Education
About Us
Working with TipRanks
Follow Us
Good Times Restaurants Inc. (GTIM)
NASDAQ:GTIM
Top Page
Good Times Restaurants
(NASDAQ:GTIM)
Select Model
Select Model
Rating:46Neutral
Price Target:
$1.00
▼(-13.79% Downside)
The score is held down primarily by weak financial performance (thin margins, leveraged capital structure, and a sharp 2025 cash-flow deterioration) and bearish technical momentum (price below key moving averages with negative MACD). A moderate P/E provides some support, while the latest earnings call showed early sequential sales improvement but ongoing cost and profitability pressure.
Positive Factors
Improved Cost Controls
Effective cost management at Bad Daddy's, with a decrease in food and beverage costs, enhances margin sustainability and operational efficiency.
Successful Product Launch
The success of new product launches like Fried Ice Cream indicates strong brand innovation and potential for increased customer engagement.
Sequential Sales Improvement
Sequential improvement in same-store sales suggests potential recovery and resilience in market demand, supporting future revenue growth.
Negative Factors
Declining Same-Store Sales
A significant decline in same-store sales at Good Times indicates weakening customer traffic and challenges in maintaining market share.
High Labor Costs
Rising labor costs reduce profitability margins and could pressure the company's ability to maintain competitive pricing.
Increased Debt Levels
High debt levels relative to equity increase financial risk and limit flexibility in strategic investments or navigating economic downturns.
Good Times Restaurants (GTIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.67M
Dividend YieldN/A
Average Volume (3M)18.76K
Price to Earnings (P/E)11.9
Beta (1Y)0.90
Revenue Growth1.84%
EPS Growth12.10%
CountryUS
Employees2,110
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.00
Shares Outstanding10,557,896
10 Day Avg. Volume25,342
30 Day Avg. Volume18,756
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)0.00
Price to Sales (P/S)0.12
P/FCF Ratio0.00
Enterprise Value/Market Cap4.67
Enterprise Value/Revenue0.41
Enterprise Value/Gross Profit3.99
Enterprise Value/Ebitda12.17
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Good Times Restaurants Business Overview & Revenue Model
Company DescriptionGood Times Restaurants Inc., through its subsidiaries, engages in the restaurant business in the United States. The company operates and franchises Good Times Burgers & Frozen Custard, an upscale quick-service drive-through dining restaurant; and owns, operates, franchises, and licenses Bad Daddy's Burger Bar, a full-service upscale casual dining restaurant. As of December 15, 2021, it operated, franchised, or licensed 42 Bad Daddy's Burger Bar restaurants; and 32 Good Times Burgers & Frozen Custard restaurants. The company was incorporated in 1987 and is based in Golden, Colorado.
How the Company Makes MoneyGood Times Restaurants generates revenue through various streams primarily centered around food and beverage sales at its restaurant locations. The company earns income from both dine-in and take-out services, with a focus on high-margin items like gourmet burgers, frozen custard, and unique sides. Additionally, GTIM benefits from franchise fees and royalties from its franchise operations, contributing to its overall revenue. Key partnerships with suppliers for quality ingredients and promotional collaborations also enhance its brand visibility and sales. Seasonal promotions, loyalty programs, and catering services further add to its revenue, making the company's earnings model diverse and resilient.
Good Times Restaurants Earnings Call Summary
Earnings Call Date:Dec 23, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Neutral
The quarter showed meaningful operational and cost pressures — same-store sales declines across both concepts, elevated food (notably ground beef) and labor costs, and a drop in profitability (negative adjusted EBITDA and a small net loss). Management presented multiple operational fixes, targeted pricing and promotional plans, and early sequential improvement into fiscal Q1, but these have yet to fully offset the headwinds observed in the quarter. Overall, while there are concrete initiatives and early signs of recovery, the negative trends in sales and margin pressure were the dominant takeaways from the call.Q4-2025 Updates
Positive Updates
Sequential Same-Store Sales Improvement at Good Times
Good Times same-store sales declined 6.6% in the quarter but this represented a 240 basis point sequential improvement from the fiscal third quarter; for the first 11 weeks of fiscal Q1 Good Times comps improved to -3.6% year-over-year.
