Introduction to California Pizza Kitchen California Pizza Kitchen is known worldwide for its high quality menu and ingredients, with budget friendly prices. They collect their revenues from three different sources. Sales from company owned restaurants, royalties from franchised restaurants and royalties from a partnership with Kraft to sell CPK branded frozen pizza in grocery stores. CPK has a "dedication to guest satisfaction and menu innovation and sustainable culture of service." CPK has the lowest average bill cost of any other casual dining restaurant, of $13.30 per guest. Their menu has very few choices, but the choices that are offered are of high quality and nothing less. Their goal is to extend their franchises to Mexico and …show more content…
Looking at Exhibit 7, Comparative Financial data between Restaurants, Frisch 's Restaurants have a 0.44 dividends per share while currently California Pizza Kitchen and Chipotle Mexican Grill have 0.00. Based on this chart there seems to be a correlation between dividends per share and share price, showing that Frisch 's Restaurants have one of the lowest share prices of $30.54, while Chipotle Mexican Grill has a share price of $86.00. Although CPK only has a share price of $22.10 if they follow in the footsteps of Chipotle Mexican Grill by having 0% debt and an equal debt to equity ratio, the more revenue that comes in, the higher their share price will be. 2) Based on the fact that all other competitors spend roughly four times as much on advertising as California Pizza Kitchen, it would be beneficial for them to up their advertising budget. From 2003 to 2006 net income went from $5 602 000 to $21 000 000 and even though cost of labour, and cost of goods sold have increased in that same span of time, the company still has
PepsiCo faces two very different companies in its most recent potential acquisition. Carts of Colorado is a designer, manufacturer, and merchandiser of mobile food carts – not directly in the food services industry, they do cater to a large corporate customer base along with PepsiCo that includes Coca-Cola, Burger King, Dunkin Donuts, and Mrs. Fields. Alternatively, California Pizza Kitchen is a casual dining restaurant with 25 locations in eight states, typically located in affluent areas.
In our analysis, we compared the profits earned by 60 Crusty Dough Pizza Company restaurants to factors associated to their menu, amenities, services, and statistics regarding the restaurant communities. The factors that we analyzed are listed in Table 1.
In the year of 2005, the total revenue of Chipotle was $627.7 Million dollars. "Chipotle Mexican Grill Inc. (CMG-$53.50 a share) was a January spin-off with an initial public offering price of $22 -- from McDonald's, the largest retailer of hamburger buns in the world. By year-end 2004, CMG had 387 locations, generated $470 million in revenues and earned 21 cents a share."(Berko) Last year, CMG had 485 locations that produced $627.70 million the growth revenue was at 33.40% in 2005. "pushing tacos, burritos, salads, plus huge helpings of tired rice and boring beans reporting net income of 78 cents a share. This year, CMG expects to earn 71 cents a share and, according to Prudential Securities, CMG will report $1 billion in 2007 revenues (that's a lot of beans) and post higher earnings of 98 cents a share." (Berko) Although Chipotle is at an all time high I believe that it may well be trading its shares at to high of a price. Mcdonalds the best and most efficiently run profitable fast food restaurant is trading their shares at 17 times earnings. Today Chipotle is trading at an outstanding $56.07 Per share. I don't believe Chipotle is worth anything over $30 a share. Although the price of chipotle stock is too high there should still be a hefty revenue at year end 2007. Predictions suggest 1 Billion dollars. For 2005
Grilling is engraved in American culture as well as a highly seasonal activity. Kingsford Charcoal is in the business of selling charcoal for grills. Even though Kingsford increased its market share in 2000, their forecast indicates they will not reach the initial revenue mark. With the charcoal market’s growth slowing, and the gas grill market gaining market share, Kingsford needs to revise its strategy, and their marketing mix to meet original expectations for itself and Clorox. The following report will identity the issues Kingsford faces in the market place and recommend actions to take to resolve these problems. First we will examine
At the end of 2007, Panera Bread Company was in an unfamiliar position where taking out debt was a necessary action to gain funding. Raising prices would be an option to help with the deteriorating margins, but there is fear that this move will slow the growth of the company. Other options, such as lowering the quality of food, would go against Panera’s fundamental goal of serving high quality food. At this time, Panera is in a position where it needs to repurchase stock. The $75 million buy-back should help give confidence to their shareholders. However, to accomplish their growth goals and stock repurchase, Panera will require external funding for the first time.
