EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1
Nasdaq Capital Market: GTIMInvestor PresentationJanuary 2017

Disclaimer 2 Forward-Looking InformationThis presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. The words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intend,” “targets,” “projects,” “contemplates,” “believes,” “estimates”, “predicts,” “potential” or “continue” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from expectation are disclosed under the “Risk Factors” and ”Cautionary Note Regarding Forward-Looking Statements” sections of the prospectus and the prospectus supplement.All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements. You should evaluate all forward-looking statements made in this presentation in the context of these risks and uncertainties. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or qualified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements.Non-GAAP Financial InformationThe non-GAAP financial measures contained in this presentation (including, without limitation, EBITDA, Adjusted EBITDA, Restaurant Operating Profit and Cash on Cash Return on Investment) are not GAAP measures of financial performance or liquidity and should not be considered as alternatives to net income (loss) as a measure of financial performance or cash flows from operations as measures of liquidity, or any other performance measure derived in accordance with GAAP. Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Additionally, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow for management’s discretionary use, as they do not reflect tax payments, debt service requirements, capital expenditures, new restaurant openings and certain other cash costs that may recur in the future, including among other things, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. Management compensates for these limitations by relying on our GAAP results in addition to using EBITDA and Adjusted EBITDA supplementally. EBITDA, Adjusted EBITDA, Restaurant Operating Profit and Cash on Cash Return on Investment are included in this presentation because they are key metrics used by management and our board of directors to assess our financial performances. EBITDA and Adjusted EBITDA are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Our measures of EBITDA, Adjusted EBITDA, Restaurant Operating Profit and Cash on Cash Return on Investment are not necessarily comparable to similarly titled captions of other companies due to different methods of calculation.

3 Investment Highlights Two Differentiated and Complementary ConceptsExcellent Cash-on-Cash Return ModelsMomentum Driven by Successful Execution Across Multiple GeographiesSignificant Opportunity for Continued Growth in Both BrandsExperienced Leadership TeamSophisticated Systems and Proven Operations Support Accelerated Growth 1 2 3 4 5 6

Company Overview 4 Founded in 2008Acquired by Good Times in 2015 acquisition of high-growth platformFull-service, upscale, chef-inspired restaurant conceptFounded by an award-winning entrepreneur founder of numerous successful conceptsOperates, licenses and franchises 20 restaurants in North Carolina (8), South Carolina (1), Tennessee (1) and Colorado (10) Founded in 1987Only QSR with steroid-free, hormone-free, vegetarian-fed, humanely-raised beef and chicken“Fresh, Handcrafted, All-Natural” positionOperates and franchises 37 restaurants located primarily in the front-range communities of ColoradoSuccessful refresh and update of brand started in 2013 yielding strong financial results

Bad Daddy’s Burger Bar 5 Bad Daddy’s Burger Bar (“BDBB”) is a 20-unit full service concept with a high-energy, chef-driven, burger- and bar-focused positioning17 Company-owned stores, 2 franchise stores, 1 licensed storeFY 2016 sales for 10 company owned stores open for 12 months averaged $2.6mm$17 – 18 per person average check (including alcohol)59% Dinner / 41% Lunch, 84% Food / 16% Alcohol Same Store Sales Company-owned Restaurant Sales and Store Level EBITDA ($ in Millions) (1) FY17P represents the midpoint of the Company’s guidance, per the most recent earnings release filed December 8, 2016. (1)

Good Times Burgers and Frozen Custard 6 Good Times Burgers and Frozen Custard (“GTBFC”) is the only QSR concept with steroid-free, hormone-free, vegetarian-fed, humanely-raised chicken and beef“Fresh, Handcrafted, All-Natural” position27 Company-owned stores, 10 franchise stores$1.1mm AUV$6.75 average check – upper end of national QSR competitors9.2% Breakfast / 52.0% Lunch and Afternoon / 38.8% Dinner and Late Night Same Store Sales Company-owned Restaurant Sales and Store Level EBITDA ($ in Millions) (1) FY17P represents the midpoint of the Company’s guidance, per the most recent earnings release filed December 8, 2016. (1)

Superior Positioning and Quality 7 Bringing cool to the suburbs Fast casual quality, QSR speed of service QSR Fast Casual Casual Dining Polished Casual High Average Check Low Average Check

How We Win 8 Business Differentiated Service Friendly, high-touch serviceExtensive training to make customers feel welcome and communicate brand attitudeEfficient but personalized Dedicated to offering incredible food and unparalleled service in QSR environment High-quality, Segment-Leading Food Quality Chef-driven recipes, combined with fast prep speedsHigh quality, fresh ingredientsLocal craft beers in bar menu at every locationRegional / seasonal ingredients and menu offerings The QSR industry’s only all-natural, handcrafted brand positioningAntibiotic- and hormone-free protein platformWhere possible uses regional / seasonal ingredients Brands with Personality and Attitude Bringing an edgy, cool, retro attitude in a suburb-friendly spacePersonality permeates brand – in the décor, menu names, service style Quirky irreverent advertisingEmphasizes the quality and natural brand positioning Financial Great Momentum Multi-geography concept successful in diverse regionsHigh customer receptivity, with six successful openings in FY2016 and one to date in FY2017Dedicated and talented development team History of continued SSS growthDriving sales without reliance on discountingBrand well positioned for franchising and expansion Industry Leading Unit Economics Combination of higher average check, smaller box, and low cost to build leads to strong unit economicsIndustry leading cash-on-cash returns Flexible real estate model that can work in a variety of sitesHigh cash-on-cash returns

