Tootie Pie Company Executes on Accelerated Growth Plan

Even before a highly successful Fourth of July weekend, Tootie Pie enjoyed a 20 percent increase in revenue and an 88 percent increase in retail sales. The pie company, ticker symbol TOOT, has expanded heavily into retail cafes, greatly increasing its sales margin on each pie. “As the next six months unfold, the company is well on its way to double its revenues,” said Don L. Merrill, Jr. President & CEO. “It should be a game changer.”

The expansion in retail cafes is a huge and critical step for Tootie Pie, which already has a proven track record selling pies via wholesale and mail order. While sales have grown consistently, they were concentrated around the holiday seasons; causing the business to rely on a strong fourth quarter for most of its profits.

The Company sees Cafes as an opportunity to bring in high margin, year round income. They provide year-round appeal and cash flow to customers because they sell coffee, bagels, sandwiches and salads in addition to pie.

By the end of October, the company expects to have seven cafes in operation with new locations in Austin's Westlake area and another in the Dallas area on the corner of Preston and Royal. Current Cafes include two San Antonio locations, an Austin location at the prestigious Arbor Walk, a Dallas-area location in Frisco, and a store in Fredericksburg. Merrill visits the cafes regularly.

“Every day we sell whole pies – day in and day out – even in May, June, July and August. That excites me,” he said. The profit margin is much greater on a retail pie. A $20 pie becomes a $35 pie or even a $60 pie when it's sold by the slice, he said.

Tootie Pie has used the recession to expand, allowing the company to get prime locations for rock-bottom prices. In addition, the company received a $1 million investment this year from a private equity group which was is being used to acquire six additional Cafes. Currently, the Company owns all the Cafes.

“These are investments in assets that will bring benefits to the company. They will also produce bottom line results” said Merrill. Though acquiring these new Cafes appears as an expense on the balance sheet (GAAP accounting), Merrill says he sees it as an investment in the future. It's difficult to predict future sales for the Cafes, Merrill said, but he thinks it's not that they will contribute, but just how well they will contribute. He sees this expansion representing a “seismic shift” for the Company and the next logical step for the ongoing growth of the brand.

Recent News for Tootie Pie Company Inc (OTC QB: TOOT)

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