Good Times Restaurants Inc. (NASDAQ:GTIM) Q4 2023 Earnings Call Transcript

Unidentified Analyst: Okay, thanks. And just on going back to the balance sheet and the $4.2 million cash, I see from the 10-K, I believe you have a plan of opening one Bad Daddy’s location in fiscal ‘24. Any other plans for the liquidity? And could you just touch on what prompted borrowing from the credit facility if you have cash on hand? Thanks.

Ryan Zink: So, in terms of investments and use of liquidity, we have share repurchase program. And as you’ve seen this past year, we’ve made investments, whether that’s through the acquisition of minority interests or non-controlling interests, I should say, whether it’s through the acquisition of franchisees. You know, we don’t have any of those in the works, but we obviously still have some of those out there and would be opportunistic if situations would arise where we could do something similar, either this year or in fiscal 2025. I think with respect to new units, we are building a pipeline. I think we would like to be able to get one done this year. And we’re going to try to. I think some of those may bleed in. That may bleed into fiscal 2025.

And we’re trying to get multiple units opened between now and fiscal ‘25. With respect to borrowing, you know, I would say really there’s some cash management and treasury strategies that are involved in that. And it is not, I think there’s also a certain amount of cash on hand that’s required to run the business. And so just from an overall, from an overall treasury standpoint, we believe there was a wise decision to borrow that money.

Unidentified Analyst: All right and got it. All right, thanks Ryan, happy holidays, appreciate it.

Ryan Zink: Thanks, same to you.

Operator: We have no further questions in this time. Ryan, I’ll turn the call back over to you for closing remarks.

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. I thank them for their continued hard work and meaningful contribution to our brands. I’m encouraged by the continued strength that Good Times has manifested over my tenure with the company. With sales growth in five of the six years I’ve been part of this organization. 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. Thank you all for joining our call today.

Operator: This concludes today’s conference call. Thank you for your participation and you may now disconnect.