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<SEC-DOCUMENT>0000825324-09-000019.txt : 20100121
<SEC-HEADER>0000825324-09-000019.hdr.sgml : 20100121
<ACCEPTANCE-DATETIME>20091118130421
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000825324-09-000019
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20091118

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>
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<title>March 9, 2009</title>



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<p class=MsoNoSpacing align=center style='margin-bottom:24.0pt;text-align:center'>November 18, 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;&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-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; Filed December 29,
2008, 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 November 9, 2009
containing comments on the Company's response to your letter dated September 14,
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:6.0pt;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='margin-bottom:6.0pt;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>Management Discussion and
Analysis, and Consolidated Balance Sheets</u></b></p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:.5in'><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>We
note your responses to our previous comments 1 and 2. In light of the negative
trends in operating results that the Company has experienced in recent periods,
please add disclosure in future filings to explain in detail the methods and
significant assumptions used in preparing your impairment analysis, consistent
with the your response to the aforementioned comments. In addition, disclose
the fact that at each point you conduct an impairment analysis, actual results
will be compared with your projections and assumptions, and to the extent
actual results do not meet expectations, appropriate revisions will be made,
and potential impairment charges may be recognized. As a part of your response,
please provide us with your proposed disclosure to be included in the upcoming
Form 10K for the fiscal year ended September 30, 2009, that includes details
regarding your impairment analysis consistent with your response.</b></p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'>Below is the proposed disclosure
to be included in our upcoming Form 10K for the fiscal year ended September 30,
2009:</p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'><b>Impairment of Long-Lived Assets</b>: We review our long-lived assets
for impairment in accordance with the guidance of FASB ASC 360-10, <i>Property,
Plant, and Equipment</i>, including land, property and equipment 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>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>An analysis was performed on a restaurant by
restaurant basis at September 30, 2009. Assumptions used in preparing expected
cash flows were as follows: </p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:.75in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales
projections were as follows: Fiscal 2010 sales are projected flat with respect
to fiscal 2009, for fiscal years 2011 to 2024 we have used annual increases of
2% to 3%. We believe the 2% to 3% increase in the years beyond 2010 is a
reasonable expectation of growth and that it would be unreasonable to expect no
growth in our sales. These increases include menu price increases in addition to
any real growth. Historically our weighted menu prices have increased 1.5% to
6%.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:.75in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our variable
and semi-variable restaurant operating costs are projected to increase
proportionately with the sales increases as well as increasing an additional
1.5% per year consistent with inflation.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:.75in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our other
fixed restaurant operating costs are projected to increase 1.5% to 2% per year.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:.75in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Food and
packaging costs are projected to remain flat in relation to our current fiscal
2009 food and packaging costs as a percentage of sales.</p>



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

<p class=MsoHeader>Washington, D.C. 20549</p>

<p class=MsoHeader>Page 2</p>



<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:.75in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Salvage value
has been estimated on a restaurant by restaurant basis considering each
restaurant's particular equipment package and building size.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Given the results of our impairment analysis at
September 30, 2009 there are no restaurants which have potential impairment as
their projected undiscounted cash flows show recoverability of their asset
values.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Our impairment analysis included a sensitivity
analysis with regard to the cash flow projections that determine the
recoverability of each restaurant's assets. The results indicate that even with
a 20% decline in our projected cash flows we would still not have any potential
impairment issues.&nbsp; We have experienced higher than normal food and packaging
costs as a percentage of restaurant sales in recent years and we do not believe
these costs will remain at these levels in future years. However for purposes
of our cash flow projections in the asset impairment analysis we have assumed
our food and packaging costs will remain at these higher levels.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Each time we conduct an impairment analysis in the
future we will compare actual results to our projections and assumptions, and
to the extent our actual results do not meet expectations, we will revise our
assumptions and this could result in impairment charges being recognized.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>All of the judgments and assumptions made in preparing
the cash flow projections are consistent with our other financial statement
calculations and disclosures. The assumptions used in the cash flow projections
are consistent with other forward-looking information prepared by the company,
such as those used for internal budgets, discussions with third parties, and/or
reporting to management or the board of directors.</p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'>To date we have not written down
any assets due to impairment, however projecting the cash flows for the
impairment analysis involves significant estimates with regard to the
performance of each restaurant, and it is reasonably possible that the
estimates of cash flows may change in the near term resulting in the need to
write down operating assets to fair value. 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 in income from
operations.</p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'>In connection with our response
to your comments, we acknowledge that:</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:.75in;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-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:.75in;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:
6.0pt;margin-left:.75in;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'>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=MsoNoSpacing style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effie
Simpson</p>



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