Good Times Restaurants (NASDAQ:GTIM) Issues Quarterly Earnings Results

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

GTIM stock remained flat at $1.42 during midday trading on Thursday. The company’s stock had a trading volume of 168,270 shares, compared to its average volume of 33,107. The company has a quick ratio of 0.31, a current ratio of 0.40 and a debt-to-equity ratio of 0.03. The firm’s fifty day simple moving average is $1.37 and its 200 day simple moving average is $1.27. The company has a market cap of $15.00 million, a PE ratio of 8.35 and a beta of 0.62. Good Times Restaurants has a one year low of $1.10 and a one year high of $2.09.

Wall Street Analyst Weigh In

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

Hedge Funds Weigh In On Good Times Restaurants

An institutional investor recently raised its stake in Good Times Restaurants stock. Bridgeway Capital Management LLC boosted its holdings in shares of Good Times Restaurants Inc. (NASDAQ:GTIM) by 4.8% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 153,813 shares of the restaurant operator’s stock after purchasing an additional 6,975 shares during the quarter. Bridgeway Capital Management LLC owned about 1.46% of Good Times Restaurants worth $275,000 at the end of the most recent quarter. 12.06% of the stock is currently owned by 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.