Comp sales at Bad Daddy’s Burger Bar rose 9.5 percent in the third quarter ended June 30, its parent company Good Times Restaurants said Wednesday.
That level of sales growth was unusually high for the casual-dining burger concept, a trend its parent company said it does not expect to continue in future quarters. Comp sales at the 13-unit concept should come down to the low- to mid-single digits by the end of the fiscal year and into 2016, Good Times Restaurants CEO Boyd Hoback told investors on an earnings call.
Good Times, which completed its acquisition of the Bad Daddy’s concept on May 7, also operates the Good Times Burgers & Frozen Custard chain.
“We have set the stage for accelerated development through the acquisition of Bad Daddy’s International (BDI), and we now have two brands that are performing exceptionally well, with the results from operations exceeding our expectations so far,” Hoback said. “While we still have work to do completing the integration of BDI, we have a good pipeline of new sites for fiscal 2016 with three under construction and one more set to begin next month.”
Good Times’ Q3 revenue increased 73 percent year over year, to $12.9 million. Net income for the company fell 34 percent, to $107,000, due in part to costs associated with the acquisition of Bad Daddy’s.