Another Quarter of Growth at DineWise
What is the first thing you look for in a start up company to add to your portfolio? That's right, you want to see the numbers. (If this is not one of the first things you look for, then we still have some teaching to do!) Small cap companies are not just revered for their snazzy ideas or gripping business plan but their growth potential. At the end of the day, we want growth, growth, growth.Bringing to the table just the kind of growth we want, news out of DineWise Inc. (OTCBB: DWIS) this morning proves, once again, why we see so much potential here. In addition to a 5th consecutive quarter of sales growth for DineWise products - preliminary, un-audited reviews point to quarterly and six month (YoY) sales increases of 317% and 428% respectively for the burgeoning brand.
The Results Are In
Second quarter results, as noted in today's release, are expected to bring DineWise related sales to a run rate of close to $3M annualized, although management has stated they are expanding at an exponentially higher rate. In regards to the overall business, DineWise as a whole is expected to log a bit more than $5.5M in 1st half revenues. Not bad for a brand that has not even scratched the surface of its market.In this market, successful businesses improvise. The DineWise brand is currently the company's fastest growing and most profitable leg so like any good improv move, DWIS has transitioned away from a capital intensive business model to a more multi-faceted approach and is now placing sole focus on the growth of the new and highly successful DineWise brand.
Way Ahead of the Pack
Since the DineWise brand will the bread and butter going forward, it may make more sense to look to growth statistics tied to brand related sales to gauge the company's future potential rather than overall revenue growth.This will (and is) changing with time, and after looking at industry and competitive growth data, it appears DWIS is up to par, if not outperforming in quarterly (YoY) percentage expansion (again utilizing DineWise branded sales rather than overall revenue growth data).
In contrast to DWIS's 5 straight quarters of increased market share, the still veritable competitor, Ediets.com (NasdaqCM:DIET) has seen revenues decline four consecutive quarters ending 3/31/07.
Furthermore, industry data provided by Yahoo Finance indicates that the expected Q2 '07 317% quarterly (YoY) sales growth for DineWise products is leaps and bounds above quarterly (YoY) revenue growth experienced by the top dogs of the processed and packaged foods industry for Q1 '07.
Leaders in Quarterly Revenue Growth (YoY)
Industry: Processed & Packaged Goods - Quarter Ending 3/31/07
Green Mountain Coffee Roasters Inc. (NasdaqGS:GMCR) - Recent Price: $88.80 - Qrtrly Growth: 77.2%
TreeHouse Foods, Inc. (NYSE: THS) - Recent Price: $24.13 - Qrtrly Growth: 49.9%
Diamond Foods Inc. (NasdaqGS: DMND) - Recent Price: $17.05 - Qrtrly Growth: 43.1%
Sunopta Inc. (NasdaqGS:STKL) - Recent Price: $11.97 - Qrtrly Growth: 37.6%
*Closer Comp* Cuisine Solutions (AMEX: FZN) - Recent Price: $6.05 - Qrtrly Growth: 33%
*Out of Industry Comp* Ediets.com (NasdaqCM: DIET) - Recent Price: $3.1 - Qrtrly Growth: -38%
Although market giants like these may dwarf DWIS when it comes to annual revenues and share price, if the company is able to keep churning out growth at this pace, it will not be long before the Cuisine Solutions and Ediets of the world have a formidable new competitor on their radar screens.
Commenting on today's news Thomas McNeill, DineWise VP-CFO stated: "We are very pleased with our success this quarter and substantial momentum of our DineWise products. In just over one year we have achieved sequential sales growth in every quarter and have grown to an annualized DineWise-branded sales run rate of approximately $3 million based upon our recent second quarter results. However, we are growing our brand much greater than this rate".
Newsweek - Good Food Delivered
Understanding that many shareholders might never actually use the product of the company they are investing in, it helps to have a reputable source substantiate the quality of it, doesn't it? How about a reputable source like
In an article entitled "Good Food, Delivered", DineWise® branded products recently received stellar commendations. They were found to be the only ones that tasted fresh, not frozen. In addition, DineWise® meals were deemed delicious, available in an "enormous variety of meal plans" and, overall, a good value. How's that for a plug?
Okay, so there are some positive things being said out there about Dinewise and the quality of its products. But where DWIS really stands to shine is their angle on a future target market - diabetic and prediabetic customers. If you have (or know someone who has) diabetes, you understand how difficult it can be in every day life to maintain balanced blood sugar levels. With a complete line of pre-portioned and sugar balanced meals, DWIS stands to tap this massive and, unfortunately, quickly growing market. And so far they are the first in line.
Recently announcing the availability of a complete line of diabetic selections, DWIS effectively opened the door to 60 million new potential customers in the U.S. Already building an well- established presence in the hearts of diabetics across the country for providing solid online resources and a top-notch dining solution based on their specific needs, DineWise is building a competitive roadblock early on that could prove extremely beneficial down the road.
As we often say, the proof is in the profit. Revenue growth means one thing - people are buying this product. Okay, two things - people are buying this product and shareholder value is going up. Okay, three things - people are buying this product, shareholder value is going up and DWIS just became an EVEN better investment - especially to us early investors.
Labels: DineWise Inc, DWIS
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