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Good Times Restaurants Inc. (GTIM)
NASDAQ:GTIM
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Good Times Restaurants
(NASDAQ:GTIM)
67Neutral
Good Times Restaurants (GTIM) vs. S&P 500 (SPY)
Market Cap
$23.73M
Dividend YieldN/A
Average Volume (3M)16.49K
Price to Earnings (P/E)10.6
Beta (1Y)0.83
Revenue Growth5.55%
EPS Growth-76.32%
CountryUS
Employees2,110
SectorConsumer Cyclical
Sector Strength55
IndustryRestaurants
Share Statistics
EPS (TTM)0.21
Shares Outstanding10,640,569
10 Day Avg. Volume17,238
30 Day Avg. Volume16,492
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.18
Price to Cash Flow (P/CF)-12.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Good Times Restaurants Business Overview & Revenue Model
Company DescriptionGood Times Restaurants Inc. (GTIM) is a publicly traded company operating in the fast-food and casual dining sectors. The company is primarily known for its Good Times Burgers & Frozen Custard brand, which offers a variety of high-quality burgers, fresh chicken, and frozen custard treats. Additionally, GTIM operates the Bad Daddy's Burger Bar chain, which provides a full-service casual dining experience with a focus on gourmet burgers and craft beer. The company is committed to providing fresh, all-natural, and responsibly sourced ingredients in its menu offerings.
How the Company Makes MoneyGood Times Restaurants Inc. generates revenue primarily through the sale of food and beverages at its restaurant locations. The company operates both company-owned and franchised locations, with revenue streams coming from direct sales at company-owned restaurants and franchise fees and royalties from franchised locations. Key revenue drivers include menu innovation, customer experience, and brand loyalty. GTIM also benefits from strategic partnerships with suppliers to maintain quality and cost-efficiency, as well as marketing initiatives to drive brand awareness and customer engagement.
Good Times Restaurants Financial Statement Overview
Summary
Good Times Restaurants shows positive trends in income with improved profitability and stable financial health. Despite a healthy gross profit margin and increased net profit, a thin net profit margin and manageable debt level suggest room for improvement in profitability and leverage reduction.Income Statement
Good Times Restaurants has shown positive trends in its income statement metrics. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of approximately 33.7%, which is healthy for the industry. The company successfully improved its net profit margin to around 1.6% TTM, up from a loss in previous years, showcasing a turnaround in profitability. Revenue growth has been steady, with a slight increase of 2.2% from the previous annual report period. The EBIT and EBITDA margins also reflect improved operational efficiency. However, the relatively thin net profit margin suggests room for further profitability improvements.75
Positive
Balance Sheet
The balance sheet of Good Times Restaurants reveals a moderate level of financial stability. The debt-to-equity ratio stands at approximately 1.37, indicating a balanced but cautious approach to leverage. The company maintains a return on equity (ROE) of around 7.2% TTM, which is decent but could be improved for better shareholder returns. The equity ratio of approximately 36.2% suggests a reasonable level of equity financing supporting the total assets. While these metrics suggest stability, the company should monitor its leverage to avoid potential risks.68
Positive
Cash Flow
The cash flow statements highlight a stable cash position for Good Times Restaurants. The operating cash flow to net income ratio is around 2.08 TTM, indicating efficient cash generation relative to reported earnings. The free cash flow growth rate has been positive, although it slowed in the recent TTM period, showing a slight decline in free cash flow. The free cash flow to net income ratio is also favorable at approximately 0.93. These metrics suggest that the company is managing its cash flows effectively, although there is room for enhancing free cash flow growth further.72
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 145.51M | 142.31M | 138.12M | 138.20M | 123.95M | 109.86M | Gross Profit |
| 16.18M | 15.79M | 14.90M | 16.67M | 20.91M | 15.46M | EBIT |
| 1.96M | 1.38M | 2.51M | -5.69M | 6.86M | -4.82M | EBITDA |
| 5.70M | 5.23M | 4.71M | 3.18M | 26.18M | -3.70M | Net Income Common Stockholders |
| 2.33M | 1.61M | 11.09M | -927.00K | 16.79M | -6.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 533.00K | 3.85M | 4.18M | 8.91M | 8.86M | 11.45M | Total Assets |
| 9.44M | 87.12M | 91.09M | 86.39M | 93.68M | 99.69M | Total Debt |
| 3.65M | 43.59M | 48.87M | 50.97M | 54.66M | 75.56M | Net Debt |
| 3.12M | 39.73M | 44.69M | 42.07M | 45.80M | 64.11M | Total Liabilities |
| 6.62M | 54.03M | 58.09M | 58.60M | 62.81M | 84.71M | Stockholders Equity |
| 2.43M | 32.37M | 32.57M | 27.79M | 29.75M | 14.98M |
| Cash Flow | Free Cash Flow | ||||
| 2.17M | 5.13M | 3.19M | 2.65M | 5.95M | 5.77M | Operating Cash Flow |
| 4.86M | 5.13M | 7.96M | 5.29M | 9.14M | 8.37M | Investing Cash Flow |
| -5.06M | -3.66M | -10.44M | -2.62M | -3.19M | -2.60M | Financing Cash Flow |
| -296.00K | -1.80M | -2.25M | -2.62M | -8.56M | 2.94M |
Good Times Restaurants Technical Analysis
Negative
2.23
Price Trends
2.47
Negative
2.53
Negative
2.64
Negative
Market Momentum
-0.01
Negative
51.16
Neutral
46.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTIM, the sentiment is Negative. The current price of 2.23 is below the 20-day moving average (MA) of 2.41, below the 50-day MA of 2.47, and below the 200-day MA of 2.64, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTIM.
