This document analyzes Panera Bread Company and its financial standing as of fiscal year end 2013. The analysis examines Panera's historical performance and future growth prospects. Key points extracted from the company's annual reports were used to create pro forma financial statements projecting the next five years. A discounted cash flow model was then developed to estimate Panera's share value based on future cash flows. The model projects revenue, expenses, assets and liabilities to determine free cash flow. This is discounted to calculate Panera's estimated share price of $172.27 as of November 2014.
This financial modeling project values Panera Bread Company for 2013. The analysts built a model incorporating Panera's financial statements from 2009-2013. They analyzed historical ratios, created a 5-year forecast, and determined Panera's WACC was 7.56%. Using this to discount future cash flows, they valued Panera at $184.23 per share, close to the actual stock price of $176.96. While the conference call signaled some risks, the valuation aligned closely with Panera's performance.
- Major brands in the Retail Products segment that posted sales growth included ACT II, Armour, Banquet, and Blue Bonnet. Brands that posted sales declines included Healthy Choice, Slim Jim, and Snack Pack.
- Retail volume increased 8% while foodservice volume was flat excluding divested businesses.
- Increased input costs negatively impacted operating profits in the Retail Products segment by approximately $45 million.
- Capital expenditures were approximately $105 million, reflecting increased investment in information systems.
- Ball Corporation held a conference call to discuss its third quarter 2008 earnings results
- Overall performance was good, with most business segments reporting improved profitability compared to Q3 2007 despite economic challenges
- Two beverage can plants will close, one in Kansas City and one in Puerto Rico, resulting in restructuring charges but expected future cost savings
- Most business segments saw higher operating earnings compared to Q3 2007, driving higher EPS
Ryerson provided a quarterly financial presentation highlighting their Q1 2019 results. Key highlights included net sales increasing 31% year-over-year to $1.2 billion, adjusted EBITDA excluding LIFO of $63 million, and diluted adjusted earnings per share of $0.79. Management noted stable demand across most end markets and market share gains contributed to strong earnings. Ryerson also has significant liquidity to fund strategic investments and operations going forward as they work towards achieving their long term financial targets.
This document summarizes the Q1 FY2004 earnings results of a large packaged foods company. Key points include:
- Q1 EPS was $0.37 compared to $0.43 in Q1 FY2003, impacted by various one-time gains and losses.
- Packaged foods sales were down $168M excluding divested businesses, with a 5% volume decline.
- Several major brands saw growth, while others like Butterball declined.
- Corporate expenses increased due to litigation expenses from a past joint venture.
- The effective tax rate for FY2004 is estimated at 38%.
PPG delivered record first quarter sales and earnings per share. Sales increased 6% year-over-year driven by price increases of 4% and volume growth of 3%, while acquisitions contributed 1% and currency impacts reduced sales by 2%. Earnings per share of $1.11 were an all-time first quarter record for PPG and included restructuring charges of $0.14 per share and a proposed asbestos settlement charge of $0.03 per share. Despite high energy and raw material costs, coatings margins improved due to price increases and cost reductions.
HP reported financial results for the third quarter of fiscal year 2009. Revenue declined 2% year-over-year to $27.5 billion but was up 4% excluding currency effects. Non-GAAP earnings per share increased 6% to $0.91. Cash flow from operations was strong at $3.9 billion, up 15% over the prior year. The company saw increased stability in the US market and double-digit growth in China. Integration of the EDS acquisition is ahead of plan and expected to realize significant cost synergies. HP will continue investing in strategic growth areas like data centers, digital printing, and mobility.
The document provides a Q&A summary of ConAgra Foods' financial results for Q2 FY04 compared to Q2 FY03. Key points include:
- Q2 FY04 diluted EPS was $0.51 compared to $0.44 in Q2 FY03, impacted by $0.04 in discontinued operations in FY04 and $0.03 in divestiture expenses in FY03.
- Sales comparability was impacted by $506M in divested fresh meat businesses in FY03 and $154M in divested canned food businesses in FY03.
- Examples of brand sales growth included Banquet, Chef Boyardee, Egg Beaters
This financial modeling project values Panera Bread Company for 2013. The analysts built a model incorporating Panera's financial statements from 2009-2013. They analyzed historical ratios, created a 5-year forecast, and determined Panera's WACC was 7.56%. Using this to discount future cash flows, they valued Panera at $184.23 per share, close to the actual stock price of $176.96. While the conference call signaled some risks, the valuation aligned closely with Panera's performance.
- Major brands in the Retail Products segment that posted sales growth included ACT II, Armour, Banquet, and Blue Bonnet. Brands that posted sales declines included Healthy Choice, Slim Jim, and Snack Pack.
- Retail volume increased 8% while foodservice volume was flat excluding divested businesses.
- Increased input costs negatively impacted operating profits in the Retail Products segment by approximately $45 million.
- Capital expenditures were approximately $105 million, reflecting increased investment in information systems.
- Ball Corporation held a conference call to discuss its third quarter 2008 earnings results
- Overall performance was good, with most business segments reporting improved profitability compared to Q3 2007 despite economic challenges
- Two beverage can plants will close, one in Kansas City and one in Puerto Rico, resulting in restructuring charges but expected future cost savings
- Most business segments saw higher operating earnings compared to Q3 2007, driving higher EPS
Ryerson provided a quarterly financial presentation highlighting their Q1 2019 results. Key highlights included net sales increasing 31% year-over-year to $1.2 billion, adjusted EBITDA excluding LIFO of $63 million, and diluted adjusted earnings per share of $0.79. Management noted stable demand across most end markets and market share gains contributed to strong earnings. Ryerson also has significant liquidity to fund strategic investments and operations going forward as they work towards achieving their long term financial targets.
This document summarizes the Q1 FY2004 earnings results of a large packaged foods company. Key points include:
- Q1 EPS was $0.37 compared to $0.43 in Q1 FY2003, impacted by various one-time gains and losses.
- Packaged foods sales were down $168M excluding divested businesses, with a 5% volume decline.
- Several major brands saw growth, while others like Butterball declined.
- Corporate expenses increased due to litigation expenses from a past joint venture.
- The effective tax rate for FY2004 is estimated at 38%.
PPG delivered record first quarter sales and earnings per share. Sales increased 6% year-over-year driven by price increases of 4% and volume growth of 3%, while acquisitions contributed 1% and currency impacts reduced sales by 2%. Earnings per share of $1.11 were an all-time first quarter record for PPG and included restructuring charges of $0.14 per share and a proposed asbestos settlement charge of $0.03 per share. Despite high energy and raw material costs, coatings margins improved due to price increases and cost reductions.
HP reported financial results for the third quarter of fiscal year 2009. Revenue declined 2% year-over-year to $27.5 billion but was up 4% excluding currency effects. Non-GAAP earnings per share increased 6% to $0.91. Cash flow from operations was strong at $3.9 billion, up 15% over the prior year. The company saw increased stability in the US market and double-digit growth in China. Integration of the EDS acquisition is ahead of plan and expected to realize significant cost synergies. HP will continue investing in strategic growth areas like data centers, digital printing, and mobility.
The document provides a Q&A summary of ConAgra Foods' financial results for Q2 FY04 compared to Q2 FY03. Key points include:
- Q2 FY04 diluted EPS was $0.51 compared to $0.44 in Q2 FY03, impacted by $0.04 in discontinued operations in FY04 and $0.03 in divestiture expenses in FY03.
- Sales comparability was impacted by $506M in divested fresh meat businesses in FY03 and $154M in divested canned food businesses in FY03.
