How did GTIM's earnings surprise in Q4 2024?
4/6/2025 04:10pm
Good Times Restaurants Inc. (GTIM) experienced a notable increase in total revenues for Q4 2024, reaching a new all-time record of $142.3 million. However, the company faced profitability challenges due to rising costs and competitive pressures despite the record revenues.
1. **Revenue Achievement**:
- GTIM reported a 4.3% increase in total revenues for the quarter, reaching a new all-time record of $142.3 million for fiscal 2Q 2025, up from $136 million in the previous year's same quarter.
- The company's strong revenue performance was driven by a robust performance at Bad Daddy's Burger Bar, which contributed significantly to the overall growth.
2. **Earnings Per Share (EPS)**:
- In its fiscal fourth quarter, GTIM reported earnings of $230,000. On a per-share basis, this translates to a net income of 2 cents.
- This EPS of 2 cents represents the company's profitability for the quarter, which, although positive, is relatively low considering the record revenues achieved.
3. **Strategic Challenges**:
- Despite the record revenues, GTIM faced challenges related to rising costs and competitive pressures, which impacted profitability.
- These challenges highlight the importance of effective cost management and competitive strategies for the company to maintain and enhance profitability in the future.
In conclusion, GTIM's Q4 2024 earnings showed a positive surprise with record revenues, but the company faced challenges that affected profitability, resulting in a relatively low earnings per share.