Good Times Restaurants (GTIM) AI Stock Analysis

• Market Cap: $19.16M
• Dividend Yield: N/A
• Average Volume (3M): 37.99K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.70
• Revenue Growth: 1.84%
• EPS Growth: 12.10%
• Country: US
• Employees: 2,110
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Restaurants
• EPS (TTM): 0.14
• Shares Outstanding: 10,549,508
• 10 Day Avg. Volume: 49,395
• 30 Day Avg. Volume: 37,989
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.13
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 12.36
• 1Y Price Target: $1.50
• Price Target Upside: -13.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $1.50 ▼(-13.29% Downside)

Good Times Restaurants' overall score reflects financial challenges with declining revenue and profitability margins, which are the most significant factors. Technical analysis shows moderate strength, while valuation is reasonable but not compelling. The earnings call sentiment is balanced, highlighting both improvements and challenges.

Good Times Restaurants Business Overview & Revenue Model

Company Description

Good 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 Money

Good 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 Financial Statement Overview

Summary

Good Times Restaurants has shown positive trends in income statement metrics with improved profitability and stable financial health. The company has a healthy gross profit margin and has turned around its net profit margin. However, the thin net profit margin and moderate balance sheet stability suggest room for improvement.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.43M	142.31M	138.16M	138.20M	123.95M	109.86M
Gross Profit	14.83M	15.79M	14.93M	16.67M	20.91M	15.46M
EBITDA	4.86M	5.23M	4.71M	3.18M	26.18M	-3.70M
Net Income	1.26M	1.61M	11.09M	-2.64M	16.79M	-13.92M
Balance Sheet
Total Assets	85.75M	87.12M	91.09M	86.39M	93.68M	99.69M
Cash, Cash Equivalents and Short-Term Investments	3.14M	3.85M	4.18M	8.91M	8.86M	11.45M
Total Debt	40.88M	44.43M	48.87M	50.97M	54.66M	75.56M
Total Liabilities	51.94M	54.03M	58.09M	58.60M	62.81M	84.71M
Stockholders Equity	33.07M	32.37M	32.57M	26.48M	29.75M	13.69M
Cash Flow
Free Cash Flow	-1.77M	1.99M	3.19M	2.65M	5.95M	5.77M
Operating Cash Flow	1.85M	5.13M	7.96M	5.29M	9.14M	8.37M
Investing Cash Flow	-4.04M	-3.66M	-10.44M	-2.62M	-3.19M	-2.60M
Financing Cash Flow	507.00K	-1.80M	-2.25M	-2.62M	-8.56M	2.87M

Good Times Restaurants Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.73
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTIM, the sentiment is Neutral. The current price of 1.73 is above the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.63, and below the 200-day MA of 2.14, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.37 is Neutral, neither overbought nor oversold. The STOCH value of 77.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GTIM.

Good Times Restaurants Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	78 Outperform	$38.94M	17.43	21.75%	―	2.93%	20.81%
BDL	64 Neutral	$57.25M	13.25	6.88%	1.77%	8.83%	41.90%
Sector *	61 Neutral	$17.16B	12.39	-5.32%	3.05%	1.51%	-15.30%
GTIM	52 Neutral	$19.16M	14.77	3.85%	―	1.84%	12.10%
ARKR	46 Neutral	$25.39M	―	-33.50%	2.67%	-6.89%	-42.75%
FAT	45 Neutral	$33.95M	―	38.50%	161.50%	0.96%	-57.29%
NDLS	39 Underperform	$33.30M	―	-978.37%	―	-1.23%	-68.38%

Good Times Restaurants Corporate Events

Good Times Restaurants Announces CEO Bonus Plan

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.