The OCMX™ is pleased to announce the listing of Atlas to its online portal which offers financial networks the ability to learn more about this exciting opportunity.
PASADENA, CA, January 03, 2023 /24-7PressRelease/ — Atlas gets listed on THE OCMX™
Atlas currently owns 32 Jimmy John’s in Pennsylvania, Minnesota, Arizona, and California. With its existing stores, through November 2022 the Company has experienced year-over-year same store sales growth of nearly 13%, comparable to its 2021 year-over-year sales of growth of nearly 18% as well. Over the past year, the Company has lined up additional stores for acquisition in Arizona, Nebraska, Florida, Pennsylvania, and Minnesota to allow the Company to grow to 100 units in 2023.
With the acquisitions, approximately 11 also come with fee simple real estate the Company can buy as well. Over the past two years, the Company has retained and trained the requisite staffing to successfully manage a growing 100 store organization as well. With an up to $30 million common stock capital raise, all these efforts will allow the Company to achieve a 2023 annual gross revenue run rate of nearly $95 million with just over $9 million of controllable EBITDA.
As a brand, Jimmy John’s now has nearly 2700 locations in 44 (and Washington D.C.) states across the U.S with a 2021 annual average unit volume of $874,845 (23% revenue growth since 2019). We make Freaky Fast® sandwiches using only the freshest ingredients. Just like McDonald’s fries, Jimmy John’s is known for the bread. We bake bread every 4 hours and slice meats + produce daily to ensure the sandwich is always fresh. Sandwiches are made within 30 seconds or less ensuring guests can grab a fresh sandwich and be on their way.
Our delivery zones are defined by 5-minute drive times (not miles), and we own our catering (in-house like Dominos). We can-do last-minute catering due to prep and speed. The bread, speed, and marketing have gained a cult following as our customers remember their college years and grabbing some Jimmy John’s or their first job at Jimmy John’s.
The OCMX™ is pleased to announce the listing of Atlas to its online portal which offers financial networks the ability to learn more about this exciting opportunity.
The OCMX™ has spent considerable time completing its due diligence on Atlas and concluded that there is indeed a tremendous potential for this company.
The OCMX™ noted that Atlas exhibits the main components of any solid opportunity, namely a solid management team, a great track record, and several key competitive advantages.
OPPORTUNITY HIGHLIGHTS
• In-Place Revenue and Cash Flow – Existing stores owned, and the targeted acquisitions have been opened and operating for over five years, in strong geographic areas. With 100 initial units, this will allow the Company to achieve a 2023 annual gross revenue run rate of nearly $95 million with over $9 million of controllable EBITDA.
• Additional Acquisitions – After 100 stores, the Company has lined up at least an additional 10 stores to acquire and/or build in subsequent years, to grow the Company to 150 stores which is expected to result in over $150 million of gross annual revenue with nearly $16 million in controllable EBITDA.
• Attractive Investor Return and Dividend Distribution – Pro Forma IRR of 22%+ with the Company having available after-tax net income to make dividend payments in Year 2 to investors.
• Strong Bank Relationships – The Company has established credit and deposit banking relationships with commercial banks. The Company has a signed LOI from a $5 billion bank and wrapping up the approval of an $8.5 million line of credit to assist with the acquisition strategy.
• Rare Consolidation Opportunity – Franchisor wants consolidation and growth within the system. This brand is at the cusp of large-scale consolidation, which provides a unique opportunity for investors no longer available in more developed systems like McDonalds or Subway.
PROBLEM THEY’RE SOLVING
Jimmy John’s is a fractured franchise system with first generation franchisees owning on average only 3.5 stores. Fractured franchise systems provide the perfect environment for franchisor supported rollups along with a large arbitrage upon exit as the smaller franchisees cannot command a large valuation.
The Company is also providing a solution for the lack of predictable and recession resilient investments. Jimmy John’s has grown through every recession. Analysts believe a recession would amplify quick service restaurants prior performance due to the elimination of competition during COVID. This is even more important at a time when investors have been investing in crypto and other non-asset backed investments which have failed. Investors can invest in an existing cash flowing business that yields predictable returns well beyond other hard asset classes and market indices over the past 5-years.
WHERE THEY ARE HEADED
The Company is a Jimmy John’s franchisee that was created by a seasoned group of multi-unit operators with one goal in mind – to consolidate stores within the Jimmy John’s system by executing acquisitions across the U.S. The team has conducted strategic acquisitions over the past years while developing a team to create the foundation for the planned large-scale growth.
Being successful with these acquisitions will allow the Company to have near-term annual EBITDA of $9 million+ resulting in a $100 million+ valuation. Additionally, this will provide the Company the ability to continue to grow by fueling future acquisitions with its own cash flow and banking relationships, thus continuing to increase shareholder value in addition to being able to pay an annual dividend within the second year after this investment raise. Longer term, the Company is expanding to 150 stores with fee simple real estate available as well, resulting in a 22%+ IRR within 5 years for an investor.
KEY MILESTONES
• 2013 – First store in Pittsburgh, PA.
• 2016 – Acquired 6 stores in Orange County, CA, and 9 Jimmy John’s corporate stores in Los Angeles, CA.
• 2018 – James assumes CEO position, buys out partners, and invests in the Company.
• 2020 – The Company acquires 6 stores in Arizona and 5 in Minnesota.
• 2020-2022 – Build infrastructure for acquisitions, pipeline of acquisitions and build relationship with Franchisor for endorsement of acquisitions.
• 2022 – Acquired 3 additional stores in Minnesota with in-place gross revenue of $3.1million.
• 2023-2024 – Execute 2nd round of acquisitions to get to 100 units.
KEY METRICS
• YoY sales growth – System-wide and industry leading sales growth. Through September 2022 the Company has experienced year-over-year same store sales growth of nearly 14%, comparable to its 2021 year-over-year sales of growth of nearly 19% as well.
• Catering % (catering as percent to total sales) – The Company has created a unique catering model that has allowed the Company to increase its catering over 100%, almost double the system.
• Loyalty attachment rate – The Company is a franchise leader in signing up guests for rewards which ensures a higher rate of repeat customers. Current customer loyalty attachment rate of 35%.
• Audit scores – Atlas is one of the few organizations that retains its own internal auditing function including an auditor. We believe audits provide invaluable operational insight and are necessary to uphold standards. Atlas average audit score as of Week 49 is 90.20% while the franchise-wide average is 76%.
• Revenue growth – Projected 2022 Company-wide revenue: $27.6 million.
ABOUT THE OCMX™
The OCMX™, established in 2009, is a next generation investor relations and marketing outreach firm. Through our online OCMX portal, we connect companies with financial networks, generating interest and awareness for their opportunity.
Contact Us
The OCMX™
TD Canada Trust Tower
161 Bay Street, 45th Floor
Toronto, Ontario, M5J 2S1
Tel: 1-866-209-6862
Email: prosper@theocmx.com
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