- Examples of brand sales growth included Banquet, Chef Boyardee, Egg Beaters
The Pepsi Bottling Group reported third quarter 2009 results. Comparable diluted EPS was $1.06 and reported diluted EPS was $1.14. Currency neutral operating income grew 10% compared to the prior year on a comparable basis, while reported operating income declined 4% due to foreign exchange impacts. The company remains on track to achieve full-year 2009 guidance of $2.30-$2.40 diluted EPS at the high end of the range and has raised operating free cash flow guidance to approximately $550 million.
Quest Diagnostics held a conference call to discuss its financial results for the second quarter of 2008. The call began with introductory remarks noting some statements may be forward-looking and cautioning investors. Surya Mohapatra then stated the business performed well, with double digit revenue and earnings growth. Revenue was $1.8 billion, up 12%, and earnings per share increased 14%. Cash flow also improved. Bob Hagemann then reviewed the financial results in more detail, noting continued revenue, volume, and earnings growth. He also provided an update on cost reduction initiatives and guidance for the full year.
This document analyzes the financial performance of ELB Company over 2017-2018 based on its income statement and balance sheet. The income statement analysis shows that while revenues grew in 2018, costs also increased, leading to a small fall in net profit. The balance sheet analysis indicates that total assets and retained earnings grew from 2017-2018, showing improved financial performance. Ratio analysis finds the company is liquid with a quick ratio below 1 and current ratio above 1. The document recommends ELB minimize external funding and costs to further increase profits.
This document contains the questions and answers from ConAgra Foods' Q2 FY2005 earnings call. Some key details include:
- Several major brands in the Retail Products segment posted sales growth, while others saw declines.
- Retail volume increased 7% and Foodservice volume decreased 1% excluding divested businesses.
- Capital expenditures increased significantly year-over-year due to investments in information systems.
- The company received proceeds from the sale of its minority interest in Swift Foods and shares of Pilgrim's Pride stock.
EBL's financial performance declined slightly between 2017 and 2018. While revenues increased 18.3% to $5.3 million due to sales growth, expenses also rose significantly, leading to a 6.85% decrease in net profit to $0.24 million. Asset and liability values increased overall. Current and quick ratios indicate EBL can meet short-term obligations, but the gearing ratio of 49% shows debt utilization near the optimal level. The report recommends reducing debt and implementing strategies to cut costs and boost profits.
Extreme Networks reported its fiscal Q4 and full year 2011 financial results. For Q4, total revenue was $89.8 million, up from $85.5 million in Q4 2010. Product revenue was $73.8 million, up 4% year-over-year. For fiscal year 2011, total revenue was $334.4 million, up 8% from 2010, with product revenue of $274.4 million, up 10% from 2010. The company reported a non-GAAP net income of $2.1 million for Q4 and $7.5 million for the full year. The company expects revenue of $74-80 million for Q1 2012 and $320-340 million for fiscal
Major brands in the Retail Products segment that posted sales growth included ACT II, Blue Bonnet, Butterball, Kid Cuisine, Marie Callender's, Reddi-wip and Ro*Tel. Brands that posted sales declines included Armour, Banquet, Cook's, DAVID, Eckrich, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, LaChoy, Orville Redenbacher, PAM, Parkay, Peter Pan, Slim Jim, Snack Pack, Swiss Miss, Van Camp's and Wesson. Retail Products volume declined 5% for the quarter while Foodservice Products volume increased 2%. Corporate expense for the quarter was approximately $103 million
Malibu Boats reported record fourth quarter and fiscal year 2017 results. Net sales increased 12.6% in the fourth quarter and 11.5% for the fiscal year due to price increases and a mix of larger models. Gross profit grew 12.4% in the fourth quarter and 12.3% for the fiscal year. Adjusted EBITDA rose 14.4% in the fourth quarter and 15.5% for the fiscal year. Management expects mid-single digit growth in the domestic boating market in calendar year 2017 and believes its new model year 2018 product offerings will provide continued momentum.
Avery Dennison reported third quarter earnings. Net income was $58 million, down from $85 million last year due to costs from acquiring Paxar. Adjusted earnings excluding one-time costs was $1 per share. Net sales increased 19% to $1.68 billion due to the Paxar acquisition. Core sales were flat due to weaker retail demand in the US affecting some business units. The company remains on track to achieve cost synergies from integrating Paxar and is focused on accelerating top line growth. For the full year, earnings per share are expected to be between $3.75-$3.85, excluding one-time costs.
- Adobe reported record quarterly and annual revenue for its fiscal year 2008. Fourth quarter revenue was $915.3 million, a slight increase from the same quarter last year. Annual revenue for 2008 was $3.58 billion, a 13% increase from fiscal year 2007.
- Despite a difficult economic environment, Adobe was able to achieve double digit growth for the sixth consecutive year through consistent execution and disciplined expense management.
- For the first quarter of fiscal year 2009, Adobe is targeting revenue of $800-850 million and earnings per share of $0.30-0.35 on a GAAP basis and $0.43-0.47 on a non-GAAP basis.
Aperam reported its full year and fourth quarter 2014 earnings results. While market conditions were more challenging in Q4 due to seasonal factors and high stainless steel imports in Europe, Aperam's EBITDA over Q4 confirmed continued improvement in operational performance. For the full year, Aperam returned to positive net income thanks to contributions from its Leadership Journey operational improvement program and Top Line strategy. Looking ahead, Aperam expects European stainless steel demand to increase 1-2% in 2015 and demand in South America to remain stable, while remaining cautious given general market conditions and nickel price volatility.
Digital realty 3 q16 earnings presentation finalir_digitalrealty
This document provides forecasts and estimates for various economic indicators and metrics for the global economy, U.S. economy, and data center industry for 2017 and 2018. It forecasts modest global GDP growth of around 3.2% in 2017 and slightly higher growth in 2018. U.S. GDP growth is forecast to be around 2.1% in 2017 and 2018. It also provides projections for inflation, oil prices, stock market performance, capital expenditure trends, and other indicators.
In the first quarter of 2016, Iron Mountain reported total revenues of $751 million, a 0.2% increase over the first quarter of 2015. On a constant currency basis, total revenue growth was 3.8% for the quarter, reflecting solid storage rental revenue growth of 3.9% and service revenue growth of 3.7%. Adjusted OIBDA for the first quarter was $235 million, a 1.7% increase over the first quarter of 2015. Iron Mountain also reported adjusted EPS of $0.33 per diluted share for the first quarter of 2016.
Pitney Bowes reported their fourth quarter and annual financial results for 2008. Their adjusted earnings per share increased 8% for the quarter and 2% for the full year. On a GAAP basis, they reported earnings per share of $0.36 for the quarter and $2.00 for the full year. For 2009, they expect revenue to decline 4-7% due to currency impacts, and for adjusted earnings per share to be in the range of $2.55 to $2.75.
Packaged Foods sales increased 4% excluding divestitures, with 2% volume growth. Several brands posted sales growth including Armour, Banquet, and Blue Bonnet, while others like ACT II and Butterball declined. Sales comparability was affected by $155 million in divested businesses last year. Operating profit grew 5% in Packaged Foods and 10% overall when adjusting for divested businesses and cost savings initiatives. The company is implementing cost cutting measures expected to save more than implementation costs in the future.
The document provides financial results for transcosmos inc. for Q1-Q2 FY2019/3 (April-September 2018).
Key points:
- Consolidated sales increased 8.7% year-over-year driven by growth in the parent company and overseas affiliates.
