Analysis of Bed Bath & Beyond Inc.
Stephanie M. Brown
Saint Leo University
Professor: Dr. Cernata C. Morse Table of Contents
Abstract 3
Analysis of Bed Bath & Beyond Inc. 4
Poised for Growth 4
Compared to the Competition 6
Conclusion 7
Tables
Table 1 5
Table 2 6-7
References 8-9
Appendix 10-14
Abstract
Bed Bath & Beyond (BBBY) is a publicly traded company that trades on the NASDAQ, (Bed Bath...Common, 2016), and an “interesting proposition for investors these days because its stock price is right around half of its March 2014 closing peak of $80.48 per share - but the company has been engaging in stock buybacks and has started to pay a quarterly dividend” (Lara, 2016). A small annual dividend for this slow growth company (BBBY, 2016) of a mere $.50 with a current yield of 1.12%, plus a special dividend of $0.125 (Bed Bath...Common, 2016) yet, well below the
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Overall the firm has maintained respectable net profits (Appendix A), only recently increasing its debt to repurchase stock and invest in the new online subscription (BBBY, 2016). A healthy balance between debt, capital, and a new dividend policy. Best Buy in acted a similar tactic, and “while it didn 't work immediately, it eventually helped the company fight back against e-commerce giants” (William, 2016). Bed Bath & Beyond is using a comparable strategy against Amazon and Wal-Mart. If it can successfully compete, while maintaining the 20% image customers have come to expect, invest in this stock today should double with three to five years while repeating increasing dividends that are sure to
For the last thirty years, Cracker Barrel Old Country Store, Inc. has been offering people on the highways of America an alternative to the fast food pit stop. Their restaurants serves home-style food, has quality gift shops and, most of all, a friendly and accommodating environment all go in to create a welcoming atmosphere. Making the guest comfortable is what makes them different. The waiters and waitresses let you take your time. You are seated and promptly drink orders are taken. They give the customer sufficient time to gaze over the menu. There are peg games on the table to occupy you or your young ones. If it is a game of checkers you wish, there is always a table in the corner ready to play.
The last dimension discussed is the environment. The scores for environment are quite close and even exceed that of other sustainable businesses. Jury (2015) indicated that Michaels Stores Inc. is an arts and crafts store, most of their products are made from paper and there might be other products that contain substances that will be harmful to the people if not properly disposed. Therefore there is a facility where products from paper and cardboard are disposed of properly. Also there is a company that comes in to take away harmful chemicals and dispose of them accordingly.
Brookshire’s Grocery Company is a privately held Texas based retail food chain that operates in Texas, Louisiana, and Arkansas. The company’s corporate office and headquarters are located in Tyler, Texas at the Tyler distribution center. Brookshire’s operates under three distinct banners: Brookshire’s food stores which are full service supermarkets, Super 1 Foods stores which are upscale warehouse style stores, and FRESH by Brookshire’s which is a concept store. Brookshire’s Grocery is rated #193 on the Forbes America’s Largest Private Company List with revenues of 2.4 billion as of December of 2013 (Forbes, 2013).
According to Gibbens, Robert. The Gazette, he states that, past 20 years Dollarama Inc. and chief architect have built 721 unit of national retail chain exceeding $4 billion market value from a small discount store in Matane in Quebec’s Gaspe region. As per the article Rossy open his first store in Montreal in 1992 and was the head buyer besides being the chief executive. “Rossy also innovated on the buying side, cutting deals with the manufacturers, not the distributors that most retailers deal with. He scouted out competitive retailers for items worth $5 and $10 that his suppliers could copy for him to sell for a Lonnie. This enabled Dollarama to offer higher-quality $1 merchandise than most of its competitors, while offering a more attractive (and predictable) shopping experience than most low-end discounters. In early 2009, Dollarama added additional price points of $1.25, $1.50 and $2, but offered loyal shoppers new, higher-quality products at those amounts, rather than simply raising the prices of existing inventory”, according to Gibbens, Robert. The Gazette. The passage states non grocery items will gradually be introduced by August at $2.5 and $3. In the article, its state that introduction of new electronic inventory management system and productivity program by 2014 and 2015 will prove beneficial. Subsequently will reduce most of the increased cost resulted by working through the retailing industry which includes transportation and energy as well. The article also tells, China covers majority part of Dollarama’s supply needs and the rest is spread around other countries including Canada and US. Yet buying is done directly in order to reduce the cost. “You need top rate regional managers but also dedicated indivi...
There are a number of smaller players but lack the public existence and retail footprint of their larger counterparts. With such high levels of market absorption, both HD and LOW enjoy high bargaining power with suppliers of goods. The two companies vary significantly in terms of the strategies they employ to compel consumer traffic. Home Depot centre of attention is customer service, while Lowe’s offers discounts to improve sales. Home Depot has determined on customer service as a driver to grow customer traffic and sales, Lowe has battled mainly on the basis of lower prices. Home Depot has a status for lesser prices and more pro-friendly impression where Lowe’s is trying to capture the traditional do-it-yourself customer by trying to appeal the female customer, who the company declares, is responsible for eighty percent of home improvement
Lowe’s Companies, Inc. is the fourteenth largest retailer in America, and overall the world’s second largest home improvement retailer. They are the 108th ranked corporation on the Fortune 500 top corporations list. With an impressive in store stock of 40,000 home improvement items on hand, ranging from lumber to Home décor items, plus an additional 400,000 home improvement items available through a special order program. Lowe’s provides a onetime stop for all home improvement needs, for both the Do-It-Yourselfer, and the ever-expanding market of the Commercial Business Customer.
