Noble Roman’s (OTCMKTS:NROM) Stock In Focus After Quarter Results

Shares of Noble Roman’s (OTCMKTS:NROM) continues to trade in a narrow range after the recent gains.

Market Reaction

On Thursday, NROM stock ended flat at $0.63 with more than 24K shares, compared to its average volume of 21k shares. The stock has moved within a range of $0.6300 – 0.6300 after opening the trade at $0.63.

Earnings Recap

Indianapolis based franchisor and licensor of Noble Roman’s Pizza and Noble Roman’s Craft Pizza & Pub, Noble Roman’s (OTCMKTS:NROM) on November 11, 2021 announced results for three-month and nine-month periods ending September 30, 2021.

The company stated that the revenues for quarter three were $3.4 million while its net income witnessed a loss at $79,000. It had an EBITDA of $488,000 and its company franchising revenue decreased to $1.2 million. Noble said that supply chain disruptions and labour shortages both in CPP and non-traditional venues during the third quarter resulting in negative results. For the nine-months ending September 30, 2021, the firm had revenues of $10.3 million and a Net income before tax of $833,000.

Noble Roman had an EBITDA of $2.5 million for the period. While its CPP revenues increased to $6.5 million, the Franchising revenue dipped to $3.4 million. The firm also highlighted its Craft Pizza & Pub stating that it opened an additional CPP location in north central Indianapolis and plans to open more in Franklin, Indiana on December 6, 2021

Scott Mobley, the company’s President & CEO said that the company is executing growth strategy through non-traditional franchising efforts as well as expansion of its popular Craft Pizza & Pub concept.

Mobley said that considering the pressures of supply chain and labour, the firm has shown an impressive financial performance for the existing Craft Pizza & Pub restaurants.

Key Quote

Scott Mobley, the company’s President & CEO, stated, “We continue to execute on our growth strategy by continuing our non-traditional franchising efforts and expanding our popular Craft Pizza & Pub concept. Taking into account the inflationary pressures from labor and ingredients, as well as the additional costs in managing supply chain emergencies, we remain extremely pleased with the financial performance of our existing Craft Pizza & Pub restaurants. Those restaurants open greater than one year had an average annual revenue per location of approximately $1.2 million and store level EBITDA averaging above 15%. Newer locations opened in 2020 are averaging $1.4 million in annual sales per location with store level EBITDA ranging from 17% to 20%. As the company continues its expansion of the CPP concept, we anticipate continued gains in both revenue and EBITDA going forward. Furthermore, a menu price increase implemented on November 10, 2021 in all company-owned Craft Pizza & Pub restaurants should help alleviate the inflationary and supply chain management cost pressures that adversely impacted margins in the 3rd quarter.”

Traders Review

NROM stock is trading above the 50-Day and 200-Day Moving averages of $0.61 and $0.56 respectively. However, the stock is trading below the 20-Day moving average of $0.64. The stock is down 25% over the past quarter.


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