Bad Times for Good Times, Sales Plummet 14.8%

Firm's webpage graphic seems to predict drop.

Good Times Restaurant Inc., franchisor of a Western U.S. hamburger chain, said same-store sales fell 14.8 percent for its franchised stores in the last quarter of 2008. That's in stark contrast to what's on its Web page for potential franchise buyers, where the chain proudly declares, "Good Times Burgers & Frozen Custard has posted 17 consecutive quarters of same store sales growth."

No more.

The franchising firm said the reason for the drop in sales was that it had not kept up with the dropping value menu prices of its competition. The chain hopes its soon-to-be-aired television commercial will help turn things around in a mighty way.

If such a big daddy of a number in dropping sales weren't bad enough news, now its creditor is circling around the franchisor with vulture-like eyes for falling out of its net worth and earnings requirement.

The covenants were tied to a term loan from Wells Fargo & Co., Good Times said Friday in a filing with the Securities and Exchange Commission. As of Dec. 31, there was about $932,000 left on the loan, which is due in May 2015, according to the filing.

Can the chain turn the bad times back to good times for Good Times? Stay tuned.

Read the full article at The Rocky Mountain News