...The Cheesecake Factory has become a very well restaurant that has a variety of foods. The successfulness of the restaurant is wonderful. This is an insight to The Cheesecake Factory’s financial statements. The Cheesecake Factory has become a very well restaurant that has a variety of foods. The successfulness of the restaurant is wonderful. This is an insight to The Cheesecake Factory’s financial statements. Table of Contents Introduction pg 1 Ratio Analysis pg 1 Ratio Analysis for 3 restaurants pg 2 Vertical Analysis pg3 Vertical/Common Size Analysis pg3 Major Elements of Cash Flow pg4 Cash Flow Comparison for 3 restaurants pg4 Comparison of Net Income pg 4 Comparison of Net Cash Flow from Operating Activities pg 5 Comparison of Net Cash Flow from Investing Activities pg 5 Comparison of Net Cash Flow from Financing Activities pg 5 Comparison of Net Change in Cash pg 6 Comparison of Free Cash Flow pg 6 Horizontal Analysis pg 6 Horizontal Analysis for 3 restaurants pg 7 Reference pg 8 The Cheesecake Factory was started by Evelyn Overton. Evelyn was always baking cheesecakes and lead to the opening of her first cheesecake shop in Detroit. Over the years the Cheesecake factory has become so popular that its expansion is continuous. There are currently 150 Cheesecake locations in the United States. However, the expansion does not stop there; there are also many...
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...Cheesecake Factory Report Jennifer Ojiyi BUSX 301, section 012 Amanda Gates March 21, 2012 Business Analysis for Cheesecake Factory Executive Summary Cheesecake Factory’s mission statement is to create an environment where absolute guest satisfaction is their highest priority. The vision statement is that through a shared commitment to excellence, they are dedicated to the uncompromising quality of their food, service, people and profit, while taking exceptional care of their guests and staff. The Cheesecake factory is doing really well in satisfying their mission by providing a broad menu offering to satisfy their guests, but they are not managing their profit and expenses well as stated in their mission statement because over the years expense growth outpaced revenue growth as shown by the SWOT analysis below. Therefore Cheesecake Factory needs Consultants to help them better manage their revenue and expenses, in order to increase their profits, because the purpose of a business establishment is to make profit. SWOT Analysis The SWOT analysis gives us a summary of the company’s strengths, weaknesses, opportunities and threats. The information below would also include the competitive climate, growth strategy...
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...Table of Contents Introduction | 2 | Income Statement Analysis | 2 | Cheesecake Factory | 2 | Buffalo Wild Wings | 3 | Balance Sheet Analysis | 4 | Cheesecake Factory | 4 | Buffalo Wild Wings | 6 | Other Items | 6 | Investing and Financing Activities | 7 | Cheesecake Factory | 7 | Buffalo Wild Wings | 8 | Comparison | 8 | Investment Option | 9 | Appendix | 10 | Appendix A | 12 | Appendix B | 13 | Appendix C | 14 | Appendix D | 15 | Appendix E | 15 | Appendix F | 16 | Appendix G | 16 | Appendix H | 17 | Appendix I | 17 | Appendix J | 18 | Appendix K | 18 | Appendix L | 18 | Appendix M | 19 | Appendix N | 19 | Introduction This report analyzes two food industry companies, Cheesecake Factory and Buffalo Wild Wings. Both the income statement and the balance sheet of these two companies was analyzed from the annual reports that these public food industry companies posted onto their websites. The investing and financing activities of both companies was also analyzed. After comparing the two companies, we acted as a potential investor to decide which company was the better option to look at these analyses. Income Statement Analysis Four vital line items on the income statement that would be valued by an investor would be net income, revenues, total costs and expenses, and gross profit. All four line items would be scrutinized by potential investors because they are all pertaining to the cash flows of the respective companies. Investors want to be reassured...
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...Content Page Number 1‐ Executive Summary 2 2‐ The Company Profile 2 3‐ Restaurants Industry Sales and Locations 3 4‐ Global Outlook & Analyzing Regions 3 5‐ Regions' GDP% (Annual Growth) 4 6‐ Global Consumer Demand 5 7‐ Global Competitiveness 5 8‐ Target Country : China (Shanghai) 6 A‐ Economic Growth (GDP%) 6 B‐ Disposable Income 7 C‐ Consumer Behavior 7 D‐ Technology 7 9‐ Risk Factors 8 10‐ Recommendations 8 References 9 Appendices : 11 Appendix 1 : SWOT Analysis for Chinese Market 11 Appendix 2 : PESTLE Analysis 12 Appendix 3 : Useful Charts and Diagrams 13 1 1‐ Executive Summary In response to the good world economic growth, the global restaurant industry is increasing in a striking way. In order to preserve higher sales and revenues, companies must seek new strategies to attain success. One of those good strategies is to expand in countries that possess healthy economic situation. The Cheesecake Factory already has well‐recognized footsteps in America and Middle East, but still needs to adjust with the high competition in these regions to get distinguished. Therefore, one of the regions that the Cheesecake Factory has no presence in it is China, the country with the highest population in the world. By entering the Chinese market...
