Net losses narrow, total revenue increases, operating expenses and general and administrative expenses improve
LEAGUE CITY, TX, May 12, 2022 (GLOBE NEWSWIRE) — via NewMediaWire – Muscle Maker, Inc. (Nasdaq: GRILL), the parent company of Muscle Maker Grill, Pokemoto Hawaiian Poke and SuperFit Foods, today announced its first quarter 2022 financial results were released on May 12 for the three months ending March 31, 2022.
Michael Roper, CEO of Muscle Maker, Inc., commented, “Recently released first quarter 2022 financial results show a 128% increase in restaurant sales revenue growth and a 54% increase in royalties and fees. franchise compared to the first quarter of 2021. Not only have we seen an increase in our revenue when we compare the first quarter of 2022 to the first quarter of 2021, but we also see our operating metrics improving when we compare the first quarter 2022 to Q1 2021, even with rising inflationary labor, food/paper and service costs. We see improvements in our operating expenses when we compare Q1 2022 to Q1 2021 across all major categories as a percentage of restaurant sales:
- Food and paper costs improved by 4.7%
- Labor costs improved by 24.1%
- Rent improved by 9.1%
- Other operating expenses increased by 5.7%
Additionally, our overall selling, general and administrative expenses improved by 55.3% when comparing the first quarter of 2022 to the first quarter of 2021, even after integrating our acquisitions of Pokemoto and Superfit Foods in 2021.”
Roper continued, “We are very pleased to finally be able to fully execute our growth strategy while maintaining a strong liquidity position. Pokemoto has 37 franchise or development deals sold but not yet opened. Several of these locations will enter our hands-on training program this month. It’s one thing to sell franchise deals that contribute to our overall cash flow, it’s even more important to open those locations, which drive high-margin franchise royalty revenue into the system. While executing our franchise growth strategy with Pokemoto, we have been able to maintain a strong liquidity position that allows us to open other company-owned Pokemoto locations. We currently have enterprise sites under construction in Philadelphia, Pennsylvania and Jacksonville, Florida, and are reviewing several of our current military base sites for the possibility of adding Pokemoto or converting to Pokemoto. As of March 31, 2022, Muscle Maker, Inc. had a cash balance in excess of $14 million.
“As we focus our growth strategy on Pokemoto, we are sharpening our pencils with the goal of reducing costs in the Muscle Maker Grill restaurant division while exploring opportunities to co-brand Muscle Maker Grill with Pokemoto locations or convert Fully Muscle Maker Grill locations to Pokemoto where applicable. We recently converted our Fort Meade site to Pokemoto and are extremely pleased with the sales results so far. Additionally, our SuperFit Foods division is redesigning the website and software to improve user experience and increase efficiency, expanding pickup cooler locations and expanding the menu with new options. Our plan is to relaunch the SuperFit Foods website and ordering software with new functionality in Q3.
Additional Q1 milestones span all departments and include:
- Expanded management team with the arrival of Jennifer Black as Chief Financial Officer
- Hiring a new Pokemoto franchise sales team
- Hiring a new Pokemoto franchise training team
- Launched franchise sales campaign including social media, digital advertising, SEO and trade shows
- Pokemoto entered new states with openings in Florida and Maryland, including the Fort Meade military base
- Pokemoto opens or sells franchise agreements in Mississippi, New York, Connecticut, Rhode Island, New Jersey, Florida, Massachusetts, Maryland and Virginia
- New Pokemoto-owned sites under construction in Pennsylvania and Florida
- All PPP loans canceled
- Implementation of the new lease accounting
- New renegotiated insurance policies with better coverage and rates
- Outsourced IT functions
- Negotiation of new discounts with suppliers
- Launch of the new Pokemoto interior and exterior pack
- Renowned SuperFit Foods
“Needless to say, it’s been a busy quarter and we’re excited about the future of all brands under the Muscle Maker, Inc. umbrella.”
About MuscleMaker, Inc.
Muscle Maker, Inc. is the parent company of “healthier for you” brands that bring high-quality healthy food options to consumers in traditional and non-traditional settings such as military bases, universities, ghost kitchens, delivery and ready-to-use products. meal preparation options. Brands include Muscle Maker Grill restaurants, Pokemoto Hawaiian Poke and SuperFit Foods meal prep. Our menus highlight healthier versions of traditional and non-traditional dishes and feature grass-fed steak, lean turkey, chicken breast, Ahi tuna, salmon, shrimp, tofu and herbal options. For more information about Muscle Maker, Inc., visit www.musclemakergrill.com, for more information about Pokemoto, visit www.pokemoto.com or for more information about SuperFit Foods, visit www.superfitfoods.com.
About the Muscle Maker Grill
Muscle Maker Grill (www.musclemakergrill.com) offers high quality and tasty food, freshly prepared with exclusive recipes. The menu, created with the customer’s health in mind, is lean and protein-based. It includes all-natural chicken, grass-fed steak, lean turkey, whole-wheat pasta, wraps, bowls and more. It also offers a wide selection of fruit smoothies in a variety of assorted flavors, protein shakes and supplements.
Pokemoto (www.pokemoto.com), a Hawaiian Poke Bowl concept known for its modern culinary twist on a traditional Hawaiian classic, has locations open in Connecticut, Massachusetts, Florida, Maryland and Virginia with future locations coming to Rhode Island, New York, Massachusetts, Connecticut, Florida, New Jersey, Pennsylvania and Mississippi. Pokemoto delivers contemporary flavors with fresh, delicious ingredients that appeal to foodies, health enthusiasts, and sushi lovers everywhere. Guests can choose from a list of signature bowls or be daring and create their own unique combination of a base, various proteins and toppings and nine different sauces. Vegetarian options are available and the bowl combinations are virtually limitless. Colorful dishes and chic, modern dining rooms provide an uplifting dining experience for guests of all ages. Customers can dine in-store or order online through third-party delivery apps for contactless delivery.
About SuperFit Foods
SuperFit Foods, LLC, (www.superfitfoods.com) is a subscription-based, freshly prepared meal prep company that prepares “healthier for you” ready-to-eat meals in a centrally located kitchen in Jacksonville, Florida. Customers choose from over 150 different meal plans geared towards specific dietary needs. Meals are delivered to company-owned coolers located in gyms and wellness centers for customers to pick up after training or during their daily routines.
This press release may contain “forward-looking statements” pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. To the extent that the information presented in this press release addresses financial projections, information or expectations regarding our business plans, results of operations, products or markets, or otherwise makes statements about future events, such statements are forward-looking. These forward-looking statements can be identified by the use of words such as “should”, “may”, “intend”, “anticipate”, “believe”, “estimate”, “project”, “expect”, “expects,” “plans,” and “proposes.” Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements. You are urged to carefully review and consider all cautionary and other information, including statements made under “Risk Factors” and elsewhere in our filings from time to time with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained, and Muscle Maker, Inc. undertakes no obligation to update forward-looking statements, except as required by law.