Restaurant Analysis
TABLE OF CONTENT
1. Introduction………………………………………………………..…………………3
2. Company Background………………………………………………..………………3
3. Business Analysis…………………………………………………….………………4
a. Profitability Ratios……………………………………………..……………..4
b. Liquidity Ratios………………………………………………..……………..6
c. Leverage Ratios……………………………………………………………....7
d. Activity Ratios………………………………………………………………..9
e. Shareholders’ Return Ratios………………………………………………….9
f. Contribution Analysis………………………………………………………10
g. DuPont Model of Financial Analysis...……………………….……………10
h. Break-even Analysis……………………………………….……………….11
4. Summary ……………….………………………………………..…………………11
5. Recommendations……………………………………………………..……………13
6. References…………………………………………………………………………..14
7. Appendices
A. Bob’s Restaurants Operating Performance & Selected Balance Sheet Items, Fiscal Years 1997 – 2004…………………15
B. Bob’s Restaurants ratio calculations……………………………………….16
Financial Analysis: Bob’s Restaurants
1. Introduction
In the following analytical report, the financial performance of Bob’s Restaurants is assessed. Operating Performance & Selected Sheet Items for the years of 1997-2004 was provided along with Stock Price Performance for Fiscal Years 1996-2004. The results of the analysis were then compared with the industry standards in order to demonstrate Bob’s Restaurants standing in the restaurant industry.
For the purposes of financial statement analysis, ratio analysis was used. After analyzing Bob’s Restaurants a recommendation is made on future actions.
2. Company Background
Bob’s Restaurants owned 223 restaurants by the end of their 1997-1998 fiscal years; however during 1999 the company closed 10 restaurants and 11 more by end of 2001. Bob’s Restaurants continue losing money and had to close 6 more of their restaurants by 2002. The company had a tough time by 2003 where they closed 48 of their restaurants remaining only 148 operable sites. By 2004 Bob’s Restaurants owned 138
1. Introduction………………………………………………………..…………………3
2. Company Background………………………………………………..………………3
3. Business Analysis…………………………………………………….………………4
a. Profitability Ratios……………………………………………..……………..4
b. Liquidity Ratios………………………………………………..……………..6
c. Leverage Ratios……………………………………………………………....7
d. Activity Ratios………………………………………………………………..9
e. Shareholders’ Return Ratios………………………………………………….9
f. Contribution Analysis………………………………………………………10
g. DuPont Model of Financial Analysis...……………………….……………10
h. Break-even Analysis……………………………………….……………….11
4. Summary ……………….………………………………………..…………………11
5. Recommendations……………………………………………………..……………13
6. References…………………………………………………………………………..14
7. Appendices
A. Bob’s Restaurants Operating Performance & Selected Balance Sheet Items, Fiscal Years 1997 – 2004…………………15
B. Bob’s Restaurants ratio calculations……………………………………….16
Financial Analysis: Bob’s Restaurants
1. Introduction
In the following analytical report, the financial performance of Bob’s Restaurants is assessed. Operating Performance & Selected Sheet Items for the years of 1997-2004 was provided along with Stock Price Performance for Fiscal Years 1996-2004. The results of the analysis were then compared with the industry standards in order to demonstrate Bob’s Restaurants standing in the restaurant industry.
For the purposes of financial statement analysis, ratio analysis was used. After analyzing Bob’s Restaurants a recommendation is made on future actions.
2. Company Background
Bob’s Restaurants owned 223 restaurants by the end of their 1997-1998 fiscal years; however during 1999 the company closed 10 restaurants and 11 more by end of 2001. Bob’s Restaurants continue losing money and had to close 6 more of their restaurants by 2002. The company had a tough time by 2003 where they closed 48 of their restaurants remaining only 148 operable sites. By 2004 Bob’s Restaurants owned 138
References: Schmidt, Michael CFA. (2009). REVERSE ENGINEERING THE ROE. http:// www. investopedia.com/articles/fundamental-analysis/09/financial-ratios.asp. Internet Center for Management and Business Administration, Inc. (2002-2007) NetMBA.com FINANCIAL RATIOS. http:// www.netmba.com/financial/ratios/ Houghton Mifflin Company.(2009) Venture Line, (2009). FINANCIAL RATIO ANALYSIS. http://www.ventureline.com StarChefs The Risk Management Association (2008-2009) annual statement studies. FINANCIAL RATIO BENCHMARKS. Industry & Financial Consulting Services (2007-2008) INDUSTRY NORMS & KEY BUSINESS RATIOS. Dunn & Bradstreet. http://www.d&b.com.- IBIS World (2009) INDUSTRY RISK RATINGS Invest. (2009) CASUAL RESTAURANTS. http://www.wikinvest.com/wiki/casual_restaurants APPENDICE A