In a response to the strengths, weaknesses, opportunities and threats to the organization, several alternatives should be considered in strategizing the best way to increase the wealth of the organization.
For the manufacturing process Papa Johns Pizza Delivery was chosen. This store is very well placed in the small town that it operates in. Located on a very busy street in Moses Lake it is centrally located and the whole town can be navigated within an easy ten minutes of the store. This allows the workers within the store to be very detail oriented. Assembling the pizza, cooking it and making sure there are no big bubbles in the dough when cooking is easily done. This makes it very pleasing to the eye and customers are less likely to complain. Drivers can take the completed pizza and deliver it within minutes of coming out of the oven. Hot fresh pizza
Mario’s Pizzeria, a family-owned establishment is known for authentic taste, fresh ingredients, brick oven baked pizza, is an example of common modern phenomena. The pizzeria has been in business since 1950 and brings with it a reputation in its home in Palm Springs, California, for its quality and uniqueness. Mario wishes to pass the business down through his family, however a new set of streamlined processes are required to remain competitive while still providing that family owned ambience that is one of their hallmarks. Customers are dissatisfied with the wait time and it necessary to evaluate the customer population, customer que wait times, the servicing system, and develop a priority rule for
During this time, sales increased from: $7.11 billion in 2010 to $7.99 billion in 2012. Earnings improved from $2.84 to $3.57. While the total amount of dividends rose from $1.00 to $1.72. These figures are showing how the company has been continually increasing sales, earnings and dividends over the last three years. In the future, the management predicts that their current strategy will increase returns. As, executives believe that their focus on building the brand and accounting for costs will lead to net earnings of $5.20 to $7.19 annually by
Loot Crate is a start-up company that sells monthly subscription boxes containing products for geeks and gamers. In the third quarter of 2015 Loot Crate was confronted with a difficult decision to either make TV commercials or use YouTube personalities for product promotions. TV Commercials gave Loot Crate the opportunity to reach a broader audience as well as target individuals that would gift Loot Crate products to others. YouTube gave Loot Crate the opportunity to reach their ideal target market. Both options offered significant advantages and are lucrative, however, it was financially impractical to do both at once.
In July of 2007, California Pizza Kitchen (CPK), a casual dining pizzeria started in California by co-owners Rick Rosenfield and Larry Flax, was faced with the decision to invest in a stock repurchase program. Led by Chief Financial Officer Susan Collyns, the financial team of CPK was reviewing the preliminary results for the second quarter to determine if the stock repurchase program would provide a significant financial leverage for the company. The goal was to determine if the company can maintain the necessary financial stability to meet the expected growth trajectory for 2008 while utilizing debt
California Pizza Kitchen has been operating since 1985 predominantly in California. As of June 2007, they had 213 retail locations in the US and abroad. Analysts have put estimates on the potential of 500 full service locations. CPK's strategy includes the opening of 16 to 18 new locations this year including the closing of one location. In the second quarter of 2007, revenue increased 16% while comparable restaurant sales grew by 5%. Performing comparatively well against its competitors, CPK's stock has been depressed recently falling to $22.10 in June making their P/E equal to 31.9 time current earnings. In comparison with BJ's Restaurants with a P/E of 48.9, CPK appears undervalued. CPK's direct
Six firms dominated the banana industry in the early 1990’s, three from Europe and three from the United States. In 1994, the three United States producers, Chiquita, Dole, and Del Monte, accounted for approximately 72.4% of world banana sales. Chiquita accounted for 48% of worldwide banana sales and 66.4% of banana sales of the three U.S. producers.
We have seen from the forecast model of the refrigerated pizza kit that the whole-grain refrigerated pizza kit could make a profit, as the $17.07 million exceeds the minimum required wholesale value of 12 million, showing a surplus of $5.05 million. We also have seen that TruEarth has a first mover
The California Pizza Kitchen has 88 restaurants in California alone, which makes it vulnerable to negative economic conditions in California. The California Pizza Kitchen needs to satisfy a number of conditions like credit worthiness, if it continues with its current credit facility along with the likelihood of additional financing. The company does not have direct control over its franchising and licensing partners who contribute to the profits and royalties, and therefore, it affects their profits. Existing economic conditions makes it difficult for the company to pursue its growth plans of expansion. (California pizza kitchen 2009 annual report) 2010).