MedMen Enterprises Inc. MMNFF, -5.51% said revenue rose to $29.9 million in the second quarter to Dec. 29, up 40% from the prior quarter. Proforma revenue, which includes revenue from pending acquisitions came to $49.5 million, said the Los Angeles-based company, based on unaudited preliminary numbers. The proforma revenue number is based on the 31 retail stores that were operating at quarter-end, including a new location close to McCarran International Airport in Las Vegas, that opened in October, and the MedMen Scottsdale location in Arizona, which opened in December. Gross margins at its retail operations was 54%, up from 45% in the previous quarter. California was the best performer with the company's eight retail outlets generating $23.7 million in revenue, up 27% from the previous quarter. "California is the prize of the cannabis industry," Chief Executive and co-Founder Adam Bierman said in a statement. MedMen is expecting to open 16 new locations in calendar year 2019, 12 of which will be based in Florida. The company did not provide further details, but is expecting to report full second-quarter earnings in February. Shares rose 2.1% and are up 11% in 2019, while the S&P 500 SPX, -1.11% has gained 4.5%.