-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 CnoQdSryv2mvFegBnAkxtH3OcOknaXz6u1OJ1d0gUhHlVr+80QOKdlneMj9A6Ed5
 znuJ9ptlKIXLTg0d0WlGiQ==

<SEC-DOCUMENT>0000825324-09-000013.txt : 20100121
<SEC-HEADER>0000825324-09-000013.hdr.sgml : 20100121
<ACCEPTANCE-DATETIME>20090616133602
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000825324-09-000013
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090616

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GOOD TIMES RESTAURANTS INC
		CENTRAL INDEX KEY:			0000825324
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING PLACES [5812]
		IRS NUMBER:				841133368
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401
		BUSINESS PHONE:		3033841400

	MAIL ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PARAMOUNT VENTURES INC
		DATE OF NAME CHANGE:	19900205
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>March 9, 2009</title>



</head>

<body lang=EN-US>















<p class=MsoNoSpacing align=center style='margin-bottom:24.0pt;text-align:center'>June 15, 2009</p>

<p class=MsoNoSpacing style='text-align:justify'>United
  States Securities
and Exchange Commission</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>Washington, D.C. 20549</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>Submitted Electronically with
Copy to Staff</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
- -.5in'>Re: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Good Times
Restaurants, Inc.</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
- -.5in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form
10-KSB for the year ended September 30, 2008</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
- -.5in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Filed
December 29, 2008</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:.5in;text-align:justify;text-indent:-.5in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; File No. 0-18590</p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'>Good Times Restaurants, Inc. (the
&quot;Company&quot;, &quot;we&quot;, &quot;our&quot; or &quot;us&quot;) has received your letter dated June 2, 2009
containing comments on the Company's response to your letter dated April 6,
2009. This letter on behalf of the Company responds to each of the comments set
forth in your letter.</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>For convenience of reference, we
have set forth the Commission's comments in bold below, with the Company's
response following each comment.</p>

<p class=MsoNoSpacing style='text-align:justify'><b><u>Form 10-KSB for the year ended September 30, 2008</u></b></p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'><b><u>&nbsp;</u></b></p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'><b><u>Consolidated Balance Sheets,</u></b></p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:40.5pt;text-align:justify;text-indent:-.25in'><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>We have
reviewed your response to our prior comment numbers 1 and 2 and even though you
indicate that you completed an updated impairment analysis, you have not
provided the requested information. In addition, we note from the Form 10Q for
the quarter March 31, 2009 that the Company's restaurant sales and franchise
revenues continue to decline. As indicated in our previous comments 1 and 2, please
provide us with your impairment analysis and clearly explain in detail your
assumptions for your cash flow projections. As part of your response
supplementally explain how any projections regarding revenue and cost increases
that have entered into your cash flow projections compared with actual results
experienced in the two most recent quarters. We may have further comment upon
review of your response.</b></p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:22.5pt;text-align:justify'>We
have completed an updated impairment analysis with regards to our long-lived
assets as of December 31, 2008. We analyzed all individual restaurants' cash
flows on a trailing twelve month basis and the results showed positive cash
flow for all restaurants, with the exception of one restaurant. The positive
cash flow forms the basis of for our projections to compare undiscounted future
cash flows with the assets' carrying values as required by SFAS 144.&nbsp;
Historically all of our restaurants have shown positive cash flow and combined
with our projections in the impairment analysis, all of the restaurants' cash
flows will fully recover their asset values. Our cash flow projection
assumptions and actual results for the two most recent quarters were as
follows:</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:58.5pt;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the six
months ended March 31, 2009 we projected our restaurant sales to be 14.9% below
the same prior year period, actual restaurant sales for the period ended March
31, 2009 were 14.1% below the same prior year period.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:58.5pt;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Food and
packaging costs for the six months ended March 31, 2009 were projected to be 33.1%
of restaurant sales, compared to 31.1% in the same prior year period. Actual
food and packaging costs for the six months ended March 31, 2009 were 33.5% of restaurant
sales.</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>