- Consolidated operating income was flat year-over-year as growth in domestic and overseas affiliates offset a decline in the parent company.
- Net income increased significantly due to higher ordinary income and extraordinary gains from selling affiliate shares.
- The balance sheet strengthened with increases in cash/cash equivalents and retained earnings.
Bco315 corporate finance task brief & rubrics task first asshoney725342
This document provides instructions for the first assignment in BCO315 Corporate Finance. It is worth 30% of the final grade. Students must individually answer questions and perform calculations in an Excel document submitted on Moodle by October 17th. The assignment assesses understanding of financing a firm and capital structure. It provides a case study of Promaut Corporation, an engineering company considering financing a new self-driving car project worth 70M€ either through debt or equity. Students are asked a series of questions to calculate financial metrics and advise the company on the best financing option.
This document provides an overview of Panera Bread, including its management, history, competitors, performance, opportunities, threats, strengths, weaknesses, and strategic proposal. Panera Bread is a North American fast-casual chain restaurant serving bakery goods, salads, sandwiches and more. Recently, Panera Bread has made changes to its upper management and menu by removing artificial ingredients. It aims to improve customer experience through remodeling all of its over 1,900 locations within 5 years, with a total capital expenditure of $744 million. The remodels focus on addressing long wait times and providing a more pleasant dining environment.
This document analyzes various hedging strategies using futures contracts. It discusses using Eurodollar futures to hedge $70 million invested in equities, calculating that 6,667 contracts would be needed. It also examines a long/short portfolio hedging a $50 million investment in PRWCX using S&P 500 futures, determining a historical beta of 0.628. Leveraging this strategy at 150% with $100 million borrowed at 1% could yield a 4.54% return. However, future beta and market movements may differ from historical patterns. Additionally, the document proposes a spread trade betting on a rise in long-term vs. short-term interest rates using Eurodollar futures.
Small models and fast analytics are well-suited for big data problems.
Small models have fewer goals, variables, and parameters and allow for fast computation. They focus on short-term forecasts and next actions rather than long histories. Distributional simplification and bias correction allow small models to make accurate predictions from large datasets. Bayesian networks and other techniques enable fast prediction of audience behaviors and actions. Case studies show how clustering, CHAID analysis, and Bayesian networks help optimize local advertising efficiency and scale, determine causal relationships between digital touchpoints and conversions, and prioritize key performance indicators.
The Pepsi Bottling Group reported third quarter 2009 results. Comparable diluted EPS was $1.06 and reported diluted EPS was $1.14. Currency neutral operating income grew 10% compared to the prior year on a comparable basis, while reported operating income declined 4% due to foreign exchange impacts. The company remains on track to achieve full-year 2009 guidance of $2.30-$2.40 diluted EPS at the high end of the range and has raised operating free cash flow guidance to approximately $550 million.
Quest Diagnostics held a conference call to discuss its financial results for the second quarter of 2008. The call began with introductory remarks noting some statements may be forward-looking and cautioning investors. Surya Mohapatra then stated the business performed well, with double digit revenue and earnings growth. Revenue was $1.8 billion, up 12%, and earnings per share increased 14%. Cash flow also improved. Bob Hagemann then reviewed the financial results in more detail, noting continued revenue, volume, and earnings growth. He also provided an update on cost reduction initiatives and guidance for the full year.
This document analyzes the financial performance of ELB Company over 2017-2018 based on its income statement and balance sheet. The income statement analysis shows that while revenues grew in 2018, costs also increased, leading to a small fall in net profit. The balance sheet analysis indicates that total assets and retained earnings grew from 2017-2018, showing improved financial performance. Ratio analysis finds the company is liquid with a quick ratio below 1 and current ratio above 1. The document recommends ELB minimize external funding and costs to further increase profits.
This document contains the questions and answers from ConAgra Foods' Q2 FY2005 earnings call. Some key details include:
- Several major brands in the Retail Products segment posted sales growth, while others saw declines.
- Retail volume increased 7% and Foodservice volume decreased 1% excluding divested businesses.
- Capital expenditures increased significantly year-over-year due to investments in information systems.
- The company received proceeds from the sale of its minority interest in Swift Foods and shares of Pilgrim's Pride stock.
EBL's financial performance declined slightly between 2017 and 2018. While revenues increased 18.3% to $5.3 million due to sales growth, expenses also rose significantly, leading to a 6.85% decrease in net profit to $0.24 million. Asset and liability values increased overall. Current and quick ratios indicate EBL can meet short-term obligations, but the gearing ratio of 49% shows debt utilization near the optimal level. The report recommends reducing debt and implementing strategies to cut costs and boost profits.
Extreme Networks reported its fiscal Q4 and full year 2011 financial results. For Q4, total revenue was $89.8 million, up from $85.5 million in Q4 2010. Product revenue was $73.8 million, up 4% year-over-year. For fiscal year 2011, total revenue was $334.4 million, up 8% from 2010, with product revenue of $274.4 million, up 10% from 2010. The company reported a non-GAAP net income of $2.1 million for Q4 and $7.5 million for the full year. The company expects revenue of $74-80 million for Q1 2012 and $320-340 million for fiscal
Major brands in the Retail Products segment that posted sales growth included ACT II, Blue Bonnet, Butterball, Kid Cuisine, Marie Callender's, Reddi-wip and Ro*Tel. Brands that posted sales declines included Armour, Banquet, Cook's, DAVID, Eckrich, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, LaChoy, Orville Redenbacher, PAM, Parkay, Peter Pan, Slim Jim, Snack Pack, Swiss Miss, Van Camp's and Wesson. Retail Products volume declined 5% for the quarter while Foodservice Products volume increased 2%. Corporate expense for the quarter was approximately $103 million
Malibu Boats reported record fourth quarter and fiscal year 2017 results. Net sales increased 12.6% in the fourth quarter and 11.5% for the fiscal year due to price increases and a mix of larger models. Gross profit grew 12.4% in the fourth quarter and 12.3% for the fiscal year. Adjusted EBITDA rose 14.4% in the fourth quarter and 15.5% for the fiscal year. Management expects mid-single digit growth in the domestic boating market in calendar year 2017 and believes its new model year 2018 product offerings will provide continued momentum.
Avery Dennison reported third quarter earnings. Net income was $58 million, down from $85 million last year due to costs from acquiring Paxar. Adjusted earnings excluding one-time costs was $1 per share. Net sales increased 19% to $1.68 billion due to the Paxar acquisition. Core sales were flat due to weaker retail demand in the US affecting some business units. The company remains on track to achieve cost synergies from integrating Paxar and is focused on accelerating top line growth. For the full year, earnings per share are expected to be between $3.75-$3.85, excluding one-time costs.
- Adobe reported record quarterly and annual revenue for its fiscal year 2008. Fourth quarter revenue was $915.3 million, a slight increase from the same quarter last year. Annual revenue for 2008 was $3.58 billion, a 13% increase from fiscal year 2007.
- Despite a difficult economic environment, Adobe was able to achieve double digit growth for the sixth consecutive year through consistent execution and disciplined expense management.
- For the first quarter of fiscal year 2009, Adobe is targeting revenue of $800-850 million and earnings per share of $0.30-0.35 on a GAAP basis and $0.43-0.47 on a non-GAAP basis.
Aperam reported its full year and fourth quarter 2014 earnings results. While market conditions were more challenging in Q4 due to seasonal factors and high stainless steel imports in Europe, Aperam's EBITDA over Q4 confirmed continued improvement in operational performance. For the full year, Aperam returned to positive net income thanks to contributions from its Leadership Journey operational improvement program and Top Line strategy. Looking ahead, Aperam expects European stainless steel demand to increase 1-2% in 2015 and demand in South America to remain stable, while remaining cautious given general market conditions and nickel price volatility.
