Muscle Maker Grill Provides Update on Q2 Financial Results

Burleson, Texas, Aug. 20, 2020 (GLOBE NEWSWIRE) -- Muscle Maker, Inc. (Nasdaq: GRIL) the parent company of Muscle Maker Grill and Healthy Joe’s, a fast-casual concept known for serving “healthier for you” meals, announced its financial results for the second fiscal quarter ended June 30, 2020 and would like to provide a general business update in connection with the ongoing COVID-19 pandemic and future growth plans.

Highlights of the Company’s Financial Results and Management Commentary Include:

CEO Michael Roper stated, "over the last several months, due to Covid-19, I have witnessed a disruption across the restaurant and hospitality industries like I have never experienced in my career. Fortunately for us, we entered this downturn with a strong balance sheet and significant cost controls in place. I am happy to report that we believe we are starting to see a return to normalcy, albeit a new normal, across many of our locations. For example, our Bronx location is actually experiencing positive sales year-over-year while our military locations have seen their sales increase over the last 30 days. While not at pre-pandemic levels, we are encouraged to see sales improve.”

During this downturn we have continued to advance our non-traditional location growth model, and we feel uniquely positioned to demonstrate material growth over the balance of this year. Non-traditional locations include destination and captured audience locations or new lines of emerging business segments like ghost kitchens – basically locations that are not your typical location in a strip center anchored by a grocery store or free-standing building. Examples would include military bases, food courts, office buildings, airports, ghost kitchens or universities.

Q2 revenues declined from $1.38 to $0.834, demonstrating a 40% reduction year-over-year as a result of temporary store closings and reduced operating hours across both our company owned and franchise footprint. Despite the contraction in revenues, our net loss actually decreased year-over-year to $1.5mm from $1.54mm, this is largely due to the elimination of debt as a result of our February IPO. In regard to capitalization, we ended the quarter with $3.1mm in cash and total current assets of $3.5mm.