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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Consumption in the Pizza Fast Food Industry Today‚ the average American eats 46 slices of pizza per year (about 23 pounds). Buck Jones reports "The business is only expected to grow as the industry continues to expand its product base and revenue earnings through imaginative recipes and creative marketing concepts" (Jones‚ 177). Pizza producers are searching for additional pizza products that will appeal to new markets such as the croissant‚ French bread‚ and other specialty products showing up
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2009 – 2010 | | Masters in Business Administration |By- Tesar Singh Chauhan [DOMINO’s PIZZA UK & IRL FINANCIAL PERFORMANCE ANALYSIS] | Submitted as a part of module assessment for Accounting and Control | CONTENTS: Page Number 1. INTRODUCTION 2 1.1 DOMINO’s at LONDON STOCK EXCHANGE And Trading Information 2 2. FINANCIAL RATIO ANALYSIS ON DOMINO’s PIZZA UK & IRL PLC’s PERFORMANCE 3 3.1 PROFITABILITY RATIOS 3-4 3.2 LIQUIDITY
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Domino’s Pizza is one of the world biggest companies of pizza production and delivery. The company was founded in the USA in 1960 by Tom Monaghan. Since that time Domino’s Pizza Company became one of the leading fast food delivery companies in the world: "We have been delivering quality‚ affordable pizza to our customers since 1960 when brothers Thomas and James Monaghan borrowed $900 and purchased a small pizza store in Ypsilanti‚ Michigan. Since that time‚ our store count and geographic reach have
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information‚ sold information and delivery information. Management information system Input: data from TPS Processes: use the data to summarize into report. Output: the report present the employee performance‚ the time to make pizza and delivery to customers. Besides‚ report present the profit and loss. Decision support system Input: data from TPS and external data Processes: managers analyze data. Output: analyze customer’s favor and sales feature. Managers
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Pizza Store Layout Simulation University of Phoenix Introduction The concept of the learning curve is a powerful tool and is applicable to all learning processes. In this simulation I became the manager and ran the Pizza store hoping to produce a better process for the amount of time a customer waits for their order. The goal of my job was to apply the learning curve concepts to test the alternative against the current process of the Pizza store. I will explain and provide information
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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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GROUP MEMBERS Ahmad Hazrul Hakim bin Anuar Wan Nur Hazirah bt Wan Sukri Noor Azmina Syafawati bt A. Hamid Nurul Izaty Bt Mohd Aziz ORGANIZATION BACKGROUND • Kenny Rogers Roasters (KRR) is a chain of chicken-based restaurant. • KRR is now part of Malaysian under Berjaya Corporation Berhad. • KRR is a franchise company owned by KRR International Corporation. • 74 restaurants in Malaysia and 8 in Indonesia. • Brand tagline is “less fat‚ less salt‚ less calories” • Muffins‚ jacket potatoes‚ vegetable
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PROFILE Pizza Hut is one of the flagship brands of Yum! Brands‚ Inc.‚ which also has KFC‚ Taco Bell‚ A&W and Long John Silver’s under its umbrella. Pizza Hut is the world’s largest pizza chain with over 12‚500 restaurants across 91 countries In India‚ Pizza Hut has 137 restaurants across 36 cities‚ including Delhi‚ Mumbai‚ Bangalore‚ Chennai‚ Kolkata‚ Hyderabad‚ Pune‚ and Chandigarh amongst others. Yum! is in the process of opening Pizza Hut restaurants at many more locations to service a larger
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Preparatory Questions for California Pizza Kitchen 1. In what ways can Susan Collins facilitate the cusses of CPK? 2. Using the scenarios in case Exhibit 9‚ what roles does leverage play in affecting the return on equity (ROE) for CPK? What about the cost of capital? a. Leverage increases Beta for the firm since debt to equity ratio increases from unlevered beta. We use 10 year Treasury bond as our risk free rate and for market risk premium we use current prime lending rate for June 2007
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