US cannabis retailer MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) is climbing this week. At the time of writing, MedMen stock is up 5.56%, selling for $3.99 USD on the OTCQX. Investors are reacting to MedMen's recent unaudited Q3 2019 results, released on April 15th.
The official third-quarter report is expected in May.
MedMen Stock: Preliminary Q3
MedMen Enterprises is a US cannabis retailer with its flagship stores in the three biggest cannabis markets in America—Los Angeles in California, Las Vegas in Nevada, and New York.
On April 15th, the company reported unaudited "systemwide revenue" of $36.6 million USD. This represents a 22% increase over Q2 results.
Further, according to the release:
For the third quarter, gross margin across its retail operations was 51%, compared to 53% in the previous quarter."
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MedMen Stock Can Bloom on Growing Operations
MedMen has 32 retail stores currently in operation, but it is licensed for 82 in total across 12 US states. So at present, the company is only operating at 39% capacity as it awaits pending acquisitions to close. This suggests that MedMen stock with reap further rewards in the not-too-distant future when MedMen opens all licenses.
For 2019, the company has 16 new locations scheduled to open including 12 locations in Florida alone.
Changing US Sentiment
With a market cap of $1.3 billion USD, MedMen Enterprises is seeing impressive growth reflective of a sector that is seeing sentiments change in its favor. The expectation is that things can only go up from here.
Marijuana remains illegal at the federal level in the US but, according to Pewresearch, about 62% of Americans believe the drug should be legalized. Furthermore, more and more states are legalizing pot for medicinal as well as recreational use. As marijuana continues to become normalized in the US, MedMen stock should grow in kind.
And where it's already legal, MedMen is showing that there is an increasing demand for its product. In Nevada and Arizona, third quarter retail sales increased by 34% and 513%, respectively, compared to the previous quarter.
There's much to be bullish about with this cannabis play. Will the current run extend? Is it time to invest in MedMen stock?
Featured Image: Canva
