FOOD FOR THOUGHT - BIGCD
BIG CITY BAGELS, INC.
99 Woodbury Road
Hicksville, NY 11801
NASDAQ: BIGCD
COMPANY CONTACT: Mark Weinreb
Chairman and Chief Executive Officer
(516) 932-5050
KCSA CONTACT: Adam Friedman/Jeffrey Corbin
(212) 682-6300 ext. 215/214
52-Week Price Range:$ .625 - $30.00
Current Price: $1.0625
Market Capitalization: $1.4 million
Float: 800k
1.95 million Fiscal Year: December 31,1996
1996 Revenues: $2.4 million
Common Shares Outstanding: 1.3 million
Market Makers
America First Associates
Biltmore Securities Inc.
D.L. Cromwell Investments
Herzog, Heine, Geduld, Inc.
Keywest Securities
Knight Securities L.P.
Mayer & Schweitzer, Inc.
Merit Capital Associates
M.H. Meyerson & Co., Inc.
Monroe Parker Securities
Nash, Weiss & Co.
Smith Benton & Hughes, Inc.
Troster Singer Corp.
Wall Street Equities
Wein Securities Corp.
Investment Considerations
Upscale national retail bagel cafe chain operator in top-five growing food industry category. Infrastructure in place for continued growth and expansion. Capturing a key market niche with value-priced line of high-quality "oversized" products. Bagel industry estimated to reach $2.3 billion in sales in 1996, an increase of 44% from 1995.
Unsaturated market, especially on the West Coast. Increased revenues of 51% and 18%, respectively, for the three months ending December 31, 1996 and March 31, 1997 as compared to the same quarters in 1996 and 1997. 16 Big City Bagels' stores (10 franchised) currently operating and 38 additional franchises sold with openings anticipated to begin in early 1997. Expanding stores and franchises in larger urban cities.
Management with more than 20 years of experience in the bagel industry and strong franchising expertise. Company Description
Big City Bagels, Inc. owns, operates and franchises upscale, New York bagel bakery cafes, specializing in oversized, fresh-baked bagels and other bakery products. The Company's signature product is an oversized, freshly baked bagel with an authentic "New York" flavor and texture. Big City Bagels' concept and product offer broad appeal to a consumer market eager for healthful and appetizing alternatives to other breakfast, snack and lunch foods. The Company is an emerging chain in a multi-billion dollar market.
Big City Bagels ensures consistent quality by producing pre-formed bagel dough at regional commissary facilities. The bagel dough is delivered to the Company's retail stores, where the bagels are freshly baked throughout the day in accordance with the Company's quality control specifications.
Unlike many competitors which, without any prior experience, entered the bagel industry as part of larger food conglomerates or through acquisition of existing bagel businesses, Big City Bagels' management has over 20 years experience in the bagel business. Big City Bagels sells a bagel product that is visibly different. Big City Bagels come in a wide variety of eclectic flavors, including jalapeno and sun-dried tomato. For the sweet-tooth enthusiast, chocolate chip and Hawaiian pineapple bagels are also available. Big City Bagel stores offer hand-shaped mini-bagels, bagel braids and cinnamon sticks, and the three-foot-diameter "party bagel." The bagels can even be personalized in unique shapes for special occasions.
Big City Bagels offers more than just breakfast. An extensive lunch menu that includes a variety of homemade salads, soups, pizza bagels and deli sandwiches, creates a sense of flexibility and portability that promises the consumer that they will always find something to satisfy their culinary preference. Big City Bagels' innovative Bagel Pocket Sandwiches are rapidly becoming a lunchtime favorite offering customers a vast assortment of meats, cheeses and salads wrapped in Big City Bagels' bagel dough.
Big City Bagels has 16 stores nationally. It owns and operates 6 stores in southern California, Arizona, and Utah. In addition, it has 10 franchise stores in operation in California, Minnesota and Idaho and has sold 38 additional franchises in the United States which the Company anticipates will begin to open in 1997. The Company also is looking to expand into the Midwest, East and Southeast, as well as the Canadian market.
Inviting product presentation and store designs create a favorable impression that is visually appealing. Each bakery cafe is decorated with old-fashioned touches, such as tin-paneled ceilings and wicker baskets attractively presenting our products in large display cases. The stores range from 1,600 and 2,200 square feet and seat 20 to 60 customers. The design is readily adaptable to various locations, including shopping centers, free-standing units, drive-thrus and commercial sites on heavily traveled thoroughfares. The concept also works for smaller satellite stores or kiosks in airports and commercial buildings.
Big City Bagels also sells its products wholesale to commercial accounts and food service operators which include Northwest Airlines, Disneyland Hotels and several other upscale hotels.
Incorporated under the laws of the State of New York in December 1992, the Company completed in May 1996 a successful initial public offering that provided gross proceeds of $5.1 million to expand franchise operations and increase the number of company-owned stores. The Company has approximately 39 full-time and 60 part-time employees. |