Digital realty 3 q16 earnings presentation finalir_digitalrealty
This document provides forecasts and estimates for various economic indicators and metrics for the global economy, U.S. economy, and data center industry for 2017 and 2018. It forecasts modest global GDP growth of around 3.2% in 2017 and slightly higher growth in 2018. U.S. GDP growth is forecast to be around 2.1% in 2017 and 2018. It also provides projections for inflation, oil prices, stock market performance, capital expenditure trends, and other indicators.
In the first quarter of 2016, Iron Mountain reported total revenues of $751 million, a 0.2% increase over the first quarter of 2015. On a constant currency basis, total revenue growth was 3.8% for the quarter, reflecting solid storage rental revenue growth of 3.9% and service revenue growth of 3.7%. Adjusted OIBDA for the first quarter was $235 million, a 1.7% increase over the first quarter of 2015. Iron Mountain also reported adjusted EPS of $0.33 per diluted share for the first quarter of 2016.
Pitney Bowes reported their fourth quarter and annual financial results for 2008. Their adjusted earnings per share increased 8% for the quarter and 2% for the full year. On a GAAP basis, they reported earnings per share of $0.36 for the quarter and $2.00 for the full year. For 2009, they expect revenue to decline 4-7% due to currency impacts, and for adjusted earnings per share to be in the range of $2.55 to $2.75.
Packaged Foods sales increased 4% excluding divestitures, with 2% volume growth. Several brands posted sales growth including Armour, Banquet, and Blue Bonnet, while others like ACT II and Butterball declined. Sales comparability was affected by $155 million in divested businesses last year. Operating profit grew 5% in Packaged Foods and 10% overall when adjusting for divested businesses and cost savings initiatives. The company is implementing cost cutting measures expected to save more than implementation costs in the future.
The document provides financial results for transcosmos inc. for Q1-Q2 FY2019/3 (April-September 2018).
Key points:
- Consolidated sales increased 8.7% year-over-year driven by growth in the parent company and overseas affiliates.
- Consolidated operating income was flat year-over-year as growth in domestic and overseas affiliates offset a decline in the parent company.
- Net income increased significantly due to higher ordinary income and extraordinary gains from selling affiliate shares.
- The balance sheet strengthened with increases in cash/cash equivalents and retained earnings.
Bco315 corporate finance task brief & rubrics task first asshoney725342
This document provides instructions for the first assignment in BCO315 Corporate Finance. It is worth 30% of the final grade. Students must individually answer questions and perform calculations in an Excel document submitted on Moodle by October 17th. The assignment assesses understanding of financing a firm and capital structure. It provides a case study of Promaut Corporation, an engineering company considering financing a new self-driving car project worth 70M€ either through debt or equity. Students are asked a series of questions to calculate financial metrics and advise the company on the best financing option.
This document provides an overview of Panera Bread, including its management, history, competitors, performance, opportunities, threats, strengths, weaknesses, and strategic proposal. Panera Bread is a North American fast-casual chain restaurant serving bakery goods, salads, sandwiches and more. Recently, Panera Bread has made changes to its upper management and menu by removing artificial ingredients. It aims to improve customer experience through remodeling all of its over 1,900 locations within 5 years, with a total capital expenditure of $744 million. The remodels focus on addressing long wait times and providing a more pleasant dining environment.
This document analyzes various hedging strategies using futures contracts. It discusses using Eurodollar futures to hedge $70 million invested in equities, calculating that 6,667 contracts would be needed. It also examines a long/short portfolio hedging a $50 million investment in PRWCX using S&P 500 futures, determining a historical beta of 0.628. Leveraging this strategy at 150% with $100 million borrowed at 1% could yield a 4.54% return. However, future beta and market movements may differ from historical patterns. Additionally, the document proposes a spread trade betting on a rise in long-term vs. short-term interest rates using Eurodollar futures.
Small models and fast analytics are well-suited for big data problems.
Small models have fewer goals, variables, and parameters and allow for fast computation. They focus on short-term forecasts and next actions rather than long histories. Distributional simplification and bias correction allow small models to make accurate predictions from large datasets. Bayesian networks and other techniques enable fast prediction of audience behaviors and actions. Case studies show how clustering, CHAID analysis, and Bayesian networks help optimize local advertising efficiency and scale, determine causal relationships between digital touchpoints and conversions, and prioritize key performance indicators.
La familia Rosero-Herrera desea una feliz Navidad y comparte consejos sobre el significado de la temporada navideña. La Navidad representa alegría, paz, encuentro, dar, humildad, conversión, gracia, luz, perdón y amor.
This presentation illustrates the research I conducted to explore the racial and ethnic disparity that exists in the technology industry. I found that without these diverse perspectives, innovation would be threatened.
Rio Grande CA, Me and Z’s focuses on serving tasty and appetizing dishes that will suit your taste buds. Why not stop in and choose one of our delicious menu items; we are certain that you will find something that will interest you.
Refurbishmernt and interior idea of Japanese wooden house. Three parts of space in the two storeies house have been expressed with three colours. Interior image: Fusion Style. Concept: Welcome Rooms, Welcome Colours
Me and Z's Restaurant is a Mexican restaurant located in Rio Grande, CA that focuses on serving homemade Mexican dishes using high quality ingredients. The restaurant has a relaxing atmosphere suitable for dining alone, with family or for any occasion. Me and Z's offers breakfast, lunch and dinner with options like soup and ice cream. They can accommodate groups and take reservations.
The document discusses a financial analysis of improving electronic medical record (EMR) interoperability between Health Alliance Hospital and affiliated physician practices. It finds that developing interfaces between key inpatient areas like labs and radiology with outpatient practices would result in cost savings from efficiencies. Continuing and expanding the EMR connectivity project is recommended, especially while partial hospital subsidies are available due to restrictions from the Stark Law.
This short document promotes creating presentations on Haiku Deck and sharing them on SlideShare. It includes photos taken by three different photographers and a call to action encouraging the reader to get started making their own Haiku Deck presentation.
This document discusses improving interoperability between electronic medical record (EMR) systems. It notes that disparate EMR systems currently result in duplication, waste, poor communication, delays, and errors. The author's critical challenge is working with their organization's IT team to improve connectivity between the main hospital EMR and those in office practices. Improving interoperability can help achieve the six aims of quality healthcare by decreasing errors, aiding decision making, improving patient communication and participation, decreasing delays, increasing efficiency, and standardizing care.
This document discusses noradrenergic transmission and classification of adrenoceptor agonists and antagonists. It describes the effects of agonists on alpha and beta receptors, including their pharmacological actions on the cardiovascular, respiratory, and other body systems. It also summarizes the clinical uses of adrenoceptor agonists and antagonists for conditions like hypertension, heart disease, glaucoma, and others. Drugs that affect neurotransmitter release and uptake like reserpine, guanethidine, and cocaine are also briefly discussed.
The document summarizes primary market research conducted on Panera Bread customers. It outlines the research objectives, methodology, key findings, and recommendations. The methodology included qualitative focus groups with college students and a quantitative online survey. Key findings from the research were that respondents feel Panera is overpriced, most order full meals rather than snacks, see most advertisements on social media and online, use online food delivery services, and value Panera's comfortable atmosphere. Based on these findings, recommendations include promotional advertising campaigns, increased social media and digital advertising, and marketing Panera as a "third place" between home and work.
