Good Times Restaurants Inc. (GTIM) | Investment Case

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

Last Price	1.21
Change Percentage	-0.82%
Open	1.2
Previous Close	1.22
Market Cap ( Millions)	13
Volume	12766
Year High	2.65
Year Low	1.1
M A 50	1.22
M A 200	1.49

FCF Yield	13.40%
Dividend Yield	0.00%
ROE	3.18%
Debt / Equity	119.67%
Net Debt / EBIDTA	805.79%
Price To Book	0.38
Price Earnings Ratio	12.27
Price To FCF	7.46
Price To sales	0.09
EV / EBITDA	10.88

2. Good Times Restaurants Inc. Sees Revenue Decline Amidst Operational Challenges

Good Times Restaurants Inc. reported a decline in total revenues by 5.1% to $34 million for the fiscal 2025 fourth quarter and a marginal decrease of 0.5% to $141.6 million for the year. The company's net loss to common shareholders was $3,000 or $0 per share, compared to a net income of $200,000 or $0.02 per share last year. Adjusted EBITDA was negative $74,000, down from $1.3 million last year. The actual EPS was $0.1, beating estimates of -$0.12.

Publication Date: Jan -05

                                    📋 Highlights
                                    Revenue Decline::
                                                Fiscal 2025 annual revenue fell 0.5% to $141.6M, with Q4 down 5.1% to $34M.
Bad Daddy's Sales Drop::
                                                Q4 sales dropped $1.7M to $24M (4.6% same-store sales decline), driven by closed locations and traffic loss.
Cost Pressures::
                                                Food costs rose to 31.6% (Bad Daddy's) and 32.1% (Good Times), while labor costs hit 35.7% and 35.9%, up 140–200 basis points.
Net Loss Recorded::
                                                Net loss of $3,000 ($0/share) in 2025 vs. $200K net income ($0.02/share) in 2024, with adjusted EBITDA at -$74K vs. $1.3M.
Liquidity and 2026 Outlook::
                                                Closed Q4 with $2.6M cash and $2.3M debt, targeting 6–7% G&A costs and EBITDA improvement in 2026.

                                

Operational Performance

At Bad Daddy's, total restaurant sales decreased by $1.7 million to $24 million for the quarter, driven by reduced customer traffic and a closed restaurant, partially offset by menu price increases. Same-store sales decreased by 4.6% for the quarter. Food and beverage costs increased by 40 basis points to 31.6% due to record-high ground beef prices. Labor costs rose by 140 basis points to 35.7%. Restaurant-level operating profit was $2.4 million or 9.9% of sales, down from $3.4 million or 13.2% last year.

Segment-wise Performance

At Good Times, total restaurant sales decreased by $300,000 to $9.7 million for the quarter, with same-store sales decreasing by 6.6%. Food and packaging costs increased by 120 basis points to 32.1% due to high beef prices. Labor costs rose by 200 basis points to 35.9%. Restaurant-level operating profit decreased to $800,000 or 8% of sales.

Outlook and Valuation

The company expects general and administrative costs of 6% to 7% and an improvement in same-store sales and adjusted EBITDA for 2026. Analysts estimate revenue growth of 27.2% for next year. With a P/S Ratio of 0.09 and an EV/EBITDA of 11.21, the stock's valuation appears to be factoring in some level of operational recovery. The company's ROE of 3.15% and ROIC of 0.07% indicate room for improvement in profitability.

Financial Health

The company finished the quarter with $2.6 million in cash and $2.3 million of long-term debt. The Net Debt / EBITDA ratio stands at 8.35, indicating a challenging debt position relative to its EBITDA. The Free Cash Flow Yield is -13.98%, suggesting potential cash flow constraints.

3. NewsRoom

Good Times Restaurants Inc. (GTIM) Q1 2026 Earnings Call Transcript

Feb -06

Source: seekingalpha.com

RAVE vs. GTIM: Which Restaurant Stock Belongs in Your Portfolio Today?

Jan -02

Source: zacks.com

Good Times Restaurants Q4 Earnings Call Highlights

Dec -25

Source: defenseworld.net

Good Times Restaurants Inc. (GTIM) Q4 2025 Earnings Call Transcript

Dec -23

Source: seekingalpha.com

Limoneira, ZIM Integrated Shipping And 3 Stocks To Watch Heading Into Tuesday

Dec -23

Source: feeds.benzinga.com

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

Aug -09

Source: seekingalpha.com

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

Jul -31

Source: businesswire.com

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

May -10

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

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

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Potbelly

A-Score: 4.2/10

Value: 2.4

Growth: 6.0

Quality: 3.3

Yield: 0.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

RCI Hospitality

A-Score: 4.0/10

Value: 8.3

Growth: 5.1

Quality: 5.2

Yield: 1.0

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

ONE Group Hospitality

A-Score: 3.8/10

Value: 9.8

Growth: 6.4

Quality: 3.3

Yield: 0.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

Good Times Restaurants

A-Score: 3.2/10

Value: 8.7

Growth: 5.2

Quality: 2.5

Yield: 0.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

Red Robin

A-Score: 3.1/10

Value: 8.2

Growth: 1.4

Quality: 3.5

Yield: 0.0

Momentum: 3.5

Volatility: 1.7

1-Year Total Return ->

Kura Sushi USA

A-Score: 2.7/10

Value: 3.8

Growth: 6.3

Quality: 2.9

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

35.83%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.52%

Good Times Restaurants Inc. - US3821408792

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GTIM

1.c. Company Highlights

Lower Quality

Average Yield

Average Growth

Average Quality

Stable Momentum

Medium Volatility

Fairly Valued

Weak Momentum

2. Good Times Restaurants Inc. Sees Revenue Decline Amidst Operational Challenges

Operational Performance

Segment-wise Performance

Outlook and Valuation

Financial Health

3. NewsRoom

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%

Good Times

Expected Growth: 4.5%

7. Detailed Products

Bad Daddy's Burger Bar

Good Times Burgers & Frozen Custard

8. Good Times Restaurants Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.21$

Current Price

1.21$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA