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In a challenging year for the restaurant industry, Good Times Restaurants Inc. (GTIM) stock has touched a 52-week low, dipping to $1.82. With a market capitalization of $20.1 million and revenue of $145.5 million in the last twelve months, the company currently trades at a P/E ratio of 9.9x. According to InvestingPro analysis, the stock appears undervalued at current levels. The casual dining and quick-service restaurant company, known for its focus on high-quality, fresh, all-natural products, has faced significant headwinds, reflected in a 1-year change showing a decline of 17.38%. This downturn mirrors broader industry trends, where consumer spending patterns and operational costs have impacted many players in the sector. Despite challenges, the company maintains profitability with an EPS of $0.21 and a gross profit margin of 11.5%. Investors are closely monitoring the company’s strategies for recovery and adaptation in a post-pandemic market that continues to evolve. InvestingPro subscribers can access 11 additional ProTips and a comprehensive analysis report for deeper insights into GTIM’s financial health and future prospects.
In other recent news, Good Times Restaurants Inc. reported its fourth-quarter 2024 earnings with a net income of $200,000, translating to earnings per share of $0.02, an improvement from the previous year’s loss of $600,000. The company’s revenue reached $36.3 million, with an increase in total restaurant sales to $26.1 million. Additionally, the company ended the quarter with $3 million in cash and reduced long-term debt to $2.6 million. In corporate governance developments, shareholders elected five directors, including Charles E. Jobson as Chairman, and decided on a biennial advisory vote for executive compensation. Moss Adams LLP was ratified as the independent auditor for the fiscal year ending September 30, 2025. Good Times Restaurants also announced the resignation of Donald L. Stack, Senior Vice President of Operations, with his responsibilities to be assumed by CEO Ryan M. Zink and Regional Manager Craig Soto. The company is looking into expanding its restaurant locations and continues its share repurchase program. Analysts from Morningstar noted that the company is exploring innovative media strategies to attract a younger demographic.
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