Good Times Restaurants (NASDAQ:GTIM) Posts Earnings Results, Beats Expectations By $0.22 EPS

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

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 Stock Performance

Good Times Restaurants stock traded up $0.04 during mid-day trading on Friday, reaching $1.46. 54,602 shares of the company’s stock were exchanged, compared to its average volume of 33,056. The business’s fifty day simple moving average is $1.37 and its 200 day simple moving average is $1.27. The company has a quick ratio of 0.31, a current ratio of 0.40 and a debt-to-equity ratio of 0.03. Good Times Restaurants has a one year low of $1.10 and a one year high of $2.09. The firm has a market capitalization of $15.36 million, a PE ratio of 8.47 and a beta of 0.62.

Wall Street Analyst Weigh In

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

Institutional Inflows and Outflows

An institutional investor recently raised its position in Good Times Restaurants stock. Bridgeway Capital Management LLC lifted its stake in Good Times Restaurants Inc. (NASDAQ:GTIM) by 4.8% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 153,813 shares of the restaurant operator’s stock after acquiring 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 currently owned by hedge funds and other institutional investors.

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.