During premarket trading hours on Thursday, Good Times Restaurants Inc. (GTIM) fell -6.35% to $4.57. In the last trading session, Good Times Restaurants stock gained 8.44% to close at $4.88. GTIM stock ranged between $4.68 and $5.79. GTIM stock traded 8.94 million shares during the last session, compared to its 100-day average of 0.16 million shares daily. Over the past five days, Good Times Restaurants has gained 20.79%, while over the last month it has gained 22.92%. The price to earnings ratio of GTIM is currently 16.71, while the price to book ratio is 3.87. GTIM had a price to cash flow ratio of 6.24 as well. Good Times Restaurants stock is falling after an offer to purchase its shares was announced.
How will GTIM purchase its stock?
Good Times Restaurants, through its wholly owned subsidiaries, owns, operates, franchises and licenses 40 Bad Daddy’s Burger Bar restaurants. Through its small-box restaurant concept, Bad Daddy’s Burger Bar features gourmet steaks, burgers, salads, appetizers, sandwiches, and more with a full bar. Featuring local and craft beer, GTIM’s Bad Daddy caters to a broad market of consumers through a high-energy atmosphere. Further, GTIM operates and franchises a regional quick-service drive-thru restaurant chain that operates 32 Good Times Burger & Frozen Custard locations mainly in Colorado.
According to company news reported this week, Good Times Restaurants plans to commence a tender offer for up to 1,413,000 shares.
- In this transaction, GTIM will acquire its common shares for an approximate total of $6.5 million at $4.60 per share.
- A tender offer, believes the Good Times Restaurants board of directors, is an appropriate mechanism to return capital to GTIM’s shareholders while at the same time allowing its minority shareholders to benefit from the company’s future potential as a major shareholder.
- There is no financing condition attached to GTIM’s tender offer.
- In the offer, Good Times Restaurants plans to use its existing cash and cash equivalents to finance the share purchases.
- In connection with GTIM’s tender offer, Broadridge Corporate Issuer Solutions, Inc. will act as depositary.
- It is neither the directors nor officers of Good Times Restaurants nor its depositary who recommend whether shares should be tendered.
Start to the offer:
Good Times (GTIM) anticipates launching a tender offer on August 13, 2021 or soon thereafter and keeping it open for 20 business days. Good Times Restaurants shareholders may tender their shares during the tender offer period and may withdraw their offers at any time, in each case, according to the procedures outlined in the tender offer materials distributed to them.
