Noble Roman's, Inc. (NROM) Stock Analysis

Noble Roman's, Inc. (NROM) Consumer Business Overview

Noble Roman's, Inc. operates a diverse range of foodservice operations, focusing on franchising and licensing, with a strong brand presence in the pizza segment and a commitment to culinary variety across its establishments.

What Is the Investment Thesis for NROM?

Noble Roman's, Inc. presents a unique investment thesis driven by its extensive franchise network and established brand recognition in the pizza segment. With a market cap of $13.1M and a P/E ratio of 12.02, the company demonstrates a solid profit margin of 7.1% and a gross margin of 32.9%, indicating operational efficiency. Key growth catalysts include the expansion of its franchise operations and the introduction of new menu items to meet evolving consumer preferences. The ongoing shift towards non-traditional dining formats presents additional opportunities for revenue growth. However, potential risks include the volatility associated with the OTC market, where liquidity and trading volumes may be lower compared to larger exchanges. Investors may want to evaluate these factors as they evaluate the company's future performance.

Based on FMP financials and quantitative analysis

NROM Key Highlights

Market cap of $13.1M reflects a small-cap status with growth potential.

• P/E ratio of 12.02 suggests a valuation that may appeal to value-focused investors.
• Profit margin of 7.1% indicates effective cost management and operational efficiency.
• Gross margin of 32.9% exceeds industry averages, showcasing strong pricing power.
• Beta of 0.26 suggests lower volatility compared to the broader market.

Who Are NROM's Competitors?

NROM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NROM's Key Strengths?

Strong franchise network with over 3,000 outlets.

• Diverse menu catering to a wide range of tastes.
• Established brand identity in the pizza segment.
• Operational efficiency reflected in profit and gross margins.

What Are NROM's Weaknesses?

Limited brand recognition compared to larger competitors.

• Dependence on franchisee performance for revenue.
• Exposure to market volatility due to OTC trading status.

What Could Drive NROM Stock Higher?

Launch of new menu items targeting health-conscious consumers.

• Expansion of franchise locations in urban and non-traditional venues.
• Partnerships with delivery platforms to enhance customer reach.

What Are the Key Risks for NROM?

Financial-distress signal — its Altman Z-Score of 0.51 sits in the distress zone (elevated bankruptcy risk).

• Increased competition from larger, more established brands.
• Economic fluctuations impacting consumer spending in dining.
• Changes in consumer preferences towards healthier dining options.

What Are the Growth Opportunities for NROM?

• Expansion of Franchise Network: Noble Roman's aims to increase its franchise locations, targeting urban areas and non-traditional venues such as airports and sports arenas. The franchising market for restaurants is expected to grow at a CAGR of 3.5% over the next five years, providing ample opportunity for Noble Roman's to enhance its footprint and brand recognition.
• Menu Innovation: The company plans to introduce new menu items that cater to health-conscious consumers and current food trends. With the global health food market projected to reach $1 trillion by 2027, Noble Roman's can capitalize on this trend by diversifying its offerings and appealing to a broader customer base.
• Partnerships and Collaborations: Noble Roman's is exploring partnerships with delivery platforms to enhance its reach and convenience for customers. The food delivery market is anticipated to grow at a CAGR of 11.5% through 2027, presenting a significant opportunity for the company to increase sales and customer engagement.
• Non-Traditional Locations: The company is focusing on establishing its brands in non-traditional settings, such as schools and hospitals, where demand for convenient dining options is on the rise. The non-traditional foodservice market is expected to expand, driven by changing consumer habits and the need for quick-service dining.
• Digital Marketing and E-Commerce: Noble Roman's is investing in digital marketing strategies to enhance its online presence and attract younger consumers. The digital food ordering market is projected to grow significantly, offering the company a chance to boost sales through e-commerce channels.

What Are NROM's Competitive Advantages?

• Established brand recognition within the pizza and foodservice industry.
• Diverse menu offerings catering to various consumer preferences.
• Strong franchise support system that enhances operational success.
• Ability to adapt to market trends and consumer demands.
• Experience in both traditional and non-traditional restaurant formats.

