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
Premium KFC Fast food restaurant Income statement
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
Premium Revenue Generally Accepted Accounting Principles Profit margin
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
Premium LVMH Profit Luxury good
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
Premium Revenue Profit margin Profit
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
Premium Financial ratios Generally Accepted Accounting Principles Revenue
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.
Premium Profit Competition Profit margin
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
Premium Management Profit margin Strategic management
less than industry average. Inventory’s percent of change has increased to 19.6% from 2011 to 2010. This is 8.2% above the industry’s average‚ which might lead to obsolesce of inventory. Gross profit margin and net profit margin has increased but gross profit margin is above industry average and net profit margin is below industry average. We noticed a couple one-sided entries on the books for pre-paid expenses and accrued expense. Analyzing the cash flows statement‚ we found a mathematical error in
Premium Generally Accepted Accounting Principles Internal control Balance sheet
Job/Performer Level The job/performer level contributed to the lower gross/profit margin at the expense of the company based on the overtime having to be used to fulfill the quota needed per day. The turnover of employees resulted in machines without operators on a normal schedule‚ resulting in excessive overtime to maintain the daily need for production. The turnover started approximately one-year ago when the merger of the two companies was in discussion. The fear of closing one of the facilities
Premium Employment Employment Gross profit margin
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
Premium International Civil Aviation Organization Profit Profit margin