<p class=MsoHeader>United States Securities and Exchange Commission</p>

<p class=MsoHeader>June 15, 2009</p>

<p class=MsoNormal style='margin-bottom:12.0pt'>Page 2 of 3</p>



<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:58.5pt;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Payroll,
occupancy and other operating costs for the six months ended March 31, 2009
were projected with minimal increases due to cost saving programs implemented
during the current fiscal year. Our actual payroll, occupancy and other restaurant
operating costs for the six months ended March 31, 2009 were $37,000 (1.5%)
over our projections.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:58.5pt;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate
variance of our actual restaurant level cash flow for the six months ended
March 31, 2009 was approximately $60,000 below our projections, which did not have
a material effect on the analysis of any individual restaurant's cash flow for
impairment purposes.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:58.5pt;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash flow
projections for subsequent years' were based on annual sales increases of 3%
and corresponding cost increases of 1% each year. The 3% annual sales increase
was used as we began comparing to double digit declines in late fiscal '08 and
early fiscal '09.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:22.5pt;text-align:justify'>In
regards to the one restaurant that showed a small ($10,000) negative cash flow
for the trailing twelve months, it was the first time this location's annual
cash flow was negative and our analysis includes projections of positive cash
flow that will recover its asset value. We own the equipment and improvements
only of this particular restaurant and the net book value of those assets is
approximately $270,000.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:40.5pt;text-align:justify;text-indent:-.25in'><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Based
on your response to our prior comment 2, you stated that you have expanded your
critical accounting policies discussion to explain the methods and significant
assumptions that were used in preparing your impairment analysis with regards
to your long-lived assets. However, based on our review of Form 10Q for the
period ended March 31, 2009, we were unable to locate your revised disclosures.
Please provide us with the proposed disclosure to be included in future filings
in response to our prior comment number 2. As part of this disclosure, please
indicate that any impairment evaluations are performed on a restaurant by
restaurant basis, and indicate that if individual restaurants are required to
recognize an impairment charge, it will be appropriately recognized at the
restaurant level. We may have further comment upon reviewing your response and
your proposed disclosure.</b></p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>We expanded our critical
accounting policies discussion in our Form 10Q for the period ended March 31,
2009. Please refer to Note 8. Impairment of Long-Lived Assets which reads as
follows:</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>&quot;The Company reviews its
long-lived assets in accordance with SFAS No. 144, including land, property and
equipment for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. Recoverability of
assets to be held and used is measured by a comparison of the capitalized costs
of the assets to the future undiscounted net cash flows expected to be
generated by the assets and the expected cash flows are based on recent
historical cash flows at the restaurant level (the lowest level that cash flows
can be determined). If the assets are determined to be impaired, the amount of
impairment recognized is the amount by which the carrying amount of the assets
exceeds their fair value. Fair value is determined using forecasted cash flows
discounted using an estimated average cost of capital. To date we have not
written down any assets due to impairment, however if we continue to experience
declining restaurant sales an asset impairment may materially affect future
operating results.&quot; </p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'><i>Our proposed disclosure for
future filings is as follows:</i></p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>The Company reviews its
long-lived assets in accordance with SFAS No. 144, including land, property and
equipment for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. Recoverability of
assets to be held and used is measured by a comparison of the capitalized costs
of the assets to the future undiscounted net cash flows expected to be
generated by the assets and the expected cash flows are based on recent
historical cash flows at the restaurant level (the lowest level that cash flows
can be determined).</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>






<p class=MsoHeader>United States Securities and Exchange Commission</p>

<p class=MsoHeader>June 15, 2009</p>

<p class=MsoNormal style='margin-bottom:12.0pt'>Page 3 of 3</p>



<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>The analysis is performed on a
restaurant by restaurant basis. Assumptions used in preparing expected cash
flows were as follows: 1) restaurant sales are projected to increase at the
rate of 3% annually and 2) restaurant level costs are projected to increase at
the rate of 1% annually. </p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>To date we have not written down
any assets due to impairment, however if we continue to experience declining
restaurant sales, an asset impairment may materially affect future operating
results. If the assets are determined to be impaired, the amount of impairment
recognized is the amount by which the carrying amount of the assets exceeds
their fair value. Fair value would be determined using forecasted cash flows
discounted using an estimated average cost of capital and the impairment charge
would be recognized at the restaurant level. </p>



<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>In connection with our response
to your comments, we acknowledge that:</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
- -.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the Company
and its management &nbsp;is responsible for the adequacy and accuracy of the
disclosure in our filings;</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
- -.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Staff
comments or changes to disclosure in response to Staff comments do not
foreclose the Commission from taking action with respect to the filing; and</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:.5in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the Company
may not assert Staff comments as a defense in any proceeding initiated by the
Commission or any person under the federal securities laws of the United States.</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>If you have any additional
questions or comments, please feel free to contact me directly at 303-384-1411
or Sue Knutson at 303-384-1424.</p>

<p class=MsoNoSpacing style='text-align:justify'>Sincerely,</p>



<p class=MsoNoSpacing style='text-align:justify'><i>/s/ Boyd E. Hoback</i></p>

<p class=MsoNoSpacing style='text-align:justify'><i>&nbsp;</i></p>



<p class=MsoNoSpacing style='text-align:justify'>Boyd
E. Hoback</p>

<p class=MsoNoSpacing style='text-align:justify'>President
and CEO</p>

<p class=MsoNoSpacing style='text-align:justify'>Good
Times Restaurants Inc.</p>



<p class=MsoNoSpacing style='text-align:justify'>cc:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Linda
Cvrkel, Branch Chief</p>

<p class=MsoFooter>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effie
Simpson</p>

<div class=MsoNoSpacing align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>







</body>

</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
