Good Times Restaurants (NASDAQ:GTIM) Announces 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, topping the consensus estimate of ($0.04) by $0.22, FiscalAI reports. Good Times Restaurants had a net margin of 1.65% and a return on equity of 6.57%. The business 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 Stock Performance

NASDAQ:GTIM traded up $0.05 during mid-day trading on Friday, reaching $1.47. The company’s stock had a trading volume of 162,347 shares, compared to its average volume of 36,589. Good Times Restaurants has a 12-month low of $1.10 and a 12-month high of $2.09. The firm’s fifty day moving average price is $1.37 and its two-hundred day moving average price is $1.28. The company has a current ratio of 0.40, a quick ratio of 0.31 and a debt-to-equity ratio of 0.03. The stock has a market cap of $15.52 million, a P/E ratio of 7.00 and a beta of 0.62.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Good Times Restaurants stock. Bridgeway Capital Management LLC boosted its stake in Good Times Restaurants Inc. (NASDAQ:GTIM) by 4.8% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 153,813 shares of the restaurant operator’s stock after purchasing 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 quarter. 12.06% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings restated a “sell (d)” rating on shares of Good Times Restaurants in a report on Wednesday, June 24th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Good Times Restaurants presently has a consensus rating of “Sell”.

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.