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

Good Times Restaurants (NASDAQ:GTIM) issued its earnings results on Thursday. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.22, FiscalAI reports. Good Times Restaurants had a return on equity of 5.34% and a net margin of 1.32%.The company had revenue of $35.17 million during the quarter, compared to analysts’ expectations of $31.53 million.

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

• Good Times same-store sales turned positive, rising 0.6% in the quarter, with sales, average check, and transactions improving in June and July. The $2 Bambinos promotion drove mid-single-digit same-store sales in June and may be extended beyond the planned summer period.
• Profitability improved despite lower total revenue: quarterly net income increased to $1.9 million, or $0.18 per share, from $1.5 million, while adjusted EBITDA rose to $2.5 million from $2.1 million.
• Good Times restaurant-level operating margin expanded to 13.0% from 11.5%, supported by improved labor efficiency, lower waste, and reduced operating expenses. Combined general and administrative costs also declined as a percentage of revenue.
• Bad Daddy’s remained challenged, with same-store sales down 2.3% and total restaurant sales declining to $24.9 million due to reduced traffic and fewer operating weeks, although restaurant-level margin held steady at 14.4%.
• The company ended the quarter with $3.6 million in cash and only approximately $0.3 million of long-term debt after paying down its revolving credit facility. Management said the board is evaluating multiple shareholder-return alternatives, potentially including a cash dividend.

Good Times Restaurants Price Performance

Shares of GTIM stock remained flat at $1.42 during trading on Thursday. 168,270 shares of the stock traded hands, compared to its average volume of 33,107. The company has a market capitalization of $15.00 million, a price-to-earnings ratio of 8.35 and a beta of 0.62. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.40 and a quick ratio of 0.31. The firm’s 50-day moving average price is $1.37 and its two-hundred day moving average price is $1.27. Good Times Restaurants has a 1 year low of $1.10 and a 1 year high of $2.09.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a “sell (d)” rating on shares of Good Times Restaurants in a research report on Wednesday, June 24th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company currently has an average rating of “Sell”.

Institutional Inflows and Outflows

A hedge fund recently raised its position in Good Times Restaurants stock. Bridgeway Capital Management LLC raised its holdings in Good Times Restaurants Inc. (NASDAQ:GTIM) by 6.5% during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 163,737 shares of the restaurant operator’s stock after purchasing an additional 9,924 shares during the quarter. Bridgeway Capital Management LLC owned 1.55% of Good Times Restaurants worth $269,000 as of its most recent SEC filing. Hedge funds and other institutional investors own 12.06% of the company’s stock.

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.