Giggles N Hugs Inc (OTCMKTS:GIGL)
Shares of Giggles N Hugs Inc (OTCMKTS:GIGL) tumbled 19.8% even as CEO, Joey Parsi, reiterated plans to partner with celebrities in a bid to enhance the company’s competitive edge. The remarks come on the heels of the company posting a stellar second quarter, depicted by year-over-year growth in same-store sales as well as a decline in net loss and operations costs.
Giggles N Hugs Inc (OTCMKTS:GIGL) continues to edge lower in the market after posting impressive second quarter numbers. The stock is currently trading in a downtrend after breaking a key support level at the $0.06 a share level. It faces immediate support at the $0.02 mark.
Giggles N Hugs Inc (OTCMKTS:GIGL) is the operator of a kid-friendly restaurant that comes with play areas for children below the age of 10. The company also offers nightly proprietary entertainment such as magic shows, concerts, as well as face painting and “tricky treat” sauce.
In May, the company signed a Letter of Intent for the opening of two franchise locations in Bahrain. Under the terms of the agreement, the company is eligible to upfront development fees for each location in addition to royalties based on a percentage of monthly sales. The opening of the two locations is part of the company’s push to expand its footprint in the international scene.
The chief executive officer has also confirmed that they are in the process of pursuing external financing which will be used to fund long-term growth projects.
“Building something of this scale takes time and money. We believe we’ve set the foundation for future success, and we will work tirelessly in the weeks, months and years ahead to execute on our vision. We understand that the stock price has been very volatile in recent months but that is out of our control,” Parsi in a statement.
Q2 Financial Report
During the second quarter, Giggles N Hugs Inc (OTCMKTS:GIGL) reported a 4.3% increase in sales at its Glendale location with Topanga locations reporting a 5% year-over-year increase. However, total net sales reflected a 30.7% year-over-year decline. Cost of operations in the quarter was down by 41.5% to $429,164 as losses from operations improved by 46.2%.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.