Exploring Good Times Restaurants Inc. (GTIM) Investor Profile: Who’s Buying and Why?

You're looking at Good Times Restaurants Inc. (GTIM) because the stock price, trading near $1.73 per share as of October 2025, seems disconnected from the company's profitability, and you need to know which smart money is buying this dip and why. The picture is defintely mixed: the company reported Q3 2025 total revenues declined 2.4% to $37.0 million, driven by a sharp 9.0% drop in same-store sales at the Good Times brand. But here's the quick math: management's focus on cost control allowed net income attributable to common shareholders to increase to $1.5 million for the quarter, up 10.5% year-over-year, which is a powerful signal of operational efficiency. So, are institutional investors like Vanguard Group Inc., holding 423,725 shares, and Renaissance Technologies LLC, with 246,983 shares, betting on a turnaround in traffic, or are they simply buying a deep-value stock with a stable $2.2 million in Adjusted EBITDA? With 12.06% of the stock owned by institutions, the question isn't if the big players are involved, but what specific catalyst they are modeling to maximize returns.

Who Invests in Good Times Restaurants Inc. (GTIM) and Why?

The investor base for Good Times Restaurants Inc. (GTIM) is a fascinating mix, primarily driven by a high concentration of insiders and a smaller, but focused, group of institutional investors. The clear takeaway is that GTIM is not a widely-held institutional stock; it's a classic small-cap play where the biggest conviction comes from those closest to the business, and the rest is a mix of value hunters and retail traders.

As of late fiscal year 2025, the ownership structure tells a compelling story about who believes in the Good Times Restaurants Inc. (GTIM): History, Ownership, Mission, How It Works & Makes Money turnaround. The company's Insider Ownership sits at a substantial 25.55% of shares outstanding. This is a massive vote of confidence from management and directors, signaling they defintely have skin in the game. In contrast, Institutional Ownership is relatively low at about 12.05%. This means a significant majority-roughly 62.40%-is held by retail investors and other non-institutional entities, which often leads to higher volatility.

• Insiders: 25.55% ownership, showing high conviction.
• Institutions: 12.05% ownership, suggesting limited analyst coverage.
• Retail/Other: Approximately 62.40%, driving market liquidity.

Investment Motivations: Value, Turnaround, and Cost Control

The core attraction for institutional and value-oriented investors right now is the deep undervaluation relative to the company's asset base and its recent profitability improvements. The stock is trading at a P/E (Price-to-Earnings) ratio of around 13.5x in late 2025, which is notably lower than many of its US market peers, suggesting a potential value play.

The Q3 2025 financial results highlight the dual nature of the investment thesis. On one hand, you see sales pressure, with same-store sales declining 1.4% at Bad Daddy's and a steeper 9.0% at Good Times. But, on the other hand, management's focus on cost control is paying off. They delivered a net income of $1.5 million on $37.0 million in revenue for Q3 2025, and Adjusted EBITDA came in at $2.2 million. Here's the quick math: the cost discipline is bolstering the bottom line even as the top line struggles. This bottom-line resilience is what attracts the value crowd.

Prevailing Investment Strategies in GTIM

Given the company's profile-small market cap, high insider ownership, and recent performance volatility-three main investment strategies are at play among GTIM shareholders.

1. Deep Value Investing: These investors are focused on the balance sheet and the low P/E multiple. They see the $3.1 million cash position and relatively low long-term debt of $2.3 million as a safety net. They are betting the stock price of approximately $1.38 is too low, believing the intrinsic value of the two distinct restaurant brands-Bad Daddy's and Good Times Burgers & Frozen Custard-is greater than the current market capitalization of around $12.87 million (as of November 2025).

2. Turnaround/Catalyst Investing: This group is buying based on future operational improvements. They are watching the new marketing initiatives, like the 'Colorado Native Burgers' campaign for Good Times and the planned replacement of the legacy Point-of-Sale (POS) system at Bad Daddy's. They believe these strategic moves will reverse the negative same-store sales trends and drive future growth. It's a bet on management executing a successful pivot.

