Good Times Restaurants Inc. (GTIM): BCG Matrix [Dec-2025 Updated]

You're looking to cut through the noise and see exactly where Good Times Restaurants Inc. (GTIM) is placing its bets for 2026 and beyond, right? As your analyst for the last two decades, I've mapped their portfolio using the BCG Matrix, and the story is clear: the high-growth Bad Daddy's Burger Bar is the Star, demanding capital to hit its 5 to 7 new unit targets, while the reliable Good Times Burgers & Frozen Custard acts as the Cash Cow, funding that expansion with its stable 1% to 3% same-store sales increases. We also need to watch the new BD's locations-the Question Marks-and quickly prune those legacy units falling below $1.5 million AUVs, the Dogs. Dive in to see the hard numbers driving this strategy.

Background of Good Times Restaurants Inc. (GTIM)

You're looking at Good Times Restaurants Inc. (GTIM), a Nevada corporation that got its start way back on October 6, 1996. Honestly, the company operates two very different restaurant concepts, which is key to understanding its portfolio. These two brands are Bad Daddy's Burger Bar and Good Times Burgers & Frozen Custard, and each one plays in a distinct part of the dining industry.

First, you have Bad Daddy's Burger Bar, which is positioned as a full-service, upscale casual dining spot, focusing on a chef-driven menu of gourmet burgers and salads with a full bar. As of the latest reports near the end of 2025, Good Times Restaurants Inc. owned, operated, or licensed 40 Bad Daddy's restaurants across seven states. It's important to note that this segment generally generates the maximum revenue for the company, even though its same-store sales saw a decrease of 1.4% in the third quarter of fiscal 2025 compared to the prior year's third quarter.

Then there's the Good Times Burgers & Frozen Custard brand, which is the quick-service, drive-thru concept. This chain focuses on high-quality offerings like all-natural burgers, fries, and frozen custard, and it's heavily concentrated in Colorado. The company owns, operates, or franchises about 30 Good Times restaurants, with 28 of those located in Colorado. This segment has faced tougher headwinds recently, showing a same-store sales decline of 9.0% for the third quarter of fiscal 2025.

To give you a snapshot as of the third quarter of fiscal 2025, which ended July 1, 2025, total revenues came in at $37.0 million, a slight dip of 2.4% year-over-year. The company managed to post a Net Income Attributable to Common Shareholders of $1.5 million for that quarter, and its Adjusted EBITDA was $2.2 million. At the end of that same quarter, Good Times Restaurants Inc. held $3.1 million in cash against $2.3 million in long-term debt, so liquidity is definitely something management is watching closely.

Good Times Restaurants Inc. (GTIM) - BCG Matrix: Stars

Bad Daddy's Burger Bar (BD's) is positioned as the core growth engine for Good Times Restaurants Inc., operating within what is strategically viewed as the high-growth fast-casual segment. This brand represents the high market share component in a growing market, demanding substantial investment to maintain its leadership position and fuel further expansion.

The primary strategic focus for Bad Daddy's Burger Bar is unit expansion. The stated goal is to add 5 to 7 new units annually, which is the action required to drive high market growth and capture more of the expanding market share. As of the first fiscal quarter of 2025, Good Times Restaurants Inc. owned, operated, or licensed a total of 40 Bad Daddy's Burger Bar restaurants across seven states.

The brand is expected to generate high Average Unit Volumes (AUVs), with targets often exceeding $2.5 million. This high revenue generation per unit is indicative of its strong relative market share within its local trade areas. For context, the average sales for Fiscal 2021 company-owned units were $2.4 million. The brand demonstrated positive momentum in the first quarter of fiscal 2025, with company-owned Bad Daddy's restaurants achieving a Same Store Sales increase of 1.5% compared to the prior year's first quarter. However, the third quarter of fiscal 2025 showed a slight contraction, with Same Store Sales decreasing 1.4% year-over-year, leading to a year-to-date decrease of 1.2% through the third quarter.

Stars consume large amounts of cash to fund their growth trajectory. This requirement manifests as significant capital investment needed to fund new store build-outs and to maintain a competitive edge in a crowded market. The need for capital is underscored by the company's balance sheet position at the end of the third fiscal quarter of 2025, where Good Times Restaurants Inc. held $3.1 million in cash against $2.3 million of long-term debt, while also navigating a credit agreement amendment in September 2025 that allowed for the closure of two Bad Daddy's Burger Bar locations.