Early First Quarter Improvement for Bad Daddy's
Bad Daddy's same-store sales were down 4.6% for the quarter but have improved sequentially into fiscal Q1, with same-store sales down approximately 1.6% through the first 11 weeks of the quarter versus the prior year.
Operational Initiatives to Improve Execution
Management is realigning GM schedules, enhancing restaurant-level training, and rolling out cook-to-order for burger products to improve service, product quality and productivity; these changes are expected to help re-earn pricing premium over competitors over time.
Targeted Pricing and Promotions Strategy
Company has taken limited menu pricing (Good Times ~1% since Jan 2024; Bad Daddy's blended year-over-year price increase <1% in quarter), expects ~1.7% average price increase for Q1 FY26, and will pursue highly targeted value promotions and expanded loyalty (GT Rewards, refreshed app) rather than broad discounting.
Product Wins at Bad Daddy's
Fall and holiday promotions (giant Bavarian pretzel and in-house chocolate cookie cheesecake) performed well and are being considered for future core menu inclusion; company plans a simplified 'burger of the month' platform to sharpen execution and messaging.
Reduced General & Administrative Expense Rate
Combined G&A was $2.4 million or 7.0% of total revenues for the quarter, a 70 basis point decrease versus the prior year quarter; management expects G&A of 6%–7% in FY26.
Negative Updates
Quarterly Revenue and Sales Decline
Total revenues decreased approximately 5.1% for the quarter to $34.0 million and full-year revenues decreased approximately 0.5% versus record fiscal 2024 to $141.6 million.
Bad Daddy's Sales and Margin Pressure
Bad Daddy's total restaurant sales decreased $1.7 million to $24.0 million for the quarter; same-store sales decreased 4.6% (38 stores in comp); restaurant-level operating profit fell to ~$2.4 million (9.9% of sales) from $3.4 million (13.2%) last year, driven by higher food and labor costs and sales deleverage.
Good Times Same-Store Sales Weakness and Profit Decline
Good Times same-store sales decreased 6.6% (27 restaurants in comp) for the quarter; restaurant-level operating profit decreased $0.4 million to $0.8 million and as a percent of sales declined 420 basis points to 8.0% due to elevated input, labor and other operating costs.
Significant Input Cost Inflation (Record Beef Prices)
Food and beverage (food & packaging) costs rose notably: Bad Daddy's food & beverage at 31.6% of sales (+40 basis points YoY); Good Times at 32.1% (+120 basis points YoY). Management cited record-high ground beef prices and higher protein costs as primary drivers.
Rising Labor and Other Operating Costs
Labor costs increased materially: Bad Daddy's labor at 35.7% (+140 bps YoY); Good Times labor at 35.9% (+200 bps YoY). Other operating costs rose (Bad Daddy's 16.0% +80 bps; Good Times 15.0% +110 bps), driven by repairs, utilities, delivery and technology expenses. Colorado minimum wage increases will add further pressure.
Profitability and Liquidity Metrics Pressured
Adjusted EBITDA for the quarter was negative $74,000 versus $1.3 million in Q4 2024; net loss to common shareholders was $3,000 ($0.00 per share) versus net income of $0.2 million ($0.02) last year. Cash on hand at quarter end was $2.6 million with $2.3 million of long-term debt.
