Cory Collins 10/25/13 ECON 450 The quick service restaurant (QSR) industry‚ also known as the fast food industry‚ consists of a large variety of restaurant types‚ including but not limited to ice cream parlors‚ fast food restaurants‚ pizza parlors‚ coffee shops. With all of these different types of eateries‚ the QSR industry makes up a massive section of small businesses in America. This means that the market size is large‚ and that there are not restrictive barriers to entry. Some of the giants
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Goals of Financial Management Maximize Profits A company’s most important goal is to make money and keep it. Profit-margin ratios are one way to measure how much money a company squeezes from its total revenue or total sales. There are three key profit-margin ratios: gross profit margin‚ operating profit margin and net profit margin. 1. Gross Profit Margin The gross profit margin tells us the profit a company makes on its cost of sales or cost of goods sold. In other words‚ it indicates
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of the recession‚ Saks Fifth Avenue changed their methods of merchandising to become more profitable as well as tailor more to their customers but still kept their main focus on luxury and unique brands. In 2009‚ their net profit margin was a negative 9.7% with their net profit being negative $54‚512‚000 and starting off net sales as $564‚519‚000. The CEO of Saks Fifth Avenue‚ Stephen Sadove‚ decided that the company needed to pursue an offensive strategy rather than a defensive one. In order to
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Financial analysis of CanGo CanGo has been growing rapidly ever since its formation. It experienced a greater than expected growth in revenues. However‚ the company is faced with some financial difficulties and so there is a need to take certain financial decisions. Also‚ it faces problems of controlling logistics related to growth. Rapid growth seems to be a blessing. However‚ it depends on the company’s ability how they deal with it. The holiday season of 2009 showed the company’s inability to
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Gross Profit Margin A financial metric used to assess a firm’s financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. The gross margin is not an exact estimate of the company’s pricing strategy but it does give a good indication of financial health. Without an adequate gross margin‚ a company will be unable to pay its operating and other expenses and build for the future. In general‚ a company’s gross profit margin should be
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growth of Inventec‚ there were a number of reasons why it was not very profitable. * Firstly‚ they were operating in a highly competitive market. This created pressure to reduce costs and offer the best price to clients‚ thus decreasing profit margins. * Inventec were operating in an industry that has rapid rates of growth and development in terms of products and product types‚ new types of hardware and software would be in and then outdated within a very short frame of time.
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analysis- Inner City Paint This analysis is based on the case Inner City Paint. Stanley Walsh founded Inner-City Paint Corporation in a small warehouse on the south side of Chicago. Sales have grown from approximately $60‚000 to $1‚784‚080 with a profit of $17‚610. Inner-City Paint Corporation employs 35 workers‚ of whom 25 are part-time employees. Mr. Walsh is the President and the company’s only salesperson. His mother‚ Mrs. Walsh‚ is the office manager. His salary is $132‚000. Her salary is $66
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According to the Wall Street Journal‚ since 1978 airlines have experienced lagging profits‚ but in 2010 they posted half year profits which exceeded previous years’ gains. The journey to profitability has seen the collapse of carriers‚ whether through bankruptcy or merger‚ and the paring of flight schedules to curb excess capacity. By getting supply close to the level of demand‚ airlines can charge enough to make a profit on most flights. An industry long regarded as “unprofitable‚” appeared to be regaining
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Case 3: Oliver’s Market 1) One key element of Oliver’s Market strategy is to be the finest local gourmet and natural food store in the marketplace‚ which takes the respective customer base into consideration. That is why the store in Santa Rosa has been set up differently so as to match the more upscale clientele. Another important element of their strategy is the emphasis on delivering value to their customers amongst the perception of quality. In order to stay competitive‚ Oliver’s Market
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housewares‚ footwear‚ and food items aimed at rapid turn-over under private St. Michael label. * Textile: women/men/children’s clothing; 48% of sales; 55% of profits * Food: produce‚ meat‚ prepared foods‚ French wines; 40% of sales; 55% of profits * Others: floor coverings‚ footwear‚ etc… 12% of sales and profits * value proposition: very high quality at moderate‚ rather than low‚ prices; ie: good value * Stores (1988): UK=289‚ EU=11‚ Canada=267‚ US=4 small stores‚
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