Investment Essay on Breadtalk

10059 Words Aug 17th, 2013 41 Pages
Executive Summary
BreadTalk Group Ltd is a Singapore-based Food and Beverage operator that was founded in 2000 and was listed on the Singapore Exchange (SGX) in year 2003. The entire business revenue is segmented into four categories namely, Bakery, Restaurants, Food Atriums and Franchise. The objective of this report is to assess BreadTalk's current position and future prospects through a series of valuation models. The key competitors of BreadTalk are namely Auric Pacific Group and Food Junction Holdings Ltd. We have used the Michael Porter Five Forces to help us understand the BreadTalk's position in the market industry. We have also examined the current issues and problems faced by BreadTalk to see how it would affect the progress and
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Financial Analysis ................................................................................................................................ 12 4.1 4.2 Recent Financial Performances................................................................................................... 12 DuPont Return on Equity (ROE) Analysis .................................................................................... 13 Importance of ROE .............................................................................................................. 13 ROE analysis for BreadTalk & its competitors..................................................................... 13 Net Profit Margin (Net Income / Net Sales) ........................................................................ 16 Total Asset Turnover (Net Sales/ Total Assets) ................................................................... 17 Financial Leverage Multiplier (Total Assets/ Common Equity) ........................................... 18 Return On Equity ................................................................................................................. 19

4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 5

Valuation ............................................................................................................................................. 20 5.1

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