Company Guidance
Management guided toward improvement in Q1 FY2026, noting Good Times same‑store sales were down ~3.6% in the first 11 weeks (vs. -6.6% in Q4, a 240‑basis‑point sequential improvement) and Bad Daddy’s were down ~1.6% in the first 11 weeks (vs. -4.6% in Q4); they expect an average year‑over‑year menu price increase of ~1.7% for Q1 (current blended food & beverage price increase <1%; Good Times has taken only ~1% since Jan‑2024; Bad Daddy’s Q4 menu price +0.4%), and they anticipate food & beverage costs (Q4: Bad Daddy’s 31.6%, +40 bps; Good Times 32.1%, +120 bps) to improve quarter‑over‑quarter as input costs decline. Management warned of ongoing labor pressure (Q4 labor: Bad Daddy’s 35.7%, +140 bps; Good Times 35.9%, +200 bps) and noted Colorado minimum wage rises to $15.16 (+2.4%) and tipped wage to $12.14 (+3%) in January, expects G&A of 6–7% in FY2026, will avoid large‑scale discounting in favor of targeted value promotions starting this spring, expand GT Rewards and a refreshed app, roll out cook‑to‑order with minimal speed impact, and said they expect Q1 same‑store sales and adjusted EBITDA to improve (Q4 adjusted EBITDA was -$74k).Good Times Restaurants Financial Statement Overview
Summary
Good Times Restaurants is facing financial challenges with declining revenue and profitability margins. The high leverage and negative free cash flow highlight potential financial risks. Operational efficiencies are present but insufficient to offset the overall financial health concerns.Income Statement
Good Times Restaurants has experienced a decline in revenue growth with a negative growth rate of -63.5% in the TTM period. The gross profit margin has decreased to 10.34%, and the net profit margin is low at 0.88%. While the EBIT and EBITDA margins are positive, they are relatively low, indicating challenges in operational efficiency.Balance Sheet
The company has a high debt-to-equity ratio of 1.24, indicating significant leverage. Return on equity has decreased to 3.88%, reflecting reduced profitability for shareholders. The equity ratio is not provided, but the high leverage suggests potential financial risk.Cash Flow
Operating cash flow has decreased significantly, and free cash flow is negative, indicating cash flow challenges. The free cash flow to net income ratio is negative, suggesting inefficiencies in converting net income into free cash flow.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 143.43M | 141.63M | 142.31M | 138.16M | 138.20M | 123.95M |
| Gross Profit | 14.83M | 13.54M | 15.79M | 15.82M | 16.69M | 20.91M |
| EBITDA | 4.86M | 4.42M | 5.23M | 4.71M | 3.18M | 26.18M |
| Net Income | 1.26M | 1.02M | 1.61M | 11.09M | -2.64M | 16.79M |
Balance Sheet | ||||||
| Total Assets | 85.75M | 83.81M | 87.12M | 91.09M | 86.39M | 93.68M |
| Cash, Cash Equivalents and Short-Term Investments | 3.14M | 2.60M | 3.85M | 4.18M | 8.91M | 8.86M |
| Total Debt | 43.20M | 39.52M | 44.43M | 48.87M | 50.97M | 54.66M |
| Total Liabilities | 51.94M | 35.62M | 54.03M | 58.09M | 58.60M | 62.81M |
| Stockholders Equity | 33.07M | 33.06M | 32.37M | 32.57M | 26.48M | 29.75M |
Cash Flow | ||||||
| Free Cash Flow | -1.77M | 1.61M | 1.99M | 3.19M | 2.65M | 5.95M |
| Operating Cash Flow | 1.85M | 1.61M | 5.13M | 7.96M | 5.29M | 9.14M |
| Investing Cash Flow | -4.04M | -3.84M | -3.66M | -10.44M | -2.62M | -3.19M |
| Financing Cash Flow | 507.00K | 983.00K | -1.80M | -2.25M | -2.62M | -8.56M |
Good Times Restaurants Technical Analysis
Negative
1.16
Price Trends
1.28
Negative
1.46
Negative
1.61
Negative
Market Momentum
-0.03
Negative
42.69
Neutral
44.96
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 1.16 is below the 20-day moving average (MA) of 1.23, below the 50-day MA of 1.28, and below the 200-day MA of 1.61, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.69 is Neutral, neither overbought nor oversold. The STOCH value of 44.96 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 28 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $45.76M | 16.35 | 20.05% | ― | 0.35% | 9.25% | |
62 Neutral | $84.19M | 3.35 | -1.73% | ― | 21.20% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | $8.91M | -9.66 | -11.53% | ― | -4.16% | 29.52% | |
46 Neutral | $12.67M | 11.92 | 3.85% | ― | 1.84% | 12.10% | |
44 Neutral | $9.56M | -0.58 | ― | ― | 21.10% | -18.56% | |
40 Underperform | $23.19M | -2.05 | -29.84% | ― | -9.70% | -194.23% |
* Consumer Cyclical Sector Average
GTIM
Good Times Restaurants
1.14
-1.30
-53.28%
ARKR
Ark Restaurants
6.52
-7.55
-53.66%
RAVE
Rave Restaurant Group
3.20
0.64
25.00%
BTBD
BT Brands
1.47
-0.17
-10.37%
REBN
Reborn Coffee, Inc.
1.59
0.32
25.20%
CHSN
Chanson International Holding Class A
2.22
-445.78
-99.50%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.