Company Reports System-Wide Sales of $70.5 Million Representing Year-Over-Year Growth of 168 Percent; Store Count Expected to Exceed 190 System-Wide by End of 2016
SEATTLE (August 24, 2016) – MOD Super Fast Pizza Holdings, LLC (“MOD Pizza”, “MOD” or the “Company”), a pioneer of fast casual pizza, today announced 2016 mid-year results that reflect continued rapid growth and strong existing store performance. Through the first two quarters of MOD’s fiscal year (28 weeks ending July 10, 2016), MOD reported system-wide sales of $70.5 million, up 168 percent over the same period in the prior year. This significant growth reflects the addition of 80 new stores system-wide over the last 12 months, a 138 percent increase, combined with system-wide same-store sales growth of 7.8 percent for the first half of 2016. The term “system-wide” includes all company-operated and licensed store locations.
MOD also reported company net revenue (which includes restaurant sales from company-operated stores, and franchise fees and royalties) of $61.4 million for the first half of 2016, reflecting a year-over-year increase of 142 percent. During the first half of 2016, the MOD brand expanded into three new markets in the United States (Missouri, Wisconsin and South Carolina) and its first international location in the United Kingdom (Leeds). At the end of the second quarter, MOD operated 138 locations system-wide across 17 states (Arizona, California, Colorado, Idaho, Illinois, Maryland, Michigan, Missouri, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington and Wisconsin) and the United Kingdom. Before year end, MOD expects to open more than 50 additional stores system-wide including locations in three new states (Kansas, Kentucky and Ohio), and four additional locations in the United Kingdom.
“MOD experienced another transformational period of growth during the first half of 2016, increasing the size of our system-wide store base by 50 percent since the beginning of the year. We accomplished this while strengthening existing stores and our unique purpose-driven culture. Our ability to effectively execute our growth plan is a reflection of the hard work and dedication of our incredible team, led by our store General Managers and MOD Squaders,” said Scott Svenson, co-founder and CEO of MOD Pizza.
“The years we invested preparing for growth are paying off, and moving forward we plan on maintaining our rapid but thoughtful expansion. Within our category we are differentiated by our commitment to predominantly building company-owned stores, complemented with a select group of culturally-aligned and highly experienced franchisees. We believe this approach will ensure a consistent brand and customer experience as we expand across the United States and abroad,” explained Svenson. “Most importantly, our commitment to leveraging the business to make a positive impact on our people and the communities we serve has never been stronger. It is this ‘purpose beyond pizza’ that motivates and inspires our team to deliver exceptional experiences in our stores every single day.”
In support of its rapid expansion, MOD significantly strengthened its executive team in early 2016, adding three key individuals: Bob Barton, chief financial officer; Lisa Luebeck, vice president of legal and general counsel; and Carole McCluskey, chief technology officer. In addition, during the first half of 2016, MOD created more than 1,000 new jobs in company-operated stores, resulting in approximately 3,000 employees company-wide as of July 10. The Company expects to employ nearly 4,000 by year end and, when including U.S. franchisees and the United Kingdom, total jobs created under the MOD brand is expected to approach 5,000 by year end. Continuing its commitment to use its business as a platform for creating positive social change, MOD donated approximately $170,000 during the first half of the year to over 50 local non-profits including Generosity Feeds (Reston, Va.), Northwest Family Services (Portland, Ore.), Cy-Fair Education Foundation (Houston) and Spectrum Support (Eldersburg, Md.).
In April, MOD was named the “fastest growing chain restaurant in America” by Technomic, a research and consulting firm, in its annual Top 500 Chain Restaurant Report. In June, Ernst & Young named MOD co-founders Scott and Ally Svenson as Entrepreneurs of the Year for the Pacific Northwest, putting them in the running for the national award later this year. MOD was also named “Business of the Year” by the Bellevue, Wash., Chamber of Commerce, a “Top 100 Mover and Shaker” by Fast Casual magazine and received “honorable mention” distinction on the 2016 CNBC Disruptors list.
MOD operates its business with 13 four-week periods and a 52/53-week fiscal year ending on the last Sunday of December.