What Does NROM Do?

Founded in 1972, Noble Roman's, Inc. has evolved from a single restaurant into a prominent player in the foodservice industry, specializing in pizza and related offerings. Headquartered in Indianapolis, Indiana, the company has developed a robust franchise model that allows it to expand its reach through independent and non-traditional restaurant formats. Its brand portfolio includes Noble Roman's Craft Pizza & Pub, Noble Roman's Pizza, Noble Roman's Take-N-Bake, and Tuscano's Italian Style Subs, each offering a range of culinary choices from pizzas and pastas to salads and breakfast items. As of December 31, 2021, Noble Roman's operated a network of 3,069 franchised and licensed outlets, showcasing its ability to scale and adapt to market demands. The company's commitment to quality and variety has positioned it favorably within the competitive landscape of the restaurant industry, catering to diverse consumer preferences and dining occasions. Noble Roman's continues to innovate its menu and expand its operational formats, aiming to capture a larger share of the growing foodservice market.

What Products and Services Does NROM Offer?

• Operate and franchise pizza restaurants and related foodservice concepts.
• Offer a diverse menu including pizzas, pastas, salads, and breakfast items.
• Expand through franchising and licensing agreements.
• Maintain a network of over 3,000 franchised and licensed outlets.
• Focus on both traditional and non-traditional dining formats.
• Provide support and training for franchisees to ensure operational success.

How Does NROM Make Money?

• Generate revenue through franchise fees and royalties from franchisees.
• Direct sales from company-owned locations contribute to overall revenue.
• Leverage brand recognition to attract new franchise partners.
• Utilize menu innovation to drive customer traffic and sales.
• Expand into new markets and non-traditional dining settings for growth.

What Industry Does NROM Operate In?

The restaurant industry is experiencing a significant transformation, driven by changing consumer preferences and an increasing demand for convenience. The market is projected to grow as more consumers seek diverse dining options, including take-out and delivery services. Noble Roman's, Inc. fits within this evolving landscape by offering a variety of food formats, catering to both traditional and non-traditional dining settings. The competitive landscape includes established brands and emerging players, making brand recognition and operational efficiency crucial for market positioning. As the industry adapts to post-pandemic consumer behavior, companies like Noble Roman's that leverage franchising and innovative menu offerings are well-positioned for growth.

Who Are NROM's Key Customers?

• Franchise partners seeking to operate under a recognized brand.
• Consumers looking for diverse dining options, particularly in the pizza segment.
• Health-conscious customers interested in innovative menu offerings.
• Families and groups seeking convenient meal solutions.
• Businesses and institutions requiring catering services.

Over the past six months, Noble Roman's, Inc. insiders filed 3 SEC Form 4 transactions — 1 sales and 2 purchases. On net that is roughly 6K shares acquired (about $4K) — insiders putting money in tends to read as conviction.

Noble Roman's, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.51 places it in the distress zone, a signal of elevated financial risk.

Return on equity for Noble Roman's, Inc. stands at 30.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.0%, showing how much profit it generates from its asset base. NROM trades at a trailing price-to-earnings ratio of 12.02, below the Consumer Cyclical sector average of ~32.70x. Its free cash flow yield is 12.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.33 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 8.2%, the inverse of the P/E and a quick read on earnings relative to price.

Noble Roman's, Inc. (NROM) Valuation Context

Valued at $13.1M, NROM is classified as a micro-cap stock.

NROM Revenue & Earnings Trend

In Q2 FY2026, NROM generated $4.1M in top-line revenue, marking a sequential increase of 5.6%. The company recorded net income of $191K, with diluted EPS of $0.01. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Consumer Cyclical. Across the four most recent quarters, NROM averaged $0.01 in diluted EPS.

Company Profile

Noble Roman's, Inc. operates in the Restaurants industry within the Consumer Cyclical sector. It is headquartered in Indianapolis, United States.

NROM Financials

NROM Latest News

NROM Analyst Consensus

NROM MoonshotScore

Common Questions About NROM (Consumer Cyclical)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources