Soupman Looking for Additional Expansion through Food Truck Franchises

Soupman Looking for Additional Expansion through Food Truck Franchises

By: Dylan Sikes - AllPennyStocks.com News

Wednesday, June 19, 2013

It’s always interesting to watch companies grow from little, one-location type of outfits to build a national presence. It’s not something that happens all that frequently as most struggle for years and the majority end up succumbing to financial pressures and shuttering their doors. Of course, one of the most famous stories is that of ice cream maker Ben and Jerry’s and their rise from a near-broke upstart in 1978 to being bought by Unilever in 2000 for $326 million. There are several juniors trading on the Over The Counter markets that actually make tasty products. One of those is New York City’s Soupman, Inc. (OTCBB:SOUP), the parent company of The Original Soupman. Most will recognize this brand as being made famous by the popular sitcom “Seinfeld” and its character, the “Soup Nazi” and his cries of “No soup for you!”


The company has garnered the attention of some household names supporting the brand. Basketball star Shaquille O’Neal and baseball legend Reggie Jackson serve as advisors and equity partners. Shaq is now featured on two Soupman products, Shaq-A-Roni ‘n Meatballs and Shaq ‘n Cheese, as the company continues to expand its product line outside of just soup. Actor Jason Alexander (probably best known for his role as George Costanza on Seinfeld) is also an advisor and equity partner. Tim Gannon, the co-founder of Outback Steakhouse, serves as a board member and Culinary and Business Director at Soupman.

The fact is that The Original Soupman was wielding a ladle for years before Seinfeld and is still doing so today; only its soup can be bought at far more locations than its original store in mid-town Manhattan. The company has locations in New York, Connecticut and Texas. Additionally, Original Soupman soups can now be found on shelves at more than 3,000 leading grocers, such as Safeway, Wegmans, HEB and Waldbaums, covering 32 states.

The company also has an e-commerce business as well as its soup for sale on Amazon.com (Nasdaq:AMZN).

In April, a deal was penned with Robert Azinian and CCA Foods, Inc. to expand Al’s Famous new York Delicatessen & Restaurants, which feature Soupman soups, into casinos in North America. The Mohegan Resorts Casino in Atlantic City and the Mohegan Sun at Pocono Downs in Pennsylvania locations are expected to be open this year with expectations of 23 more locations in the next five years.

On Wednesday, the company said that it is now taking its soup to the streets, literally. Soupman is launching a new mobile food truck franchise opportunity at the Franchise Expo show in New York, being held June 20 – 22. According to research firm IBISWorld, the food truck industry is growing at an annual rate of 8.4 percent and has generated $1.5 billion in revenue between 2007 and 2012.

"With a low investment and a simple and easy business model that is perfectly situated for high-volume situations, we are confident that our brand can roll-out this new franchise opportunity nationwide," said Lloyd Sugarman, chief executive of The Original SoupMan.

Shares of SOUP have limped along since trading began in 2011, peaking at $2.60 each in May of that year. But, under the new leadership of Sugarman (appointed CEO in late April) and growing sales channels, the stock looks to be holding a bottom support level at 40 cents, not dropping below that mark in 2013.

In the latest quarter reported, ended February 28, the company reported improved sales of $619,239, compared to $559,367 in the year prior quarter. However, net loss widened when compared to the year earlier; rising to $1.28 million, or 4 cents per share, versus $727,274, or 3 cents per share.

Whether Soupman is turning the corner to become a success story will only be told with time and execution of the business model. It will be interesting to see the operational results from the quarter ended in May to see if sales can continue to grow and if the company can swing closer to profitability. Proper due diligence is, as always, encouraged.

Copyright © 2013 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Other Penny Stock Movers

Miner Scores with Acquisition of Promising Silver District in Mexico
Mixed Signals: Durable Goods Orders Up, But Not All Sectors Are Soaring
Biotech Steals The Show Following Pre-Clinical Data Announcement
Most Popular
5
FREE Newsletter


Back to Top