Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on GTIM

Here is a 90-word analysis of the negative drivers behind Good Times Restaurants Inc.'s recent performance: Weak same-store sales and higher labor costs weighed on Good Times Restaurants' Q1 2025 earnings. The company's CEO, Ryan Zink, cited ongoing labor inflation and softening sales trends in the quarter. Additionally, the company's Bad Daddy's Burger Bar segment, which accounts for a significant portion of revenue, experienced a decline in same-store sales. These headwinds likely pressured the company's profitability, offsetting any benefits from its cost-saving initiatives.

1.c. Company Highlights

2. Good Times Restaurants: Mixed Q3 Results Amidst Macro Pressures

Good Times Restaurants reported mixed fiscal 2025 third-quarter earnings, with total restaurant sales at Bad Daddy's decreasing $0.8 million to $26.5 million, primarily due to a sales decrease and negative mix shift. Same-store sales decreased 1.4% for the quarter. Meanwhile, total restaurant sales at Good Times decreased $0.1 million to $10.4 million, with same-store sales decreasing 9% for the quarter. Net income to common shareholders for the quarter was $1.5 million or income of $0.14 per share, beating analyst estimates of -$0.12 per share. Adjusted EBITDA for the quarter was $2.2 million compared to $2.4 million for the third quarter of 2024.

Publication Date: Aug -18

📋 Highlights
  • Bad Daddy's sequential progress:: 10 bps improvement in restaurant level operating profit amid mid-single-digit negative same-store sales.
  • Good Times sales decline:: 9% same-store sales drop, driven by 100 bps food cost increase and 150 bps labor cost rise.
  • Cash flow focus:: $1.5M net income ($0.14/share) with adjusted EBITDA down to $2.2M vs. $2.4M in Q3 2024.
  • Marketing strategy shift:: New leader Jason Murphy prioritizing brand messaging over discounts, preserving prices since January 2024.
  • 2026 expansion plans:: Bad Daddy's POS system upgrade and Good Times remodel/signage projects underway, with potential share buyouts in Q2 2026.

Margin Pressure and Cost Inflation

Food and beverage costs decreased 60 basis points from last year's quarter at Bad Daddy's, while labor costs increased 50 basis points, and occupancy costs decreased 30 basis points. At Good Times, food and packaging costs increased 100 basis points, primarily due to higher purchase prices for ground beef and eggs. Labor costs increased 150 basis points, and occupancy costs increased 40 basis points. The company is considering incremental menu price to offset input cost inflation.

Focus on Brand Positioning and Value Perception

CEO Ryan Zink emphasized the company's focus on preserving sales and unit-level profitability, avoiding deep discounts and instead focusing on providing value through better communication of the brand message and increased advertising. As Zink stated, "We're looking for ways to offer value without compromising our margins."

Share Repurchases and Special Projects

The company is focusing on cash accumulation and will continue to buy shares selectively. Zink hinted that they might accelerate share repurchases in fiscal 2026, possibly in the second quarter, depending on macro factors and internal forecasting. Additionally, the company is finalizing its remodel and signage project at Good Times and plans to replace the point-of-sale system at Bad Daddy's, with new unit opportunities being explored at both concepts.

Valuation Metrics

Good Times Restaurants trades at a P/E Ratio of 14.06, a P/B Ratio of 0.53, and an EV/EBITDA of 11.4. The company's ROIC stands at 1.89%, and ROE is at 3.88%. With a Net Debt / EBITDA of 7.77, investors should monitor the company's debt levels and its impact on future profitability.

3. NewsRoom

Card image cap

Good Times Restaurants Inc. (GTIM) Q3 2025 Earnings Call Transcript

Aug -09

Source: seekingalpha.com

Card image cap

Good Times Restaurants to Release Fiscal 2025 Third Quarter Financial Results on August 7, 2025

Jul -31

Source: businesswire.com

Card image cap

Good Times Restaurants Inc. (GTIM) Q2 2025 Earnings Conference Call Transcript

May -10

Source: seekingalpha.com

Card image cap

Good Times Restaurants Inc. (GTIM) Q1 2025 Earnings Call Transcript

Feb -07

Source: seekingalpha.com

Card image cap

Good Times Restaurants to Release Fiscal 2025 First Quarter Financial Results on February 6, 2025

Jan -30

Source: businesswire.com

Card image cap

Good Times Restaurants Inc. (GTIM) Q4 2024 Earnings Call Transcript

Dec -12

Source: seekingalpha.com

Card image cap

Good Times Restaurants Announces the Purchase of the Good Times Locations in Broomfield and Northglenn, Colorado

Oct -23

Source: businesswire.com

Card image cap

Good Times Restaurants Inc. (GTIM) Q3 2024 Earnings Call Transcript

Aug -02

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Bad Daddy's

Expected Growth: 4.5%

Growing demand for gourmet burgers, increasing popularity of casual dining, and expanding health-conscious consumer base drive Bad Daddy's growth, with a forecast CAGR of 4.5%.

Good Times

Expected Growth: 4.5%

Growing demand for nostalgic dining experiences, increasing popularity of fast-casual restaurants, and Good Times' unique 50's-style drive-in atmosphere are expected to drive segment growth.

7. Detailed Products

Bad Daddy's Burger Bar

A full-service, upscale burger bar concept offering gourmet burgers, salads, and sandwiches

Good Times Burgers & Frozen Custard

A quick-service restaurant chain offering burgers, sandwiches, and frozen custard treats

8. Good Times Restaurants Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Good Times Restaurants Inc. faces moderate threat from substitutes, as customers have various options for dining out and take-out, but the company's brand recognition and quality of food help to mitigate this threat.

Bargaining Power Of Customers

Good Times Restaurants Inc. has a diverse customer base, which reduces the bargaining power of individual customers, and the company's loyalty programs and promotions help to retain customers.

Bargaining Power Of Suppliers

Good Times Restaurants Inc. relies on a few large suppliers for its ingredients and materials, which gives them some bargaining power, but the company's scale and long-term contracts help to mitigate this risk.

Threat Of New Entrants

Good Times Restaurants Inc. operates in a highly competitive industry, but the company's established brand and scale of operations make it difficult for new entrants to gain significant market share.

Intensity Of Rivalry

Good Times Restaurants Inc. operates in a highly competitive industry with many established players, which leads to intense rivalry and pricing pressure, but the company's focus on quality and customer service helps to differentiate it from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.70%
Debt Cost 3.95%
Equity Weight 40.30%
Equity Cost 12.83%
WACC 7.52%
Leverage 148.11%

11. Quality Control: Good Times Restaurants Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
RCI Hospitality

A-Score: 4.3/10

Value: 7.6

Growth: 5.1

Quality: 5.2

Yield: 1.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Potbelly

A-Score: 4.1/10

Value: 2.4

Growth: 6.0

Quality: 3.5

Yield: 0.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Red Robin

A-Score: 3.6/10

Value: 8.2

Growth: 1.4

Quality: 3.6

Yield: 0.0

Momentum: 7.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
ONE Group Hospitality

A-Score: 3.5/10

Value: 9.3

Growth: 6.4

Quality: 2.1

Yield: 0.0

Momentum: 2.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
Good Times Restaurants

A-Score: 3.3/10

Value: 7.9

Growth: 5.2

Quality: 2.5

Yield: 0.0

Momentum: 1.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Kura Sushi USA

A-Score: 2.7/10

Value: 3.4

Growth: 6.0

Quality: 2.7

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.25$

Current Price

1.25$

Potential

0.00%

Expected Cash-Flows