Exhibit 99.1

FOR IMMEDIATE RELEASE
February 1, 2018	Nasdaq Capital Markets - GTIM

		Fiscal First Quarter
Statement of Operations		2018				2017
Net revenues:
Restaurant sales		$	22,597			$	16,386
Franchise revenues			163				169
Total net revenues			22,760				16,555
Restaurant Operating Costs:
Food and packaging costs			7,203				5,155
Payroll and other employee benefit costs			8,279				5,995
Restaurant occupancy costs			1,640				1,294
Other restaurant operating costs			2,116				1,528
Preopening costs			577				351
Depreciation and amortization			846				630
Total restaurant operating costs			20,661				14,953
General and administrative costs			1,917				1,645
Advertising costs			507				412
Franchise costs			10				24
Gain on disposal of restaurants and equipment			(8	)			(6	)
Loss from operations			(327	)			(473	)
Other income (expense):
Interest income (expense), net			(83	)			(20	)
Total other income (expense), net			(83	)			(20	)
Net loss			(410	)		$	(493	)
Income attributable to non-controlling interests			(173	)			(140	)
Net loss attributable to common shareholders		$	(583	)		$	(633	)
Basic and diluted loss per share		$	(0.05	)		$	(0.05	)
Basic and diluted weighted average common shares outstanding			12,445				12,288

		Dec 26, 2017				Sept 26, 2017
Balance Sheet Data
Cash & cash equivalents		$	3,299			$	4,337
Current assets			5,053				6,066
Property and Equipment, net			29,070				29,690
Other assets			19,370				19,397
Total assets		$	53,493			$	55,153
Current liabilities, including capital lease obligations and long-term debt due within one year		$	5,791			$	6,916
Long-term debt due after one year			4,835				5,339
Other liabilities			6,131				5,614
Total liabilities			16,757				17,869
Stockholders’ equity		$	36,736			$	37,284

		Good Times Burgers & Frozen Custard								Bad Daddy’s Burger Bar
		Fiscal First Quarter
		2018				2017				2018				2017
Restaurant Sales (in thousands)		$	7,610			$	6,875			$	14,987			$	9,511
Restaurants open during period			-				-				2				1
Restaurants open at period end			28				27				24				17
Restaurant operating weeks			364				351.0				309.6				210.0
Average weekly sales per restaurant (in thousands)		$	20.9			$	19.6			$	48.4			$	45.3

		Good Times Burgers & Frozen Custard																Bad Daddy’s Burger Bar																Good Times Restaurants Inc.
		---------------------------------------------------------------------Fiscal First Quarter-------------------------------------------------------------------
		2018								2017								2018								2017								2018				2017
Restaurant Sales		$	7,610				100.0	%		$	6,875				100.0	%		$	14,987				100.0	%		$	9,511				100.0	%		$	22,597			$	16,386
Restaurant Operating Costs (exclusive of depreciation and amortization shown separately below):
Food and packaging costs			2,571				33.8	%			2,211				32.2	%			4,632				30.9	%			2,944				31.0	%			7,203				5,155
Payroll and other employee benefit costs			2,685				35.3	%			2,399				34.9	%			5,594				37.3	%			3,596				37.8	%			8,279				5,995
Restaurant occupancy costs			701				9.2	%			666				9.7	%			939				6.3	%			628				6.6	%			1,640				1,294
Other restaurant operating costs			649				8.5	%			606				8.8	%			1,467				9.8	%			922				9.7	%			2,116				1,528
Restaurant-level operating profit		$	1,004				13.2	%		$	993				14.4	%		$	2,355				15.7	%		$	1,421				14.9	%			3,359				2,414
Franchise royalty income, net																																			163				169
Deduct -  Other operating:
Depreciation and amortization																																			846				630
General and administrative																																			1,917				1,645
Advertising costs																																			507				412
Franchise costs																																			10				24
Gain on restaurant asset sale																																			(8	)			(6	)
Preopening costs																																			577				351
Total other operating																																			3,849				3,056
Loss from Operations																																		$	(327	)		$	(473	)

 

The Company believes that restaurant-level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. The Company defines restaurant-level operating profit to be restaurant revenues minus restaurant-level operating costs, excluding restaurant closures and impairment costs. The measure includes restaurant level occupancy costs, which include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance and other property costs, but excludes depreciation.  The measure excludes depreciation and amortization expense, substantially all of which is related to restaurant level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes selling, general and administrative costs, and therefore excludes occupancy costs associated with selling, general and administrative functions, and pre-opening costs. The Company excludes restaurant closure costs as they do not represent a component of the efficiency of continuing operations. Restaurant impairment costs are excluded, because, similar to depreciation and amortization, they represent a non-cash charge for the Company’s investment in its restaurants and not a component of the efficiency of restaurant operations. Restaurant-level operating profit is not a measurement determined in accordance with generally accepted accounting principles (“GAAP”) and should not be considered in isolation, or as an alternative, to income from operations or net income as indicators of financial performance. Restaurant-level operating profit as presented may not be comparable to other similarly titled measures of other companies. The tables above set forth certain unaudited information for the fiscal first quarters for fiscal 2018 and fiscal 2017, expressed as a percentage of total revenues, except for the components of restaurant operating costs, which are expressed as a percentage of restaurant revenues.

 

Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA

(In thousands)

 

Good Times Restaurants Inc.
		Fiscal First Quarter
		2018				2017
Net loss as reported		$	(583	)		$	(633	)
Adjustments to net loss:
Depreciation and amortization			809				602
Interest expense			84				20
EBITDA		$	310			$	(11	)
Preopening costs			485				293
Non-cash stock based compensation			118				199
GAAP rent in excess of cash rent			(28	)			(3	)
Non-cash disposal of assets			(8	)			(6	)
Adjusted EBITDA		$	877			$	472

 

Adjusted EBITDA is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by GAAP, and our calculation thereof may not be comparable to that reported by other companies. This measure is presented because we believe that investors' understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for evaluating our ongoing results of operations.

 

Adjusted EBITDA is calculated as net income before interest expense, provision for income taxes and depreciation and amortization and further adjustments to reflect the additions and eliminations presented in the table above.

 

 

Adjusted EBITDA is presented because: (i) we believe it is a useful measure for investors to assess the operating performance of our business without the effect of non-cash charges such as depreciation and amortization expenses and asset disposals, closure costs and restaurant impairments and (ii) we use adjusted EBITDA internally as a benchmark for certain of our cash incentive plans and to evaluate our operating performance or compare our performance to that of our competitors. The use of adjusted EBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based on our GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. Companies within our industry exhibit significant variations with respect to capital structures and cost of capital (which affect interest expense and income tax rates) and differences in book depreciation of property, plant and equipment (which affect relative depreciation expense), including significant differences in the depreciable lives of similar assets among various companies. Our management believes that adjusted EBITDA facilitates company-to-company comparisons within our industry by eliminating some of these foregoing variations. Adjusted EBITDA as presented may not be comparable to other similarly-titled measures of other companies, and our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by excluded or unusual items.

 

 

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