Muscle Maker, Inc. Posts Q2 2022 Results – Operating Profit Continues Improvement

Company Maintains Strong Cash Position, Growth Accelerates With Over 40 Franchise Deals Sold, Corporate Locations Opening Soon in Philadelphia, Jacksonville and Wichita Markets

Fort Worth, Texas, Aug. 11, 2022 (GLOBE NEWSWIRE) -- Muscle Maker, Inc. (Nasdaq: GRIL), the parent company of Muscle Maker Grill restaurants, Pokemoto Hawaiian Poke and SuperFit Foods meal prep, today announced the posting of its second quarter 2022 financial results on August 11^th for the three months ending June 30, 2022.

Michael Roper, CEO of Muscle Maker, Inc., commented, “The recently posted Q2 2022 financial results show a continued improvement in our operating profits as we focus on optimizing the Muscle Maker Grill brand and expanding Pokemoto. Our operating profits, as a percentage of total revenue, improved over 26%, even with inflationary pressures. While our food and paper costs, as a percentage of restaurant sales, increased by roughly 6% we were able to reduce labor costs by roughly 2%, other restaurant expenses by roughly 1% and experienced a significant reduction in our SG&A by over 35%. While we continue to see inflationary pressures, we believe these will begin to taper off over the next few quarters bringing these costs back in line. The team focused on SG&A by introducing multiple programs designed to either reduce current SG&A or provide the ability to support future expansion without adding significant SG&A as the company grows. Some highlights include:

• Converted accounting systems over to NetSuite
• Outsourced IT functions, improving security measures
• Converted payroll, HR, insurance functions to a PEO program with Questco
• Partnered with new expense monitoring software providing streamlined expense reporting with a 1% rebate

Roper added, “While we will continue to manage performance of the corporate owned locations, the individual restaurants will eventually have less of an impact. The key to our growth and performance is directly tied into growing the Pokemoto brand and leveraging the corporate teams background in growth through franchising. It’s one thing to sell franchise agreements which helps our overall cash flow, it’s even more important to get these locations open which drives high margin franchise royalty fee revenue into the system. We currently can sell franchises in 40 states and have recently registered and awaiting approval for all 50 states. Just this week we received notice of being able to sell franchises in North Dakota, South Dakota and California.”