Review the Annual Reports for Pepsico, Inc. and the Coca-Cola Company in Appendixes a & B of Financial Accounting. Select Either Pepsico, Inc. or the Coca-Cola Company. in Your Estimation, the Company You Chose May Be Financially Healthier or Weaker.
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TILLMAN J. FERTITTA
Tillman J. Fertitta’s entrepreneurial spirit and financial astuteness have helped him create a highly successful $600 million restaurant company, Landry’s Restaurants, Inc. Business Week recently listed Landry’s Restaurants, Inc., as twenty-sixth on their list of the ‘‘Top 100 Growth Companies.’’ Forbes listed Landry’s fifth on its roster of ‘‘The 200 Best Small Companies in America.’’ Landry’s also received the Nations Restaurant News award as one of the nine ‘‘Hottest Concepts of the 1990s.’’ Born into a family of entrepreneurs, Fertitta is no stranger to starting new businesses. During his high school years he played the stock market; during college he started his own sales and marketing firm; and after graduation he became a real estate developer building million-dollar ‘‘spec’’ homes and developing restaurants and hotels.
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Life was good for Tillman until the oil and real estate booms went bust during the mid-1980s. It was a double whammy for him, as his real estate business was concentrated in Houston, the oil capital of the world. Just like that, his financial statement showed him to be $10 million in debt, forcing him to negotiate by day with his creditors while sleeping by night in the multimillion-dollar home he had built but could now not afford. Searching for a new direction, Fertitta went back to his seafood restaurant roots, using $1 million in promissory notes and the last of his personal cash to buy a 60 percent interest in two faltering Houston restaurants, Willie G’s Oyster Bar and Landry’s Seafood House. After turning both concepts into moneymakers, Fertitta chose to grow his company through public ownership and management rather than through franchising, as most other restaurant chains do. Tillman financed his company’s growth in part by taking his ten-unit
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TILLMAN J. FERTITTA
Tillman J. Fertitta’s entrepreneurial spirit and financial astuteness have helped him create a highly successful $600 million restaurant company, Landry’s Restaurants, Inc. Business Week recently listed Landry’s Restaurants, Inc., as twenty-sixth on their list of the ‘‘Top 100 Growth Companies.’’ Forbes listed Landry’s fifth on its roster of ‘‘The 200 Best Small Companies in America.’’ Landry’s also received the Nations Restaurant News award as one of the nine ‘‘Hottest Concepts of the 1990s.’’ Born into a family of entrepreneurs, Fertitta is no stranger to starting new businesses. During his high school years he played the stock market; during college he started his own sales and marketing firm; and after graduation he became a real estate developer building million-dollar ‘‘spec’’ homes and developing restaurants and hotels.
16
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FINANCIAL REPORTING
Life was good for Tillman until the oil and real estate booms went bust during the mid-1980s. It was a double whammy for him, as his real estate business was concentrated in Houston, the oil capital of the world. Just like that, his financial statement showed him to be $10 million in debt, forcing him to negotiate by day with his creditors while sleeping by night in the multimillion-dollar home he had built but could now not afford. Searching for a new direction, Fertitta went back to his seafood restaurant roots, using $1 million in promissory notes and the last of his personal cash to buy a 60 percent interest in two faltering Houston restaurants, Willie G’s Oyster Bar and Landry’s Seafood House. After turning both concepts into moneymakers, Fertitta chose to grow his company through public ownership and management rather than through franchising, as most other restaurant chains do. Tillman financed his company’s growth in part by taking his ten-unit