GOLDEN, Colo., Aug. 9, 2006 (PRIMEZONE) -- Good Times Restaurants Inc. (Nasdaq:GTIM) today announced the results of their third fiscal quarter ended June 30, 2006. The company reported net income of $291,000 versus $42,000 in the third quarter last year and said that same store sales increased .8% on top of last year's 6.3% increase. Same store sales have increased 10 consecutive quarters.
Commenting on the results, Boyd Hoback, President and CEO said, "We are very pleased with our progress and the improvement in our net income. While same store sales remain positive in the face of $3 a gallon gas, heavy competitive product introductions and value menu promotion and the lapping of our largest sales increase from last year, we are not satisfied with our customer traffic growth and are working on developing a stronger value proposition for the budget constrained consumer."
He added, "Our improvement in net income was multi-faceted, driven by the sales performance of our new prototype stores that have opened this year, a 2.7% improvement in our cost of sales through menu engineering, increased fountain product sales and purchasing improvements and the leveraging of our fixed costs and overhead from the new stores. The last six new prototype Good Times stores we've opened are annualizing at approximately $1.1 million in gross sales."
The company said it expects to open seven additional company-owned and franchised stores through the end of calendar 2006, six of which are expected to be operated under the cobrand format with Taco John's.
Good Times Burgers & Frozen Custard has 47 restaurants, mostly in Colorado serving high quality, 100% all natural Coleman beef burgers, chicken sandwiches, and fresh frozen custard.
The Good Times Restaurants Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2797
This press release contains forward looking statements within the meaning of federal securities laws. The word "intend" and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, which may cause Good Times' actual results to differ materially from results expressed or implied by the forward looking statements. These risks include such factors as the uncertain nature of current restaurant development plans and the ability to implement those plans, delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, and other matters discussed under the "Risk Factors" section of Good Times' Annual Report on Form 10-KSB for the fiscal year ended September 30, 2004 filed with the SEC. Although Good Times may from time to time voluntarily update its forward looking statements, it disclaims any commitment to do so except as required by securities laws.