There’s nothing more comforting than creamy, melty cheese between two slices of crispy, toasted bread. But would you invest in it? Apparently, the answer is yes.The Florida-based Grilled Cheese Truck went public last week with an astounding estimated worth of $108 million. It’s a surprisingly high number, especially considering that the mobile grilled cheese dispensary reported total assets at just over $1 million last year and liabilities of almost $2.6 million.
The Grilled Cheese Truck IPO has left investors dumbfounded, and, according to Bloomberg, it’s something that probably won’t last, despite everyone’s love of melted cheese. “This means its shares trade for more than 25 times sales, a very rich valuation,” writes Bloomberg financial columnist Barry Ritholtz. “That sort of thing doesn't happen unless there is significant excess in the markets.”
The Grilled Cheese Truck isn’t the only fast casual eatery to catch investors’ attention: Shake Shack went public last month, but, given their wide reach and hand-over-fist profits, Shake Shack’s $1.6 billion estimated value is more plausible.