$NROM – Noble Romans Pizza – Undervalued Growth?

Noble Roman’s Inc ($NROM) is a company that sells pizza.  That’s a simple explanation, so let me go into more detail.  $NROM has been around since 1972, and recently has shifted its focus into the Take -N-Bake Pizza industry.  Prior to the past year, Noble Roman’s had two main lines of business: selling through non-traditional locations and through franchising restaurants.  They were not successful in the franchising business with traditional pizza restaurants, and just closed out some pending lawsuits which the company won.  The non-traditional business is now the main source of revenue and profits (grocery stores, convenience  stores, etc…) but the real opportunity arises around franchising their Take-N-Bake pizza program.   Going forward, I see Noble Roman’s focusing on selling Take-N-Bake standalone franchise licenses and growing their Take-N-Bake sales to grocery stores. Noble Roman’s is in the business of selling franchises and licenses to their pizza and subs products.  I don’t view the sub/sandwich business as being a focus for the future of the company.  All food items are handled by third party companies, so when a franchisee or licensee needs to place an order, that order is sent to third party manufacturers who will fill the orders placed.  Therefore, $NROM collects…

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