EMC Group Inc. Is a company formed for the sole purpose of corporate and
franchise developmentof Treats' in the US. Treats is a retail speciality
bakery concept that offers the customer fresh Hot from the oven baked
muffins, Cookies, Cinnamon Swirls, brownies, and other high quality baked
products. Entrepreneur magazine for five years in a row has ranked Treats
as North America's #1 franchise chain in its industry category. The
company derives its income from three potential sources; the sale of
franchises, operating profits from stores, and royalty income.
Here is something on the industry.
The specialty Coffee/Specialty Baking franchise concept has been successful
addition to fast food franchising. The snack food or break food
market-segment is experiencing continuous growth and the specialty coffee
market is experiencing unprecedented growth. A number of large national
chains have established a strong presence in North America. The most
significant chains are Starbucks with approximitaly 1300 corporate owned
stores and Second Cup with 240 stores. These stores have established a
rapidly expanding market for coffee related concepts. The Speciality
Coffee Association of America projects that 10,000 coffee cafes, espresso
bars and espresso carts will be operating by 1999 with a total annual
retail revenues of $1.5 billion.
Corporate growth:
The company's expansion will be accomplished through a single store
franchising, the sale of Area Devweloping territories, corporate owned
stores and acquisitions.
The company intends to grow at a rate of 20-40 stores annually. Based on
demographics, the market potential in the US alone is over 2,000 stores.
By 2002, system sales in the US alone are projected at $73 million,
corporate sales of $50 million, with $5.9 million to the bottom line.
Anotehr item I would liek to point out is that the cost of opening a
Treats' store is only a fractionwhat it would cost to open a competitors
store.
My contact says that there will be a news release regarding acquisitions
and that a PR firm is about to begin working the stock in order to get the
word out. My guess is the news release will contain some numbers that
should positively impact this stock. That is my opinion.
Float 1.7 million
Outstanding 9 million
The stock traded well yesterday and any buying seems to move the price
quickly.
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