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Good Times Restaurants Inc. (GTIM)
NASDAQ:GTIM
US Market

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)

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
75
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
68
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
72
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.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue145.52M142.31M138.16M138.20M123.95M109.86M
Gross Profit16.22M15.79M14.93M16.67M20.91M15.46M
EBITDA5.82M5.23M4.71M3.18M26.18M-3.70M
Net Income2.33M1.61M11.09M-927.00K16.79M-6.33M
Balance Sheet
Total Assets89.55M87.12M91.09M86.39M93.68M99.69M
Cash, Cash Equivalents and Short-Term Investments3.02M3.85M4.18M8.91M8.86M11.45M
Total Debt46.88M44.43M48.87M50.97M54.66M75.56M
Total Liabilities56.45M54.03M58.09M58.60M62.81M84.71M
Stockholders Equity32.41M32.37M32.57M27.79M29.75M14.98M
Cash Flow
Free Cash Flow754.00K1.99M3.19M2.65M5.95M5.77M
Operating Cash Flow4.86M5.13M7.96M5.29M9.14M8.37M
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-8.56M2.94M

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
BDBDL
75
Outperform
$54.29M13.416.48%1.90%9.38%14.76%
73
Outperform
$40.22M15.1221.75%2.93%20.81%
68
Neutral
$18.11M17.453.45%4.21%73.81%
63
Neutral
$16.67B10.96-6.97%3.00%1.72%-24.21%
50
Neutral
$32.63M-22.57%2.07%-3.61%-36.65%
49
Neutral
$36.44M-978.37%-0.61%-200.32%
FAFAT
45
Neutral
$43.73M38.50%424.49%10.63%-93.67%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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