Good Times Restaurants (GTIM) AI Stock Analysis

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Good Times Restaurants

(NASDAQ:GTIM)

Rating:68Neutral

Price Target:

$2.00

▲(16.96%Upside)

Good Times Restaurants' stock score is influenced primarily by its financial performance and valuation. The company shows a positive trend in profitability and stable financial health, though it faces challenges from increased costs and declining sales, as highlighted in the earnings call. Technical analysis presents a mixed picture, with bearish price trends but neutral momentum indicators.

Good Times Restaurants (GTIM) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$18.11M

Dividend YieldN/A

Average Volume (3M)10.49K

Price to Earnings (P/E)17.5

Beta (1Y)0.69

Revenue Growth4.21%

EPS Growth73.81%

CountryUS

Employees2,110

SectorConsumer Cyclical

Sector Strength59

IndustryRestaurants

Share Statistics

EPS (TTM)-0.06

Shares Outstanding10,590,407

10 Day Avg. Volume8,502

30 Day Avg. Volume10,487

Financial Highlights & Ratios

PEG Ratio0.28

Price to Book (P/B)0.98

Price to Sales (P/S)0.00

P/FCF Ratio10.25

Enterprise Value/Market Cap3.82

Enterprise Value/Revenue0.12

Enterprise Value/Gross Profit4.27

Enterprise Value/Ebitda3.50

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 U.S.-based company that operates and franchises restaurants in the fast-casual dining sector. The company is primarily known for its Good Times Burgers & Frozen Custard brand, which specializes in high-quality, all-natural burgers and frozen custard. Additionally, through its subsidiary, Bad Daddy's Burger Bar, GTIM offers a full-service dining experience with a focus on gourmet burgers and craft beer. The company prides itself on using fresh, locally sourced ingredients and delivering exceptional customer service.

How the Company Makes MoneyGood Times Restaurants Inc. generates revenue primarily through the sale of food and beverages at its company-operated and franchised restaurant locations. The company's key revenue streams include direct restaurant sales at Good Times Burgers & Frozen Custard and Bad Daddy's Burger Bar locations. Additionally, GTIM earns franchise royalties and fees from franchised locations. The company's financial performance is also influenced by strategic marketing efforts, menu innovation, and maintaining strong relationships with suppliers to manage costs effectively. GTIM's revenue is further supported by its emphasis on quality ingredients and customer experience, which drive repeat business and brand loyalty.

Good Times Restaurants Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q2-2025)

% Change Since: -13.20%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Negative

The earnings call presented both challenges and strategic initiatives. While innovative marketing strategies and new menu items show promise, the decline in same-store sales and increased costs overshadowed these positives, leading to a net loss for the quarter.

Q2-2025 Updates

Positive Updates

Introduction of New Menu Items at Bad Daddy's

The launch of the Smash and Stack, a bacon double cheeseburger, became immediately popular, reaching the fourth position in the product mix and offering better margin and cost percent compared to other items.

Innovative Marketing Strategies

Promising results were seen from shifting marketing spend towards social and digital media, connected TV, and video streaming, with plans to expand these tests.

Leadership Changes and Promotions

Craig Soto was promoted to Director of Operations at Good Times, bringing a long-term history with the brand and a focus on improved kitchen execution.

Positive Impact of Promotional Activities

Cinco de Mayo sales were exceptionally strong due to promotions, including a deeply discounted $4 Badass Margarita and the return of the Buria Burger, aided by significant unpaid media exposure.

Negative Updates

Decline in Same-Store Sales

Same-store sales decreased slightly more than 3.5% at both brands, influenced by a challenging operating environment and value-oriented customers.

Profitability Decline at Good Times

Profitability at Good Times declined at a greater rate than sales due to higher labor costs and expenses associated with implementing new initiatives.

Increased Costs in Key Areas

Labor costs increased due to higher average wage rates, while food and packaging costs rose significantly, primarily due to higher purchase prices on ground beef and paper goods.

Net Loss for the Quarter

The company reported a net loss to common shareholders of $600,000, or a loss of $0.06 per share, versus net income of $600,000 in the same quarter last year.