It sounds so simple: communicate to your subscribers with relevant, individualized messages. But where do you begin?
Join Pizza Hut and Panera Bread as they discuss their unique approaches to connect with diverse, nationwide audiences. You’ll learn about how they identified moments that matter to their customers, executed a customer-journey plan, measured its value, and evolved out-of-the-box, personalized, one-to-one communications.
After analyzing Primerica's financial statements, the author found some areas of strength and weakness. While revenue and assets grew from 2012-2014, net income grew at a slower rate. Expenses like benefits claims and sales commissions comprised a large percentage of revenue. Liquidity and efficiency ratios showed short-term debt repayment and asset utilization could improve. However, profitability ratios were strong. Further analysis revealed expenses like benefits claims increased slightly, constraining net income growth. The company needs $233 million in external funding to maintain operations.
This document analyzes the financial performance of Prenatal, an Italian retailer, from 2015-2017. It includes a balance sheet, income statement, and cash flow statement analysis for each year. Key findings include declining total assets and revenues from 2015-2016. Liquidity ratios show the company could not cover current liabilities with current assets in 2016-2017. Debt ratios indicate high indebtedness in 2015-2016. Profitability ratios are negative each year, showing net losses. A SWOT analysis identifies strengths in brand recognition but weaknesses in financial performance. The conclusion is that Prenatal is working to improve strategies around marketing, costs, and product lines to boost performance.
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TEMPLATEFinancial Analysis Task 2Summary Report for Competit.docxmattinsonjanel
TEMPLATE
Financial Analysis Task 2
Summary Report for Competition Bikes, Inc.
One of the first things we must address is what constitutes a budget. A budget is an outlined and organized plan that displays how assets (cash, material, & other resources) are obtained, and utilized over a specified amount of time. It is a financial outline that is formulated to help with the projection of additional future income as well as current expenses. It can do things like outline potential outcomes of future acquisition, refine existing projects based on purchased amounts, or show you weekly, monthly, or annual expenses.
In fact, the entire point of having a budget is to allow for a company to accurately estimate its costs so that it can control its financial stability within reason, as well as enhance its fiscal accuracy, and offer a better guide for managerial direction! In fact, that is one of the primary roles of a manager; to apply the budget to ensure a smooth usage of financial or physical resources in operations.
That said, it is important to raise the specter of concern on several notable issue with our companies budgetary planning. For starters, let’s examine our sales budget forecasts. It’s a projection of our sales for Year 9. It states: Units Expected to be Sold as 3,510. If we are to take this as an assumption of units for next year, it is a dangerous one. Year 8 had a 15% reduction in units that were sold compared to Year 7. Presently, there is an economic recession in North America, and this is being forecast for the next several years. Insofar as I am concerned, this recession is not being taken into account in this sales projection. Certainly it is not reflected from our Net Sales, which have shown a noticeable decrease from Year 7 to Year 8.
Another concern is within the Budget Schedule and ProForma. There is not any quarterly breakdown for us to more accurately forecast for a Master Plan. In addition, there isn’t a section for us to take seasonal inventory purchases and material in. It does not address the fact that cycling is almost exclusively an outdoor sporting event, with winter month competitions virtually nonexistent. A possible solution would be to note these seasonal trends by having increased inventory stores ranging through Spring to Autumn with reduction to low levels across the winter months. If we were able to have this information presentable in a 4-Quarter fashion, it would almost certainly allow for Competition Bikes, Inc. to properly and more accurately project reasonable future sales.
Also, another concern is that at present, our company does not presently display how to specify our uncollected or uncollectable receivable goods. In a time of increasing economic uncertainty and downturn, it is very possible that we may have an inordinate number of uncollected bills, in turn, affecting our bottom line. If we incorporated this display into our budgets, we should be able to more quickly and accurat ...
This document discusses various techniques for analyzing financial statements, including horizontal analysis, vertical analysis, and financial ratios. It provides examples of how to perform horizontal and vertical analysis on statements of financial position and comprehensive income. Horizontal analysis involves comparing account balances and percentages between periods, while vertical analysis expresses each account as a percentage of the total. The document emphasizes that interpreting the results of these computations is crucial for making meaningful decisions.
This document discusses common size analysis, which allows companies to be compared across time and against competitors by expressing financial statement items as percentages of a base figure. There are three types of common size analysis: vertical common size income statements, horizontal common size income statements, and common size balance sheets. An example is provided where net income figures for two companies of different sizes are expressed as a percentage of sales revenue for better comparison. The document outlines some limitations of common size analysis and provides an example analysis of common size income statements and balance sheets.
Running Head: FINANCIAL ANALYSIS
1
FINANCIAL ANALYSIS
7
Financial Analysis
Students Name
Institutional Affiliation
Executive summaryThis report created from the financial statements of The Coca-Cola Company (KO) provides an analysis and evaluation of the actual and the prospective liquidity, profitability and the financial stability of the company. The methods that have been used in the analysis include trend analysis, the vertical analysis and the horizontal analysis. Also we have used certain analysis such as Quick ratio, debt ratio, and the current ratios. More calculations that have been used includes the returns on the owners equity, the earning per share, net operating working capital, total operating capital, net operating capital, net operating profit after taxes, operating cash flow and free cash flow. A result from the data reveals that, all the company ratios are above the industries averages. Comparative performance is good in the area of the liquidity, credit control and inventory management.
The report finds that the tidings for the company are positive in the near future. The major areas of weakness highlighted require further investigation and immediate action by management. The recommendations that were provided include;
· Improving the average accounts receivable collection period,
· Raising/ increasing the inventory turnover and reduction of prepayments in order to have enough operating cash for the subsequent periods.
The investigation in this report also had its shortcomings that arose and are highlighted as;
The forecasted figures used are estimates that sometimes maybe arbitrate; we also cannot fully provide data on the position of other companies with the data limitation we have experienced. The monthly details would have given us more information from which we could base a proper in year trend analysis, rather than the blanket whole year analysis provided. Though we had the above mentioned strain in preparation of this report, we still great belief that the analysis provided is best suited to show the standing of the Coca-Cola Company (KO).
In the financial report below, the strengths, weakness, opportunity and threats have been highlighted as we analyze the various financial sub segments.
Identify your company, its industry, and analyze the important segments (percentage of sales or subsidiaries) of your company compared to its industry and its overall business
The Coca-Cola Company (KO) is a multinational American Company that has its headquarters at Atlanta Georgia. The company has got its branches in more than 200 countries in the world and majority of its sales is in America, amounting to 40% of the total sales. The company operates in the non alcoholic beverage industry made up of the following companies as the main rivals, Dr Pepper Snapple Group, Inc, Nestle and Pepsi Inc. the company is the best performer in market capitalization compared to competitors with a capitalization of 169.49billion, higher .
1) The general manager of Fairmont Hotel is analyzing the financial condition of the hotel and whether a proposed renovation and expansion plan will be financially beneficial.
2) Based on the 2004 financial statements, the net income was $1,130,000 and projections estimate the net income would increase to $3,278,261 in 2005 with the expansion.
3) However, taking future years into account and projecting increased operating and fixed expenses while revenue remains constant, the net income is estimated to decrease annually after 2005 to $1,803,902 in 2006, $1,147,108 in 2007, and $491,314 in 2008, dropping below 2004 levels within three years.
GENERAL MILLS, INC.
General Mills, Inc.
FINC 330
Student 2
June 4, 2017
Running head: GENERAL MILLS, INC.
