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Good Times Restaurants (GTIM) AI Stock Analysis

GTIM

Good Times Restaurants

(NASDAQ:GTIM)

Select Model
Rating:66Neutral
Price Target:$1.50â–²(16.73% Upside)
Action:reiterated
Date:08/20/26

The stock’s mid-60s score reflects a balance between improving profitability, reduced debt and positive free cash flow on one hand, and declining revenues, thin and volatile margins, and uneven cash generation on the other, with a supportive technical backdrop and modest valuation helping but not fully offsetting the operational and traffic-related risks flagged in the earnings call and KPI insights.

Positive Factors
Improved ProfitabilityHigher net income and adjusted EBITDA indicate improving operating performance and earnings conversion. If sustained, these gains can support reinvestment, strengthen financial resilience, and provide a more durable base for the company’s restaurant portfolio over the next several quarters.
Negative Factors
Top-Line and Traffic WeaknessRevenue contraction and declining Bad Daddy’s traffic weaken the company’s growth profile and can limit operating leverage across its restaurant base. Continued softness would make it harder to absorb fixed costs, sustain margins, and build reliable earnings momentum over the next several quarters.

Good Times Restaurants Key Performance Indicators (KPIs)

Revenue by SegmentBreaks down total sales across the company’s business lines (for example, company‑operated restaurants, franchise fees, or retail channels) to show where growth and cash flow originate. A mix weighted toward franchising usually means lower capital needs and steadier margins, while company‑operated sales can drive higher top-line but also greater operating risk. Watching shifts in the revenue mix reveals strategic direction, margin pressure, and concentration risk.

$0.00$10.00M$20.00M$30.00MMar 21Jun 21Sep 21Dec 21Mar 22Jun 22Sep 22Dec 22Mar 23Jun 23Sep 23Dec 23Mar 24Jun 24Sep 24Dec 24Apr 25Jul 25Sep 25Dec 25Mar 26Jun 26
Chart Insights

Bad Daddy’s has drifted down from its mid‑2024 peaks—partly driven by two store closures and persistent traffic weakness—making it the clear top‑line pressure point and especially exposed to rising ground‑beef costs since pricing room is limited. By contrast, Good Times’ concept shows steadier, modest growth and is increasingly the company’s stabilizer thanks to rapid GT Rewards adoption and successful promos; sustained loyalty conversion and the $2 Bambino rollout are the clearest levers to convert improving margins into durable revenue growth, but commodity risk could offset gains.

Data provided by:The Fly

Good Times Restaurants (GTIM) vs. SPDR S&P 500 ETF (SPY)

-20%-10%0%10%20%GTIM-6.52%SPY+13.13%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$13.62M
Dividend Yield
―
Average Volume (3M)
56.04K
Price to Earnings (P/E)
6.1
Beta (1Y)
0.75
Revenue Growth
-5.81%
EPS Growth
78.41%
Country
US
Employees
2,078
Sector
Consumer Cyclical
Sector Strength
61
Industry
Restaurants

Good Times Restaurants Business Overview & Revenue Model

Company Description

Good Times Restaurants Inc. (GTIM) is a U.S.-based company operating within the restaurant sector, primarily through its subsidiaries. The organization manages two distinct dining chains: it operates and franchises Good Times Burgers & Frozen Custard...

Good Times Restaurants Earnings Call Summary

Earnings Call Date:Aug 05, 2026(Q3-2026)|% Change Since:-9.51%|Next Earnings Date:Dec 09, 2026
Earnings Call SentimentPositive

The call communicated a number of encouraging operational and financial improvements — net income and adjusted EBITDA grew, Good Times same-store sales turned positive, labor and food-cost efficiencies were achieved, and the company finished the quarter with a strong cash position and minimal long-term debt. At the same time, total revenues were down, Bad Daddy's experienced noticeable same-store sales declines driven by fewer operating weeks and softer traffic, and certain costs (produce, fuel, delivery, occupancy) increased. Management highlighted successful menu promotions and ongoing initiatives (training, product calendar) to drive future sales, but some cannibalization risk remains. Overall, positives around profitability, cash/balance-sheet strength, and successful marketing initiatives slightly outweigh the headwinds in top-line performance and selected cost pressures.

Positive Updates

Net Income and EPS Growth
Net income to common shareholders increased to $1.9 million ($0.18 per share) from $1.5 million ($0.14 per share) in the prior-year quarter, demonstrating improved profitability year-over-year.

Negative Updates

Total Revenues Declined
Total revenues decreased to $35.2 million for the quarter compared to the prior-year period, reflecting top-line pressure despite pockets of strength across the business.

