Pancake House Financial Analysis
Contents
Introduction to the Company 2 SWOT analysis 3 Strengths 3 Weakness 3 Opportunities 4 Threats 4
Industry Analysis 5 Overview 5 Industry Structure (Based On Product Offerings) 5 Five Forces Analysis 5 Competitive Rivalry (High) 5 Bargaining Power of Suppliers (Low) 6 Bargaining Power over Buyers (Medium) 6 Threat of Substitutes (High) 6 Entry of New Players (High) 6
Ratio Analysis 7 Profitability Ratios 7 Growth Ratios 7 Efficiency Ratios 7 Financial Strength Ratios 8 Dividend Ratios 8 Management Effectiveness Ratios 8
Discounted Cash Flow Valuation 9 Calculation of Weighted Average Cost of Capital 9 Cost of Equity Calculation 9 Pro Forma Financial Statements 10 Pro forma Profit and Loss Statement 10 Pro forma Balance Sheet 11 Proforma Cash Flow Statement 11 DCF using FCFF 11 Sensitivity Analysis 12 Results and Conclusion 12
References 14
Introduction to the Company
Pancake House, Inc. is a publicly listed company in the Philippine Stock Exchange. It is a Filipino-owned corporation, principally engaged in the development, operation and franchising of a casual dining chain of restaurants under the trade name “Pancake House”. The consumer brand name has traditionally been associated with specialty pancakes and waffles and has likewise expanded to offer an array of popular international dishes such as spaghetti, tacos and chicken. The Company also owns and operates various restaurant brands directly or through its subsidiaries. These brands include “Dencio’s”, “Teriyaki Boy”, “Singkit”, “Sizzlin’ Pepper Steak” and “Le Coeur De France”.
Total system-wide sales of the Group (total restaurant sales from company-owned, joint venture and franchised stores) reached PHP 2.1 billion, translating to a compounded annual growth rate of 30% over a 3-year period. The Group opened 20 stores in 2007, including one (1) Pancake House outlet in Sunway
Introduction to the Company 2 SWOT analysis 3 Strengths 3 Weakness 3 Opportunities 4 Threats 4
Industry Analysis 5 Overview 5 Industry Structure (Based On Product Offerings) 5 Five Forces Analysis 5 Competitive Rivalry (High) 5 Bargaining Power of Suppliers (Low) 6 Bargaining Power over Buyers (Medium) 6 Threat of Substitutes (High) 6 Entry of New Players (High) 6
Ratio Analysis 7 Profitability Ratios 7 Growth Ratios 7 Efficiency Ratios 7 Financial Strength Ratios 8 Dividend Ratios 8 Management Effectiveness Ratios 8
Discounted Cash Flow Valuation 9 Calculation of Weighted Average Cost of Capital 9 Cost of Equity Calculation 9 Pro Forma Financial Statements 10 Pro forma Profit and Loss Statement 10 Pro forma Balance Sheet 11 Proforma Cash Flow Statement 11 DCF using FCFF 11 Sensitivity Analysis 12 Results and Conclusion 12
References 14
Introduction to the Company
Pancake House, Inc. is a publicly listed company in the Philippine Stock Exchange. It is a Filipino-owned corporation, principally engaged in the development, operation and franchising of a casual dining chain of restaurants under the trade name “Pancake House”. The consumer brand name has traditionally been associated with specialty pancakes and waffles and has likewise expanded to offer an array of popular international dishes such as spaghetti, tacos and chicken. The Company also owns and operates various restaurant brands directly or through its subsidiaries. These brands include “Dencio’s”, “Teriyaki Boy”, “Singkit”, “Sizzlin’ Pepper Steak” and “Le Coeur De France”.
Total system-wide sales of the Group (total restaurant sales from company-owned, joint venture and franchised stores) reached PHP 2.1 billion, translating to a compounded annual growth rate of 30% over a 3-year period. The Group opened 20 stores in 2007, including one (1) Pancake House outlet in Sunway
References: 1. http://www.reuters.com/finance/stocks/ratios?symbol=PCKH.PS 2. http://www.pse.org.ph/ 3. http://www.pancakehouse.com.ph/ ----------------------- [i] T-bill and T-bond Auction results, Retrieved on 12th April, 2009 from http://www.treasury.gov.ph/govsec/auction.html