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Good Times Restaurants Third Quarter 2025 Earnings: EPS: US$0.14 (vs US$0.12 in 3Q 2024)
Good Times Restaurants Third Quarter 2025 Earnings: EPS: US$0.14 (vs US$0.12 in 3Q 2024)

Yahoo

time10-08-2025

  • Business
  • Yahoo

Good Times Restaurants Third Quarter 2025 Earnings: EPS: US$0.14 (vs US$0.12 in 3Q 2024)

Good Times Restaurants (NASDAQ:GTIM) Third Quarter 2025 Results Key Financial Results Revenue: US$37.0m (down 2.4% from 3Q 2024). Net income: US$1.49m (up 13% from 3Q 2024). Profit margin: 4.0% (up from 3.5% in 3Q 2024). EPS: US$0.14 (up from US$0.12 in 3Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Good Times Restaurants shares are up 23% from a week ago. Risk Analysis You should learn about the 2 warning signs we've spotted with Good Times Restaurants. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Good Times Restaurants Inc (GTIM) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Good Times Restaurants Inc (GTIM) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...

Yahoo

time09-05-2025

  • Business
  • Yahoo

Good Times Restaurants Inc (GTIM) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...

Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Good Times Restaurants Inc (NASDAQ:GTIM) is aligning its menu and promotions to provide everyday value for guests, avoiding deep discounting seen in competitors. The company is rolling out new burger builds and testing a new burger process to improve product quality and value perception. Bad Daddy's operations showed strong controls, with profitability less affected by reduced sales due to successful menu engineering. The introduction of new menu items like the Smash and Stack burger has been well-received, improving product mix and margins. GTIM is shifting marketing efforts to social and digital media, with promising results from connected TV and video streaming tests. Same store sales for both brands decreased by more than 3.5%, reflecting a challenging operating environment. Profitability at Good Times declined at a greater rate than sales, partly due to higher labor costs and costs associated with new initiatives. Labor productivity is not at desired levels, with labor costs expected to remain high due to training expenses. Food and packaging costs increased due to higher purchase prices, particularly in ground beef, without the benefit of price increases. Net loss to common shareholders was $0.6 million, compared to a net income of $0.6 million in the same quarter last year. Warning! GuruFocus has detected 2 Warning Sign with GTIM. Q: Can you elaborate on the strategic changes being implemented at Good Times Restaurants to address the current challenges? A: Ryan Zinc, CEO, explained that the company is focusing on improving kitchen execution, consistency, and product quality. They are rolling out new burger builds and testing a new burger process to enhance the value perception of their products. Additionally, they are condensing the menu to focus on core items like burgers, fries, and frozen custard, and introducing new products like fried ice cream to improve guest experience. Q: How is the company addressing the issue of increased labor costs? A: Ryan Zinc, CEO, mentioned that while labor productivity is not at the desired level, the priority is on improving restaurant operations quality. They expect labor costs to remain high due to increased training costs for new and existing employees. The focus is on top-grading talent and improving operational quality before addressing labor productivity. Q: What are the key factors affecting sales performance at Bad Daddy's and Good Times? A: Kerry August, Senior VP of Finance and Accounting, noted that sales at Bad Daddy's were impacted by reduced customer traffic and a negative mix shift due to the success of smash patty burgers, despite menu price increases. For Good Times, sales were affected by a decrease in same-store sales and increased competition, although there is potential for limited price increases as competitors raise prices on non-discounted items. Q: What marketing strategies are being employed to drive traffic and sales? A: Ryan Zinc, CEO, stated that the company is shifting marketing spend from radio to social and digital media, and testing connected TV and video streaming. They are also exploring outdoor advertising opportunities and increasing digital display and search advertising, using customer data for targeted marketing. Q: How is the company managing supply chain challenges and cost pressures? A: Ryan Zinc, CEO, announced a leadership change in the supply chain department, with Dave Wahman taking over as the new purchasing and supply chain leader. Wahman brings strong negotiating skills and a partnership orientation, which are expected to help manage cost pressures and improve supply chain efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Investors Will Want Good Times Restaurants' (NASDAQ:GTIM) Growth In ROCE To Persist
Investors Will Want Good Times Restaurants' (NASDAQ:GTIM) Growth In ROCE To Persist

Yahoo

time06-05-2025

  • Business
  • Yahoo

Investors Will Want Good Times Restaurants' (NASDAQ:GTIM) Growth In ROCE To Persist

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. With that in mind, we've noticed some promising trends at Good Times Restaurants (NASDAQ:GTIM) so let's look a bit deeper. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Understanding Return On Capital Employed (ROCE) Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Good Times Restaurants, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.029 = US$2.2m ÷ (US$90m - US$16m) (Based on the trailing twelve months to December 2024). So, Good Times Restaurants has an ROCE of 2.9%. In absolute terms, that's a low return and it also under-performs the Hospitality industry average of 9.7%. Check out our latest analysis for Good Times Restaurants NasdaqCM:GTIM Return on Capital Employed May 6th 2025 While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you're interested in investigating Good Times Restaurants' past further, check out this free graph covering Good Times Restaurants' past earnings, revenue and cash flow. The Trend Of ROCE Even though ROCE is still low in absolute terms, it's good to see it's heading in the right direction. We found that the returns on capital employed over the last five years have risen by 480%. That's not bad because this tells for every dollar invested (capital employed), the company is increasing the amount earned from that dollar. Speaking of capital employed, the company is actually utilizing 26% less than it was five years ago, which can be indicative of a business that's improving its efficiency. If this trend continues, the business might be getting more efficient but it's shrinking in terms of total assets. The Key Takeaway From what we've seen above, Good Times Restaurants has managed to increase it's returns on capital all the while reducing it's capital base. And investors seem to expect more of this going forward, since the stock has rewarded shareholders with a 99% return over the last five years. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist.

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