Good Times Restaurants Risk Analysis
Good Times Restaurants disclosed 38 risk factors in its most recent earnings report. Good Times Restaurants reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Good Times Restaurants Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.87B | 406.76 | 2.23% | ― | 15.18% | -48.78% | |
67 Neutral | $23.73M | 10.56 | 7.29% | ― | 5.55% | -76.32% | |
67 Neutral | $811.72M | 52.54 | 4.54% | ― | 1.81% | -15.53% | |
61 Neutral | $6.60B | 63.89 | -16.09% | 0.42% | 36.03% | 57.51% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
52 Neutral | $195.61M | 9.30 | -63.40% | ― | -2.50% | 15.46% | |
41 Neutral | $61.66M | ― | 92.02% | ― | -4.19% | -266.52% |
* Consumer Cyclical Sector Average
Performance Comparison
GTIM
Good Times Restaurants
2.23
-0.31
-12.20%
BJRI
BJ's Restaurants
32.64
-1.82
-5.28%
DENN
Denny's
3.45
-5.04
-59.36%
RRGB
Red Robin Gourmet
3.35
-3.23
-49.09%
SHAK
Shake Shack
84.21
-16.12
-16.07%
WING
Wingstop
242.78
-106.96
-30.58%
Good Times Restaurants Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -12.89% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While Bad Daddy's experienced growth in same-store sales and improved margins, both brands faced challenges due to weather, competitive pressures, and rising costs. Financial metrics showed some improvement, but the overall environment remains challenging.Highlights
Increase in Same-Store Sales for Bad Daddy's
Bad Daddy's posted a 1.5% increase in same-store sales, along with improved restaurant-level margins.
Promising New Product Lines
Introduction and success of the classic smash patty burgers, along with future plans for new menu items, contributed to better margins.
Improved Labor Controls
Labor costs decreased by 70 basis points to 35.1% at Bad Daddy's, attributed to leveraging manager salaries and increased labor productivity.
Restaurant Sales Growth
Total restaurant sales increased by $2 million to $26.1 million for Bad Daddy's and $1.1 million to $9.9 million for Good Times compared to the previous year.
Positive Financial Metrics
Adjusted EBITDA increased to $1.2 million from $0.5 million, with a net income of $0.2 million compared to a loss in the previous year.
Lowlights
Weather Impact on Sales
Severe weather in January significantly reduced sales at Colorado restaurants and several Bad Daddy's locations in the Southeast.
Good Times Brand Challenges
Good Times faced ongoing challenges due to higher costs and competitive discounting, with same-store sales remaining flat.
Rising Costs and Inflation Impact
Increased costs in commodities, labor, and occupancy affected profitability, with expectations of continued ground beef cost increases.
Labor Cost Increase at Good Times
Total labor costs at Good Times rose to 36.7%, a 290 basis point increase from the previous year due to higher wage rates and decreased productivity.
Lower than Expected Sales for Limited-Time Offers
The Bambino Supremos and Dirty Sodas did not achieve the desired sales impact, although they developed a small loyal following.
Company Guidance
In the Good Times Restaurants Inc. Fiscal 2025 First Quarter Earnings Call, the company provided guidance on several key metrics, indicating a mixed performance across its brands. For Bad Daddy's, there was a 1.5% increase in same-store sales attributed to successful menu items like the classic smash patty burgers, which have been engineered to offer better margins. Despite a menu price increase of approximately 4.5%, the favorable mix shift towards smash patty burgers offset half of this rise. Bad Daddy's reported a total restaurant sales increase to $26.1 million, with a restaurant-level operating profit of $3.3 million or 12.6% of sales. Conversely, Good Times saw flat same-store sales with total restaurant sales rising to $9.9 million. However, the brand faced challenges with a 100 basis point increase in food and packaging costs and a 290 basis point rise in labor costs, leading to a decrease in restaurant-level operating profit to $0.9 million or 8.6% of sales. The call also highlighted the impact of weather on January sales, with Bad Daddy's experiencing a 5.5% decline in same-store sales and Good Times a 7% drop during the first four weeks of the second fiscal quarter. The company ended the quarter with $3 million in cash, $2.6 million in long-term debt, and a net income of $0.2 million or $0.02 per share, with adjusted EBITDA improving to $1.2 million.Good Times Restaurants Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Good Times Restaurants Announces CEO Bonus Plan
Neutral
Feb 27, 2025
On February 25, 2025, Good Times Restaurants Inc. announced a new cash incentive bonus arrangement for its CEO, Ryan Zink. This arrangement, effective for the fiscal years 2025 to 2027, includes short-term and long-term incentives based on the company’s EBITDA performance. The plan aims to align executive compensation with company performance, potentially impacting the company’s financial strategies and stakeholder interests.
Executive/Board Changes
Good Times Restaurants Senior VP Announces Resignation
Neutral
Feb 21, 2025
On February 14, 2025, Donald L. Stack, Senior Vice President of Operations for the Good Times brand, announced his resignation effective May 31, 2025. His responsibilities will be divided between CEO Mr. Zink and Regional Manager Mr. Craig Soto, who will take on the new role of Director of Operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.