Good Times Restaurants (NASDAQ:GTIM) Issues Earnings Results

Good Times Restaurants (NASDAQ:GTIM) released its quarterly earnings results on Thursday. The restaurant operator reported $0.02 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $32.71 million for the quarter. Good Times Restaurants had a net margin of 0.75% and a return on equity of 4.61%.

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 Trading Up 3.4%

Shares of GTIM stock traded up $0.04 during mid-day trading on Friday, reaching $1.22. The company’s stock had a trading volume of 78,895 shares, compared to its average volume of 28,910. The company’s 50 day simple moving average is $1.22 and its 200-day simple moving average is $1.43. The company has a quick ratio of 0.27, a current ratio of 0.37 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $12.88 million, a PE ratio of 12.20 and a beta of 0.75. Good Times Restaurants has a 12-month low of $1.10 and a 12-month high of $2.65.

Wall Street Analyst Weigh In

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

Institutional Inflows and Outflows

An institutional investor recently raised its stake in Good Times Restaurants stock. Bridgeway Capital Management LLC increased its position in shares of Good Times Restaurants Inc. (NASDAQ:GTIM) by 6.5% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 163,737 shares of the restaurant operator’s stock after acquiring 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. Institutional investors own 12.06% of the company’s stock.

Good Times Restaurants Company Profile

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.