Spicy Pickle (SPKL) signs a 7 store development in San Antonio.
ORIGINAL ALERT INFO :
ALERT DATE & PRICE: SEP 21, 2007 / $.69 ALERT EMAIL:CLICK HERE CURRENT PRICE: $.83 CURRENT % ROI: +20%
COMPANY CONTACT INFO:
Spicy Pickle Franchising Inc.
B90 Madison St., Suite 700
Denver, CO 80206 Phone: (800) 711-1902 Fax: (303) 297-1903 Email:
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Web:www.spicypickle.com
INVESTOR RELATIONS INFO:
Spicy Pickle Phone: (800) 711-1902
Does the news get any worse for retail investors?
The DOW is down 15.6% since October of 2007 and the markets have yet to stop selling off. It is really ugly out there and to top it off, the legendary Wall Street institution Bear Stearns has been reduced to almost nothing as it has fallen 97% from its high of $172.61.
Billion’s have been lost in this one firm and it has completely stifled the markets – as if they really needed it.
This negative market hasn’t been good for Spicy Pickle as it sits at an all-time low for 2008. We are in the middle of a bear market and possibly a recession, but the company keeps on producing for shareholders.
Today, post close, Spicy Pickle announced it has inked a seven store franchise agreement in San Antonio, Texas. In total, Texas is now accounting for 25 current and future Spicy Pickle locations, more than the 23 in home state Colorado. With the Dallas/Ft Worth area still to go, Texas is proving to be fertile ground for the expansion of this concept.
As a value investor, if you look at the past three months, multi store commitments have been signed in Chicago, Los Angeles, Houston, Michigan, and now San Antonio. This has happened in a time when market conditions couldn’t be worse.
It is a sign that this company has something truly special and I was reminded of this today when I took an out of town visitor to a local Spicy Pickle restaurant. This person had no idea that I was an investor in the restaurant, so the reaction was completely genuine.
By the end of the meal, my friend said to me (as if I didn’t know already), “This food is really incredible. I wonder if they have one in my hometown.”
As a long-term shareholder, this confirmed why I love this stock and why I don’t mind waiting out a bear market as the company delivers their part of the deal.
Below you can find the press release:
Spicy Pickle Announces a 7 Restaurant Franchise Agreement in San Antonio.
DENVER, CO, Mar 17, 2008
Spicy Pickle fast casual restaurants (OTCBB: SPKL) announced today it has recently sold the rights to develop seven Spicy Pickle restaurants in San Antonio, Texas.
The sale of the seven restaurant development package brings the total of franchise and corporate restaurants to 128. There are currently 36 restaurants open and many more in construction, lease negotiation, and site selection.
Marc Geman, CEO of Spicy Pickle Franchising, Inc., commented: "Our Austin, Texas restaurants have done very well, and their success fostered interest in Houston and San Antonio. Our third restaurant in Austin is close to opening, and we have begun the site selection process in Houston.
"With the addition of the San Antonio development package we now have commitments for 25 Spicy Pickle restaurants in Texas. Colorado currently has a total of 23. Texas has accepted our concept, with the Dallas/Ft. Worth area, the largest population center in the state, still open for expansion."
Furthermore, Mr. Geman stated: "In the last three months we have entered into multi unit franchise agreements in Chicago, Los Angeles, Houston, San Antonio, and Michigan. We are proving out our evolution to the multi unit ownership model. It provides efficient use of personnel, communication, distribution, and marketing. The more restaurants we build in larger areas, the easier and more cost efficient the construction, distribution, branding, marketing, and training becomes. Texas is our first state outside of Colorado where these efficiencies will start working.
"I feel that we are beginning the second phase in our growth strategy. We are starting to see activity in and around our early single markets. More interest brings more restaurants, and more restaurants bring conditions that can improve unit economics. It all works together to create momentum. We are very excited to see our hard work starting to pay off in Texas and expect other states and regions to follow. If we continue on our current path, our growth should accelerate over the coming months and years."
ALFONSE
StockwireAdmin
Today, post close, Spicy Pickle announced it has inked a seven store franchise agreement in San Antonio, Texas. In total, Texas is now accounting for 25 current and future Spicy Pickle locations, more than the 23 in home state Colorado. With the Dallas/Ft Worth area still to go, Texas is proving to be fertile ground for the expansion of this concept.