I am recommending a short of The Cheesecake Factory (“CAKE” or the “Company”). Company Overview The Cheesecake Factory joined the casual dining sector in 1978 with the introduction of its namesake concept. For “The Cheesecake Factory” brand, the Company’s identity and reputation for offering high-quality desserts results in a substantially higher dessert mix at about 16%, generating a higher average check at over $20 in the past two years. The Company has per unit sales at over $10.5 MM, a leading metric among its peers. This short thesis is built on the assertion that CAKE’s consecutive 26 quarter streak of positive same-store sales is likely unsustainable. Despite the per unit sales average being more than double that of the segment average, CAKE’s contribution margin is among the lowest across the peer group at more than a 15% discount to the peer average. The Company operates 201 Company-owned restaurants: 188 under the The Cheesecake Factory brand, 12 under the Grand Lux Café brand, and one under the RockSugar …show more content…
In 2015, The Cheesecake Factory was named for the second year in a row to Fortune magazine’s “100 Best Companies to Work For” list. A substantial part of the Company’s FCF has been spent on buybacks in the last three years. The Company’s buyback has accounted for about one-third of EPS growth. CAKE maintains a strong balance sheet. CAKE’s international business remains small and offers a higher return per unit based on the royalty-driven arrangement. Each international unit is expected to contribute about $0.01 to EPS. The Company recently raised its dividend, now $0.96 on an annualized basis. This dividend may provide some downside support. Selected Catalysts • Negative traffic trends continue • Margins erode because of pricing, food cost inflation, and labor cost pressures escalating • Valuation is re-rated to adjust for lower growth
The Specialty Cheese Company is a dynamic, small company that has thought about its future. The company has been around since 1839. It has survived when there were over 4000 cheese companies, The Great Depression and over 150 years of leadership. With less than 150 cheese companies in the United States, the Specialty Cheese Company has three United States Department of Agriculture approved functioning companies.
The setting up of a subsidiary company to produce nondairy products such as White Wave company, including alternatives to cow milk, could be considered as a viable option. The firm would penetrate a new market with great potential. The market for healthier products are expanding and if Clearfield wants to continue with a profitable company they too must provide healthier options due to this current trend. The venture could also be risky since the subsidiary corporation would be in competition with the mother company as a result of a split in the market. In effect, a divide in the market would lead to a conflict of interest as the subsidiary company may have the potential to affect the sales and profit margin of Clearfield Cheese Company. The company will be in competition to a new market base and to new competitors.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must also take into consideration that the additional business units will not hinder the profitability of the existing business units.
Jakeshia and I decided to go to Chuck E. Cheese, because this is where our childhood began. From toddlers to young teenagers, we used to go and celebrate birthdays, good grades, and family night here. When we were young children we did not worry about how unclean or unsafe this place may have been. We remember running around with fruit punch HI-C stains around our mouths, playing games to win tickets and get prizes.
Doctors’s Associates, Inc.: A company who owns and operates Subway. It has approximate 40,855 restaurants in 105 countries, in January, 1, 2014. The total annual revenue is of $32.1 million dollars.
General Mills – A fortune 500 company, food products is its primary business. “The world’s sixth largest food company (General Mills, 2010).” General Mills markets many popular cereal products including Cheerios’ and Lucky Charms both of which are very competitive with our current product line. They have a global presence with revenues of USD 14,796.5 million and will remain one of our top
...rs, setting a good trend for the corporation. They also have a very low debt-to-equity ratio, indicating that they have enough equity to easily pay off any funds acquired from creditors. As a creditor I would feel safe in lending them funds for any future projects or endeavors.
Mondelez International Inc. is a global snacking powerhouse with 2012 revenue of $35billion. ("Mondelez international reports," 2013) Mondelez International Inc. is selling its products in 165 countries, and it is a leader in the world in selling candy, coffee, chocolate, biscuits, etc, with brands such as Milka Chocolate, Cadbury Dairy Milk, Cadbury, LU, Jacobs coffee, Oreo biscuits and Nabisco, Trident Gum and Tang. ("Mondelez international reports," 2013)
While this past year’s financial situation has not been released yet, Kellogg has been earning a steady amount of profit in the last five years. Nonetheless, the growth rate and revenue fluctuate positively and negatively, which means Kellogg struggles to grow year after year. It has notable years when it introduces new products or it acquires other companies, but mainly because of a declining economy and a fading trend for cereal in the mornings, Kellogg’s has experienced declines in revenues (Kell, 2014, para. 6). Specifically in 2014 and 2012. Research has shown newer generations like the Millennials prefer alternatives to cereals for breakfast, which has made it hard for Kellogg’s to grow their business. The corporation usually redeems
The main challenge is to determine how Panera Bread can continue to achieve high growth rates in the future. Panera Bread is operating in an extremely high competitive restaurant market which forces the company to improve and to grow steadily for staying profitable. The company’s mission statement of putting “a loaf of bread in every arm” is just underlying Panera’s commitment for growing. They are now in a good financial situation and facing growth rates of up to 20% per year in a niche market that has a great growth potential. In the next 7 years the fast-casual market is expected to grow by 500% in sales to a total of $30 billion.
Cheesecake is a rich and sweet dessert dish consisting of one or more layers. Cheesecake is enjoyed all around the world in different forms and styles and can be traced back as far as ancient Greece even before Roman conquest. An ancient manuscript written by Greek physician Aegimus explains the process of making cheesecake. Throughout the years several recipes relating to cheesecake can be found throughout different European countries. Our recipe we use is an American cheesecake. It differs from its European counterpart in several aspects including preparation and cheese used. While both use cheese, American cheesecake uses a sweeter and denser form of cheese, most commonly cream cheese. Most European including Germany, Poland, and the Netherlands
A chocolate cake should be easy and fun to make at home with friends, family, or even your children. They could help you and learn how to make a chocolate cake too. It could be a perfect cake for a birthday party, friends to come over, or a Thanksgivings and Christmas party dessert. The decadent dessert is great for chocolate lovers and will be a hit at your next party. The cake shouldn 't take you long to make it, but you will make a lot of mess doing the cake. Making a decision chocolate cracks cake would be a great treat that you will enjoy.
Overall, this career is important to our society because nobody wants bad ice cream. And no one by ice cream the company will have to cut back. This then will cause people to loose their jobs. Then the unemployment rate + poverty will rise. Finally our country will fall and become a waste land (that escalated quickly). I think this career would be good for me because I will be making money doing something I love (eating).
McDonalds has always been a leader in the fast food industry. Through its dynamic market expansion, new products and special promotional strategies, it has succeeded in making a name for itself in the minds of the target customers. However, McDonald’s earnings has declined in the late 1990’s and 2000s. This is mainly due to a fiercely competitive industry and variety in customer tastes and preferences.