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Restaurant Industry Stock Picks Presented by: Team CANT Chris Grenert -- Andrew Hartman -- Nikki Hardin -- Tara Grove.

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Presentation on theme: "Restaurant Industry Stock Picks Presented by: Team CANT Chris Grenert -- Andrew Hartman -- Nikki Hardin -- Tara Grove."— Presentation transcript:

1 Restaurant Industry Stock Picks Presented by: Team CANT Chris Grenert -- Andrew Hartman -- Nikki Hardin -- Tara Grove

2 Industry Overview: Restaurant Industry Issues Valuation Factors Used to Pick Top Five Stocks Diversification Future Strategies Debt Ratios Operating Margins

3 Debt Ratios Current Ratio = Current Assets Current Liabilities Quick Ratio = Current Assets - Inventories Current Liabilities Debt Ratio = Total Liabilities Shareholders Equity

4 Operating Margins: Return on Assets (ROA) = Net Income Total Assets Return on Equity (ROE) = Net Income Shareholders Equity EBT= Revenue - Expenses (excluding tax)

5 Starbucks Diversification: 11,000 Stores Domestically 4,500 Stores Internationally 1,175 US Stores Opening Next Year 975 Stores Opening This Fiscal Year 14% International Annual Growth Over Next 9 Years 37,000 Stores Expected by 2017

6 Starbucks Strategy: Focus On Customer Experience in Stores Better Employee Training Tools Include new products and store designs Management is Slowing US Growth Due to Underperformance Plans to Accelerating Growth Abroad

7 Starbucks Debt Ratios Operating Margins Industry Average Latest Quarter ROA ROE EBT Industry Average Latest Quarter Current Ratio Quick Ratio Financial Leverage Debt/Equity

8 Panera Bread Diversification: Operations in 38 US States Currently 1252 Stores

9 Panera Bread Strategies: Boost Profitability Through: Menu Management Retail Pricing Initiatives Introduce New Sandwiches Expand Advertisements Improve Operations

10 Panera Bread Debt Ratios Operating Margins Industry Average Latest Quarter ROA ROE EBT Industry Average Latest Quarter Current Ratio Quick Ratio Financial Leverage Debt/Equity

11 McDonalds Diversification: 31,489 Restaurants in 118 Countries Income from Operations: 47% United States 40% Europe 13% Middle East and Africa

12 Strategies: Increase sales: Double drive through Extended Hours Restaurant Remodeling Cashless Payment System $11 Billion Return to Shareholders in 2008 through buybacks and dividends McDonalds

13 McDonalds Debt Ratios Operating Margins Industry Average Latest Quarter Current Ratio Quick Ratio Financial Leverage Debt/Equity Industry Average Latest Quarter ROA ROE EBT

14 YUM- KFC, Taco Bell, Pizza Hut, etc. Diversification: 35,500 Companies 100 Countries 3,100 Restaurants in China Expected to Increase Up to 20,000 in 2017

15 YUM Strategy International Expansion Includes: China Europe India Russia Improve Operations Add Sales Layers to Each Brand

16 YUM Debt Ratios Operating Margins Industry Average Latest Quarter ROA ROE EBT Industry Average Latest Quarter Current Ratio Quick Ratio Financial Leverage Debt/Equity

17 Chipotle Diversification: 140 Restaurants Open Annually 2100 Stores Expected by Metro Areas in United States Only one in Canada located in Toronto

18 Chipotle Strategies: Possible Expansion to International Markets Spread Stores Apart Has considered long-term growth stock

19 Chipotle Debt Ratios Operating Margins Industry Average Latest Quarter Current Ratio Quick Ratio Financial Leverage Debt/Equity Industry Average Latest Quarter ROA ROE EBT

20 Top Five Stocks 5. Starbucks 4. Panera 3. McDonalds 2. YUM 1. Chipotle

21 Any Questions?


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