Good Times Restaurants (NASDAQ:GTIM) Issues Quarterly Earnings Results

Good Times Restaurants (NASDAQ:GTIM) announced its quarterly earnings results on Thursday. The restaurant operator reported $0.02 EPS for the quarter, FiscalAI reports. The firm had revenue of $32.71 million during the quarter. Good Times Restaurants had a net margin of 0.72% and a return on equity of 4.57%.

Here are the key takeaways from Good Times Restaurants’ conference call:

• Total revenues fell ~10% to $32.7M and same-store sales remained negative at both brands (Bad Daddy’s -1.2%, Good Times -3.1%), though net income ($0.2M) and adjusted EBITDA ($1.3M) were roughly flat versus prior year despite one fewer week.
• Weather in the Southeast materially disrupted Bad Daddy’s operations (28 full closed days and ~73 reduced-sales days), which weighed on Q1 results even as management says trends have improved into Q2.
• Operational and menu changes aim to improve guest experience and sales — Good Times moved to cook-to-order with fresh 100% Angus patties (10% larger patties at no added cost) and Bad Daddy’s is shifting to a Burger-of-the-Month platform while adding high-performing LTO items to the core menu.
• Cost controls are driving margin improvement — food and packaging costs declined (~100–130 bps), labor as a % of sales decreased at both brands, restaurant-level operating margins improved, and G&A fell to 6.3% of revenues.
• Capital allocation priorities are conservative — management said the top priorities are paying down remaining debt, building liquidity, then resuming share repurchases and selective Bad Daddy’s development.

Good Times Restaurants Price Performance

Shares of Good Times Restaurants stock opened at $1.18 on Friday. The stock has a market capitalization of $12.46 million, a price-to-earnings ratio of 11.80 and a beta of 0.75. The firm’s 50-day moving average price is $1.23 and its two-hundred day moving average price is $1.43. The company has a current ratio of 0.37, a quick ratio of 0.27 and a debt-to-equity ratio of 0.07. Good Times Restaurants has a 1-year low of $1.10 and a 1-year high of $2.65.

Institutional Investors Weigh In On Good Times Restaurants

An institutional investor recently raised its position in Good Times Restaurants stock. Bridgeway Capital Management LLC lifted its stake in shares of Good Times Restaurants Inc. (NASDAQ:GTIM) by 4.8% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 153,813 shares of the restaurant operator’s stock after purchasing an additional 6,975 shares during the period. Bridgeway Capital Management LLC owned approximately 1.46% of Good Times Restaurants worth $275,000 at the end of the most recent reporting period. 12.06% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a “sell (d)” rating on shares of Good Times Restaurants in a research report on Monday, December 29th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat, the company presently has a consensus rating of “Sell”.

About Good Times Restaurants

Good Times Restaurants International, Inc (NASDAQ: GTIM) owns, develops, operates and franchises quick-service restaurants under the Good Times Burger & Frozen Custard brand. The company’s restaurants feature a signature menu built around hand-pressed, fresh-never-frozen beef burgers, homemade buns, fresh-cut fries, handcrafted milkshakes and frozen custard desserts. Good Times supplements its core offerings with seasonal items and limited-time promotions designed to appeal to a variety of customer tastes.

Founded in 1987 and headquartered in Lakewood, Colorado, Good Times has expanded through a mix of company-owned locations and franchising agreements.