Good Times Restaurants (GTIM) Stock Analysis & Winston Score

Good Times Restaurants Inc. operates two fast-food and fast-casual restaurant chains in the United States. The first is Good Times Burgers & Frozen Custard, a small regional chain in Colorado known for its burgers and frozen custard desserts. The second is Bad Daddy's Burger Bar, a sit-down burger restaurant with locations across several southeastern and mid-Atlantic states. The company earns money directly from food and drink sales at its restaurants, making it dependent on customer traffic and spending. With a very small market cap and thin margins, Good Times Restaurants is a micro-cap operator competing against much larger chains that have stronger brand recognition and purchasing power. The main risk the business faces is its razor-thin profitability — a 10.5% gross margin and 1.2% operating margin leave very little room for error if food costs rise, sales slow, or the economy weakens and consumers cut back on dining out.