callifornia pizza kitchen Essay

The number of stores is much more than California Pizza Kitchen, Inc. which has 266 stores in

This paper provides a summary of our analysis of the data obtained for 60 Crusty Dough Pizza Company restaurants. We compared 16 pizza store characteristics to monthly profit in order to determine the best indicators of success. The results of this analysis may be used to determine the store services and attributes that have the most bearing on profitably.

The course project involved developing a great depth of knowledge in analyzing capital structure, theories behind it, and its risks and issues. Before I began this assignment, I knew nothing but a few things about capital structure from previous unit weeks; however, it was not until this course’s final project that came along with opening

In estimating the weighted average cost of capital, we used the cost of equity of 11.63% and the cost of debt of 2.25%. We calculated the weight of debt to be 2% and the weight of equity to be 98%. For the weight of debt we divided debt by the sum of debt and equity, and for the weight of equity we divided equity by the sum of debt and equity. Our estimated Company’s cost of capital is 11.44%, or 12%. The calculations for the cost of capital are shown in Appendix E.

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

I would like the dornos to build in my area is a Incredible Pizza. If the dornos build a Incredible Pizza in my area it would make everyone happy because we want have to drive all the way out of town just to throw a party or have fun.Incredible Pizza has games and you can also eat there to so you can do both things at the same time.

Finding the perfect capital structure in terms of risk and reward can ensure a company meets shareholder expectations and protects a firm in times of recession. Capital structure refers to how a business puts its money to “work”. The two forms of capital structure are equity capital and debt capital. Both have their benefits and limitations. Striking that perfect balance between the two can mean the difference between thriving versus trying to survive.

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.

Cost of Equity is the return that stockholders require for a company. A company’s cost of equity represents the compensation that the market demands in exchange for owning the assets and bearing the risk of ownership. Based on capital markets the cost of equity varies in direct relation to the assumed risk in that specific market. The distinctive of the firm is the sensitivity to market risk (β) which depends on everything from management to its business and capital structure. Therefore past performances and present conditions have a direct effect on the overall value. Applying calculations at a divisional level allows specified markets to be analysis based on present market conditions for that service or product. The formula used to calculate Cost of Equity is:

a) Weighting of Capital Structure: Use of book values of capital rather than the market values

Generally, firms can choose among various capital structures in order to maximize overall market value of the company. It is proposed however, that

To estimate the cost of equity, we need to compute the beta of equity for each division using comparable companies. As the betas of debt were not provided, we made 2 assumptions: a. same business lines have the same beta of debt; b. Expected return of debt = Rf + βb*[E(Rm) – Rf*(1-T)] (Rf: risk free rate, E(Rm): expected

Capital structure is defined as the mix of the long-term sources of funds that a firm use. It is composed of equity, debt securities and affect long-term financing of the entity. It is made up by shareholder’s funds, long-term debt and preference share capital. The capital structure mostly focus on the proportions of debt and equity displayed in the company financial statements, especially in the balance sheet (Myers, 2001). The value of a firm can be calculated by the sum of the value of its firm’s debt and equity.

Already in 1958, Modigliani and Miller have pointed the discussion of capital structure towards the cost of debt and equity. According to their first proposition, in a world of no corporate taxes and with perfect markets, financial leverage has no effect on a firm’s value. In their second proposition, they state that the cost of equity equals a linear function defined by the required return on assets and the cost of debt (Modigliani and Miller, 1958).

We use the Capital Asset Pricing Model (CAPM) to determine the cost of equity. As