Good Times Restaurants Reports Q1 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
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Should l Buy GTIM?
Source: seekingalpha
- Financial Overview: Good Times Restaurants reported a Q1 GAAP EPS of $0.01, with revenue of $33.2 million reflecting an 8.6% year-over-year decline, indicating pressure in the competitive market.
- Net Income Status: The net income attributable to common shareholders was $0.1 million for the quarter, demonstrating the company's ability to maintain profitability despite declining revenues, though overall financial performance requires improvement.
- Adjusted EBITDA: The adjusted EBITDA stood at $1.4 million, a non-GAAP measure indicating some operational efficiency improvements, despite the challenges posed by revenue decline.
- Financial Position: At the end of the quarter, the company had $2.7 million in cash and $1.0 million in long-term debt, reflecting a solid liquidity management strategy, although the debt level warrants attention regarding its impact on future operations.
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About GTIM
Good Times Restaurants Inc. is an operator of Bad Daddy's Burger Bar and Good Times Burgers & Frozen Custard. The Company, through its subsidiaries, owns and operates or licenses 38 Bad Daddy’s restaurants in seven states. Bad Daddy’s Burger Bar is a full-service, casual dining small box concept. Bad Daddy's operates all its restaurants under a table service / full bar service model. Its menu consists of burgers, sandwiches, main-course salads, and appetizers. Good Times is a drive-thru, quick-service burger-focused restaurant concept. The Company owns and operates 27 Good Times restaurants, and franchises an additional three: one located in Aurora, Colorado and two in Wyoming. Its menu consists of wild fries, crinkle cut fries, jalapeno cheddar cheese poppers, onion rings, soft drinks, fresh lemonades, with a selection of shakes and floats made with its frozen custard. Its subsidiaries include Good Times Drive Thru, Inc., BD of Colorado, LLC, and Bad Daddy’s International, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Good Times Restaurants Reports Q1 Financial Results
- Financial Overview: Good Times Restaurants reported a Q1 GAAP EPS of $0.01, with revenue of $33.2 million reflecting an 8.6% year-over-year decline, indicating pressure in the competitive market.
- Net Income Status: The net income attributable to common shareholders was $0.1 million for the quarter, demonstrating the company's ability to maintain profitability despite declining revenues, though overall financial performance requires improvement.
- Adjusted EBITDA: The adjusted EBITDA stood at $1.4 million, a non-GAAP measure indicating some operational efficiency improvements, despite the challenges posed by revenue decline.
- Financial Position: At the end of the quarter, the company had $2.7 million in cash and $1.0 million in long-term debt, reflecting a solid liquidity management strategy, although the debt level warrants attention regarding its impact on future operations.
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Good Times Restaurants Q1 2026 Earnings Call Insights
- Sales Growth Trend: Despite ongoing negative comps, both Good Times and Bad Daddy's reported sequential improvement in same-store sales, with Ryan Zink noting a slight year-over-year increase in net income, indicating business resilience even with one less week in the fiscal calendar.
- Cost Control Effectiveness: Keri August highlighted that food and beverage costs decreased to 30.2%, a 130 basis point drop from last year, while menu price increases and cost controls improved margins, reflecting the company's adaptability in challenging conditions.
- Loyalty Program Enhancement: The newly launched loyalty program increased attachment rates from 3%-4% to over 7%, with top-performing restaurants exceeding 10%, which not only enhances customer loyalty but also lays a foundation for future sales growth.
- Future Outlook: Management expects continued improvement in same-store sales trends into Q2, planning a 1.1% menu price increase at Bad Daddy's, demonstrating the company's keen responsiveness to market dynamics and flexible pricing strategies.
See More
Good Times Restaurants Reports Q1 Earnings Highlights
- Earnings Performance: Good Times Restaurants reported a GAAP EPS of $0.02 for Q1, with revenue at $32.7 million, reflecting a 10% year-over-year decline, indicating resilience amidst market challenges.
- Stock Price Reaction: Following the earnings report, Good Times Restaurants' shares rose by 5.93%, demonstrating investor confidence in the company's future growth potential despite the revenue decline.
- Menu Price Adjustment: The company anticipates an average menu price increase of 1.7% at Bad Daddy's in Q1 2026 while targeting value promotions to attract customers and boost sales.
- Future Outlook: Despite the revenue drop in Q1, Good Times Restaurants is actively adjusting its strategies to respond to market changes, aiming to restore growth through price adjustments and promotional activities.
See More
Good Times (GTIM) Q1 2026 Earnings Call Transcript
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Good Times Restaurants Inc. Reports $6 Net Income for FY 2025 Amid Sales Weakness
- Sales Weakness: Good Times Restaurants Inc. reported a net income of only $6 for FY 2025, reflecting a decline from the previous year and indicating overall sales weakness across both Bad Daddy's and Good Times brands, particularly in the Colorado market.
- Same Store Sales Improvement: Despite the overall sales decline, Bad Daddy's demonstrated greater resilience in markets outside Colorado, with same-store sales outperforming consolidated results by nearly 100 basis points for FY 2025, highlighting the brand's potential in other markets.