Table of Contents
Table of Tables ii
Introduction 1
Common Size Analysis:
Consolidated Statement of Earnings 1
Consolidated Balance Sheets 2
Percentage of Change Analysis:
Consolidated Statement of Earnings 2
Consolidated Balance Sheets 3
Financial Ratio Analysis:
Liquidity 4
Operating Performance 5
Profitability 6
Return on Investment 7
DuPont Analysis: Return on Equity (ROE) 8
Summary 9
References 10
Appendix A: Common Size Analysis of Consolidated Statement of Earnings 11
Appendix B: Common Size Analysis of Consolidated Balance Sheets 12
Appendix C: Percentage Change Analysis of Consolidated Statement of Earnings 13
Appendix D: Percentage Change Analysis of Consolidated Balance Sheet 14
Table of Tables
Figure One: Liquidity Ratios 4
Figure Two: Operating Performance Ratios 5
Figure Three: Turnover Ratios 6
Figure Four: Profitability Ratios 7
Figure Five: Return on Investment Ratios 8
Figure Six: DuPont Formula Calculations 9
GENERAL MILLS, INC.
i
Introduction
General Mills, Inc., founded in 1866, is a multinational corporation that manufactures and markets branded consumer foods sold through retail stores and a leading supplier of food products to the foodservice and commercial baking industries (Form 10-K, 2016). The company, which operates in the food processing industry, categorizes its business operations into three operating segments: U.S. Retail; International; and Convenience Stores and Foodservice (Form 10-K, 2016). Well-known brands include Cheerios cereal, Yoplait yogurt, Nature Valley, Pillsbury refrigerated dough and Betty Crocker baking products (Businesses, June 3, 2017). General Mills’ stock is traded on the New York Stock Exchange (NYSE) under ticker symbol GIS.
Common Size Analysis
Consolidated Statement of Earnings (See Appendix A). Common size analysis of the consolidated statement of earnings using net sales as the base indicates that cost of sales remained relatively steady over the three-year period from fiscal year 2014 to 2016, with an approximate 2 percent increase noted in fiscal year 2015 that declined again in 2016 to within 0.37 percent of the percentage of sales calculated in fiscal year 2014. Thus, gross profit on sales remained relatively steady over the same three-year period except for a slight decrease in fiscal year 2015 that correlates to the increase of cost of sales in that same year. General Mills, Inc. has slightly decreased expenses related to selling, general and administrative over this three-year period, however total change is less than 1 percent so this is not particularly an item of note. Operating profit was approximately 5 percent lower in 2015 because of not only increased cost of sales, but an impairment charge related to the Green Giant brand intangible asset (Form 10-K, p. 20, 2016). Due to thes ...
This document contains a summary of an analysis of Procter & Gamble (P&G) as an investment. Key points include:
1) Historical data was used to calculate metrics like WACC, beta, ROIC, and FCF to evaluate P&G's performance and forecast future growth assumptions.
2) Revenue growth rates of 1.8% for 2014 and 4.1% over 5 years were predicted, based on slower historical growth and anticipated challenges for P&G to generate significant new sales.
3) Calculations of metrics like ROIC and assumptions about ratios were used to project financials and value P&G, finding the stock could be a moderate buy given its valuation compared to
Hillenbrand reported financial results for Q4 2016 with the following highlights:
- Revenue increased 9% to $429 million driven by growth in the Process Equipment Group.
- Net income increased 88% to $36 million and adjusted EPS increased slightly to $0.58.
- The Process Equipment Group saw a 17% revenue increase while Batesville's revenue declined 4%.
- For the full 2016 year, revenue declined 4% to $1.54 billion while net income grew 1% and adjusted EBITDA margin improved.
- The company provided guidance for adjusted EPS of $2.10-$2.20 for FY2017.
This document discusses financial statement analysis techniques. It describes the objectives of financial statement analysis as determining a firm's success in achieving profitability, solvency, and stability. It outlines various indicators of a firm's short-term solvency and managerial efficiency, such as favorable credit position, ability to pay debts, and ability to control costs. The document then discusses different techniques for analyzing financial statements, including vertical analysis using ratios and common-size statements, and horizontal analysis using comparative statements and trend percentages. It provides examples of how trend percentages can be used to analyze changes in sales figures over several years.
Target reported third quarter earnings results that reflected sales and traffic growth but missed profit expectations due to inflationary pressures. Comparable sales increased 2.7% driven by traffic growth, but operating margin fell to 3.9% from 7.8% last year due to higher costs. In response, Target lowered its fourth quarter outlook and announced a new initiative to simplify operations and gain $2-3 billion in efficiencies over three years.
Target reported third quarter earnings results that reflected sales and traffic growth but missed profit expectations due to inflationary pressures. Comparable sales increased 2.7% driven by traffic growth, but operating margin fell to 3.9% from 7.8% last year due to higher costs. In response, Target lowered its fourth quarter guidance and announced a new enterprise initiative estimated to save $2-3 billion over three years through efficiencies.
1) The document analyzes potential accounting issues at GMCR based on its financial statements from 2008-2012. Ratios show declining profitability and liquidity during this period.
2) Red flags include abnormal ratios in 2009-2011, and stock price volatility during this period.
3) Major issues identified are revenue inflation through channel stuffing and providing excessive customer credits, as shown by inflated receivables. High costs and low capital expenditures also impacted margins. Restatements reduced reported revenue.
This document provides an earnings presentation for Q4 2017. Key points include:
- The company delivered its first year of positive net income since 2007 and highest adjusted EBITDA since 2010.
- Digital sales increased to 54% of total sales in Q4 2017, up from prior year.
- The company launched its programming in over 10 million additional HD homes in 2017.
- 2018 guidance forecasts 2-5% normalized sales growth and adjusted EBITDA of $19-21 million, representing 5-17% growth.
The document analyzes Procter & Gamble (P&G), the world's largest consumer goods company. P&G is organized into two global business units divided into business segments. In fiscal year 2012-2013, P&G's cash and current assets increased while inventories declined slightly. P&G is cutting $10 billion in costs by 2016 to invest in emerging markets and plans to add 20 new manufacturing plants by 2015. For fiscal year 2013, P&G's net income rose 5% to $11.31 billion on revenue of $84.17 billion, and executives expect continued 3-4% revenue growth going forward.
Running head FINANCIAL ANALYSIS OF PEPSICO’S FINANCIAL STATEMENTS.docxcharisellington63520
Running head: FINANCIAL ANALYSIS OF PEPSICO’S FINANCIAL STATEMENTS 1
FINANCIAL ANALYSIS OF PEPSICO’S FINANCIAL STATEMENTS 4
Financial Analysis of PepsiCo's Financial Statements
XACC/290
January 18, 2015
Jennifer Weske
Financial Analysis of PepsiCo’s Financial Statements
PepsiCo is one of the publicly traded companies that operate in the beverage and food industry. Based on the financial statements in the appendix section of this paper, there is much that can be said on the company’s financial position and performance for the last three years ranging from 2011 to 2013. The income statement of the company indicates that the revenue levels remain flat despite the growth in net income from $ 6.2 billion to $ 6.7 billion. There was a reduction in the level of sales which was mainly attributed to the decline in the cost of goods sold. Based on the balance sheet, it is evident that operating profits can sufficiently service the company’s debt despite the reduction in the value of the current liquid assets (Businessweek, 2014).
At the end of 2013, the value of the company’s total assets was $ 77, 478, 000 million. This represented an increase in the value of the total assets in the last two years (Businessweek, 2014). An increase in value of total assets indicates that the company is effectively managing its expenditure and can sufficiently fund its operations. The figure also shows that the company’s book value has increased.