Bad Daddy’s Burger Bar

“Bringing Cool to the Suburbs” 10 Full-service, full-bar gourmet burger concept founded in Charlotte, NC in 2008High energy conceptIrreverent personality displayed in both food and décor Committed to Full Service ModelTargets upscale suburban retail trade areasUSA Today Top 25 Burger in US, Zagat Rated Unique Look, Feel and Format to Each Store Menu with Local Ingredients, Brand Partners and Local Craft Beers

Menu 11 Simple, high-quality ingredients executed at a high levelHouse-made sauces and dressings“Create Your Own” burgers and saladsMonthly chef specialsFeatured proteins include beef, chicken, turkey, buffalo and tunaBar sales averaged 16.5% of mix for FY 16 (ranged from 13 – 22%)17 – 20 local micro-brews on tapFresh-squeezed cocktails, “Bad Ass Margarita” Burgers Starters / Sides Non-Burgers / Salads Drinks / Desserts

Marketing Approach and Strategy 12 Brand Voice & Personality:“We brought cool to the suburbs”Irreverent but not offensive, non-chain, Classic RockBad ass, fun, informal, high-energyCulture of “yes”It’s all about the food: culinary driven conceptKey Messages:Scratch-made, artisan ingredients, unique flavor profiles “Create Your Own” attitudeLimit of two Bad Ass Margaritas, award winning local craft beersBest-in-town, localCore Target:Affectionately the “upscale redneck” & the “naughty white collar”Household income of $60k – $75kWhite & grey collarFamilies with 5 – 18 year old kids

Marketing Approach and Strategy 13

Bad Daddy’s Burger Bar “brings cool to the suburbs”High-traffic suburban areas with lunch and dinner trafficMetropolitan areas of Tier II cities Take an ever-larger share of wallet through displacement of competing conceptsTake share from full service concepts Look for smaller box spaces with potential for a rooftop or patioDon’t reinvent the wheel – if others are successful in an area, there’s a reason Generate a fan following through social media engagementLocal and specific events drive more customer engagementPeople want to identify with the brand Focus On Inner- And Outer-ring Suburbs Take Location Cues From Other Successful Full Service Concepts Take Share Through Superior Quality and Service Drive Traffic Through Social Media and Local Engagement Core Growth Philosophy 14 1 2 3 Drive Successful Growth with Strongly Aligned Tactics And Strategy 4

History of Successful Growth Since Acquisition 15 Year over Year Revenue Growth Gross Margin Improvement Since acquiring Bad Daddy’s International in May 2015, the acquired units have performed extremely wellFor the six units open for a full 12 months prior to acquisition, AUV has increased 6.5% since acquisition to an average of $2.8mmYear over year revenue growth has been positive every quarter since acquisitionImproved gross margin as a result of implementation of tighter labor model and more efficient purchasingPurchase Price: $21.0mm, consisting of $18.5mm in cash and $2.5mm seller noteAcquired 100% of 4 restaurants, majority interest in 2 restaurants and minority interest in 1 restaurantAcquired royalty fees paid by a licensed unit in the Charlotte airportEliminated the franchise royalty paid by Colorado Bad Daddy’s Burger Bar unitsFY 16 EBITDA benefit of acquisition was $2.5mm Note: Graphs for the 6 units open for 12 months prior to acquisition.

New Unit Development 16 Leases in progress Future likely markets Markets under consideration 9 - 11 2017 New Units Source: U.S. Department of the Census

Strong Unit Economic Model 17 Target Unit Economics Targeted cash-on-cash return of ~46%$2.5mm targeted AUV with $1.0mm build cost net of landlord contributionBad Daddy’s Burger Bar seeks in-line and end-cap locations ranging from 3,500 – 4,000 sf. with 140 seats plus patioTargets $700 sales / sf.Typically open from 11AM – 10PM Store Level EBITDA is defined as restaurant level cash flow less advertising plus non-cash rent and D&A.Store Level EBITDA Margin for units in Federal tip minimum wage states. Cash-on-Cash Return Year 1 Estimate Sales 2,500,000 $ Store Level EBITDA (1)(2) (a) 458,431 $ Store Level EBITDA Margin 18.3% Investment Cost (b) 1,000,000 $ Store Level Cash on Cash ROI (a) / (b) 45.8%