- Advertising Strategy Adjustment: The company is adjusting its advertising and promotional strategies, including launching a new branding campaign aimed at effectively reaching customers to drive improved traffic and sales at its restaurants.
- Optimistic Future Outlook: CEO Ryan M. Zink expressed optimism for FY 2026 performance despite the challenges faced in FY 2025, planning to enhance brand competitiveness by better understanding customer needs and swiftly adapting to meet them.
See More
Good Times Restaurants Reports Q1 Financial Results
- Financial Overview: Good Times Restaurants reported a Q1 GAAP EPS of $0.01, with revenue of $33.2 million reflecting an 8.6% year-over-year decline, indicating pressure in the competitive market.
- Net Income Status: The net income attributable to common shareholders was $0.1 million for the quarter, demonstrating the company's ability to maintain profitability despite declining revenues, though overall financial performance requires improvement.
- Adjusted EBITDA: The adjusted EBITDA stood at $1.4 million, a non-GAAP measure indicating some operational efficiency improvements, despite the challenges posed by revenue decline.
- Financial Position: At the end of the quarter, the company had $2.7 million in cash and $1.0 million in long-term debt, reflecting a solid liquidity management strategy, although the debt level warrants attention regarding its impact on future operations.
See More
Analyst Blog Highlights Featured Stocks
- Berkshire Hathaway Performance: Over the past six months, Berkshire Hathaway's stock has underperformed, declining 3.7% compared to the insurance industry's 2.5% drop, indicating pressure on underwriting results primarily due to catastrophe losses, alongside challenges from significant capital expenditures.
- KLA's Market Advantage: KLA's stock has surged 59.7% in the past six months, significantly outperforming the electronics industry at 30.5%, driven by strong demand for advanced packaging and high-bandwidth memory, with expectations of mid-to-high teens growth in 2026, showcasing its competitive strength in the semiconductor market.
- CME's Strong Performance: CME's stock has risen 25.3% over the past six months, far exceeding the securities and exchanges industry's -3.2%, with its diverse derivative product lines and stable global presence providing a solid foundation for future growth, despite rising technology costs posing margin pressures.
- Natural Health Trends Challenges: Natural Health Trends' stock has declined 24.3% in the past six months, primarily due to a decrease in active members leading to sales declines, although it maintains a strong gross margin and aims for $1.5 million in annual savings through restructuring efforts, demonstrating resilience in adversity.
See More
Good Times Restaurants Q1 2026 Earnings Call Insights
- Sales Growth Trend: Despite ongoing negative comps, both Good Times and Bad Daddy's reported sequential improvement in same-store sales, with Ryan Zink noting a slight year-over-year increase in net income, indicating business resilience even with one less week in the fiscal calendar.
- Cost Control Effectiveness: Keri August highlighted that food and beverage costs decreased to 30.2%, a 130 basis point drop from last year, while menu price increases and cost controls improved margins, reflecting the company's adaptability in challenging conditions.
- Loyalty Program Enhancement: The newly launched loyalty program increased attachment rates from 3%-4% to over 7%, with top-performing restaurants exceeding 10%, which not only enhances customer loyalty but also lays a foundation for future sales growth.
- Future Outlook: Management expects continued improvement in same-store sales trends into Q2, planning a 1.1% menu price increase at Bad Daddy's, demonstrating the company's keen responsiveness to market dynamics and flexible pricing strategies.
See More
Good Times Restaurants Reports Q1 Earnings Highlights
- Earnings Performance: Good Times Restaurants reported a GAAP EPS of $0.02 for Q1, with revenue at $32.7 million, reflecting a 10% year-over-year decline, indicating resilience amidst market challenges.
- Stock Price Reaction: Following the earnings report, Good Times Restaurants' shares rose by 5.93%, demonstrating investor confidence in the company's future growth potential despite the revenue decline.
- Menu Price Adjustment: The company anticipates an average menu price increase of 1.7% at Bad Daddy's in Q1 2026 while targeting value promotions to attract customers and boost sales.
- Future Outlook: Despite the revenue drop in Q1, Good Times Restaurants is actively adjusting its strategies to respond to market changes, aiming to restore growth through price adjustments and promotional activities.
See More
Good Times (GTIM) Q1 2026 Earnings Call Transcript
See More
Good Times Restaurants Inc. Reports $6 Net Income for FY 2025 Amid Sales Weakness
- Sales Weakness: Good Times Restaurants Inc. reported a net income of only $6 for FY 2025, reflecting a decline from the previous year and indicating overall sales weakness across both Bad Daddy's and Good Times brands, particularly in the Colorado market.
- Same Store Sales Improvement: Despite the overall sales decline, Bad Daddy's demonstrated greater resilience in markets outside Colorado, with same-store sales outperforming consolidated results by nearly 100 basis points for FY 2025, highlighting the brand's potential in other markets.
- Advertising Strategy Adjustment: The company is adjusting its advertising and promotional strategies, including launching a new branding campaign aimed at effectively reaching customers to drive improved traffic and sales at its restaurants.
- Optimistic Future Outlook: CEO Ryan M. Zink expressed optimism for FY 2026 performance despite the challenges faced in FY 2025, planning to enhance brand competitiveness by better understanding customer needs and swiftly adapting to meet them.
See More