Here's a look at some of the key operational and financial metrics associated with the Bad Daddy's Burger Bar unit base as of the first half of fiscal 2025:

To sustain the Star status and eventually transition to a Cash Cow, continued investment is paramount. The operational success of the existing base, as evidenced by the 13.6% restaurant-level operating profit margin in the second quarter, must continue to generate sufficient internal cash flow to support the planned expansion of 5 to 7 new units annually, even while managing the existing debt structure.

• Core Growth Engine: Bad Daddy's Burger Bar.
• Market Position: Leader in a growing segment.
• Expansion Focus: Adding 5 to 7 new units per year.
• Investment Need: Significant capital for build-outs.
• Recent Performance: Q1 2025 SSS growth of 1.5%.

Good Times Restaurants Inc. (GTIM) - BCG Matrix: Cash Cows

You're analyzing the portfolio of Good Times Restaurants Inc. (GTIM), and the Good Times Burgers & Frozen Custard concept-now officially just Good Times-fits squarely in the Cash Cow quadrant. This is the mature, regional Quick Service Restaurant (QSR) concept, which historically provides the stable foundation for the corporation.

This brand operates in a lower-growth, stable market segment, meaning it requires less aggressive promotion and placement spending compared to a Star or Question Mark. The goal here is to maintain market share and maximize the cash it generates. For instance, in the fiscal year ending September 24, 2024, Good Times Restaurants Inc. reported total annual revenue of $142.32M, with the Good Times brand contributing significantly to that base through its established footprint in Colorado and Wyoming.

While the prompt suggests consistent low single-digit growth, the most recent data shows some market pressure. Same-store sales (SSS) for the Good Times brand were up 2.9% for the entire 2024 fiscal year. However, performance has been more variable recently; SSS increased 0.9% in the second fiscal quarter of 2025, but then decreased by 9.0% in the third fiscal quarter of 2025, leading to a year-to-date decrease of 4.4% through that quarter. Still, the brand maintains a high relative share in its core regional market, which is key to its Cash Cow status.

Because it is a mature concept, minimal capital is required for maintenance, allowing profits to be funneled elsewhere, like the expansion of Bad Daddy's Burger Bar. Maintenance capital expenditures are estimated to be approximately 1% of sales. For the third fiscal quarter of 2025, total restaurant sales for company-owned Good Times restaurants were $10.4 million. This cash generation is what the company strives to protect and harvest.

Here's a look at the operational scale and recent performance metrics for the Good Times brand:

The Cash Cow status is supported by its established market position and the relatively low investment needed to keep the lights on. You should view this brand as the primary source of internal funding.

• Operates in the quick-service restaurant segment.
• Focuses on all-natural burgers and frozen custard.
• Has a strong, established regional presence in Colorado and Wyoming.
• Requires minimal capital for maintenance, about 1% of sales.
• The company is revisiting strategy, launching a new campaign titled 'Colorado Native Burgers' in late Q3 2025.

The goal for Good Times Restaurants Inc. is to maintain this high market share without overspending. Any efficiency gains here, like the new marketing campaign starting in late Q3 2025, directly boost the cash flow available for other strategic priorities. Finance: draft 13-week cash view by Friday.

Good Times Restaurants Inc. (GTIM) - BCG Matrix: Dogs

The Dogs quadrant in the Good Times Restaurants Inc. (GTIM) portfolio is characterized by business units operating in low-growth or declining markets with low relative market share, frequently breaking even or consuming cash due to operational inefficiencies. For GTIM as of 2025, the Good Times Burgers & Frozen Custard brand exhibits characteristics aligning with a Dog, particularly when compared to the performance of Bad Daddy\'s Burger Bar.

Specific, underperforming units are evidenced by the company taking action to exit certain locations. Good Times Restaurants Inc. entered into a third amendment to its credit agreement on September 30, 2025, which explicitly allows the company to close two Bad Daddy\'s Burger Bar locations in Roswell, Georgia, and Broomfield, Colorado, and terminate the related leases. These specific closures represent non-strategic assets or leases that tie up capital without contributing positively to the overall growth strategy.

