Bedrijfsoverzicht
Good Times Restaurants Inc. is a publicly traded entity that engages in the restaurant business within the United States through its various subsidiaries. The company operates within the Consumer Cyclical sector, specifically within the Restaurants industry, positioning it as a beneficiary of discretionary consumer spending patterns that fluctuate with economic cycles. This organization owns, operates, and franchises its primary brands, Good Times Burgers & Frozen Custard and Bad Daddy's Burger Bar, utilizing a model that combines direct ownership with franchise licensing arrangements. The company's current market capitalization stands at $13.30M, supported by an annual revenue of $138.00M and an employee base of 2078 individuals. These valuation and revenue figures indicate that the company operates as a small-cap entity with a relatively modest market presence, suggesting that its financial stability is heavily dependent on the performance of its specific regional locations and franchise networks rather than broad national dominance.
Financiële gezondheid
The company reported a trailing twelve-month revenue of $138.00M against a net income of $1.04M and an EBITDA of $4.75M, revealing a significant gap between top-line sales and bottom-line profit that highlights a challenging cost structure or high operating expenses. Despite generating $4.75M in EBITDA, the firm only realized $1.04M in net income, which suggests that interest, taxes, depreciation, and amortization, along with other non-operating costs, consume a substantial portion of its earnings power. The business generated $1.89M in free cash flow, providing a measure of financial flexibility that allows the company to fund operations, maintain its fleet of restaurants, or service debt obligations without relying solely on external financing. However, the liquidity picture is strained, as the company holds $3.32M in cash while carrying a total debt load of $39.79M, resulting in a debt-to-equity ratio of 116.96 that characterizes a highly leveraged balance sheet. This leverage is further underscored by a current ratio of 0.45, indicating that current assets are insufficient to cover current liabilities without liquidating long-term assets or raising new capital. Return on Equity stands at 3.3% and Return on Assets is 0.6%, metrics that reveal limited management effectiveness in generating substantial returns on the capital invested by shareholders and the asset base utilized for operations.
Waarderingsbeoordeling
The valuation metrics present a mixed picture, with a trailing P/E ratio of 12.60 contrasting sharply with a forward P/E of 63.00, implying that the market expects a significant change in earnings trajectory or that current earnings do not accurately reflect future profitability potential. The price-to-book ratio is recorded at 0.40, suggesting that the stock trades at a significant discount to its book value, which often occurs in capital-intensive industries with cyclical earnings or where the market perceives high risk in the underlying assets. Alternative valuation metrics further illustrate this disparity, with a price-to-sales ratio of 0.10 and an EV/EBITDA of 10.63, indicating that investors are pricing the stock conservatively relative to its sales generation and earnings before interest, taxes, depreciation, and amortization. Regarding price movement, the 52-week high is $2.24 and the 52-week low is $1.10, providing a historical range within which the current share price fluctuates. The stock's beta is 0.65, indicating that the share price is less volatile than the broader market, moving only 65% as much as the overall index during periods of market movement.
Growth & Income
The company's growth dynamics show a divergence between its revenue and earnings performance, with revenue growth declining by 10.0% year-over-year while earnings growth increased by 11.7% year-over-year. This scenario implies that the company is managing its cost base effectively to maintain profitability even as sales volume contracts, a common characteristic during economic downturns or periods of reduced consumer foot traffic in the restaurant sector. Good Times Restaurants Inc. does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the company retains all of its net income of $1.04M to reinvest into the business, pay down debt, or await more stable cash flow generation. Consequently, the overall growth and income profile is defined by earnings expansion amidst revenue contraction, with no current income distribution to shareholders, relying entirely on capital appreciation potential driven by future operational improvements and the potential for revenue recovery.