Good Times Restaurants (NASDAQ:GTIM) Posts Earnings Results, Beats Estimates By $0.22 EPS

Good Times Restaurants (NASDAQ:GTIM) posted its quarterly earnings results on Thursday. The restaurant operator reported $0.18 EPS for the quarter, beating the consensus estimate 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 firm 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

Shares of NASDAQ:GTIM remained flat at $1.42 during midday trading on Thursday. 168,270 shares of the stock were exchanged, compared to its average volume of 33,107. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.40 and a quick ratio of 0.31. The business has a 50 day moving average price of $1.37 and a 200 day moving average price of $1.27. Good Times Restaurants has a one year low of $1.10 and a one year high of $2.09. The stock has a market cap of $15.00 million, a price-to-earnings ratio of 8.35 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 lifted its stake in Good Times Restaurants Inc. (NASDAQ:GTIM) by 6.5% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 163,737 shares of the restaurant operator’s stock after buying an additional 9,924 shares during the period. Bridgeway Capital Management LLC owned about 1.55% of Good Times Restaurants worth $269,000 at the end of the most recent reporting period. Hedge funds and other institutional investors own 12.06% of the company’s stock.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a “sell (d)” rating on shares of Good Times Restaurants in a report on Wednesday, June 24th. One analyst has rated the stock with a Sell rating, According to 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.