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...Strategic Plan: The Cheesecake Factory STR 581 March 31, 2014 Dr. Patricia Dues Strategic Plan: The Cheesecake Factory Table of Contents Executive summary 3 Mission and Vision Statement 3 Company Overview 3 Environmental Scan 4 External Environmental Analysis 4 Internal Environmental Analysis 5 Value Disciplines 7 Generic Strategies 8 Grand Strategies 8 Recommended Strategy 9 Implementation Plan 9 Objectives 10 Functional Tactics 10 Action Items 11 Milestones and a Deadline 12 Required Organizational Change 12 Risk Management and Contingency Plan 12 Conclusion 13 References 14 Executive Summary Mission and Vision Statement The mission of The Cheesecake Factory is to create an environment where absolute guest satisfaction is the highest priority. The vision statement is as follows: Through a shared commitment to excellence, we are dedicated to the uncompromising quality of our food, service, people and profit, while taking exceptional care of our guests and staff. We will continuously strive to surpass our own accomplishments and be recognized as a leader in our industry. (The Cheesecake Factory, 2014) Company Overview “The Cheesecake Factory restaurants provide a distinctive, high quality dining experience at moderate prices by offering an extensive, innovative and evolving menu in...
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...The organizational structure of the Cheesecake Factory demonstrates how organizational function, and organizational design can lead to having a successful franchise. “The company operates 150 upscale casual dining restaurants under the “Cheesecake Factory “brand“ (Datamonitor, 2011). The company utilizes point of sale cash register system to maintain financial and accounting controls in restaurants (Datamonitor, 2011). The company is known for the variety of flavors in cheesecakes, and also offers a wide selection of food to choose from in their daily menu’s. Structure The Cheesecake factory utilizes Hierarchal structure comprised of 11 executives in all. The company has a CEO, 6 Directors, a Chief Financial Officer, Chief Operating Officer, Legal & Secretary, and Bakery (The Official Board.Com). Steak n Shake utilizes a Hierarchal structure also comprised of 6 executives, which is the CEO, Vice Chairman of the board, 2 directors, Vice President and Control (The Official Board.Com). Burger King has 22 executives comprised of a CEO, 8 directors, a Chief Financial Officer(CFO), Human Resources, Operations, Legal& Secretary,Communications & Culture, Asia Pacific, EMEA, Latin America, North America, Chief Information Officer(CIO), Product marketing, Investor Relations & Global Communications, Operations, North America Operations (The Official Board.Com). Organizational Function The main contributing factors to the Cheesecake factory’s success are marketing, finance...
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...The organizational structure of the Cheesecake Factory demonstrates how organizational function, and organizational design can lead to having a successful franchise. “The company operates 150 upscale casual dining restaurants under the “Cheesecake Factory “brand“ (Datamonitor, 2011). The company utilizes point of sale cash register system to maintain financial and accounting controls in restaurants (Datamonitor, 2011). The company is known for the variety of flavors in cheesecakes, and also offers a wide selection of food to choose from in their daily menu’s. Structure The Cheesecake factory utilizes Hierarchal structure comprised of 11 executives in all. The company has a CEO, 6 Directors, a Chief Financial Officer, Chief Operating Officer, Legal & Secretary, and Bakery (The Official Board.Com). Steak n Shake utilizes a Hierarchal structure also comprised of 6 executives, which is the CEO, Vice Chairman of the board, 2 directors, Vice President and Control (The Official Board.Com). Burger King has 22 executives comprised of a CEO, 8 directors, a Chief Financial Officer(CFO), Human Resources, Operations, Legal& Secretary,Communications & Culture, Asia Pacific, EMEA, Latin America, North America, Chief Information Officer(CIO), Product marketing, Investor Relations & Global Communications, Operations, North America Operations (The Official Board.Com). Organizational Function The main contributing factors to the Cheesecake factory’s success are marketing, finance...
