Nasdaq:GTIM
Good Times Restaurants Inc.
A Canadian restaurant operator navigating margin pressures with modest recent growth and a shrinking cash position.
Key Metrics
Investment Thesis
Bull Case
The company maintains a consistent revenue stream hovering around $141M despite macroeconomic headwinds, indicating resilient brand demand. Positive operating cash flow of $1.6M provides some liquidity buffer to service debt obligations and fund modest capital expenditures.
Bear Case
Net income has collapsed by over 90% since 2023, signaling severe operational or cost-structure issues that are not yet resolved. The balance sheet is precarious with current liabilities at $14.4M against only $5.3M in current assets, raising concerns about short-term solvency.
About Good Times Restaurants Inc.
Good Times Restaurants Inc. (GTIM) is a restaurant operator based in Canada serving diverse dining concepts across the country. The company generates revenue primarily through food and beverage sales at its various locations while managing significant operating lease liabilities typical of the sector.
Analysis
Management Discussion
The company experienced a sharp decline in profitability, with net profit dropping from $11.7M in 2023 to just $1.1M in 2025. Cash flow from operations of $1.6M was partially offset by substantial investing outflows of $3.8M and financing cash outflows, resulting in a negative change in cash balance. The shift from positive income tax expense to a benefit suggests potential restructuring or one-time adjustments affecting the bottom line.
Industry Overview
The restaurant industry faces ongoing challenges from rising labor costs and inflation, which often compress margins for operators like GTIM. Consolidation remains a trend as smaller chains struggle with high fixed lease costs and declining discretionary consumer spending.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $138.1M | $142.3M | $141.6M |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $138.1M | $142.3M | $141.6M |
| Operating Expenses | $137.2M | $140.9M | $141.3M |
| Operating Income | $963.0K | $1.4M | $330.0K |
| G&A | $9.1M | $10.5M | $9.7M |
| Stock-Based Comp | $131.0K | $134.0K | $112.0K |
| D&A | $3.8M | $3.8M | $4.0M |
| Amortization | $9.0K | $20.0K | — |
| Other OpEx | $128.0M | $130.4M | $131.6M |
| Non-Operating Income | $-10.9M | $-125.0K | $-56.0K |
| Interest Expense | $78.0K | — | — |
| Pre-Tax Income | $-9.9M | $1.3M | $274.0K |
| Income Tax | $-10.8M | $-624.0K | $-824.0K |
| Continuing Ops | $885.0K | $1.9M | $1.1M |
| Discontinued Ops | $10.8M | $0 | $0 |
| Net Income | $11.7M | $1.9M | $1.1M |
| Minority Interest | $586.0K | $266.0K | $74.0K |
| Net to Common | $11.1M | $1.6M | $1.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $6.6M | $6.6M | $5.3M |
| Cash & Equivalents | $4.2M | $3.9M | — |
| Accounts Receivable | $769.0K | — | — |
| Inventory | $1.4M | $1.4M | $1.4M |
| Prepaid Expenses | $235.0K | $395.0K | $466.0K |
| Other Current Assets | $0 | $890.0K | $3.4M |
| Long-Term Assets | $84.5M | $80.6M | $78.6M |
| PP&E (Net) | $23.0M | $22.8M | $21.9M |
| Intangibles | $4.0M | — | — |
| Goodwill | $5.7M | $5.7M | $5.7M |
| Operating Leases | $39.9M | $35.7M | $33.6M |
| Other LT Assets | $11.9M | $16.4M | $17.4M |
| Total Assets | $91.1M | $87.1M | $83.8M |
| Current Liabilities | $14.9M | $15.7M | $14.4M |
| Accounts Payable | $2.6M | $3.1M | $2.6M |
| Current Debt | — | $30.0K | $32.0K |
| Current Leases | $5.8M | $6.2M | $6.3M |
| Deferred Revenue | $67.0K | — | — |
| Other Current Liab | $0 | $6.4M | $5.5M |
| Long-Term Liabilities | $43.2M | $38.3M | $35.6M |
| Long-Term Debt | $750.0K | $842.0K | $2.3M |
| LT Operating Leases | $42.3M | $37.4M | $33.2M |
| Other LT Liab | $122.0K | $0 | $0 |
| Total Liabilities | $58.1M | $54.0M | $50.0M |
| Shareholders' Equity | $33.0M | $33.1M | $33.8M |
| Paid-In Capital | $56.7M | $56.8M | $56.9M |
| Retained Earnings | $-19.2M | $-17.6M | $-16.6M |
| Treasury Stock | — | $6.9M | $7.2M |
| Total L&E | $91.1M | $87.1M | $83.8M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $11.7M | $1.9M | $1.1M |
| Non-Cash Adjustments | $-4.4M | $2.6M | $1.8M |
| Working Capital Changes | $720.0K | $699.0K | $-1.3M |
| Cash from Operations | $8.0M | $5.1M | $1.6M |
| Capital Expenditures | $4.8M | $3.1M | $3.1M |
| Cash from Investing | $-10.4M | $-3.7M | $-3.8M |
| Debt Issuances | — | $1.4M | $2.2M |
| Debt Repayments | — | $1.3M | $780.0K |
| Share Buybacks | $2.3M | $1.9M | $391.0K |
| Cash from Financing | $-2.2M | $-1.8M | $983.0K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-4.7M | $-329.0K | $-1.2M |
| Beginning Cash | $8.9M | $4.2M | $3.9M |
| Ending Cash | $4.2M | $3.9M | $2.6M |
Frequently Asked Questions
How does Good Times Restaurants Inc. make money?
Primary revenue streams include full-service dining operations, casual dining concepts, and associated food service segments. Financials indicate heavy reliance on operating leases for real estate assets and significant gross margins driven by high-volume sales of prepared meals.
What are the main risks for GTIM?
Significant debt burden relative to equity, as long-term liabilities exceed $35M while shareholders' equity stands at only $33.8M. Deteriorating cash position with a net decrease of $1.2M and declining net income from $11.7M in 2023 to $1.1M in 2025. Heavy reliance on operating lease liabilities totaling over $39M which create fixed cost rigidity.
What is GTIM's competitive advantage?
Established brand presence across Canadian markets with a loyal customer base. Strong operational efficiency evidenced by the ability to maintain profitability despite high fixed lease costs and inflationary pressures in 2024-2025.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.