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GTIM (Good Times Restaurants) Degree of Operating Leverage : 39.10 (As of Mar. 2025)


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What is Good Times Restaurants Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Good Times Restaurants's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 39.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Good Times Restaurants's Degree of Operating Leverage or its related term are showing as below:

GTIM's Degree of Operating Leverage is ranked worse than
93.24% of 340 companies
in the Restaurants industry
Industry Median: 1.055 vs GTIM: 39.10

Good Times Restaurants Degree of Operating Leverage Historical Data

The historical data trend for Good Times Restaurants's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Good Times Restaurants Degree of Operating Leverage Chart

Good Times Restaurants Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -302.21 -19.88 -9.77 3,377.81 14.25

Good Times Restaurants Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 152.21 -131.06 14.25 55.97 39.10

Competitive Comparison of Good Times Restaurants's Degree of Operating Leverage

For the Restaurants subindustry, Good Times Restaurants's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Good Times Restaurants's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Good Times Restaurants's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Good Times Restaurants's Degree of Operating Leverage falls into.


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Good Times Restaurants Degree of Operating Leverage Calculation

Good Times Restaurants's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 0.813 (Mar. 2025) / 0.309 (Mar. 2024) - 1 )/( 144.348 (Mar. 2025) / 138.568 (Mar. 2024) - 1 )
=1.6311/0.0417
=39.10***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Good Times Restaurants  (NAS:GTIM) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Good Times Restaurants Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Good Times Restaurants's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Good Times Restaurants Business Description

Traded in Other Exchanges
N/A
Address
651 Corporate Circle, No. 200, Golden, CO, USA, 80401
Good Times Restaurants Inc is engaged in developing, owning, operating, and franchising hamburger-oriented drive-through restaurants. It operates through two segments: Good Times Burgers and Frozen Custard restaurants which operate in the quick-service drive-through dining industry; and Bad Daddy's Burger Bar restaurants which operate in the full-service upscale casual dining industry. The company generates maximum revenue from the Bad Daddy's Burger Bar restaurants segment. Its menu categories include burgers; chicken; frozen custard; slides and drinks.
Executives
Jason Maceda director C/O DUNKIN' BRANDS, INC., 130 ROYALL STREET, CANTON MA 02021
Donald L Stack officer: SVP of Operations 651 CORPORATE CIRCLE, SUITE 200, GOLDEN CO 80401
Ryan M Zink officer: Chief Financial Officer 141 UNION BOULEVARD #400, LAKEWOOD CO 80228
Jennifer C Stetson director 3753 EL SERENO AVENUE, ALTADENTA CA 91001
Matthew Karnes officer: Sr Vice President of Finance 651 CORPORATE CIRCLE, SUITE 200, GOLDEN CO 80401
Margaret E Regalia officer: Vice President of Finance 651 CORPORATE CIRCLE, SUITE 200, GOLDEN CO 80401
Scott Lefever officer: VICE PRESIDENT 601 CORPORATE CIRCLE, GOLDEN CO 80401
Charles E Jobson 10 percent owner
Robert J Stetson director 14901 QUORUM DRIVE, DALLAS TX 75254
Susan M Knutson officer: Controller 601 CORPORATE CIRCLE, GOLDEN CO 80401
Geoffrey R Bailey director 601 CORPORATE CIRCLE, GOLDEN CO 80401
Boyd E Hoback officer: President and CEO 601 CORPORATE CIRCLE, GOLDEN CO 80401
Alan A Teran director 2126 KNOLLWOOD DR, BOULDER CO 80302
Eric W Reinhard director 601 CORPORATE CIRCLE, GOLDEN CO 80401
Delta Partners Llc 10 percent owner 265 FRANKLIN STREET, SUITE 903, BOSTON MA 02110