MOD PIZZA Announces Strong 2019 Results
Sets Sights On Opening Of 500th Store In 2020
Significant Funding Fueled Key Growth Initiatives
February 26, 2020 // Franchising.com // SEATTLE - MOD Super-Fast Pizza Holdings, LLC (“MOD Pizza”, “MOD” or the “Company”) today announced 2019 year-end results that reflected continued new store growth, job creation, triple digit growth within digital channels, and significant social impact.
MOD reported the following 2019 highlights:
- System-wide sales reached $493 million, a year-over-year increase of 24%.
- Company net revenue of $393 million, up 26% over 2018.
- Digital sales growth of 135%, including expansion of MOD Rewards to over one million members.
- 64 net new stores added system-wide, for a total of 468 system-wide stores operating at the end of 2019.
- Added 2,000 new jobs, growing the MOD Squad to nearly 10,000 system-wide.
- Expansion into Canada with the opening of a store in Langford, British Columbia in December.
- Successfully completed a $160 million equity financing led by Clayton, Dubilier & Rice (“CD&R”) and supported by existing investors Fidelity and PWP Growth, bringing the total equity raised to date by the Company to over $339 million.
- Over $1.9 million donated to support MOD Squad members in need and community organizations across the US.
“Over the past 11 years, we have built MOD upon the conviction that we could create a best-in-class business by putting our people and the communities we serve first. We continue to believe deeply in this more enlightened form of capitalism. CD&R’s investment further validates our belief that profit and social impact can and should co-exist,” said Scott Svenson, co-founder and CEO, MOD Pizza. “The funds we raised in 2019 enabled us to pursue a number of key growth and business improvement initiatives that have set the stage for significant progress in 2020 as we move towards the opening of our 500th store. We’re incredibly excited for what the future holds as we continue to deepen our commitment to our people-first, purpose-driven culture and build upon our position as the leader in fast casual pizza.”
During 2019, MOD made significant investments in its digital offerings to ensure customers have easier and more convenient access to the MOD experience. In March, the Company introduced MOD Rewards, its first app and loyalty program, allowing customers to earn points toward free menu items or the option to donate their reward to help children struggling with food insecurity. More than one million customers joined MOD Rewards between its national launch in March through the end of 2019. In September, MOD launched nationwide delivery in partnership with DoorDash. Together, these initiatives enabled digital order growth of 135% over 2018.
MOD and its franchisees donated over $1.9 million to 9,000+ local and national charities across the US and provided ongoing support to MOD Squad members in need through its Bridge Fund. The Company deepened its work on opportunity hiring, providing jobs to individuals with barriers to employment with a focus on three specific populations - Second Chance (previously incarcerated), Opportunity Youth (low-income youth ages 16-24 who are neither employed nor in school), and IDD (intellectual and developmental disabilities). In 2019 MOD launched national partnerships with Best Buddies International and Out & Equal, to champion workplace diversity and inclusivity with donations of $61,000 to the Best Buddies Jobs Program and $16,000 to Out & Equal. During its annual “Spreading MODness” week, MOD continued its partnership with Generosity Feeds, a non-profit organization fighting childhood hunger, raising over $239,000 in 2019 alone and packing over 550,000 meals at events nationwide. MOD also proudly served free meals to over 37,000 teachers on Teacher Appreciation Day, nearly 14,000 Veterans on Veterans Day and over 4,000 Nurses on Nurse Appreciation Day.
The Company received several awards in 2019, including a spot on the Fortune “Change the World” list, which celebrates 52 companies across the world that are helping to tackle society’s unmet needs. MOD earned a spot on the Inc.5000 list of the most successful high-growth companies in America, and received a Gold Davey Award for its cause marketing campaign that supported teen suicide prevention. MOD has been named America’s fastest growing restaurant chain in the US by Technomic for four years running.
The following definitions apply to these terms as used throughout this release:
- MOD operates using a 52/53-week fiscal year reflective of 13 four-week periods in a year. The first fiscal quarter consists of 16 weeks and each of the second, third and fourth fiscal quarters consists of 12 weeks, except for a 53-week year when the fourth quarter has 13 weeks.
- The term “system-wide” refers to all company-operated and licensed store locations.
About MOD Pizza
MOD Pizza serves individual artisan-style pizzas that are made on demand, allowing customers to create their own pizzas and salads with any combination of over 30 toppings, all for one incredible price based on size. With 475+ locations system-wide, MOD is committed to creating not only a cool place to eat, but an inspired place to work. MOD recently earned a spot on the Fortune 2019 “Change the World” list, for its purpose-led culture and commitment to provide opportunities to individuals with barriers to employment. The Company has also been named America’s fastest growing chain restaurant by Technomic for four years running and named the most loved pizza brand by Foodable Network. MOD has earned a spot on the Inc.5000 list and has been recognized by Fortune as one of the “20 Best Workplaces in Retail,” a “Best Workplace for Women,” a “Best Workplace for Millennials,” and a “Best Workplace for Diversity.” For more information, please visit www.modpizza.com or connect with the brand via Facebook, Twitter or Instagram.
The trademarks MOD, MOD Pizza, and the MOD Shield, are owned by MOD Super Fast Pizza, LLC.
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