GTIM - Good Times Restaura... Stock Analysis | Stock Taper
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Good Times Restaurants Inc.

GTIM

Good Times Restaurants Inc. NASDAQ
$1.19 0.71% (+0.01)

Market Cap $12.56 M
52w High $2.65
52w Low $1.10
P/E 11.90
Volume 33.66K
Outstanding Shares 10.56M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $32.71M $3.34M $181K 0.55% $0.02 $1.27M
Q4-2025 $33.99M $3.12M $-3K -0.01% $-0 $512K
Q3-2025 $37.02M $2.91M $1.49M 4.02% $0.14 $2.23M
Q2-2025 $34.28M $3.78M $-624K -1.82% $-0.06 $515K
Q1-2025 $36.33M $3.67M $164K 0.45% $0.02 $1.26M

What's going well?

The company improved gross margins and swung back to profitability after a loss last quarter. Cost control on product delivery is working, and the bottom line is moving in the right direction.

What's concerning?

Revenue is slipping and operating expenses are rising faster than sales, which could pressure future profits. Margins are still thin, and the business remains low-margin overall.

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $3.32M $82.51M $48.49M $33.25M
Q4-2025 $2.6M $83.81M $50M $33.06M
Q3-2025 $3.14M $85.75M $51.94M $33.07M
Q2-2025 $2.71M $86.93M $54.64M $31.61M
Q1-2025 $3.02M $89.55M $56.45M $32.41M

What's financially strong about this company?

The company owns a lot of physical assets and has positive equity. Debt is trending down, and cash increased this quarter.

What are the financial risks or weaknesses?

Cash is low compared to bills due soon, and the company relies heavily on leases. Negative retained earnings show a history of losses, and working capital is under pressure.

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $198K $1.42M $-187K $-523K $711K $1.23M
Q4-2025 $6K $152K $-652K $-33K $-533K $-150K
Q3-2025 $1.54M $1.26M $-530K $-309K $426K $735K
Q2-2025 $-627K $714K $-816K $-209K $-311K $-105K
Q1-2025 $174K $-518K $-1.85M $1.53M $-830K $-1.93M

What's strong about this company's cash flow?

Operating cash flow jumped nearly tenfold, and free cash flow turned positive. The company is paying down debt and building its cash balance without needing outside funding.

What are the cash flow concerns?

Receivables jumped, tying up more cash, and cash flow has been volatile. No returns to shareholders, and past quarters were much weaker.

Revenue by Products

Product Q3-2023Q4-2023Q1-2024Q2-2024
Franchise
Franchise
$0 $0 $0 $0
Service
Service
$40.00M $30.00M $30.00M $40.00M

Q1 2026 Earnings Call Summary

Read Call Summary

5-Year Trend Analysis

A comprehensive look at Good Times Restaurants Inc.'s financial evolution and strategic trajectory over the past five years.

+ Strengths

GTIM’s main strengths are a clearly defined brand portfolio, steady revenue base, and a history of generating positive cash from operations. The Good Times and Bad Daddy’s concepts occupy distinct positions in the burger category, anchored by a commitment to higher-quality ingredients and a differentiated dining experience. The company has shown a willingness to adopt new technologies and to refresh its store base, while gradually reducing debt and slowly improving its equity position over time.

! Risks

The most pressing risks center on profitability, liquidity, and scale. Margins have eroded sharply, leaving earnings sensitive to even modest sales or cost swings. Cash balances and short-term liquidity metrics have weakened, increasing reliance on stable operations and access to credit. GTIM also competes against much larger chains in an environment of rising labor and commodity costs, making it harder to keep prices attractive while restoring profitability. Pulling back on capital spending and buybacks may be necessary to protect cash, but it also heightens the risk of underinvestment if carried too far.

Outlook

The outlook appears balanced but pressured. In the near term, management is likely to focus on stabilizing margins, strengthening liquidity, and completing key remodel and technology initiatives. If these efforts lead to better traffic, stronger brand perception, and improved restaurant-level economics, GTIM could gradually rebuild profitability and cash flow. However, continued cost inflation, soft consumer demand, or execution missteps in expansion and modernization could keep returns subdued. The company’s future trajectory will largely depend on its ability to translate its differentiated concepts and innovation efforts into sustainable, higher-margin growth without overburdening its already tight financial resources.