Skip to main content

WCVC Reports 23 Percent Revenue Growth Through Q3 to $2.7 Million and Now Enters $800 Billion Franchise Sector

Written by Customer Service on . Posted in Public Companies.

DENVER, Nov. 26, 2019 (GLOBE NEWSWIRE) — via OTC PR WIRE — West Coast Venture Group, Corp. (OTCQB: WCVC) (“WCVC”) today published a financial update to include an outlook on the company’s new franchise operations.  WCVC has established a proven fast casual concept restaurant operation that reported over $3 million in sales last year in 2018 and is now transitioning from restaurant operator into a full-blown restaurant franchiser.   The revenue generated today by the operation of the company’s own restaurants has grown over 23% this year compared to the same period in the prior year.  For the nine months ended September 30, 2019, revenue generated was $2,765,406, as compared to $2,244,075 for the nine months ended September 30, 2018.   See excerpts below from the company’s Q3 financial report now publicly available.
WCVC has now established franchise sales in 31 states and work underway to launch in the remaining 19 states soon.  As a franchiser, WCVC’s growth potential has dramatically increased.  The U.S. franchise market is approximately and $800 billion sector.  WCVC has just started to aggressively market its franchise sales.  Look for more information on WCVC’s franchise marketing to be forthcoming soon.From the Q3 Financial Report:Three Months Ended September 30, 2019 Compared to the Three Months Ended September 30, 2018For the three months ended September 30, 2019, revenue generated was $981,367, as compared to $806,989 for the three months ended September 30, 2018. The year over year increase of approximately 21.61% was mainly attributable to our location in Glendale, CO which opened in October 2018 and Lauderhill, FL location which opened the end of June 2019. The year over year same store sales increase of approximately 16.78% was mainly attributable to expansion of our marketing, especially in the downtown location and an increased emphasis on the various on-line ordering and delivery platforms we employ.Cost of SalesOngoing restaurant cost of sales, exclusive of depreciation, increased to $1,003,454 from $648,620, or 55.71%. This increase was primarily due to an active cost control program instituted during 2018 and increases related to hiring managers at each location. Our ongoing restaurant cost of sales, as a percentage of sales, was approximately 102.25% and 80.38% for the three months ended September 30, 2019 and 2018, respectively.Gross ProfitOur ongoing restaurant operations (operating loss) gross profit was ($22,087) and $158,369 for the nine months ended September 30, 2019 and 2018, respectively. Our ongoing restaurant (operating loss) gross profit, as a percentage of sales, was approximately (2.25%) and 19.62% for the three months ended September 30, 2019 and 2018, respectively.Our ongoing restaurant gross profit, as a percentage of gross sales was slightly lower in 2019 due to the current trend of high personnel cost in the industry because of heavy competition for personnel from the construction and marijuana industries in Denver; across the board increased prices in our foodstuffs, our increased marketing costs and the start-up costs with our newest concept location – Illegal Pizza Lauderhill. At the end of the first quarter 2018 we raised our prices chain-wide to counteract the decrease in gross profit seen in the first quarter.General and Administrative ExpensesGeneral and administrative expenses for the three months ended September 30, 2019 were $392,672 compared to $281,893 for the three months ended September 30, 2018. The increase was the result principally due to share based compensation to third parties.Net LossNet loss for the three months ended September 30, 2019 was $1,072,744 compared to a net loss of $486,470 for the three months ended September 30, 2018. This increase in the loss was the result of many factors: high personnel cost in the industry because of heavy competition for personnel from the construction and marijuana industries in Denver; across the board increased prices in our foodstuffs and our increased marketing costs; ongoing public company expenses, interest expense and principally, derivative costs.Nine Months Ended September 30, 2019 Compared to the Nine Months Ended September 30, 2018For the nine months ended September 30, 2019, revenue generated was $2,765,406, as compared to $2,244,075 for the nine months ended September 30, 2018. The year over year increase of approximately 23.23% was mainly attributable to a full nine months of the CitiSet location operations and three months of the Lauderhill location, expansion of our