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...Elephant Bar Restaurant: Mezzanine Financing Oday Tillawi Professor Shelly Canterbury Finance 441-001 Spring 2016 03/29/2016 Executive Summary: Elephant Bar Restaurant is a California based company founded by Chris Nancarrow in 1979. The restaurant started as a test concept of Carrow’s Restaurants, a chain of more than 150 full-service restaurants. Elephant bar was sold to W. R. Grace in 1985, and repurchased in 1993. The company aims to differentiate itself through innovative culinary concepts. On a product level, the company provides an “elephant-sized” culinary experience to the customer. In order to support innovation, the menu featured complex dishes that included “one unusual ingredient.” On a store level, the restaurants accentuated an architecturally dynamic African theme that allows customers and staff to scan the area and roam around easily. Early in its years, the company was a child of Saunders Karp and Megrue, LLC (SKM). SKM had invested $15.5 million in Elephant Bar in return for major ownership and control. Specifically, in September 2003, SKM controlled 6,192,411 shares, granting itself a 53.8% ownership stake in E-bar. With this hefty investment, Nancarrow pursued his expansion plans and took E-bar from 12 stores to 23 stores in September 2003. Management has decided that because of the geographic concentration E-bar cultivated, the restaurant is vulnerable to high diversification risk exposure. This type of risk amplified the need to expand into...
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...Case Analysis “[R]estaurants don’t start out making money─ they build over time. So it’s really about having the capital and the staying power.” ─ Rick Rosenfield, Co-CEO of California Pizza Kitchen. Rosenfield, and longtime business partner Larry Flax, went from being defense attorneys to innovative pizza entrepreneurs. Their idea was to make “designer pizza at off-the-rack prices,” using unusual pizza toppings to create delicious combinations at low prices. California Pizza Kitchen began in 1985 in Beverly Hills, California and took off from there. The company went public in 2000, less than two decades after the opening of its first location, and by the end of the second quarter of 2007, the company had expanded to 213 locations in 28 states and 6 foreign countries. Even though the restaurant industry is constantly battling through macroeconomic changes, California Pizza Kitchen was able to minimize the effects of macroeconomic changes due to its strong business model and conservative financial policy, which created the staying power Rosenfield described. California Pizza Kitchen’s Chief Financial Officer, Susan Collyns, was about to announce near-record profits of over $6 million for the end of the second quarter of 2007. However, despite these strong results the share price had declined 10% during the month of June as a result of industry pressures and the Company was considering a share repurchase program that would require the company to change its financial structure...
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...maintain a safe cash balance in order to meet short term obligations. * Taking on debt gives the company the ability to use cash for projects and short term investments. * We want to avoid sacrificing our liquidity ratios in order to finance this repurchase. * * We do not recommend taking on debt beyond the $75M needed to repurchase stock. * The company has sufficient liquidity to finance ongoing operations without taking on additional debt. * Taking on debt more than the $75M needed to repurchase stock would be against company philosophy of maintaining low long term debt levels. * Taking on more debt than required would result in unnecessary interest expense. Analytical Approach Scenario Analysis * Base Case * Revenue, PPE, goodwill, and liabilities are grown at 25% for 2008-2009 and 5% for 2010-2012. * COGS, SGA, and current assets,are forecasted as percents of revenue. * Depreciation is predicted as a percent of PPE. * Interest is predicted as 6% of debt. * Tax rate is predicted to be 36.5% for all forecasted years. * 100% Cash Funded Repurchase * All assumptions are identical as base case except for changes to cash and equity. * $75M is deducted from current assets in 2008 to repurchase stock * $75M is deducted from equity through the creation of treasury stock, which is a contra-equity account. * Mix of 20% Cash and 80% Debt ...
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...1. INTRODUCTION 1.1 Company Brief History Ben & Jerry’s (B&J) Ice Cream first started in 1978, where their very first scoop shop opened in a renovated gas station in Burlington, Vermont. It was founded by two friends, Ben Cohen and Jerry Greenfield, who started the business out of their passion for eating. It has slowly expanded its scoop shops to other states and started distributing its ice-creams in pints. In 1988, B&J introduced its 3-part mission statement which shows their desire and dedication to being socially and environmentally responsible in running its business. B&J also produces its ice-creams from fresh Vermont milk and cream. With its funky and interesting themes and its high quality ice-cream at affordable prices, it quickly gained popularity and have succeeded in expanding internationally, including countries like Singapore. 1.2 Mission Statement B&J’s mission statement is made up of 3 components; social, product and economic mission.[pic] Figure 1.2a: Ben & Jerry’s Mission Statement The factor that sets B&J apart from its competitors is its strong emphasize on its social mission. It did not just make an empty claim but has delivered its social mission through its development of a more recyclable packaging and entering a partnership with Nature Energy which provides clean energy alternatives. 1.3 Company Business Portfolio [pic] Figure 1.3a: Ben & Jerry’s Business Portfolio B&J is in a highly...
