- Vegan fast-food stock Odd Burger (TSXV:ODD) reported its Q1 financial results, pointing to some growth, but admitting some struggles
- The company reported that for the quarter ended December 31, 2024, revenue increased C$42,170, or 6.2 per cent, over the previous quarter, while revenue remained nearly flat compared to the same period last year
- In terms of expenses, salaries and wages for the first quarter were C$149,476, a decrease of C$128,943 from C$278,430 for the same quarter last year
- Odd Burger stock (TSXV:ODD) last traded at $0.28
Vegan fast-food stock Odd Burger (TSXV:ODD) reported its Q1 financial results, pointing to some growth, but admitting some struggles.
Via a media release, the company reported that for the quarter ended December 31, 2024, revenue increased C$42,170, or 6.2 per cent, over the previous quarter, while revenue remained nearly flat compared to the same period last year. This growth was driven by a significant rise in franchise revenues, which surged by C$69,425, or 219.5 per cent, over the same quarter last year. However, this increase was offset by the transition of certain corporate units into franchise-operated units, which produce less revenue per unit but offer a more sustainable growth pathway.
The company’s gross margin for the first quarter was C$256,938, or 36.6 per cent, representing an increase of C$21,148 from the gross margin of C$244,790, or 33.3 per cent, for the three months ended December 31st, 2023. This improvement is attributed to the company’s strategic focus on franchise growth, leading to better margins.
In terms of expenses, salaries and wages for the first quarter were C$149,476, a decrease of C$128,943 from C$278,430 for the same quarter last year. This reduction is primarily due to lower staffing levels, including the absence of a full-time CFO and partial compensation forfeiture by the CEO and COO. Selling, general, and administrative expenses for the first quarter were C$359,159, an increase of C$283,365 over the same quarter last year. This rise is largely due to a reversal of expected credit losses taken in the prior year quarter, related to a franchised location that was ultimately re-leased.
Despite these challenges, the company’s net loss narrowed by C$1,075,420, or 79.8 per cent, over the previous quarter and remained nearly unchanged compared to the same period last year. The revenue analysis highlights Odd Burger’s ongoing shift towards a franchise model and the expansion of its consumer-packaged goods business, positioning the company for long-term growth.
About Odd Burger
Odd Burger is a franchised vegan fast-food restaurant chain that manufactures a proprietary line of plant-based protein and dairy alternatives. The company’s restaurants operate as smart kitchens, using state-of-the art cooking technology and automation solutions to deliver a delicious food experience.
Odd Burger stock (TSXV:ODD) last traded at $0.28 and has risen 75 per cent since this time last year.
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(Top photo: Odd Burger)