The total assets at the end of the previous reporting period were $ 74, 638,000. The value was lower than the one recorded in 2013. Nonetheless, the organization had recorded lower values in the other previous years. For instance, in 2010 the value of the total assets was $ 68, 153,000, while that of 2011 was $ 72, 882, 000. These trends indicate possible expansion, effective control of expenditure, and increased capital base.
At the end of most recent trading period, which was 2013, the value of cash and cash equivalents was $ 22, 203, 000 million (PepsiCo, 2013). This included elements such as accounts receivable, inventory, deferred taxes, and other current assets. The components constitute the list of items that can be easily converted into cash to meet the urgent financial needs of the business.
The amount of accounts receivable at the end of 2013 was $ 4, 874,000 million. This value was relatively higher than those of the previous years (Businessweek, 2014). While an increase in the level of accounts payable is mainly associated with increasing debt, it is a good indicator of the increasing level of operations. Nonetheless, the company should take into account effective cost management strategies to counter the increasing debt.
The amount of the accounts payable at the end of 2012 was $ 4, 451,000 million. This value was relatively lower compared to that of 2013. It implies that in 2013 the company had less debt, but the volume of operations was low. It is also indi.
20180509 sauc q1 2018 teleconference slides finaldrhincorporated
- Sales were $39.5 million in Q1 2018, down 10.8% from Q1 2017 due to reduced traffic from changes in promotional strategies and calendar shifts.
- Adjusted EBITDA was $5.1 million, or 12.9% of sales, in Q1 2018. Restaurant-level EBITDA was $6.9 million, or 17.4% of sales.
- Favorable commodity costs and reduced G&A expenses helped offset the impact of lower sales on profitability. The company generated $3.2 million in free cash flow for the quarter.
The document provides an investor presentation for Q1 FY2017. It highlights key metrics such as billings of $240M, up 87% YoY, revenue of $167M, up 90% YoY, and 4,473 customers, up 109% YoY. It also summarizes financial results with revenue of $166.8M for Q1 FY2017, up 19% QoQ and 90% YoY. Billings were $239.8M for Q1 FY2017, up 16% QoQ and 87% YoY. The presentation emphasizes continued strong growth metrics and expanding customer base.
1. PANERA BREAD COMPANY
ANALYSIS
AN ANALYSIS OF PANERA BREAD COMPANY, ITS
FINANCIAL STANDINGS & FUTURE GROWTH PROSPECTS
AS OF FISCAL YEAR END DECEMBER 31, 2013.
POPOV, LATCHEZAR || NOVEMBER 2014 || FINANCIAL MODELING || FI402A-14
2. INTRODUCTION
This report entails my valuation of Panera Bread Company, here forth may be referred to with its
ticker symbol PNRA. The company’s historical performance, existing growth and future outlook were
examined to great detail. The analysis is begun by taking the most recent Annual Report 10-K for Panera
Bread which occurred on December 31st, 2013, their fiscal year end date. Information was extracted from
the Annual Report into excel, then multiples, averages and growth rates were taken for individual
accounts in order to accurately forecast the next five year Pro-Forma Statements for Panera Bread. Once
the Pro-Forma Statements were complete, a Discounted Cash Flow model was created to estimate the
share value of Panera Bread based on the company’s future five year cash flows. However, in order to do
this properly, a Weighted Average Cost of Capital and a Long Term Growth Rate need to be accurately
calculated and estimated based on various parameters.
Through this rigorous process, I obtained a share price of $172.27 for Panera Bread. This share
price was determined using a WACC of 8.2% and a long term growth rate of 4.0%. The reasoning and
calculation behind these two numbers is explained in further detail below.
MULTI-YEAR FINANCIALS
Transferring data from the Annual Report of Panera Bread to an excel model was difficult as
company’s tend to have dissimilar accounts to a standard Annual Report. To input the data, the 2010,
2011, 2012 and 2013 Annual Reports were used to obtain the full five year historical financial statements
and to ensure no adjustments had been made after one of the Annual Reports was filed. In order to obtain
an accurate total revenue growth rate, the revenue was split into four different accounts that appeared on
the Annual Report. They include Bakery-café Sales, Franchise Royalties and Fees, Fresh Dough and
Other Product Sales to Franchisees, and lastly Intercompany Sales Elimination. Although one might only
split the revenues into three accounts, it makes sense to add the Intercompany Sales Elimination as well
into the dispersion of the revenue account because the Intercompany Sales Elimination has a growth rate
that was different from that on the Fresh Dough and Other Product Sales to Franchisees which is
aggregated with the Intercompany Sales Elimination in the main section of the reporting. This breakdown
can be seen on page 67 of the Annual Report 2013. Also, a graphical representation of each breakdown
can be seen in Appendix 1.
Cost of Goods Sold is summed up by the Total Bakery-café Expenses and Fresh Dough & Other
Product Costs. Pre-opening Expenses were added to the main financial accounts due to the strong year
over year expenses. Furthermore, the Non-operating Income (Expense) and Special Items was “primarily
comprised of a $2.2 million benefit from favorable resolution of legal and sales and use tax matters and
immaterial items” in 2013 (10-K, 29). The 2012 account was “primarily comprised of e favorable
outcome from certain unclaimed property and state sales tax audit matters, and immaterial items” (10-K,
29). One of the main discrepancy from the model conducted for this report and a standard company
valuation model through a Discounted Cash Flow is the lack of a dividend payout for the Panera Bread
stock. With this came difficulties in calculating an averaged Cost of Equity for the company based on
multiple calculation methods.
The EBITDA of Panera Bread for 2013 comes out to $424,073,000, EBIT of $317,550,000 for
2013, and EBT of $312,720,000 in 2013. Further values can be seen in the attached financial model. This
extensive historical analysis was conducted in order to obtain reasonable future growth rates or
percentage of sales for most accounts. This allows us to forecast the next five years to a sufficiently
accurate manner which is then used to calculate the free cash flow the company will have and therein the
value of the company.
3. ANALYSIS OF HISTORICAL FINANCIALS
As mentioned above, the revenue breakdown was added to the Income Statement to ensure a
more accurate total revenue sales growth in addition to the combination of two accounts to make up the
Cost of Goods Sold. Past the Pre-opening Expenses and Dividend accounts mentioned and explained
above, the Interest Expense and debt of Panera Bread caused some confusion when creating the model.
As per the Annual Report, none of the Long Term Liabilities in the balance sheet below have any interest
bearing. “As of December 31, 2013, we had no balance outstanding and were in compliance with all
covenants under the Credit Agreement” (10-K, 32). Thus, in order to maintain the accurate historical
financial statements no Interest Bearing Debt is Present in the historical financials although an Interest
Expense is recognized. This is consistent with the Financial Analysis function in Bloomberg with the “As
Reported” section which shows no Long Term Debt from 2001 to 2013. Due to this difficulty, an Interest
Expense Annual Growth Rate was calculated and used to forecast the interest expense for the next five
years. This approach seems to work out well since the interest expense has been steadily increasing since
2009 and not mention of its decrease through the Annual Report. A similar approach was taken for Pre-opening
Expenses but instead was taken as a percentage of sales.
