. But also use the opportunity to make permanent changes in our business that would benefit us in the long run. One good example of this is with our menu at Bad Daddy’s. Upon resuming dining room service, we initially retained a very condensed menu that served us well in a carry-out and delivery-only model. Recently, though, we’ve added back a few items to our menu, such as our signature doubled eggs, our house made black bean burger and our baking queso based upon customer demand. We additionally added Salmon and Beyond Meat patties to round out our protein options and mac and cheese is a side item, which had been tested successfully pre-pandemic and was originally scheduled to launch in April. At the same time, we’ve made the decision to forgo returning items to the menu, such as our house made slaw, shoestring fries and tuna patties, which were all labor-intensive and very low indexing in sales.
- Operator:
- We will now begin the question-and-answer session. Looks like we have a question here from James Benjamin, who is a private investor. Please go ahead.
- Unidentified Analyst:
- Great. Hey, guys, thanks for taking my call. So I just had a couple of quick questions. Regarding the PPP loans, do you have any idea as to how long the process is to whether or not you’ll be able to forgive a portion or possibly all of that balance?
- Ryan Zink:
- I’d say, the easy answer to that would be no. The rules continue to evolve. And I think, although SBA and treasury is getting closer to be able to accept applications for that, a lot depends on the individual banks and their process with that. So unfortunately, I don’t have much more to say on that.
- Unidentified Analyst:
- Understood. So one more. So I guess, going forward, I can appreciate things are changing on maybe even a weekly or a daily basis. How do you feel about whether or not you can actually operate at least cash flow break-even or cash flow positive, maybe on a unit or on an overall level going forward?
- Ryan Zink:
- Well, I think, under the conditions that exists right now, the results for the quarter, we certainly were cash flow positive, and I think we would expect to be able to continue that pace. To the extent, dining rooms are allowed to remain open. I think that’s the big question.
- Unidentified Analyst:
- Okay.
- Ryan Zink:
- And it’d be more challenging if dining rooms were closed. But I think we would do our best to be able to preserve cash and have a minimum cash burn, if dining rooms were closed again.
- Unidentified Analyst:
- Okay. Hey, for what it’s worth, I’ve been a shareholder now for about four years. So I love seeing the 8-K this afternoon. I think you did a hell of a job given the economy. So, thank you for all that you guys are doing. I think you’re holding up very, very well.
- Ryan Zink:
- Thank you. I appreciate your comments.
- Operator:
- Well, I’m showing no further questions at this time. So this will conclude our question-and-answer session. I would like to turn the conference back over to Ryan Zink for any closing remarks.
- Ryan Zink:
- Thank you. Once again, I’d like to thank our team members and the leadership within our company for their amazing attitudes, their dedication, and their stellar performance as we’ve continued to provide amazing food and genuine hospitality to our guests at both concepts during these unique times. With that, we’ll conclude today’s call. Thank you all for joining us today. Please stay safe and healthy.
- Operator:
- The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
Other Good Times Restaurants Inc. earnings call transcripts:
- Q2 (2024) GTIM earnings call transcript
- Q1 (2024) GTIM earnings call transcript
- Q4 (2023) GTIM earnings call transcript
- Q3 (2023) GTIM earnings call transcript
- Q2 (2023) GTIM earnings call transcript
- Q1 (2023) GTIM earnings call transcript
- Q4 (2022) GTIM earnings call transcript
- Q3 (2022) GTIM earnings call transcript
- Q2 (2022) GTIM earnings call transcript
- Q1 (2022) GTIM earnings call transcript