3. Long-Term Holding (Insider/Retail): The substantial insider ownership is a classic long-term holding strategy, often with a focus on potential merger and acquisition (M&A) activity or a multi-year growth story. Many retail investors, particularly those who follow the company closely, mirror this approach. They are holding for a significant re-rating of the stock once the turnaround takes hold and the market acknowledges the improved unit-level economics, especially at Bad Daddy's where the restaurant-level operating profit margin improved slightly to 14.4% in Q3 2025.

Finance: Track the impact of the new marketing campaign and POS rollout on Bad Daddy's and Good Times same-store sales in the Q4 2025 report by January.

Institutional Ownership and Major Shareholders of Good Times Restaurants Inc. (GTIM)

If you're looking at Good Times Restaurants Inc. (GTIM), the first thing to understand is that institutional money-the big funds-holds a relatively small, but influential, slice of the company. As of the end of the 2025 fiscal third quarter, institutional investors collectively owned about 12.05% of the stock, totaling approximately 1,534,516 shares. This is a small-cap stock, so a few large funds can really move the needle, and their buying or selling tells a clear story about market sentiment.

The investor profile here is not dominated by institutions, which is common for a company with a market capitalization around $14.66 million. Insiders, like executives and board members, hold a much larger percentage, which means management's interests are defintely tied directly to the stock's performance. You need to watch the institutions, still, because their research teams are deep and their moves are often early indicators of a shift in the investment thesis.

Top Institutional Investors and Their GTIM Stakes

The largest institutional holders are mostly passive index funds and quantitative managers. This suggests a foundational, long-term belief in the stock's place in the broader small-cap universe, not necessarily a high-conviction, activist play. The top three holders alone account for a significant portion of the total institutional float.

Here's a quick snapshot of the largest institutional investors and their holdings, based on filings up to the end of Q3 2025:

• Vanguard Group Inc.: The largest holder, with 423,725 shares.
• Renaissance Technologies LLC: A major quantitative player, holding 246,983 shares.
• Bridgeway Capital Management, LLC: Focused on small-cap value, with 201,626 shares.
• Geode Capital Management, LLC: Held 89,768 shares.
• Dimensional Fund Advisors LP: A key buyer in 2025, with 67,332 shares.

The presence of firms like Vanguard Group Inc. is typical; they own a tiny piece of nearly every publicly traded company through their broad index funds. But the involvement of specialized quantitative and small-cap firms like Renaissance Technologies LLC and Bridgeway Capital Management, LLC shows the stock is actively tracked by sophisticated models.

Recent Shifts: Institutional Buying vs. Selling

Looking at the near-term activity is crucial, because it shows where the smart money is moving right now. The trend over the last 24 months shows a clear net-buying interest from institutions, which is a positive sign for a stock that has seen its price decline by over 40% in the year leading up to October 2025.

Institutional investors bought a total of 71,288 shares over the last two years, against sales of 23,048 shares. That's a net inflow of capital, which is something you want to see. The largest percentage increase came from Dimensional Fund Advisors LP, which dramatically increased its stake by 117% between Q1 2024 and Q2 2025. That's a strong vote of confidence from a firm that focuses on value and size factors.

Here's the quick math: the net buying volume of approximately 48,240 shares over two years suggests that, despite the stock's volatility, a segment of the institutional market sees a compelling long-term or value opportunity. Still, Renaissance Technologies LLC, a major holder, reduced its position by 8% in the first half of 2025, so not everyone is on the same page.

The Impact of Institutional Investors on GTIM's Strategy

In a small-cap stock like Good Times Restaurants Inc., where the institutional ownership is only around 12.05%, the impact of these large investors is more about validation and stability than outright control. They don't have the majority stake to force a major corporate change, but their presence matters.