The performance disparity between the two concepts highlights the Dog-like behavior within the Good Times brand. While Bad Daddy\'s saw positive same-store sales growth of 1.5% in the first fiscal quarter of 2025, the Good Times brand saw sales remain unchanged for that same quarter. This trend of lagging performance continued into the third quarter of fiscal 2025, where Good Times same-store sales decreased by 9.0%, significantly worse than the Bad Daddy\'s decrease of 1.4%.

The margin compression at the Good Times concept confirms its status as a cash-consuming unit, despite its sales volume being in the millions. For instance, in the first fiscal quarter of 2025, the Good Times restaurant-level operating profit margin was 8.6% of sales, which was substantially lower than the 12.6% margin achieved by Bad Daddy\'s during the same period. This indicates that even when generating revenue, the unit economics are weaker, making it a candidate for minimization or divestiture.

Here's a quick comparison of the brand-level operating metrics from recent quarters:

The units that should be avoided and minimized based on these trends include:

• Good Times brand locations experiencing sustained negative or flat same-store sales, such as the -4.4% year-to-date same-store sales decline reported through Q3 2025.
• Specific Bad Daddy\'s Burger Bar locations identified for closure in Roswell, Georgia, and Broomfield, Colorado, as of September 30, 2025.
• Units generating restaurant-level operating profit margins below the system average, like the Good Times brand\'s 8.6% margin in Q1 2025.
• Any unit whose Average Unit Volume (AUV) is trending toward or below the $1.5 million threshold mentioned for candidates for closure.

The CEO noted that Good Times performance experienced both sales declines and margin compression in Q2 2025, most notably due to continued discounting by competitors. This competitive pressure in a low-growth segment traps cash.

Good Times Restaurants Inc. (GTIM) - BCG Matrix: Question Marks

You're looking at the new growth engines for Good Times Restaurants Inc. (GTIM), the units that need serious capital infusion to prove their worth. These are the high-potential concepts that are currently draining cash, which you see reflected in the fiscal volatility.

Consider the second fiscal quarter of 2025, which ended around April 2025. During that period, Good Times Restaurants Inc. reported a net loss of $600,000 on total revenue of $34.28 million. That loss, reversing a profit of $600,000 from the prior year, highlights the cash consumption inherent in these high-growth, low-share ventures. Still, the very next quarter, Q3 fiscal 2025, showed a net income attributable to common shareholders of $1.5 million, demonstrating the high-risk, high-reward nature of these segments.

Here's a quick look at the cash position following that Q2 loss, which is crucial for funding these Question Marks:

The marketing strategy here is to force adoption quickly, aiming to convert these Question Marks into Stars. If they don't gain traction, they risk becoming Dogs.

New Bad Daddy's units in unproven, highly competitive, or new geographic markets outside the core Southeast/Rocky Mountain regions.

• These units operate in markets where the initial relative market share is, by definition, low until a customer base is established.
• The investment required is substantial, with uncertain returns on capital expected for the first 12 to 18 months of operation.
• The core Good Times brand, which is primarily in Colorado, showed a same-store sales decrease of 9.0% in Q3 fiscal 2025, suggesting that even established concepts face growth challenges that new ventures must overcome.
• Bad Daddy's same-store sales were down 1.4% in Q3 fiscal 2025, though this was better than the Good Times brand decline.

These units are in a high-growth market but have a low initial relative market share until they establish a customer base.

Requires substantial initial investment and marketing spend, with an uncertain return on capital for the first 12 to 18 months.

The company's small-scale catering or delivery-only kitchen concepts, which are high-risk, high-reward ventures.

These concepts require significant upfront spend on technology and logistics before achieving scale. The overall revenue for the company in Q3 fiscal 2025 was $37.0 million, a 2.4% decrease compared to the fiscal 2024 third quarter, indicating that new revenue streams must be aggressively pursued to offset stagnation or decline in existing segments. The Adjusted EBITDA for Q3 fiscal 2025 was $2.2 million, a figure that must be significantly boosted by successful Question Mark conversions to justify the cash burn.

The company's Q1 fiscal 2025 results (ended December 31, 2024) showed Total Revenues of $36.3 million, a 9.6% increase year-over-year, which is the kind of growth trajectory management is aiming for with these new ventures. The Bad Daddy's brand showed a restaurant-level operating profit of $3.3 million, or 12.6% of sales, in that quarter, setting the benchmark for what a successful Star unit should look like.