Fast-casual pizza company MOD Super Fast Pizza Holdings, LLC, announced 2016 mid-year results that reflect continued growth and strong existing store performance. Through the first two quarters of MOD’s fiscal year (28 weeks ending July 10), MOD reported system-wide sales of $70.5 million, up 168 percent over the same period in the prior year. This significant growth reflects the addition of 80 new stores system-wide over the last 12 months, a 138 percent increase, combined with system-wide same-store sales growth of 7.8 percent for the first half of 2016. The term “system-wide” includes all company-operated and licensed store locations.
MOD also reported company net revenue (which includes restaurant sales from company-operated stores, and franchise fees and royalties) of $61.4 million for the first half of 2016, reflecting a year-over-year increase of 142 percent. During the first half of 2016, the MOD brand expanded into three new markets in the U.S. (Missouri, Wisconsin, and South Carolina) and its first international location in the U.K. (Leeds). At the end of the second quarter, MOD operated 138 locations system-wide across 17 states (Arizona, California, Colorado, Idaho, Illinois, Maryland, Michigan, Missouri, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington, and Wisconsin) and the U.K. Before year end, MOD expects to open more than 50 additional stores system-wide including locations in three new states (Kansas, Kentucky, and Ohio), and four additional locations in the U.K.
“MOD experienced another transformational period of growth during the first half of 2016, increasing the size of our system-wide store base by 50 percent since the beginning of the year. We accomplished this while strengthening existing stores and our unique purpose-driven culture. Our ability to effectively execute our growth plan is a reflection of the hard work and dedication of our incredible team, led by our store General Managers and MOD Squaders,” says Scott Svenson, co-founder and CEO of MOD Pizza.
“The years we invested preparing for growth are paying off, and moving forward we plan on maintaining our rapid but thoughtful expansion. Within our category we are differentiated by our commitment to predominantly building company-owned stores, complemented with a select group of culturally aligned and highly experienced franchisees. We believe this approach will ensure a consistent brand and customer experience as we expand across the United States and abroad,” adds Svenson. “Most importantly, our commitment to leveraging the business to make a positive impact on our people and the communities we serve has never been stronger. It is this ‘purpose beyond pizza’ that motivates and inspires our team to deliver exceptional experiences in our stores every single day.”
In support of its rapid expansion, MOD strengthened its executive team in early 2016, adding three key individuals: Bob Barton, chief financial officer; Lisa Luebeck, vice president of legal and general counsel; and Carole McCluskey, chief technology officer. In addition, during the first half of 2016, MOD created more than 1,000 new jobs in company-operated stores, resulting in around 3,000 employees company-wide as of July 10. The company expects to employ nearly 4,000 by year end and, when including U.S. franchisees and the U.K., total jobs created under the MOD brand is expected to approach 5,000 by year end. Continuing its commitment to use its business as a platform for creating positive social change, MOD donated around $170,000 during the first half of the year to over 50 local non-profits including Generosity Feeds (Reston, Virginia), Northwest Family Services (Portland, Oregon), Cy-Fair Education Foundation (Houston) and Spectrum Support (Eldersburg, Maryland).
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