Company Guidance

During the Good Times Restaurants Inc. Fiscal 2025 Second Quarter Earnings Call, several key metrics and strategic initiatives were discussed. Same-store sales for both brands decreased by slightly more than 3.5%, with Bad Daddy's reporting a 3.7% decline and Good Times a 3.6% decrease. Total restaurant sales for Bad Daddy's fell by $1.6 million to $24.8 million, while Good Times experienced a $0.5 million increase to $9.3 million. Labor costs rose at Good Times to 35.6%, a 50 basis point increase, while Bad Daddy's labor costs decreased by 40 basis points to 34.3%. Food and packaging costs were 30.7% for both brands, with elevated beef prices impacting cost structures. The net loss to common shareholders was $600,000, translating to a loss of $0.06 per share, compared to a net income of $600,000 or $0.06 per share the previous year. Adjusted EBITDA decreased to $1 million from $1.5 million. The company halted share repurchases to focus on cash accumulation and debt repayment, with $2.7 million in cash and $2.6 million in long-term debt at the quarter's end. Strategic initiatives included new product rollouts, like the revamped burger builds and fried ice cream, and shifts in marketing strategies towards digital and connected TV advertising.

Good Times Restaurants Financial Statement Overview

Summary

Good Times Restaurants shows improving profitability and financial health, with stable cash flow management. However, the company's thin net profit margin and balanced but cautious leverage indicate areas for further improvement.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	145.52M	142.31M	138.16M	138.20M	123.95M	109.86M
Gross Profit	16.22M	15.79M	14.93M	16.67M	20.91M	15.46M
EBITDA	5.82M	5.23M	4.71M	3.18M	26.18M	-3.70M
Net Income	2.33M	1.61M	11.09M	-927.00K	16.79M	-6.33M
Balance Sheet
Total Assets	89.55M	87.12M	91.09M	86.39M	93.68M	99.69M
Cash, Cash Equivalents and Short-Term Investments	3.02M	3.85M	4.18M	8.91M	8.86M	11.45M
Total Debt	46.88M	44.43M	48.87M	50.97M	54.66M	75.56M
Total Liabilities	56.45M	54.03M	58.09M	58.60M	62.81M	84.71M
Stockholders Equity	32.41M	32.37M	32.57M	27.79M	29.75M	14.98M
Cash Flow
Free Cash Flow	754.00K	1.99M	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

Technical Analysis Sentiment

Negative

Last Price1.71

Price Trends

50DMA

1.74

Negative

100DMA

2.03

Negative

200DMA

2.35

Negative

Market Momentum

MACD

<0.01

Negative

RSI

46.11

Neutral

STOCH

54.67

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 1.71 is below the 20-day moving average (MA) of 1.74, below the 50-day MA of 1.74, and below the 200-day MA of 2.35, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of 54.67 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDL	75 Outperform	$54.29M	13.41	6.48%	1.90%	9.38%	14.76%
RAVE	73 Outperform	$40.22M	15.12	21.75%	―	2.93%	20.81%
GTIM	68 Neutral	$18.11M	17.45	3.45%	―	4.21%	73.81%
Sector *	63 Neutral	$16.67B	10.96	-6.97%	3.00%	1.72%	-24.21%
ARKR	50 Neutral	$32.63M	―	-22.57%	2.07%	-3.61%	-36.65%
NDLS	49 Neutral	$36.44M	―	-978.37%	―	-0.61%	-200.32%
FAT	45 Neutral	$43.73M	―	38.50%	424.49%	10.63%	-93.67%

* Consumer Cyclical Sector Average

Performance Comparison

GTIM

Good Times Restaurants

1.70

-0.77

-31.17%

ARKR

Ark Restaurants

8.80

-4.60

-34.33%

BDL

Flanigan's Enterprises

31.84

5.58

21.25%

RAVE

Rave Restaurant Group

2.82

0.97

52.43%

NDLS

Noodles & Co

0.80

-0.70

-46.67%

FAT

Fat Brands

2.46

-0.10

-3.91%

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.

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.Date of analysis: Jul 08, 2025