Giggles N Hugs Inc (OTCMKTS:GIGL)
Giggles N Hugs Inc (OTCMKTS:GIGL) is a restaurant chain that serves high-end, organic food and seeks to serve as a venue for children’s parties. In addition to their child-friendly menu, Giggles N Hugs offers cutting-edge entertainment and activities. The company was founded in Los Angeles, where it is currently headquartered, in 2004 by Joey Parsi.
The ideas behind Giggles N Hugs Inc (OTCMKTS:GIGL) is a simple one. Joey saw a market for a family-friendly restaurant where parents could bring their kids together and enjoy high quality organic food rather than the often unappetizing and nutritionally-challenged offerings frequently found in venues that cater to children’s parties. Additionally, Joey wanted a place that offered one-of-a-kind events and entertainment.
The results have been well received. Giggles N Hugs Inc (OTCMKTS:GIGL) has several restaurants operating in the Los Angeles greater market area. They boast on their website that they have been voted Lose Angeles’ #1 Kids Party Place, #1 Family Restaurant, and #1 Indoor Play-space. A review of their 328 Yelp! reviews demonstrate that the company’s boasts are well founded. Customers give an average rating of four stars to the restaurant and not only praise the food, but also the different kid-focused activities.
Giggles N Hugs Inc (OTCMKTS:GIGL) adds something extra for investors that may be thinking about their stock. In addition to providing a great eating and play experience, Giggles N Hugs offers to provide much of their experience at the location of your choice. Along with delivering their food, tables, and chairs, Giggles N Hugs will also provide attendants, servers, entertainment, and planning. This additional revenue source sets them apart from the traditional kid friendly venues whose revenue stream ceases if the customer is not in the venue.
Revenues for the company have improved since 2012 when it reported $1.35 million, By 2016 revenues hit $3.02 million. On top of that they have managed to increase gross income from $113,663 in 2012 to $178,507 in 2016. Net Income and Diluted EPS have been posted as losses since inception. In 2012 the loss was (-$2.1) million but that number narrowed to -$1.39 million in 2016. Similarly, the EPS loss in 2012 was (-$.09) but improved to a smaller loss of (-$0.03) by 2016. Some experts believe that if Giggles N Hugs Inc (OTCMKTS:GIGL) can successfully scale and achieve some efficiencies that come with a larger operation, the financial trends could continue with a profit in sight.
If the old adage “the customer is always right” is true, then one should consider that Giggles N Hugs might have their target market figured out (Yelp! reviews suggest that is correct) and the only thing holding them back is the corporate skill needed to expand and take advantage.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: James Marion is a University of Houston student studying Business with a concentration in Finance