Will Protecting Territory In The Casual Food Sector Be Difficult For Legacy Brands As Newer Companies Cater To Consumer Preferences?

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Many big names in the fast-casual dining sector are well-established companies with billions of dollars in assets.

Think Chipotle Mexican Grill Inc. CMG and San Diego-based Jack in the Box Inc. JACK, for example. While Chipotle was founded in 1993, Jack in the Box, which has over 2,200 locations mainly on the U.S. West Coast, goes way back to 1951.

While there are big players dealing in the billions of dollars of assets, there are also smaller kids on the block such as Muscle Maker Inc. GRIL that are trying to offer their own take on fast food.

Founded in 1995, Muscle Maker’s recent growth has reportedly focused on new offerings such as the Pokemoto Hawaiian Poke bowl chain serving its own twist on the traditional Hawaiian fish dish in five states. 

While the company also operates its more established Muscle Maker Grill restaurants and SuperFit Foods, a meal prep division focused on diet-specific and healthy food options, it is the Pokemoto franchise model that seems to be boosting the company’s current growth.

“The full growth engine will come from franchising and expanding Pokemoto,” CEO Mike Roper said in a recent letter to shareholders.

Balance Sheet Differences?

The asset differences between companies like Chipotle and Jack in the Box, when compared with Muscle Maker are stark, as are the liability values.

Chipotle boasted $7.64 billion in assets as of the fourth quarter of 2021, according to Trading View. The company’s liabilities in that same period amounted to $5.35 billion.

Jack in the Box assets totaled $2.01 billion at the end of 2021 with liabilities of $2.82 billion, according to Trading View.

Muscle Maker reported assets worth $29.43 million at the end of 2021 with liabilities totaling $5.04 million.

The company’s assets rose from a value of $4.25 million in 2017 to $29.43 million just four years later. The company’s liabilities have also decreased in net value over that time period.

Chipotle’s assets have grown in that same time period by almost 250% while its liability value has risen from $827.9 million to $5.35 billion. Jack in the Box assets has grown 63% while its liability exposure rose from $1.62 billion to $2.82 billion in the same time period.

Muscle Maker’s debt exposure has also been decreasing in recent years, from a high of $2.83 million in 2017 to being in the black to the tune of $14.4 million in 2021.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Photo by Hanxiao on Unsplash

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