- A single deli in a small New Jersey town is valued at over $100 million on the stock market.
- “The pastrami must be amazing,” hedge fund manager David Einhorn joked while highlighting the stock.
- We had to find out for ourselves, so we visited the deli for lunch this week.
- Visit the Business section of Insider for more stories.
Against all logic, a small New Jersey deli is worth just over $100 million on the stock market.
Your Hometown Deli, which is owned by “Hometown International,” reported sales of about $36,000 in the last two years. At the same time, the company’s stock exploded in value: from $1.25 in October 2019 to $13 currently.
Its market capitalization puts the company at around $105 million. Something strange appears to be happening, as recent CNBC reporting has highlighted.
“The pastrami must be amazing,” Greenlight Capital head David Einhorn joked in a recent letter to investors warning about the lack of stock market regulation.
He wasn’t far off: Your Hometown Deli specializes in the kinds of items you’re more likely to find in a southern New Jersey or Philadelphia-area deli. Their cold cuts are Dietz & Watson rather than Boar’s Head, and they make a mean cheesesteak special.
I found out as much after driving nearly two hours from New York City to the small New Jersey town of Paulsboro, where Your Hometown Deli is located.
Despite being in New Jersey, Paulsboro is in the part of the state that’s geographically below Philadelphia.
There’s cultural seepage from Philadelphia, which is just 25 minutes away by car, and cultural seepage from New Jersey’s notorious beach towns.
As a result, Paulsboro looks like a mix of New Jersey shore town with Philadelphia’s dense suburban housing.
From the sleepy residential street its on, you’d never know that Your Hometown Deli is worth over $100 million.
When I got to Your Hometown Deli just before 2 p.m. on Tuesday, they were about to close early — their normal hours of operation are 11 a.m. to 5 p.m., I was told by an employee, but for undisclosed reasons the deli was closing early when I visited.
Thankfully, I was still able to get in an order, and I couldn’t help but notice the telltale signs of a shop that specializes in cheesesteaks.
Anyone from Philly and the surrounding suburbs may have already noticed, but the “hot sandwiches” section starts with some pretty clear indicators: The very first sandwich listed is “plain steak,” which is Philadelphian for “cheesesteak without cheese.” From there, you’ve got a smattering of other Philly-area staples, from the standard cheesesteak, to the “pizza steak” (cheesesteak with pizza sauce), and even several varieties of chicken cheesesteak.
Having gone to college in Philly (go Owls!) and married a Pennsylvanian, I’m all too familiar with this menu. Any good deli or pizza shop in eastern Pennsylvania or South Jersey has some version of the list in Your Hometown Deli.
As is to be expected of a deli with little foot traffic potential, I was the only customer during my whole time there.
Ben Gilbert/Insider
Critically, $105 million market cap aside, the cheesesteak was genuinely delicious. At about $12 for the special with fries and a drink, it was a pretty reasonable price for lunch as well.
For context: I am an unabashed cheesesteak superfan, and a longtime loyalist to Jim’s Steaks in Philly.
My lunch at Your Hometown Deli wasn’t quite to the level of Jim’s (frankly, few cheesesteaks are), but for a deli in a small New Jersey town that seemingly exists as a front, they make a damn fine cheesesteak.
The characteristics of a standard cheesesteak are simple: Chopped, thinly-sliced beef, cheese, and a squishy-but-firm roll.
Do you want onions and, if so, raw or fried? Hot or sweet peppers? American, whiz, or provolone cheese? Ketchup? People customize cheesesteaks in a lot of different ways.
In Reading, Pennsylvania, where my wife is from, it’s standard to get marinara sauce on your sandwich. I think that is crazy, but they probably think I’m crazy for not doing it.
At Your Hometown Deli, I got a cheesesteak with American cheese, fried onions, and banana peppers — my go-to cheesesteak order. It was greasy, and cheesy, and exploding with savory umami occasionally cut by the acidic brightness of pickled yellow peppers.
It did that amazing thing that happens with good cheesesteaks where the fat and cheese meld and attempt to escape out the bottom, thus turning the last bite into the most flavorful bite.
While it makes a great lunch experience, Your Hometown Deli certainly didn’t feel like a $100 million business.
The building itself is mostly cinder blocks, and looks more suited for a VFW outpost than a food establishment.
There are no golden fountains out front, and the only indication that it’s open for business is a flag waiving in the wind.
In its most recent 10-K filing, Your Hometown Deli is described as, “a new ‘Delicatessen’ concept” which sells, “‘home-style’ sandwiches, food items, and groceries in a casual and friendly atmosphere.”
That “concept” is said to be the basis for the company’s $105 million market value, but what I experienced was a stereotypical deli with a better-than-average cheesesteak.
Got a tip? Contact Insider senior correspondent Ben Gilbert via email (bgilbert@insider.com), or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.
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