marketing, especially in the downtown location and an increased emphasis on the various on-line ordering and delivery platforms we employ.Cost of SalesOngoing restaurant cost of sales, exclusive of depreciation increased to $2,716,453 from $2,005,555, or 35.45%. This increase was primarily due to a full nine months of the CitiSet location operations high personnel cost in the industry because of heavy competition for personnel from the construction and marijuana industries in Denver; across the board increased prices in our foodstuffs and our increased marketing costs and hiring managers for all locations. Our ongoing restaurant cost of sales, as a percentage of sales, was approximately 98.23% and 89.37% for the nine months ended September 30, 2019 and 2018, respectively.Gross ProfitOur ongoing restaurant operations gross profit was $48,953 and $238,520 for the nine months ended September 30, 2019 and 2018, respectively. Our ongoing restaurant gross profit, as a percentage of sales, was approximately 1.77% and 10.6% for the nine months ended September 30, 2019 and 2018, respectively.Our ongoing restaurant gross profit, as a percentage of gross sales was lower in 2019 because of the current trend of high personnel cost in the industry because of heavy competition for personnel from the construction and marijuana industries in Denver; across the board increased prices in our foodstuffs and our increased marketing costs. At the end of the first quarter 2018 we raised our prices chain-wide to counteract the decrease in gross profit seen in the first quarter.General and Administrative ExpensesGeneral and administrative expenses for the nine months ended September 30, 2019 were $1,291,913 compared to $834,174 for the nine months ended September 30, 2018. The increase was the result principally due to share based compensation to third parties.Net LossNet loss for the nine months ended September 30, 2019 was $3,380,739 compared to a net loss of $2,123,553 for the nine months ended September 30, 2018. This increase in the loss was the result of many factors: high personnel cost in the industry because of heavy competition for personnel from the construction and marijuana industries in Denver; across the board increased prices in our foodstuffs and our increased marketing costs; ongoing public company expenses and principally, derivative costs.About West Coast Ventures Group Corp.Based in Denver, Colo, West Coast Ventures Group Corp. (OTCQB: WCVC) is America’s first CBD restaurant stock under Illegal Brands and operates a number of contemporary restaurant concepts including the flagship Illegal Burger a quick-casual burger + bar concept. Led by seasoned restaurant entrepreneurs, WCVC management is committed to scaling both modern sustainable concepts into national franchise models operating metro-styled restaurants serving only the finest and freshest natural ingredients.Forward-Looking StatementsThis document may contain forward-looking statements, relating to West Coast Ventures Group Corp operations or to the environment in which it operates, which are based on West Coast Ventures Group Corp operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond West Coast Ventures Group Corp control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. West Coast Ventures Group Corp disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Jim Nixon
CEO West Coast Ventures Group, Corp.
+1(303)423-1300
info@illegalburger.com 
https://www.westcoastventuresgroupcorp.com/ 
https://www.illegalburger.com/ 
 https://www.illegalpizza.restaurant/ 
 https://www.illegalbrands.com/

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Cookie Notice

We use cookies to improve your experience on our website

Information we collect about your use of Goldea Capital website

Goldea Capital website collects personal data about visitors to its website.

When someone visits our websites, we use a third party service, Google Analytics, to collect standard internet log information (such as IP address and type of browser they’re using) and details of visitor behavior patterns. We do this to allow us to keep track of the number of visitors to the various parts of the sites and understand how our website is used. We do not make any attempt to find out the identities or nature of those visiting our websites. We won’t share your information with any other organizations for marketing, market research or commercial purposes and we don’t pass on your details to other websites.

Use of cookies
Cookies are small text files that are placed on your computer or other device by websites that you visit. They are widely used to make websites work, or work more efficiently, as well as to provide information to the owners of the site.