California Pizza Kitchen: Management of the Corporate Capital Structure FIN 6806: Seminar in Advanced Financial Management Dr. Anita Pennathur November 2nd, 2014 Table of Contents Case Summary …………. 3 Problem Statement …………. 4 Situation Analysis 4 Major Strategic Alternatives 5 Decision Criteria 6 Recommendation 9 Appendix 11 California Pizza Kitchen California Pizza Kitchen (CPK) is an American based restaurant which has made a name in serving different
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William Upham Fin. 461 California Pizza Kitchen Brief Case Analysis “[R]estaurants don’t start out making money─ they build over time. So it’s really about having the capital and the staying power.” ─ Rick Rosenfield, Co-CEO of California Pizza Kitchen. Rosenfield, and longtime business partner Larry Flax, went from being defense attorneys to innovative pizza entrepreneurs. Their idea was to make “designer pizza at off-the-rack prices,” using unusual pizza toppings to create delicious combinations
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Jean-Marie Le Corre 3 année – Promo 10 IBS – Case Preparation ème Pepsico’s Restaurants Pepsico is company that originated within the soft drink business with the famous Pepsi. The name PepsiCo appeared in 1965 when the Donald Kendall, former CEO of the company merged the soft drink company with Frito-Lay, a snack food company. Later many others businesses were added, mostly through external growth (PFS was added as a way reduce costs), among which are Pizza Hut, Taco Bell and KFC. A- SWOT Analysis
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Case #33 California Pizza Kitchen Synopsis and Objectives This case examines the question of financial leverage at California Pizza Kitchen (CPK) in July 2007. With a highly profitable business and an aversion to debt, CPK management is considering a debt-financed stock buyback program. The case is intended to provide an introduction to the Modigliani-Miller capital structure irrelevance propositions and the concept of debt tax shields. With the background of a pizza company, the case provides
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CALIFORNIA PIZZA KITCHEN Teaching Note Synopsis and Objectives This case examines the question of financial leverage at California Pizza Kitchen (CPK) in July 2007. With a highly profitable business and an aversion to debt, CPK management is considering a debt-financed stock buyback program. The case is intended to provide an introduction to the Modigliani-Miller capital structure irrelevance propositions and the concept of debt tax shields. With the background of a pizza company, the
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California Pizza Kitchen Risk Analysis Based on information provided in the case, we estimated the Weighted Average Cost of Capital for California Pizza Kitchen to be: 9.64% = (1-32.50%)*6%+9.64%*643,773)/643,773 California Pizza Kitchen is an unlevered company that has no debts in the capital structure of the company, and whose sole source of financing is equity. With a return on equity of 10.1% in 2006, CPK earned a return greater than its cost of capital, but did not benefit
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California Pizza Kitchen November 16, 2013 ABSTRACT The purposes of this case study are to discuss the main issues of CPK (California Pizza Kitchen) and think critically to find solutions to the current situation. In order to achieve these purposes, we first analyze time frame of the CPK’s establishment and recent development to find the absolute advantages and disadvantages of CPK compared with its competitors. According to our calculation, we will discuss whether to use moderately levering
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Case Study, Module 4 TUI University MGT 599 Strategic Management EXECUTIVE SUMMARY The California Pizza Kitchen (CPK) is an established high-end pizza restaurant chain competing primarily in the United States although it does have some international locations. The company reported an estimated $664.7 million in revenue for 2009 and operates some 252 unique locations with more than 14 thousand employees (California, 2009). The Porter’s
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California Pizza Kitchen Enoch Li & Dong Yi Yuan Table of Contents Introduction2 Question #12-3 Question #23 Question #3 4 Question #44 Conclusion 5 Appendix A ...……………………………………………………………………………………..6 Introduction California Pizza Kitchen (CPK) is an innovative cuisine restaurant that serves pizzas, pastas, soups, sandwiches, and desserts in California since 1985. This casual dining restaurant, led by their chief financial officer Susan Collyns, brought appealing results for
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Obesity has basically become an epidemic across America. Sylvia Endahl states that in the year 2010, around 12 states population was over 30% obese. Just ten years ago, there were zero states with a percentage of obesity higher than thirty (p. 23). Obesity is a huge crisis that many countries all around the world are dealing with. However, the largest obesity “epidemic,” is here in America. The problem is that people do not know exactly what is in their food: how many calories, saturated fat, trans
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