BALTIMORE, MD / ACCESSWIRE / May 5, 2023 / Goldman Small Cap Research, a stock market research firm specializing in the small cap and microcap sectors, announced today that it has published a new research report on Muscle Maker, Inc. (NASDAQ:GRIL). Muscle Maker, Inc. is a diversified, food-focused company delivering sustainable high-quality, healthy food to consumers through restaurant and Direct-to-Consumer operations, and to manufacturers via an international commodity shipping, sourcing and farming business. The Goldman report carries a price target. To view the new research report, along with disclosures and disclaimers, or to download the report in its entirety, please visit https://bit.ly/3AU75Ku.
Tracing its roots to 1995, Muscle Maker management embarked on a series of transformative initiatives in recent months which can lead to hundreds of millions in revenue in 2023 for its new agribusiness supply chain segment and double-digit top-line growth for its legacy fast casual restaurant (50+ locations) and meal prep businesses. GRIL has changed virtually overnight and given its upgraded focus and business model, we believe its valuation is set to change as well.
In the Opportunity Research report, analyst Rob Goldman reviews GRIL's new segment, its unique business and financial model, and presents an enhanced model based on adjusted net income and the potential future value of its consumer-focused businesses to GRIL. Moreover, the report features GRIL's evolution, along with strategic and operational inflection points, and the potential future impact of these events on the company.
Innovative Model Has Transformed GRIL
Goldman commented, "Led by its newly formed subsidiary Sadot LLC, and a key service agreement, the transformed GRIL is recording substantial revenue and net income results, on an adjusted basis. An instant player in the global agribusiness industry, Sadot has generated between $50M-$93M per month for GRIL since it was launched in November 2022. The parameters of GRIL's service agreement include a creative pay for performance plan that features 3rd party share ownership in GRIL common stock based on its net income contribution in Sadot---at a premium to the current share price. We believe this novel arrangement, including board seats, is a major plus for GRIL."
GRIL's Legacy Business Is Well Positioned in Fast Casual Segment
"In addition to Sadot, GRIL's legacy business includes multiple brands in the fast casual restaurant segment." Goldman continued, "With a focus on franchising and strength in a key category, GRIL could emerge as the leading US brand for the popular Hawaiian Poke offering."
Adjusted Net Income, Potential Spin-off Have Major Impact on Profit, Valuation
Goldman states, "Our forecasts for 2023 include $913M in revenue and EPS of $0.30 for 2023 compared with $162M and a loss per share of ($0.15) in 2022---a 463% revenue gain. Our bottom-line forecasts are adjusted to reflect the dilutive effect of the new shares generated from net income contribution and the elimination of the perceived duplicative stock-based compensation line item."
"Plus, if GRIL were to spin-off or sell its consumer-focused business line, it would likely eliminate millions in annual expenses for a segment now representing less than 10% of total company revenue, and enable the derivation of subsequent, added value to GRIL. Additionally, future overall profitability and thus valuation could be increased with little impact on revenue in this potential, but not expected or planned outcome. In the interim, our 6-9 month price target reflects a reasonable 15x price/earnings multiple on 2023E adjusted EPS for the entire company," concluded Goldman.
About Goldman Small Cap Research: Founded in 2009 by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces sponsored and non-sponsored small cap and microcap stock research reports, articles, stock market blogs, and popular investment newsletters.
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This press release contains excerpts of our most recently published company report on Muscle Maker, Inc. ("The Company"). The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research relied solely upon information derived from Muscle Maker, Inc. The information includes authorized press releases or legal disclosures made in their filings with the U.S. Securities and Exchange Commission http://www.sec.gov.
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