Company Guidance

Guidance on the call was fairly limited but specific: the company said it is not planning additional menu price increases for the balance of FY26, expects full‑year general & administrative expense of roughly 6%–7% of revenues (versus G&A of $2.0M or 5.6% of revenues in Q3), is considering extending the successful $2 Bambino promotion (which drove mid‑single‑digit same‑store sales in the June fiscal month, produced same‑store sales, average‑check and transaction growth in June and July, and made Bambinos the single largest burger item), will expand team‑member training to improve salesmanship, and plans Bad Daddy’s menu additions (a sampler platter and a new Power Bowl reintroducing ahi tuna) in FY27 Q1; management also highlighted a strengthened balance sheet after paying down the revolver, ending the quarter with $3.6M cash and ~$0.3M long‑term debt (including ~$300k seller‑financed debt). For context, trailing quarter metrics included total revenues of $35.2M, adjusted EBITDA $2.5M, net income $1.9M ($0.18/share), Bad Daddy’s sales $24.9M (same‑store sales -2.3%, avg menu price +2.5%, restaurant‑level operating profit $3.6M or 14.4% of sales), Good Times company‑owned sales $10.1M (same‑store sales +0.6%, avg menu price +1.7%, restaurant‑level operating profit $1.3M or 13.0% of sales).

Good Times Restaurants Financial Statement Overview

Summary

Financial performance is cautiously improving, with reduced debt, stronger recent margins and positive free cash flow, but revenue has contracted versus prior years, profitability remains thin and volatile, and cash generation is uneven, leaving the business exposed to operating swings.

Income Statement

58Neutral

Balance Sheet

67Positive

Cash Flow

54Neutral
Financial statement breakdown
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue135.10M141.63M142.38M138.16M138.20M123.95M
Gross Profit14.25M13.54M15.86M15.42M15.96M18.38M
EBITDA5.53M4.52M5.23M4.71M3.18M26.18M
Net Income2.23M1.02M1.61M11.09M-2.64M16.79M
Balance Sheet
Total Assets80.19M83.81M87.12M91.09M86.39M93.68M
Cash, Cash Equivalents and Short-Term Investments3.60M2.60M3.85M4.18M8.91M8.86M
Total Debt35.87M41.83M44.43M48.87M50.97M54.66M
Total Liabilities44.05M50.00M54.03M58.09M58.60M62.81M
Stockholders Equity35.35M33.06M32.37M32.57M26.48M29.75M
Cash Flow
Free Cash Flow2.62M-1.45M1.99M3.19M2.65M5.95M
Operating Cash Flow3.85M1.61M5.13M7.96M5.29M9.14M
Investing Cash Flow-1.28M-3.84M-3.66M-10.44M-2.62M-3.19M
Financing Cash Flow-2.11M983.00K-1.80M-2.25M-2.62M-8.56M

Good Times Restaurants Technical Analysis

Technical Analysis SentimentNegative
Last Price1.29

Price Trends

50DMA1.45Negative
100DMA1.43Negative
200DMA1.33Negative

Market Momentum

MACD-0.05Positive
RSI25.10Positive
STOCH24.44Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTIM, the sentiment is Negative. The current price of 1.29 is below the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.45, and below the 200-day MA of 1.33, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 25.10 is Positive, neither overbought nor oversold. The STOCH value of 24.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTIM.

Good Times Restaurants Risk Analysis

Good Times Restaurants disclosed 28 risk factors in its most recent earnings report. Good Times Restaurants reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Good Times Restaurants Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

GTIM against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
RAVERAVE71Outperform$29.79M10.3217.95%―7.23%8.40%
GTIMGTIM66Neutral$13.62M6.116.62%―-5.81%78.41%
CHSNCHSN62Neutral$2.76M0.313.29%―-7.73%-94.25%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
REBNREBN42Neutral$13.71M-1.42-545.67%―145.21%57.82%
BTBDBTBD40Underperform$10.98M-18.40-8.98%―-11.44%71.51%
ARKRARKR38Underperform$18.07M-5.69-9.79%―-9.48%77.31%

* Consumer Cyclical Sector Average

Performance Comparison

-100%-50%0%50%GTIMARKRRAVEBTBDREBNCHSNDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
GTIM and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
GTIMGood Times Restaurants1.29-0.05-3.73%
ARKRArk Restaurants Corp.5.01-2.09-29.44%
RAVERave Restaurant Group2.09-0.24-10.30%
BTBDBt Brands Inc1.840.084.55%
REBNReborn Coffee, Inc.1.59-0.23-12.64%
CHSNChanson International Holding Class A1.19-219.81-99.46%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 11, 2026