We will discuss the following parts:
Description of the company and its activities.
Economic Climate and Outlook.
Pizza Pizza Income Statement and its Findings.
Pizza Pizza Balance Sheet and its Findings.
MD&A Outlook and Risks
Pizza Pizza’s Description
Privately owned company, started in 1967.
Trademarks are licensed to Pizza Pizza.
Mission statement- “Best food, made especially for you.”
Serve 30 million customers every year.
High quality list of options to all ages.
Serves Pizza, variety of fries, sandwiches, salads and drinks.
Pizza Pizza Activities
The main focus of the company is:
Quality ingredients, best customer service and continual
Sales are increasing due to new pricing techniques and strategies.
Management is very goal oriented and focussed.
Top level Management of the company:
Paul Goddard, CEO of the Pizza Pizza.
Curtis Feltner, Chief financial officer.
Sebastian Fuschini, Vice-president.
Main competitors are Dominos, Pizza hut, Gino’s and little Caesar.
Very high competition.
Pizza pizza’s marketing approaches – memorable jingle, nine six
eleven, eleven, eleven.
Advertisements through coupons, flyers and receipts.
Promotion through the pizza delivery bags.
Centralized computer calls.
Slices for the smiles foundation for the 40th anniversary.
Foundation provides $1,300,000 to children of Canada for
Economic Climate and Outlook
SSS increased by 2.1% this year.
The number of new stores increased by 25.
Total pizza pizza location- 725.
Trying to expand in both traditional and non traditional areas.
Quarterly revenue increased by 2.1% from 127.3 millions to 130
Three main states for future focussing- Ontario, Manitoba and
Income Statement Findings
Gross profit is almost constant around 26%.
S&G expenses reduced from 2011-12 lead to higher EBITDS.
Net income increased by 4% from 2011 to 2012.
Average net income is also constant around 18%.
Average revenue growth rate for the industry is 2.1%.
Average growth rate of Pizza Pizza is 4.1%.
Market value for the share of Pizza Pizza is $14.41.
The trailing EPS is 0.81.
Overall the price/earnings ratio is 17.72.
Balance Sheet findings
The current asset ratio is increasing every year.
The current asset ratio for the year 2013 is 2.45%.
Company mainly holds the long term assets i.e. 97.55%.
Current liability ratio is 5.22% of the total liabilities.
Main liabilities are long term debts i.e. 95% of the total liabilities.
Company has strong financial backbone.
Debts are manageable.
Same store sales growth was 2.13% for 2013.
Company kept on working with its core qualities so it kept growing.
Total number of stores grew to 723 which is 4.1% increase from 2012.
Company is looking to expand in the old cities as well as big cities.
Ontario, Quebec and Manitoba are the potential areas.
Company is growing at fast pace.
MD&A Risk Factors
Price, Store location and food quality are the major concern.
Efficient staff and management are positive factors.
Competitors are local pizza chains and big international pizza
Government regulations are restricting the company.
Other factors affecting the company includes Technology
breakdowns, food borne disease and inflation.
Pizza Pizza is an old and well established brand.
Company is growing at fast pace.
Competition is fierce so improve the strategies.
Company’s debts are manageable.
Overall, company should invest in new technology and ideas.