Pinnacle brands are leaders in many of their respective categories, holding the #1 or #2 market share position in 10 of the 12 major product categories they compete in. They have strong household penetration and can be found in approximately 85% of US households (nasdaq.com). For more detailed financial information see Appendix A. As food companies shift their focus to meet consumer demands, the industry is growing at a phenomenal pace. In 2011 the Packaged Food industry ranked number one out of the sixteen industries annually measured by Standard & Poor’s.
He opened his second store in Macomb, Illinois. He later opened several more stores and developed a prototype before franchising began in 1993. In January 2007, Liautaud sold a thirty-three percent stock to Weston Presidio, a San Francisco-based private equity firm. He retained sixty-seven percent ownership of the company. In 2010, When the Industrial Workers of the World attempted to unionize ten Minneapolis Jimmy John’s locations, the New York Times called effort “one of the few efforts to organize fast-food workers in American Industry”.
Currently, Nordstrom has 225 retail stores in the U.S. Their largest retail concentration is on the East and West Coasts. In 1993 Nordstrom entered the catalog market. Nordstrom’s chief competitors are Bloomingdales, Lord & Taylor, Von Maur, Neiman Marcus and Saks 5th Avenue. ANTICIPATED FUTURE GROWTH The recent downturn of the economy affected all segments of retail however the luxury segment, of which Nordstrom and its competitors are a part, was much more resilient. The worst year appeared to be 2009 with the luxury segment rebounding in 2010 and 2011.
• Non-traditional retail stores increased their share of consumers food-at-home from 1 7.7% to 30.8 in 2003. • According to the USDA traditional retailers market share declined from 82.3% to 69.2%. • Wal-Mart was both a driver and a beneficiary of this change, as its share of U.S supermarket sales reached 15.2% by 2003. • In 2004, Wal-Mart opened its first California supercenter. • By 2007, the number of Wal-Mart supercenters nationwide were forecasted to reach 2000, translating to 35% share of food store industry.
Kayem Foods, Inc. Al Fresco Chicken Sausage Kayem Foods, Inc. ’s director of marketing, Matt Monkiewicz, is facing a promotional/advertising decision for Al Fresco Chicken Sausage. The previous year he had a very limited budget so he decided to do a “buzz campaign”. We will delve into the buzz campaign more later on in the analysis. Kayem’s Foods, Inc. is a medium sized operation in Massachusetts. It has been a processor and distributor of fresh delicatessen meats, hot dogs , and sausage for 100 years.
If Tyrene Products wants to maintain the same CM ratio as last year, what selling price per skateboard must it charge next year to cover the increased labor costs? * 5. Refer to the original data. The company is considering the construction of a new, automated plant. The new plant would slash variable costs by 40%, but it would cause fixed costs to increase by 90%.
Natureview Farms uses milk from regular cows who are not treated with an artificial growth hormone (rGBH) and this gives their yogurt a competitive advantage in the market; an average shelf life of 50 days compared to 30 days for its rivals. Though it has experienced tremendous growth over the past decade, Natureview Farms was presented with a difficult situation: find a way to grow revenues by 50% by the end of the fiscal year. This major increase was due to the fact that a venture capitalist firm had to pull out its equity stake in Natureview Farms. Management now needed to replace the lost equity with new investors or prepare itself for acquisition within the next year. Organic food companies were typically valued based on revenue multiples (instead of profit or cash flow), therefore attaining maximum revenue would generate the highest valuation for the company to be purchased at.
McDonald’s VS. Wendy’s Background Information McDonald’s was founded by Ray Kroc in 1955. It was the largest fast food chain restaurant in the world until 2010. Its headquarters are located in Oak Brook, Illinois. It serves more than 60 million people around the world every day. Currently McDonald’s has over 32,000 locations in more than 100 countries and employs about 400,000 people around the world.
The capital raised from initial public stock offerings had an estimated amount around $13 billion in the 4th quarter of the year 1995: an almost $7 billion dollar increase from the 4th quarter of the previous year (1994). With the knowledge that underwriters tend to underprice IPO’s, it is safe to say that with the increase in offerings in 1995, the price per share rage should be above $10 to $15. The company gained 2.2 million at 11.5% in debt to the Massachusetts Industrial Finance Authority to finance engineering and design improvements. Repayment of the debt consisted of principle payments of $50,000 in 1995, $75,000 in 1996-1998, $100,000 in both 1999 and 2000, and after that it was required that the balance be paid off. Boston Beer also entered into a $14 million line of credit with Fleet Bank, allowing borrowing at an interest rate equal to 8.75%.
Whole Foods Market in 2010 Whole Market Foods was founded in Austin, Texas in 1980 as a local supermarket that provided natural and organic foods. Since 1980 Whole Foods Market has grown to be the largest natural and organic food market. They currently have 289 stores in the United States, Canada, and Great Britain. The company had sales revenues of eight billion dollars in 2009. Whole Foods Market’s mission statement is: “Whole Foods, Whole People, and Whole Planet”.