Good Times Restaurants: A Quarter of Progress and Promise

Good Times Restaurants Inc. (GTIM) has just released its first quarter 2025 earnings, and the news is nothing short of impressive. The company reported earnings per share (EPS) of US$0.015, a significant turnaround from the US$0.049 loss it incurred in the same period last year. This positive result is a testament to the company's strategic initiatives and resilience in the face of industry challenges.



The company's success can be attributed to several key factors. First and foremost, Good Times Restaurants has focused on operational efficiency and cost control, particularly at its Bad Daddy's concept. By implementing a back-to-basics approach and aligning compensation with performance metrics, the company has improved labor controls and reduced labor costs. This has resulted in a decrease in labor costs from 35.8% to 35.1% of sales, contributing to a restaurant-level operating profit of approximately $3.3 million or 12.6% of sales (Good Times Restaurants Inc., 2025).

Moreover, the company has successfully introduced smash patty burgers, which have been well-received by customers and have contributed to improved restaurant-level margins and better food and beverage costs. This menu innovation, coupled with the company's focus on product quality and menu rationalization, has driven better margins and improved overall profitability.

Good Times Restaurants has also expanded its footprint by successfully reopening two Good Times restaurants in Denver after acquiring them from a former franchisee. This strategic move has contributed to an increase in total restaurant sales for Good Times, which rose by approximately $1.1 million to $9.9 million for the quarter (Good Times Restaurants Inc., 2025).



In addition to these operational improvements, Good Times Restaurants has benefited from favorable macro trends in the quick-service restaurant (QSR) segment. The company's relevant burger-focused brands in both the QSR and casual dining segments have positioned it well to capitalize on cyclical changes in the market.



As we look ahead to the rest of 2025, Good Times Restaurants is well-positioned to continue its momentum. The company has a strong product pipeline, with new items and improvements to existing menu items planned for both Bad Daddy's and Good Times. Additionally, the company is committed to executing its long-term plan for brand evolution and modernization at Good Times, which will help maintain its competitive edge in the market.

In conclusion, Good Times Restaurants' first quarter 2025 earnings results are a testament to the company's strategic initiatives and resilience in the face of industry challenges. With a focus on operational efficiency, menu innovation, and expansion, the company has delivered a strong performance and is well-positioned to continue its momentum throughout the year. Investors and stakeholders should take note of Good Times Restaurants' progress and consider the opportunities it presents for growth and value creation.