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...Observation was done) Observations were done at Something Sweet, Sweetleaf, Greenwich, Chinkee Tea, and Coffee Works. All located in the Divisoria area. c. Focus Group Interview: (Location where FGI was done) The focus group interview was held at Insideout City, 4/f One Montecarlo Building, Corner Corrales-Hayes, Hayes Street, Cagayan de Oro City. 2. Demand Analysis a.Total Monthly Demand of Products = 7110 units/month b. Market Share: Something Sweet 15.11% Sweet leaf 20.51% Greenwich(pearl coolers) 10.40% B. Marketing Mix 1. Name of product / service / company: Table Top 2. Price per variant: Php 60.00 3. Distribution Channel: Somewhere in Divisoria 4. Promotions: a.) Business Uniforms b.) Product Packaging (jars and notes) c.) Loyalty Stamp Card for customers C. Production Plan Production Schedule: Everyday for 6 days per week except for school holidays. Total Duration per Production: Per unit=5 minutes Total Number of Units Produced per Production: 1 Unit D. Financial Plan 1. Break-even point in volume per day = 18 units Break-even point is sales per day = 1,080.00php 2. Total number of units sold in 1 year/10months = 8,392 units 3. Total net sales in 1 year/10months = 255,296.25php 4. Total net income in 1 year/10months = 144, 313.00php E. Organizational Plan 1. Type of business:...
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...UNIVERSITY OF OREGON INVESTMENT GROUP February 26th, 2010 Consumer Goods California Pizza Kitchen BUY Stock Data Price (52 weeks) Symbol/Exchange Beta Shares Outstanding Average daily volume (3 month average) Current market cap Current Price Dividend Dividend Yield Valuation (per share) DCF Analysis Comparables Analysis Target Price Current Price Summary Financials Revenue Operating Cash Flow Net Income 662M 2009A 44.6M 2009A 4.6M 2009A 9.41 – 17.44 CPKI / NYSE 1.25 24,183,000 400,876 365,975,000 $15.07 $0.00 0% $15.18 $17.73 $16.46 $15.07 BUSINESS OVERVIEW California Pizza Kitchen was founded in 1985 by Rick Rosenfield and Larry Flax in Beverly Hills, California. Twenty years later, California Pizza kitchen operates over 250 restaurants around the world and is still run by its initial founders. The largest portion of CPK’s restaurants are still located throughout California, however they are now located in dozens of states as well as internationally in Asia, North America and the Middle East. Almost all of California Pizza Kitchens revenues come from company owned full Covering Analyst: Ari Siegel Email: Asiegel@uoregon.edu The University of Oregon Investment Group (UOIG) is a student run organization whose purpose is strictly educational. Member students are not certified or licensed to give investment advice or analyze securities, nor do they purport to be. Members of UOIG may have clerked, interned or held various employment positions with firms held in UOIG’s...
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...Services provided 8 Self-Service 8 À la carte Menu 10 Catering services 11 Education industry analysis and its impact on canteen business 12 Conclusion 14 Production Process 15 A la carte menu 16 Self-Service 17 Customers analysis 18 Suppliers 19 Human resources 20 Description of facilities 21 Furniture and Fitting 23 Equipment and Machine 24 Financial Analysis 25 Asset Valuation: Book Value Method 25 Market valuation method: The going market rate method 26 Income-based business valuation: Return on investment (ROI) method 27 References 28 Executive Summary Mr. Bernard, owner of the ABC Food Outlet, is contemplating to sell the canteen at the ABC University. Our Boss approached Mr. Bernard, upon hearing about the upcoming sale of the canteen, with a possible offer to buy the canteen. Mr. Bernard offered to sell the canteen for the price of RM500, 000. However, since he is not sure about whether the canteen is a good buy at the price of RM500,000 , the boss asked out team to carry out valuation of business and to hand him and business valuation report for the canteen at ABC University. In this report, valuation of business for the ABC Food Outlet will be carried out. The ABC Food Outlet is located on the campus of ABC University and has been in business at the ABC University for the past 15 years. The aim of this report is to analyze the trends of Education Industry and its impact on the canteen business. This will provide clarity as to the future of...
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...with 2006. The net profit was $15 million, a decrease of 29.5% compared with 2006. In 1985 the California Pizza Kitchen was created by Rick Rosenfield and Larry Flax in Beverly Hills, California. Rosenfield and Flax both hold the title of Co-President, Co-CEO, and Co-Chairman of the Board of Directors for California Pizza Kitchen. It was known for its hearth-baked barbeque-chicken pizza, the “designer pizza at off-at-the-rack prices” concept flourished. California Pizza Kitchen derived its revenues from three sources: sales at companyowned restaurants, royalties, from franchised restaurants, and royalties from a partnership with Kraft Foods to sell CPK-branded frozen pizza in grocery stores. California Pizza Kitchen is in the food industry business. California Pizza Kitchen is a casual dining restaurant chain that specializes in innovative and non-traditional pizzas. California Pizza Kitchen also provides various soups, salads, pasta, sandwiches, and desserts at higher quality for lower prices. California Pizza Kitchen is in 213 locations in 28 states (41% located in California). California Pizza Kitchen’s core patrons tend to have an average household income of $75,000 (survey results CASE 33: CALIFORNIA PIZZA...
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