Good Times Burgers and Frozen Custard

The Good Times Burgers and Frozen Custard Difference 19 The only “Fresh, All Natural, Handcrafted” brand story at a QSR price pointPositioned as a “Principled Brand”Made-to-order quality with QSR speed of serviceRemodeling and reimaging program to upgrade facilities – fast casual level finishes We Take a Better Food Stand: Fresh, All Natural, Handcrafted Drive Thru and Dining Room Format Restaurants

Menu 20 All-Natural: No hormones, steroids or antibiotics; humanely raisedMeyer all-natural Angus beefHand-breaded Springer Mountain all-natural chicken tendersFresh, Hand-Crafted: Only at Good TimesFrozen custard made fresh every few hours with all-natural cream and eggsNatural-cut fries cooked to orderHatch Valley New Mexico green chile breakfast burritos Sides Burgers Sandwiches Dessert

CPI cost of at-home dining has fallen 2.4% in the last yearFalling grocery prices and increased prepared foods impacting restaurant traffic generally Consumer confidence is mutedIncreased non-discretionary costs (e.g. healthcare)Stalled wages and rising cost of livingLimited price elasticity Use of promotions to drive traffic remains high across the industryUnable to “price” way out of slowing traffic and reduced profitability from discountingGTBFC does not discount, but discounting at competitor brands has impacted traffic Upgrading kitchen equipment and capacityAdded assistant management coverageContinual retraining process on lowest ranked stores each quarter 15 of 22 planned remodels completed as of FY2016Expect balance of planned remodels to be completed by FY2018 Enhanced rebuild of core burger lineupAll day Green Chile BurritosMid-tier priced offerings and enhanced BambinosMaintain policy of focusing on special / seasonal items rather than discounting 2016 Headwinds and 2017 Key Initiatives 21 Goal of Driving 10%+ SSS Growth Through Fiscal 2018 By Significantly Widening Quality Gap Key Factors Affecting SSS Growth in 2016 Aggressive discounting environment Consumer macro challenges Non-traditional competition Elevate the guest experience Menu innovation and product elevation Complete the balance of remodels Good Times Burgers and Frozen Custard Same Store Sales

Strong Unit Economic Model 22 Target Unit Economics Store Level EBITDA is defined as restaurant level cash flow less advertising plus non-cash rent and D&A. New Prototype Design Opening March 2017 Good Times Burgers and Frozen Custard seeks free standing drive through with dining room setups880 – 1,000 sf. double drive thru and 2,100 – 2,400 sf. dining room format with 50 – 70 seatsTypically open from 7AM – 10PMApproximately $1.0 - $1.3mm targeted AUV with $350,000 build cost (sale leaseback model)Targeted cash-on-cash returns of ~46%

Remodel Program 23 Remodeled 15 stores over the past five years to reflect new brand image rolled out in 2012Store refresh program adds a sleek, modern look and fast casual finishesAverage cost per remodelReimaging: $60KMajor Remodel: $300 – 400KExpected spend on remodels in 2017 is $420KOne reimaging and one major remodel planned for FY 2017Five reimaged stores planned for FY 2018 Remodeled stores have achieved a higher same store sales growth rate in the years after remodeling than non-remodeled stores Remodels Per Year

Unit Remodel – Before and After 24 After Before

Marketing Approach and Strategy 25 Brand Voice & Personality:The Jester: never look or feel like the big guysA principled brand: we do the right thing because “that’s the kind of company we are”Go to lengths the other guys don’t & won’tKey Messages:100% all-natural beef & chicken: no hormones, no steroids, no antibiotics, vegetarian-fed, humanely-raisedFresh, handcrafted and regional ingredientsQuick, but not the fastest – made to order and cooked to orderCravability vs. simply newWhere food comes from mattersCore Target:18 – 49 years old with an emphasis on 18 – 34 rangeCustomers skew more female than traditional QSRIndex most closely with Chick-fil-A customerMiddle to upper income

Financial Review

Bad Daddy’s Burger Bar Summary Financials 27 Systemwide Units Store Level EBITDA ($ in Millions) ($ in Millions) ($ in Millions) Total Net Revenue Adjusted EBITDA (1) FY17P represents the midpoint of the Company’s guidance, per the most recent earnings release filed December 8, 2016. (1) (1) (1) (1)

Good Times Brand Summary Financials 28 Systemwide Units Total Net Revenue Store Level EBITDA Adjusted EBITDA(2) ($ in Millions) ($ in Millions) ($ in Millions) (1) FY17P represents the midpoint of the Company’s guidance, per the most recent earnings release filed December 8, 2016.(2) GTBFC Adjusted EBITDA was overburdened by additional G&A costs due to addition of personnel brought on to expand BDBB in FY2015 and FY2016. (1) (1) (1) (1)

Consolidated GTIM Summary Financials 29 Total Systemwide Restaurants Total Net Revenue Adjusted EBITDA Adjusted EBITDA Margin ($ in Millions) ($ in Millions) FY13 – FY16 CAGR: 41.2% (1) (1) FY17P represents the midpoint of the Company’s guidance, per the most recent earnings release filed December 8, 2016. (1) (1) (1)