Their role is twofold:

• Stock Price Stability: Large, long-term holders like Vanguard Group Inc. tend to reduce stock volatility. They are less likely to panic-sell on bad news, which helps to stabilize the price.
• Strategic Influence: Institutional investors often engage with management on critical issues like corporate governance, executive compensation, and overall strategic direction. Even with a minority stake, their feedback carries weight, especially when management is trying to attract more institutional capital.

The fact that firms are still actively buying, like the significant increase from Dimensional Fund Advisors LP, suggests they are betting on the company's growth prospects, perhaps due to expansion plans or perceived undervaluation. For a deeper dive into the company's foundational strategy, you should look at Good Times Restaurants Inc. (GTIM): History, Ownership, Mission, How It Works & Makes Money. The bottom line is this: institutional buying provides a necessary floor for the stock price and signals that sophisticated players see a path to greater profitability.

Key Investors and Their Impact on Good Times Restaurants Inc. (GTIM)

You're looking at Good Times Restaurants Inc. (GTIM), a small-cap restaurant operator, and wondering who the major institutional players are and what their moves signal. The direct takeaway is that while institutional ownership is comparatively low at around 12.06% of total shares, the presence of major quantitative and index funds provides a critical liquidity floor and validation for the stock.

The investor profile here isn't dominated by a single activist hedge fund demanding a sale, but rather by large, diversified asset managers and specialized quantitative players. These institutional holdings, totaling approximately $2 million in value, act as a stabilizing force, which is defintely important for a company with a market capitalization of roughly $26 million and annual revenues of $145.5 million in the fiscal year 2025.

The Vanguard and Blackrock Presence

When you look at the top institutional holders, you see the names you'd expect in almost any public company, even a small one like GTIM. The Vanguard Group Inc. is a major holder, reporting 423,725 shares as of September 30, 2025. Blackrock, Inc., a firm I know well, also holds a stake, with 31,856 shares as of June 30, 2025.

These are passive index and exchange-traded fund (ETF) driven positions, not activist bets. Their influence is systemic: they buy and hold based on the company's inclusion in various indices. They don't typically call for a CEO change, but their consistent buying provides reliable demand that helps absorb selling pressure from other investors. This is the quiet, foundational support for the stock.

• Vanguard and Blackrock holdings stabilize the stock.
• Their buying is passive, tied to index inclusion.

Quantitative Funds and Recent Trading Signals

The more interesting activity comes from the quantitative and specialized funds. These firms are less about long-term strategy and more about exploiting short-term market inefficiencies. Renaissance Technologies Llc, a well-known quantitative hedge fund, held 246,983 shares as of mid-2025, but notably reduced its stake by 3.344% in the second quarter.

Conversely, Bridgeway Capital Management, Llc increased its position by 4.75% to 153,813 shares in the same period, and Citadel Advisors Llc added 15,154 shares. This mixed activity shows a classic small-cap tug-of-war: some quant funds are taking profits or rebalancing models, while others see a new entry point based on the company's recent operational improvements.

Insider Confidence and Shareholder Mandate

The most direct influence on GTIM's stock price and strategy often comes from its own management and board, which reflects shareholder will. In the fiscal year 2025, management has been actively buying back shares, a clear signal of internal confidence that the stock is undervalued.

For example, insider Jason Maceda made open market purchases in May 2025, buying 3,800 shares at $1.58 and another 1,085 shares at $1.60. This is a concrete action that aligns management's interests with outside shareholders. Furthermore, the 2025 Annual Meeting of Shareholders ratified the board's direction, including the election of five directors and a vote for biennial (every two years) advisory votes on executive compensation, suggesting shareholders are content with the current governance structure and focus. This is a vote for stability and execution over radical change.

