Case #33 California Pizza Kitchen Synopsis and Objectives This case examines the question of financial leverage at California Pizza Kitchen (CPK) in July 2007. With a highly profitable business and an aversion to debt‚ CPK management is considering a debt-financed stock buyback program. The case is intended to provide an introduction to the Modigliani-Miller capital structure irrelevance propositions and the concept of debt tax shields. With the background of a pizza company‚ the case provides
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Demand Estimation After studying this chapter‚ you should be able to: 1. Discuss how the firm’s managers use the information about demand for its product to determine correctly its profit-maximizing rate of output and price‚ or whether to produce a particular product at all. 2. Discuss demand respond to consumer income increase or decrease as a result of an economic expansion or contraction. 3. Specify the components of a regression model that can be used to estimate a demand equation. 4. Interpret
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Version 1.0 CALIFORNIA PIZZA KITCHEN Everyone knows that 95 percent of restaurants fail in the first two years‚ and a lot of people think it’s ‘location‚ location‚ location.’ It could be‚ but my experience is you have to have the financial staying power. You could have the greatest idea‚ but many restaurants do not start out making money – they build over time. So it’s really about having the capital and the staying power. — Rick Rosenfield‚ Co-CEO‚ California Pizza Kitchen1 In early July
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Bsb Inc: Pizza Wars Come To Campus Case Analysis Report 1. Statement Renne Kershaw‚ the food manager at BSB. Inc.‚ has had a successful one year sales at a medium sized university in the Southeast from its pizza delivery service and thinking of expanding its operations. Until then BSB. Inc.‚ was the only food service operating on campus. However‚ she came to know that the president of the university has announced construction of a student center that among other facilities will house a food
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SWOT Analysis for Pizza Connection Strength Pizza Connection demonstrates numerous strengths within the organization when meeting with the owner‚ Dave Collier. Mr. Collier explained to our firm that they have been successful and at the same time benefiting from the rise in popularity of pizza that swept across the country during the past few years. He also stated that‚ with this rise in popularity of pizza‚ his company took advantage of the trend and created the franchiser’s home office to
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health disorder and health problem. Depression is the top mental disorder in the world. Mental illness affects one in four adults and one in five children (Mental Health Assoc.) Depression is said to be assisted with counseling and taking pills every day. But who wants to have to do that their whole life? I
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Cheese pizza is a consumer product that is bought to satisfy individual’s personal wants. It is a shopping product that requires comparison shopping because it is usually more expensive and found in fewer stores. It is not as popular as pizza box and pizza hut‚ but it is an relatively new product in the market and offers an alternative for customers with different wants. Cheese pizza is now at the growth stage. It is experiencing increasing rate of sales‚ entrance of competitors‚ market consolidation
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Domino’s Pizza Introduction: This report is going to be based upon Domino’s Pizza‚ a franchised organisation derived in Michigan‚ USA. This report will firstly give a brief overview of the history of Domino’s; it will then establish and explain the micro and macro factors that affect Domino’s and their effects on the business. It will also contain a strategy which would allow Domino’s to adapt and thrive in its ever changing environment; the report will give details explaining which external
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California Pizza Kitchen Chris Schroeder FI 602: Financial Strategy and Valuation Fang Chen September 21‚ 2012 Introduction In July of 2007‚ California Pizza Kitchen (CPK)‚ a casual dining pizzeria started in California by co-owners Rick Rosenfield and Larry Flax‚ was faced with the decision to invest in a stock repurchase program. Led by Chief Financial Officer Susan Collyns‚ the financial team of CPK was reviewing the preliminary results for the second quarter to determine if the stock
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Nestlé Refrigerated Pizza Case Executive summary: In 1990 Nestlé Refrigerated Food Company‚ NRFC‚ subsidiary of Nestlé S.A‚ had to decide about the launch of a refrigerated pizza‚ under the name of Contadina pizza‚ continuing the build of the refrigerated food category it started few years ago with the launch of the Contadina pasta and sauces‚ and where the satisfying results exceeded expectations‚ NRFC would be then the first mover in this new category product‚ pre
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