Although all the ratios can be seen at the end of the report, it is interesting to note that Panera
Bread’s total cost, not including Pre-opening costs, depreciation, interest and tax expenses, is on average
of 83.03% of sales over the past five years. Additionally, the effective Tax Rate comes out to 38.03%
averaged over the past five years. This tax rate had dropped approximately 1.5% from 2014 to 2015,
giving reason to using the average tax rate over the past five years instead of the most current tax rate as
Benninga used in his example model. As explained in the Annual Report, taxes decreased because of
"adjustments of previously recorded tax expenses to reflect the refinement of estimates for certain federal
and state tax liabilities to amounts in filed returns, the settlement of tax audits, and an increase in federal
tax credits” (10-K, 29). Thus, there is no evidence that the next few years will have a similar low tax rate.
On the balance sheet side, Goodwill was added to the main accounts and projected using a
historical percentage of sales average. Here it is interesting to note that Panera Bread’s common stock has
been a total of 3,000 for all of the past five years. Capital Surplus and Retained Earnings have both seen
steady growth since 2009. Lastly it is important to note that Treasury Stock has been significantly
increasing for Panera Bread in the past two years and was 546,570,000 in December of 2013 relative to
3,938,000 in December of 2009. For this reason, Treasury Stock made sense to use as the plug for the
model – since it has varied and increased significantly over the past few years. Most of the other accounts
did not work well when testing them out as the plug for several reasons. For example, Common Stock
could not be used since it has not moved in the past five years. Cash did not work out well since it went
into the negatives when using it as a plug. Similar problems were noted when trying to use Capital
Surplus or Retained Earnings as the plug. Simply put, using any of the other accounts, the year to year
numbers did not keep the same consistency with previous year as much as Treasury Stock. Moreover, it
would have been difficult to otherwise project the Treasury Stock due to its significant recent increases.
Now that the plug was determined and all the historical ratios were ready to use for the
projections, I was able to project the next five years and ensure that the balance sheet balanced. Once
these projections were complete, the Free Cash Flow could be determined for the next five years. This is a
genetic Free Cash Flow model where one takes the Net Income for the year, adds back deprecation,
makes appropriate changes to net working capital that will affect the company’s cash, and subtract capital
expenditures plus the increase in other assets, if any. From here on, the Weight Average Cost of Capital
was used and Long Term Free Cash Flow Growth Rate to determine the terminal value of the company
beyond fiscal year end 2018. The net present value of these cash flows are taken, the ending cash of 2013
is added in, liabilities are subjected and the remaining value is divided by the number of shares
outstanding to obtain the implied share price of Panera Bread stock.
4. The most recent conference call was relatively positive as the company beat analysts Earning Per
Share estimates of 1.4239$/share vs. the actual of 1.46$/share. The majority of the discussion was focused
around “Panera 2.0” or the reconstruction of Panera Bread stores to increase the experience and
satisfaction of customers by making the stores more efficient by ordering through a phone application,
take orders directly from the tables, have employees bring you over your food, and a cozier environment.
Although some of the questions asked by the analysts were not met with 100% clarity, the 2.53% greater
EPS for the quarter and focus on Panera 2.0 seemed relatively positive for the company and its future
outlook.
FINANCIAL MODEL
Below you will see the five year projections for Panera Bread as well as the share price calculated
through this model. For the full model, please see the attached documents with the excel worksheets.
5. Through these projections and the Free Cash Flow allocation, which can be seen in the attachments
along with using a WACC of 10% as standard in many industry models, I obtained a share price of $120.05
which is significantly lower than the December 2013 ending price of $176.69 and the current price of
$165.13 as of November 25th 2014.
WACC DETERMINATION
In determination of the Weighted Average Cost of Capital, the Capital Asset Pricing Model worked
best in returning a required rate of equity that seemed reasonable and match that of values provided in
Bloomberg. The CAPM model provides investors with a rule of thumb of their expected return on equity
based on the time value of money for placing their capital under investment as well as the return they should
can expect for the risk they are taking on during the investment – this is where beta plays a major role.
Below you will find the equation along with the variable explanations for CAPM:
I obtained a required rate of return of 8.36% using this process and equation mentioned above;
using a Risk Free Rate of 3.03% that I obtained from Bloomberg’s historical 10 year treasury rate. The
entirety of the model can be seen in the excel attachments at the end of this report. However, it is
important to note that where the data was obtained for the calculations. Appendix 2 and 3 will provide a
screenshot of Bloomberg’s values for the P/E Multiple and Equity Cash Flow Payout Ratio of the S&P
500 along with its Anticipated Growth of Equity Cash Flow. Although Bloomberg provided a Growth of
Equity Cash Flows of 11.553% for the United States Market, I saw fit to take the historical five year
return of the S&P 500 and average it with the Bloomberg expected growth. Thus obtaining a more
reasonable expected return for the market. Therein I obtained a market risk premium of 7.09%.
The cost of debt in this scenario does not apply since Panera Bread did not have interest bearing
debt on their books at the time of the fiscal year end. Therefore, the WACC is only determined by the cost
of equity presented from the CAPM since the Gordon Model of determining the cost of equity was
omitted due to the lack of dividends.
Through averaging the cost of equity based on the classic CAPM and tax-adjusted CAPM, I
obtained a WACC of 8.22% which seems fairly reasonable considering the range of Panera Bread’s
WACC over the past few years based on the Bloomberg historical WACC shown in Appendix 4. In this
appendix you can see the graph of the historical WACC which is currently at 7.2% and peaked at
approximately 13.75%. Lastly, Appendix 5 shows the Bloomberg calculated WACC for the fiscal year
end December 2013 of 9.15%. Thus my calculated WACC is almost exactly in between the current level
and historical level of WACC at the year-end data 2013.
6. FINAL VALUATION
Using the computed WACC described above, along with a long term free cash flow growth rate of
4.0%, I obtain an implied Panera Bread value per share of $172.27 which is moderately close to the ending
price of Panera Bread on December 31, 2013 of $176.69; a 2.568% overvaluation of the market price at the
end of the 2013 fiscal year and a current undervaluation of the market price as of November 25th 2014 with
a stock price of $165.13. The entirety of the process is mentioned above and can be noted on the excel
attachments as well.
Through these valuations and analyses, I would recommend a Hold rating of Panera Bread based
on the financials as of fiscal year end 2013. The Hold rating is most appropriate here since my implied
value per share is marginally different from that of the fiscal year end 2013 price and the current price. At
the fiscal year end price, the market was slightly overvaluing Panera Bread and thus one should have not
invested in PNRA. However, it was only 2.568% overvalued and thus a sell rating would not be appropriate
either. At the current market price, the upside to the intrinsic value of the company is only 4.32% that is
again not significant enough for an investor to allocate capital to – the margin of safety is marginal. An
upside of at least 5.0% should be observed before considering investing, but this is subjective to the
particular investor. Unless an investor has significant reason to increase or decrease the WACC or Long
Term Growth Rate, then they should hold off on the purchase or shorting of Panera Bread.
CONCLUSION
This report analyzes the financial standing and implied share value of Panera Bread through the
historical financial performance of the company. With the company’s historical financials, the model
provided sets annual growth rates or percentage of sales ratio for each account in order to project each
account for the consecutive five years. Then Dividends, Capital Asset Pricing Model and the cost of equity
and debt is considered in order to determine an appropriate Weight Average Cost of Capital. The WACC
along with the long term growth rate is then used to determine the terminal value of the company beyond
the five year projection; WACC is also used as the discount rate for obtaining the present value of the cash
flows. Once the present value of the cash flows is obtained, the ending cash amount is added in, liabilit ies
are subtracted and the implied value is divided by the shares outstanding to obtain a share price for the
stock. Using this method I was able to determine that Panera is currently fairly priced by the market and
was slightly overpriced at the fiscal year end date 2013.