Good Times RestaurantsGTIM +2.22%53 Gross Margin % is 11.03% as of Mar. 2026, which is 7% below its 10-year median of 11.84. GuruFocus rates GTIM with a GF Score™ of 53/100 and a GF Value™ of $2.65 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 359 Restaurants companies, Good Times Restaurants ranks worse than 94.99% on this metric.
GTIM's Gross Margin % is ranked worse than 94.99% of 359
companies
in the Restaurants industry
Industry Median: 45.71
vs GTIM: 10.30
Good Times Restaurants had a gross margin of 11.03% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Good Times Restaurants was -6.10% per year.
Good Times Restaurants (NAS:GTIM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Good Times Restaurants had a gross margin of 11.03% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Good Times Restaurants Gross Margin % Related Terms
Good Times Restaurants Gross Margin % Historical Data
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The historical data trend for Good Times Restaurants's Gross Margin % 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.
GTIM vs CCHH, MHGU, PETZ: Gross Margin % Comparison
For the Restaurants subindustry, Good Times Restaurants's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Good Times Restaurants's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Good Times Restaurants's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Good Times Restaurants (GTIM) has a Gross Margin % of 11.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Good Times Restaurants and its competitors. This is near median its historical median of 11.84. Over the past decade, Good Times Restaurants' Gross Margin % has ranged from 9.56 to 15.45. According to the industry distribution chart, Good Times Restaurants ranks #341 out of 359 companies in the Restaurants industry, placing it in the top 95%.
Is Good Times Restaurants' Gross Margin % too high?
Good Times Restaurants' current Gross Margin % of 11.03% is near median its 10-year median of 11.84. Over the past 10 years, this metric has ranged from a low of 9.56 to a high of 15.45. The Restaurants industry median Gross Margin % is 45.71. Good Times Restaurants' value of 11.03% is 75.9% below this industry median. Based on the distribution chart, Good Times Restaurants ranks #341 out of 359 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Good Times Restaurants has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Good Times Restaurants' Gross Margin % compare to CCHH and MHGU?
According to the Restaurants industry distribution chart, Good Times Restaurants ranks #341 out of 359 companies for Gross Margin %. This places Good Times Restaurants in the lower half of its industry. The industry median Gross Margin % is 45.71. Good Times Restaurants' value of 11.03% is 75.9% below this benchmark. Historically, Good Times Restaurants' own Gross Margin % has ranged from 9.56 to 15.45 over the past decade. While the company's 10-year median is 11.84 vs. the industry median of 45.71, Good Times Restaurants has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Good Times Restaurants's current Gross Margin % of 11.03% is 75.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Good Times Restaurants and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Good Times Restaurants's current Gross Margin % is 11.03%, which is near median its own 10-year median of 11.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Good Times Restaurants stock overvalued right now?
Based on GuruFocus' analysis, Good Times Restaurants (GTIM) is currently considered Possible Value Trap. The stock's GF Value™ is $2.65, compared to a current price of $1.38 — trading 47.9% below its estimated fair value. The current Gross Margin % is 11.03%, which is near median its 10-year median of 11.84 and 75.9% below the Restaurants industry median of 45.71. Good Times Restaurants' overall GF Score™ is 53/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Good Times Restaurants (GTIM), the current Gross Margin % is 11.03% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Good Times Restaurants (GTIM) Overvalued in 2026?
Based on GuruFocus' analysis, Good Times Restaurants stock appears to be undervalued.
The current stock price of $1.38 is trading 47.9% below its estimated GF Value™ of $2.65.
GuruFocus considers Good Times Restaurants to be Possible Value Trap.
Key valuation signals for GTIM:
Gross Margin %: 11.03% (near median its 10-year median of 11.84)
GF Value™: $2.65 vs. price of $1.38 (47.9% below fair value)
Industry Position: 75.9% below the Restaurants median (#341 of 359)
No single metric tells the full story. See the GTIM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
53GF Score
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