Your smile may be worth a million dollars, but Grilled Cheese Truck Inc. has just been valued at $108 million.
The company announced to shareholders on January 28th that its common stock was now available for trading on the OTCQX marketplace. As the newly appointed CEO of The Grilled Cheese Truck Inc., Al Hodges, notes, “We are pleased to commence the trading of our common stock on the OTCQX as a crucial step in the progression of our business model.” Well, he sure has brought the company into a different arena. Food trucks everywhere are probably scratching their heads and asking, “Wait… we could do that?” If this isn’t proof of how fast our modern marketplace is changing, I don’t know what is.
The Ft. Lauderdale, Fla., based company opened with 18 million shares valued at $6 each, which brings the value of the company to roughly $108 million. This is pretty startling considering the company only has food trucks running primarily on the West Coast, operating in Los Angeles, Santa Barbara, Orange County, and Phoenix. However, the food truck shows phenomenal sales potential. In the third quarter of 2014, it had sales of almost $1 million. But investors will have to keep their eye on loss because although the company has assets of $1 million, it has liabilities of $3 million. Addressing some of these worries, the CEO released astatement saying, “I seek to bring to fruition the growth of shareholder value across our dynamic model: namely our core Gourmet Truck and store expansion, our Franchise and Licensing businesses, and to establish our strong foundation as one of a select few companies emerging as Veteran-focused.”
The shockingly large valuation of a food company that started out as a small start-up is reminiscent of Shake Shack’s beginnings. Shake Shack first started in 2001 as a hot dog cart in Madison Square Garden. In 2004, Shake Shack got a permanent kiosk in the park and rest was history.
Shake Shack just closed its widely anticipated initial public offering on the New York Stock Exchange and raised $105 million. The “shack” is now worth $1.63 billion. That’s a far cry from the humble beginning of this company but shows how shareholder interests are changing. Consumers value companies that seem to come from these honest, homemade beginnings, and shareholder understand that this image can be mass produced and make them millions of dollars.
Shake Shack executives at IPO launch. Photo credit: NYSE/Valerie Calviness
Who is to say that The Grilled Cheese Truck Inc. will not surprise us in the same way? With an active social media presence on Facebook, Instagram, and Twitter, the company clearly knows how to build a community of followers. And let’s not forget the most important part: the food is delicious. The menu includes a Brie Melt on Cranberry Walnut Bread, a Cheesy Mac Melt, and various Dessert Melts. If your priorities are straight, then you’d value this company in the millions, too!
If all this talk about stocks and grilled cheese got your taste buds tingling, try making some culture recipes. The High Road Vanilla Melt with aged cheddar and vanilla ice cream is always a sweet surprise. For a twist on the BLT, try out the Bacon, Lettuce, and Cheddar Melt on Olive Bread.
You’re going to need the brain fuel to figure out your investment strategy.
Jacqueline Roman
Jacqueline Roman is an Emerson student in Boston who never misses an opportunity to make a cheese pun and utilizes her social media accounts to post pictures of her pride and joy: cheeseboards. She has other interests but does not brie-lieve they are as gouda.
