Context: The Restaurant Group (TRG)

Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must

A more tell tale sign is the quick ratio, or acid test, which has increased year after year. Debt to total assets has decreased over 5% since 2001, indicating less financing of current and long term debt and more company assets. Their cash debt coverage far surpasses the ideal 20%, indicating a high level of solvency with sufficient funds and assets to satisfy all debtors. Asset turnover has more or less maintained at right around 1.6, signifying a turnover rate of just less than 180 times per year.

The Respondent, Prime Hospitality Corp., filed a motion for summary judgement in Circuit Court, Dade County, Florida. Eugene David, petitioned for writ of certiorari in the third District Court of Appeal of Florida.

TRS experienced a drastic decline of its CFTSR from 2010 to 2011. According to TRS’s financial reports (2011), even though the sales revenue of TRS increased 7.3% in 2010, its cost of goods sold ascended dramatically by 16.0% as well. Meanwhile, its operating expenses increased by 9.5%.

To calculate the current ratio, which is one of the most popular liquidity ratios you divide all of firms current assets by all of its current liabilities. McDonalds has $1,819.3 (*everything is in millions for McDonalds) of current assets and $2,248.3 in current liabilities making the firms current ratio .81. In 2005 Wendys has current assets of $266,353 and current liabilities of $296,687 making their current ratio .90. Current ratios are used to represent good liquidity and financial health. Since current ratios vary from industry to industry, the industry average determines if a firms current ratio is up to par, strength or a weakness. In any event if the current ratio is less than the industry average than an analyst or individual interested in investing might wonder why the firm isn't

I enjoyed reading your primary task posting about the Bob Evans restaurant chain. Additionally, I think you made an extremely interesting choice of restaurant for this assignment, since I was not aware that the Bob Evans brand had restaurants. In fact, I only recognized the name from the freezer section in the grocery store. Incidentally, I learned while researching this assignment that Marie Calendars is a restaurant chain as well. Again, I recognized the brand from the frozen food section of the market without ever knowing that there is a brick and mortar establishment attached to the brand. Indeed, maybe it is a telling sign of poor marketing and part of the reason you may perceive Bob Evans restaurants as an organization on

CKE Restaurants, Inc. is a quick service restaurant that operates in 42 states and 28 countries. The company operates their own restaurants, while also offering franchises and licenses. Revenue for the company is generated through franchisee fees, licensee fees, sales at company owned restaurants, sale of food and packaging products, rental revenue, and equipment sales. CKE Restaurants, Inc. (CKE) operates under four brands: Hardy’s, Carl’s Jr., Red Burrito, and Green Burrito. Over the past year, the company has renovated a number of restaurant locations and combined dual-branded restaurants. By combining brands, CKE has been able to reduce the general selling and administrative expenses by 5.1% this year. Even though CKE is consolidating its resources, the company suffered a decrease in sales this past year at the various restaurants and an overall decrease in revenue. However, the decreases did not negatively affect the net income of CKE since it increased and allowed the company to pay a dividend of $0.24 per share outstanding. Then, on February 26, 2010 CKE announced a possible merger agreement with THL. In order to acquire CKE, THL was willing to pay $11.05 per share of stock. However, the merger did not take place and on April 26, 2010 CKE announced it was no longer going to be acquired by THL and was now moving forward with an acquisition by Apollo Global Management.

ERIE, Pa., July 20, 2015- Eat’n Park Hospitality Group has announced a change in leadership at their Mercyhurst University account, under which the Board of Directors have appointed John Smith as interim General Manager, effective immediately. He will be replacing Jane Candy, who has been removed by the Board from her role as General Manager.

waiting areas located in highly recognized malls in Ghana and in residential neighborhood, or urban retail district.

Another aspect to consider is the cash balance which was significantly lower by 34.6 % to the previous year. It is useful to consider the business context. From the same review, it could be noted that some capital expenditure took place which affected the cash level, the major one being the acquisition of Fudge which was mentioned above and an investment in a joint venture. Another key cash outlay was their contribution to the closed UK salary scheme during the de-risking exercise. The ratios are also impacted by the inclusion of borrowings in current liabilities which means the debt is repayable in the current year. If the ratios are recalculated by excluding the current debt, the current ratio would be more acceptable 1.70, a marginal increase from 2011. The acid test ratio excluding the borrowings is 0.95, a marginal decrease from 1.05. This is because for the acid test, current liabilities (excluding debt) have increased more than current assets (excluding inventory). Given the explanations stated, these ratios are probably good results but a trend analysis may shed more light on the ratios.

The long-term liquidity risk ratio such as LT debt/Equity, D/E, and Total Liabilities to Total Assets all show a decline from year 2005 due to the repayment of debts. The interest coverage ratio also shows a healthy number of 29.45 in comparison to the industrial average of 15.04 indicating a high ability to pay out its interest expense. Such a low relative risk is not surprising due to the nature of its business depending heavily in R&D development and large intangible assets.

Truworths Limited have a current ratio of 3.3:1 and this shows effective working capital management compared to the 2015 current ratio of 5:1. Though the ratio has improved further working capital management still need to be implemented as the ration is above the generally acceptable ratio of between 1.5:1 and 3.1. Also considering that Truworths is in the retail sector where there is high cash flow a lower current ratio is acceptable. The current ratio has improved compared to the ten yeas average of 46:1. However, for us to get a further analysis of the ratio we can calculate the acid test ratio as follows:

Firstly, based on the profitability, P&G has earned higher profit from each dollar of revenue which is 13.4% compared to C-P 12.9% for the recent year 2013. In addition, P&G also has higher EPS of US$4.04 compare to C-P US$2.41. In contrast, C-P register a Gross Profit Margin of 58.7% and Return on Equity of 91.0% as opposed to P&G’s 49.6% and 17.0% respectively. C-P seems to rely heavily on debt and this has helped to improve the Return of Equity. P&G also has its downside in asset turnover ratio (0.62) and fixed turnover ratio (4.00) compared to C-P’s 1.28 and 4.40 respectively to 91% while P&G’s is 17.0%. In terms of earnings per share (EPS), P&G is able to generate for each share of common stock owned by stockholders for US$4.04, which is about double than C-P of US$2.41. The Price-Earnings ratio for P&G is 20.4 times as opposed to C-P’s

Kentucky Fried Chicken (KFC) being one of the world’s largest chicken restaurant chains has many challenges. Two of these challenges being value creation through its corporate parent PepsiCo during the 1980’s and 1990’s as well as strategic issues

Current Ratio assesses whether the business has enough short-term assets to cover its short-term debts. The acid test ratio is quite similar to the current ratio yet excluding stock. In this case as Starhill REIT do not has stock therefore the calculation for both of the ratios will be the same. The ratio increased year by year from 2008 to 2010, i.e. 2.25 times, 2.26 times, and 4.61 times respectively. The ratio indicated that the company had approximately two times of short-term assets to secure its short-term liabilities in 2008 and 2009. In 2010, the ratio boosted up and it was doubled compared to prior year. This was due to the increment of other receivables amounted to RM625 million (cash proceeds from the disposal)