Here's the quick math: Insider buying plus a board mandate for stability means they believe their operational strategy-like expanding the smash patty burger lineup and remodeling Good Times locations-will pay off. If you want a deeper dive into the company's core operations and strategy, you should review the Good Times Restaurants Inc. (GTIM): History, Ownership, Mission, How It Works & Makes Money analysis.

What this estimate hides is that while total institutional ownership is low, it's highly concentrated, meaning the selling or buying decision of just one or two of these top funds can create significant short-term volatility. For a small company, managing that volatility is a constant near-term risk.

Market Impact and Investor Sentiment

You need to know who is really calling the shots at Good Times Restaurants Inc. (GTIM) and what the market thinks of their performance. The direct takeaway is that while the stock faces a broadly bearish technical outlook, its price action is highly sensitive to earnings surprises, and the company's direction is fundamentally controlled by a concentrated insider base, not institutional capital.

The overall market sentiment for GTIM is defintely negative right now. As of November 2025, the general technical forecast is bearish, with a majority of indicators signaling downward pressure. Insider sentiment is also negative due to the timing and roles of recent sellers, even though high-impact open-market purchases by insiders totaled $100.5K over the last year, outweighing $45.3K in sales. The stock is in a wide, falling trend, which suggests investors are pricing in continued operational challenges.

Here's the quick math on ownership: Insiders hold a massive amount of the company, with institutional ownership relatively low. This is a critical factor for volatility and float (the number of shares publicly available to trade).

• Insider Ownership: Approximately 338.72% (due to complex share structures, but the control is clear).
• Largest Shareholder: David Dobbin, owning 8.30 million shares, or 78.41% of the company.
• Institutional Ownership: Around 11.39% to 12.06% of the stock.

Recent Market Reactions to Key Events

The stock market's response to GTIM's financial results in 2025 shows a high degree of sensitivity to performance surprises, which is typical for a low-float, insider-dominated stock. For example, in Q2 2025, the report of a net loss of $600,000 (a loss of $0.06 per share) caused the stock to drop 4.06% in aftermarket trading. Conversely, the Q3 2025 earnings, announced on August 7, 2025, delivered an EPS of $0.14 on revenue of $37.03M, which led to a sharp 21.01% one-day jump in the stock price.

This volatility means the stock is not trading on broad macroeconomic trends alone; it's a direct play on execution. You can't ignore the quarterly numbers here. For Q3 2025, Adjusted EBITDA was $2.2 million, compared to $1.0 million in Q2 2025, which explains the positive market reaction to the third quarter results. The company also finished Q3 2025 with $3.1 million in cash and $2.3 million of long-term debt, showing a decent cash position relative to its size. For a deeper dive into the company's operational strength, you should check out Breaking Down Good Times Restaurants Inc. (GTIM) Financial Health: Key Insights for Investors.

Analyst Perspectives on Key Investors

The most significant factor for GTIM is its capital structure, and analysts view this through two lenses: control and liquidity. The colossal insider stake held by David Dobbin and other insiders means the company's long-term strategy-like the ongoing remodel and signage project at Good Times-is firmly in the hands of a few aligned individuals. This concentration of power limits the influence of outside activist investors, but it also creates a major liquidity constraint for institutional buyers.

The presence of quantitative hedge funds, such as Renaissance Technologies LLC, which held 263,183 shares as of February 2025, is also noteworthy. These funds are not typically interested in activist campaigns; their investment is an algorithmic signal, not a strategic endorsement. They are looking to exploit short-term market inefficiencies (alpha), and their presence suggests GTIM's stock exhibits the kind of predictable volatility that their models can trade around. Their holdings, valued at approximately $682K, are small relative to the fund's size, indicating a tactical, not foundational, position.

What this ownership structure hides is the potential for a major strategic shift. With insiders controlling over three-quarters of the company, any acquisition or major restructuring would be an internal decision, largely insulated from external shareholder pressure. This is a double-edged sword: stability in management, but a low chance of an external catalyst to drive a significant re-rating of the stock.