Good Times Restaurants Inc (GTIM)
NASDAQConsumer DiscretionaryRestaurantsSnapshot 2026-09-09
$1.52+1.33%
Close 2026-09-09 · 1-day change
NASDAQConsumer DiscretionaryRestaurantsSnapshot 2026-09-09
Intact: The reason to own it still holds.
Good Times Restaurants is improving profits, with net income rising from -$3,000 to $149,000 recently. Sales are growing modestly, with revenue up from $32.7M to $33.2M. The stock trades cheaply at a PE of 8.44 versus peers at 20.07. Free cash flow yield is strong at 13%.
Revenue is expected to decline about 5% next year, reflecting weak demand. The company faces high risk and sector headwinds. Profit improvements may stall, limiting upside.
The price is about 44% below our fair value near $2.53, reflecting expected revenue decline of -5.3%. Our view aligns that the market fairly prices in modest sales pressure but undervalues profit improvement potential.
Breaks if: net income falls below $0 in any quarter through 2026-Q2
Focus on improving overall company profitability through better cost management and sales performance at Good Times brand.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a turnaround investment with a focus on improving profitability and sales. The current thesis state indicates a recovery in financial performance, but the company remains loss-making and faces high risks.
The market currently prices GTIM as cheap compared to its peers. There is a negative expectations gap, indicating that investors may be cautious about future performance, especially given the company's recent financial struggles.
Management is on track with priorities to improve profitability and sales, although results are mixed. Recent financial performance has shown strength, but there is a significant risk of missing earnings expectations in the near term.
The long-term thesis hinges on management's ability to execute on profitability and sales goals. Additionally, external factors like inflation and performance of larger sector players will influence GTIM's trajectory.
The most important moves since the prior daily snapshot.
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 3 quarters. Net income attributable to common shareholders grew from about $1.0 million in 2025-Q4 to $1.9 million in 2026-Q2. Operating income year-to-date improved from $796,000 in 2025-Q3 to $2.2 million in 2026-Q3. Management's statements and financial results show delivering progress on improving profitability for both brands.
“We expect total overall company profitability in the fourth quarter to improve on a year-over-year basis from fiscal 2025 due to improved cost management and the improved sales performance at our Goo…”
“I am optimistic about our sales projections for both concepts and the resulting ability to meaningfully improve on profit measures during the fiscal year.”
“I am optimistic that fiscal 2026 will see improved performance for both brands after a difficult 2025.”
Breaks if: revenue falls below $32.7M in any quarter through 2026-Q2
Optimistic about sales projections for both restaurant concepts in fiscal 2026.
Breaks if: PE rises above 20 without profit growth
Over the next 1 to 3 years, GTIM's success will depend on its ability to navigate risks and improve its financial metrics. Not investment advice.