Los Angeles, Nov. 15, 2018 (GLOBE NEWSWIRE) --
– Giggles N’ Hugs, Inc. (OTCQB: GIGL), owner and operator of family-friendly restaurants that bring together high-end, organic food with active, cutting-edge play and entertainment for children, today announced its financial performance for the third quarter ended September 30, 2018.
Third Quarter Highlights include:
- Overall net sales increased 3.8% year-over-year to $677,838
- Glendale sales increased 2.7% year-over-year
- Topanga sales increased 5.3% year-over-year
- Store-level net margins increased to 12.5%, up from 7.4% in the year ago period
- Net loss decreased 76.0% year-over-year to $44,851
- 3Q18 EPS flat year-over-year at $0.00
“Our third quarter performance yet again demonstrates the viability of the Giggles N’ Hugs concept,” stated Joey Parsi, Founder and co-CEO of Giggle N’ Hugs. “With our crowdfunding campaign set to begin tomorrow, Friday November 16, we are hopeful we’ll soon have the capital required to begin to replicate our success in another market as we scale up our business and continue to keep tight controls on our corporate overhead, our attractive margins and store level economics should lead to sustainable profitability.”
Parsi continued, “While our crowdfunding campaign officially kicks off tomorrow, Friday November 16, we are currently taking early reservations from friends and family as well as current and prospective shareholders. Contact us ASAP to reserve your spot and or visit https://wefunder.com/gigglesnhugsinc for more information.”
“We are pleased our focus on operations continues to bear fruit. While we are not satisfied until we are also profitable at the corporate level, our trends continue to move toward a break even company for the quarter,” stated Philip Gay, Co CEO. “With a successful crowd funding campaign, we anticipate the first steps to being able to finally achieve our growth objectives and ultimately sustained profitability as a company, Gay Concluded”.
Financial Results
Net sales for the thirteen weeks ended September 30, 2018 and October 1, 2017 were $677,838 and $652,977 respectively. The increase of $24,861 (3.8%) was mostly attributable to increased play area and party food sales.
For the quarter, Glendale increased same store sales to $355,369, up 2.7% from $346,600 in the same quarter last year, while Topanga increased same store sales to $322,469, up 5.3% from $306,377 in the prior year period.
For the thirteen weeks ended September 30, 2018 and October 1, 2017, cost of operations were $476,888 and $485,308, respectively. The decrease of $8,420 (or 1.7%) was mainly attributable to reduced restaurant supply cost.
General and administrative expenses for the thirteen weeks ended September 30, 2018 and October 1, 2017 were $178,340 and $277,841, respectively. This decrease of $99,501 (35.8%) was mainly attributable to reduced legal fees, non-employees stock compensations, and CEO salary.
The overall net losses of $44,851 and $187,253 for the thirteen weeks ended September 30, 2018 and October 1, 2017, respectively, reflects a decrease of $142,402 was mostly attributable to increased revenue and decreased operating expenses.
About Giggles N’ Hugs
Giggles N' Hugs is the first true family restaurant that brings together high-end, organic food with active, cutting-edge play and entertainment for children. Every Giggles N' Hugs location offers an upscale, family-friendly atmosphere with a dedicated play area that children 10 and younger absolutely love. We feature high-quality menus made from fresh and local foods, nightly entertainment such as magic shows, concerts, puppet shows and face painting, and hugely popular party packages for families that want to do something special.
Forward Looking Statements:
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.