NROM Noble Romans Inc

Management Discussion

• The revenue from this venue grew from $1.25 million to $1.33 million and from $2.35 million to $2.47 million for the respective three-month and six-month periods ended June 30, 2019 compared to the comparable periods in 2018. The primary reason for the increase was the result of an additional restaurant which opened in June 2018, however that was partially offset by the highly unusual extreme winter weather conditions in Indiana during the months of January and February 2019. Total revenue in January was $337,000, in February $356,000 and in March $450,000. Revenue increased with the return of more normal weather conditions experienced in March.
• Cost of sales improved to 20.9% and 20.8% from 22.3% and 22.2%, respectively, for the three-month and six-month periods ended June 30, 2019 compared to the comparable periods in 2018. This improvement was the result of efficiency gained as the restaurants matured and as the staff gained experience. During the relevant periods in 2018, three restaurants were opened and only one restaurant had been opened for nearly a year.
• Salaries and wages decreased to 28.6% and 30.2% from 30.2% and 30.8% for the respective three-month and six-month periods ended June 30, 2019 compared to the comparable periods in 2018. This improvement was the result of improved efficiency as the restaurants matured and as the staff gained experience. This gain was partially offset in the first three months of 2019 by the highly unusual extreme winter weather conditions in Indiana during the months of January and February 2019. Total revenue in January was $337,000, in February $356,000 and in March $450,000. Revenue increased with the return of more normal weather conditions experienced in March.