J. Crew, also known as J. Crew Group Inc., is a private label company known for its preppy fashions that are fashionable yet costly. Essentially, the company was owned by the Cinader family for most of its history. Mitchell Cinader and Saul Charles founded the company in 1947. It was originally known as Popular Merchandise Inc. doing business as the Popular Club Plan, in which Mitchell’s son Arthur was the overseer. The company sold women’s clothing through in-home demonstrations. In the early 1980’s, Cinader and Charles observed catalog retailers such as Land’s End, Talbots and L.L. Bean reporting rising sales in revenue. With intentions to increase sales and duplicate success of these well known companies, Popular Club Plan began its own catalog (http://www.fundinguniverse.com/company-histories/j-crew-group-inc-history/).
Costco Company is a wholesale corporation that runs an international chain of membership warehouses, designed to help the small and medium sized businesses to reduce costs in purchasing for resale. Apart from reducing costs, these warehouses present one of the largest exclusive product category selections under one roof. Costco is known for profit making, and has grown from a zero to nearly over a three billion-dollar seller in less than six years span. The secret behind its success is its strategy of selling products at low prices but at high volumes. This paper analyses Costco annual reports for the year ended August 31, 2010 and gives reasons why an investor should make this firm his choice.
Bed Bath & Beyond Inc. is a nationwide chain of 575 retail stores selling domestics merchandise (bed linens, bath items, and kitchen textiles) and home furnishings (kitchen and tabletop items, small appliances, and basic house wares). In 2003 Bed Bath and Beyond reported annual revenues (gross profit) of approximately $1.8 billion, net income of $339 million and net sales of $4.5 billion, representing 22% growth in revenue and 32% growth in income as compared to the previous year. In addition to the 575 Bed Bath and Beyond stores, BBBY also owns 30 Harmon Stores, a discount health, and beauty aid retailer, and 24 Christmas Tree Shops, a retailer of home décor, giftware, and seasonal merchandise. Results of operations for both the Harmon Stores and the Christmas Tree Shops are included in the companies consolidated results of operations and have been since the date of acquisition.
Change is the most crucial aspect of management. In a rapid competitive business environment, change is not only recurrent but also becoming complex. The case study Bega Cheese highlights how the firm has achieved change management from satisfying the needs of local market to being limited company of more than 50 countries globally. Through the case study, it is seen that Bega Cheese has undergone different stages of change process by implementing various effective cultural perspectives, to traditionally organizational designs concerning with structures and new forms, processes and boundaries to adapt to organizational change and eliminate resistance to change. Change is inevitable, and vital to achieve strategic objectives and competitive advantage in the market.
The Dunkin brand has two major companies Baskin Robins and Dunkin Donuts. For this business analysis I will be focusing in on Dunkin Donuts of the Dunkin Brand. Dunkin Donuts is one of the leading companies in the coffee industry that is growing rapidly each day. Though the coffee is rapidly increasing, can Dunkin Donuts keep up and compete with top rivals?
Introduction The purpose of this report is to undertake financial analysis of the position of the three major supermarket chains (Tesco plc, Morrison plc and Sainsbury plc) in the UK, using the financial tools such as Horizontal and Vertical Analysis and Ratio Analysis. The calculations done are considering the figures from the income statement and balance sheet of these three companies for the last 2 years (2008 & 2007). Doing these calculations is an effort to find out the current position and if any forecast on their performance. Tesco Plc *Interpreting the Horizontal and Vertical *Analysis The balance sheet’s horizontal analysis reveals the first worrying statistics about the company- the fact that stock level has increased by 25.84% in the year, even though net assets have increased by only 12.59%. The vertical analysis of the balance sheet again highlights the increase in amount of stock held by the company at the end of 2008 and increase in current assets. Interpreting the Ratio Analysis By looking at the ROCE* ratio it is clear that the business has not generated any higher return in the period 2007-2008. Though there is a marginal decrease in the returns (0.14% from 0.16%), however when compared with returns of other competitors Tesco plc has performed much better. Drop in asset utilisation ratio in the year 2008 indicates that the company did not use its assets efficiently to generate sales. As a result profit margin dropped down to 5.91% in 2008 from 6.21% in the year 2007. The Acid test ratio also doesn’t meet the ‘ideal’ ratio of 1:1. In other words Tesco had only 38p of quickly realisable assets to meet each £1 of current liabilities. Stock turn shows the effect of increased stock at the end of 2008 as it s...
Bass Pro shop started as an 8-foot-long display area in the back of a liquor store in 1971 and has expanded into a Fortune 500 company that employs over 8,800 employees and has annual sales estimating somewhere around $1.25 billion today. The question at hand is: should Bass Pro Shops continue to expand, and if so at what rate should they? The primary problems they might face when expanding are as follows. Could expansion hurt their brand image and if so how? The Competition outside of Missouri is going to be much greater. They will not have the publicity and brand recognition as they do in Missouri. Does Bass Pro have the financial resources in order to open new stores, if not then what are some options they can exercise? Will Negative publicity threaten their brand image as they continue to grow? Is the cost of overhead going to be too high initially for Bass Pro to expand at a fast rate, if so then at what rate should they expand yearly? These are all problems Bass Pro is going to have to face in the future. Through research and extensive problem solving, they will be able to make an accurate decision on rather they should expand.
In Best Buy, the Benemundus Group has a great opportunity to take advantage of an undervalued
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