Good Times Restaurants (GTIM) AI Stock Analysis

• Market Cap: $12.56M
• Dividend Yield: N/A
• Average Volume (3M): 18.76K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.91
• Revenue Growth: 1.84%
• EPS Growth: 12.10%
• Country: US
• Employees: 2,110
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.02
• Shares Outstanding: 10,557,896
• 10 Day Avg. Volume: 25,342
• 30 Day Avg. Volume: 18,756
• PEG Ratio: -0.47
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -11.90
• Enterprise Value/Market Cap: 3.90
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 3.58
• Enterprise Value/Ebitda: 10.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $1.00 ▼(-13.79% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is held down primarily by pressured financial performance (declining revenue, very thin margins, and elevated leverage) and weak technical trend signals. A modest valuation (P/E ~12.5) and earnings-call indicators of early Q1 same-store sales improvement and easing input costs provide partial offsets, but Q4 profitability deterioration limits upside.

Positive Factors

Diversified dual-brand footprint (full-service & quick-service)

Operating two distinct concepts (full-service Bad Daddy’s and quick-service Good Times) provides structural diversification of formats, customer occasions and channels (dine-in, takeout, drive-thru). This mix smooths revenue volatility across traffic cycles and supports cross-brand learnings and scale.

Positive trailing cash generation

Positive operating and free cash flow over the trailing twelve months indicates the business generates internal liquidity to fund working capital, modest reinvestment and debt service. While modest relative to debt, sustained positive cash flow is a durable source of flexibility versus persistent cash burn.

Management-led operational fixes and product pipeline

Management is executing structural initiatives—retraining, scheduling, cook-to-order rollout and focused promotions—that address service, speed and menu clarity. If sustained, these operational improvements can raise throughput, improve labor productivity and embed repeatable margin and guest-experience gains.

Negative Factors

Elevated leverage relative to equity

High debt-to-equity in a low-margin restaurant model increases financial risk and constrains strategic flexibility. Elevated leverage raises the cost of distress and limits the company's ability to invest in remodels, marketing or new unit growth if cash flows dip, making downside scenarios more severe.

Very thin and compressed margins

Margins are razor-thin and have meaningfully compressed year-over-year, leaving little buffer against input-cost or labor inflation. Low operating and net margins reduce reinvestment capacity and magnify the impact of sales volatility on solvency and long-term returns.

Persistent same-store sales declines and traffic weakness

Sustained comps weakness and reduced foot traffic materially impair unit economics and economies of scale. Store closures and traffic declines drive deleverage across the P&L, prolong recovery timelines and increase reliance on pricing or cost cuts to restore profitability.

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

Financial fundamentals are mixed: TTM revenue declined (-2.6%) and margins are very thin, with meaningful margin compression versus FY2024. Leverage is elevated (debt-to-equity ~1.14 TTM; ~2.27 FY2025), limiting flexibility. Offsetting this, TTM operating cash flow (~$3.6M) and free cash flow (~$1.7M) are positive, though cash conversion vs. debt and earnings is only modest and results have been volatile historically.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-2.6%) and profitability is thin, with low operating and net margins (about 0.4% and 0.8%, respectively). Compared with FY2024, margins compressed meaningfully (gross margin ~9.9% vs ~11.1% and net margin ~0.8% vs ~1.1%), pointing to higher costs and limited pricing leverage. While the company is profitable in the latest periods, results have been volatile historically (including a loss in FY2022 and unusually high profits in FY2021–FY2023), which reduces confidence in earnings durability.

Balance Sheet

Leverage is elevated: total debt is substantial versus equity (TTM debt-to-equity ~1.14; FY2025 debt-to-equity ~2.27), which increases financial risk in a low-margin restaurant model. Equity is positive and return on equity is modest but positive in the most recent periods (~3% TTM), suggesting the business is generating profits, but at a limited rate relative to its capital base. Overall, the balance sheet is workable, yet debt levels constrain flexibility if operating performance weakens.

Cash Flow

TTM cash generation is positive (operating cash flow ~$3.6M and free cash flow ~$1.7M), which is a constructive sign versus FY2025 when free cash flow was negative. However, cash conversion is not especially strong: operating cash flow covers only a modest portion of debt (TTM ~0.24), and free cash flow relative to net income is below 1x in the TTM period, indicating profits are not fully translating into surplus cash. Free cash flow growth is also sharply negative on a reported basis, reflecting year-to-year volatility.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	138.00M	141.63M	142.38M	138.16M	138.20M	123.95M
Gross Profit	13.71M	13.54M	15.86M	15.42M	15.96M	18.38M
EBITDA	4.53M	4.52M	5.23M	4.71M	3.18M	26.18M
Net Income	1.04M	1.02M	1.61M	11.09M	-2.64M	16.79M
Balance Sheet
Total Assets	82.51M	83.81M	87.12M	91.09M	86.39M	93.68M
Cash, Cash Equivalents and Short-Term Investments	3.32M	2.60M	3.85M	4.18M	8.91M	8.86M
Total Debt	39.79M	41.83M	44.43M	48.87M	50.97M	54.66M
Total Liabilities	48.49M	50.00M	54.03M	58.09M	58.60M	62.81M
Stockholders Equity	33.25M	33.06M	32.37M	32.57M	26.48M	29.75M
Cash Flow
Free Cash Flow	1.71M	-1.45M	1.99M	3.19M	2.65M	5.95M
Operating Cash Flow	3.55M	1.61M	5.13M	7.96M	5.29M	9.14M
Investing Cash Flow	-2.19M	-3.84M	-3.66M	-10.44M	-2.62M	-3.19M
Financing Cash Flow	-1.07M	983.00K	-1.80M	-2.25M	-2.62M	-8.56M

Good Times Restaurants Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.20, below the 50-day MA of 1.20, and below the 200-day MA of 1.45, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 34.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$36.95M	18.57	19.70%	―	0.35%	9.25%
CHSN	62 Neutral	$109.58M	-0.90	-1.73%	―	21.20%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GTIM	48 Neutral	$12.56M	17.64	3.18%	―	1.84%	12.10%
ARKR	46 Neutral	$24.31M	6.41	-29.84%	―	-9.70%	-194.23%
REBN	46 Neutral	$11.89M	-0.90	2210.86%	―	21.10%	-18.56%
BTBD	43 Neutral	$8.61M	3.03	-13.30%	―	-4.16%	29.52%