Pizza Pizza – Changes in Sales, Total Assets, Shareholder’s Equity & Net Income
Change in sales: Pizza Pizza’s sales have increased by 5.3% in 2015 to 533.8 million from 505.4 million in 2014, this was primarily due to geographic diversification among eastern provinces which helped provide consistent restaurant sales and stable growth in sales over the past five years.
Change in Net Income: Pizza Pizza’s net income increased by 0.871% to 25.23 million from 25.16 million in 2014. The increase is mainly attributable to an increase in royalty income and a decrease in interest expense balanced by an increase in current tax expense. Royalty income had increase because of additional restaurants added to the same store sales pool on January 1, …show more content…
Pizza Pizza’s current ratio is higher than that of Boston Pizza, with Boston pizza showing a 0.37 decrease and Pizza Pizza showing a 0.22 increase from 2014 to 2015.
Cash Current Debt Coverage 2015 2014 Comp. with Prior Year
Pizza Pizza 7.83:1 8.24:1 Worse
Boston Pizza 12.16:1 10.91:1 Better
Comment: Pizza Pizza’s cash current debt coverage decreased by 0.41 while Boston Pizza’s increased by 1.25. This ratio signifies that Boston Pizza generated 12.16$ of cash flow from operating activities to cover each dollar of current liabilities while Pizza Pizza generated 7.83$.
Solvency Ratios:
Debt to Total Assets 2015 2014 Comp. with Prior Year
Pizza Pizza 20.13% 18.24% Worse
Boston Pizza 38.03% 44.16% Better
Comment: Pizza Pizza’s level of debt increased (worsened) by 1.89% while Boston Pizza decreased (improved) by 6.13% from 2014 to 2015. Pizza Pizza’s reliance on debt for 2014 and 2015 is almost half of what it is for Boston Pizza’s. For the year of 2015 creditors have provided financing that covers 20.13% of the Pizza Pizza’s total assets and financing that covers 38.03% of Boston pizza’s total …show more content…
The price of the stock has increased to 16.18 CAD as of 2016/11/21 (Google Finance). A factor that lead to the increase of stock was that Pizza Pizza on April 20, 2015 increased its monthly dividend.”First, in April 2015 the Company increased the monthly dividend by 1.95% to $0.0680 per Share ($0.8160 annualized). Secondly, in November 2015, the Company increased the monthly dividend by 2.5% to $0.0697 per Share ($0.8364 annualized).The previous dividend increase was in January 2014, when the Company increased the monthly dividend by 2.6% to $0.0667 per Share” ("Pizza Pizza Annual Report",2015). Another factor that led to the increase in stock for Pizza Pizza was that the company was featured in a popular news source called food.ca. They released an article talking about “How Pizza Pizza Royalty Corp. and A&W Royalties Income Fund Can Pay You 1st” with publication date: September 20, 2016.” (Greg Major, 2016). This attracted shareholders to invest more into Pizza Pizza that lead to the increase in stock for 2016 compared to
Change in sales: Pizza Pizza’s sales have increased by 5.3% in 2015 to 533.8 million from 505.4 million in 2014, this was primarily due to geographic diversification among eastern provinces which helped provide consistent restaurant sales and stable growth in sales over the past five years.
Change in Net Income: Pizza Pizza’s net income increased by 0.871% to 25.23 million from 25.16 million in 2014. The increase is mainly attributable to an increase in royalty income and a decrease in interest expense balanced by an increase in current tax expense. Royalty income had increase because of additional restaurants added to the same store sales pool on January 1, …show more content…
Pizza Pizza’s current ratio is higher than that of Boston Pizza, with Boston pizza showing a 0.37 decrease and Pizza Pizza showing a 0.22 increase from 2014 to 2015.
Cash Current Debt Coverage 2015 2014 Comp. with Prior Year
Pizza Pizza 7.83:1 8.24:1 Worse
Boston Pizza 12.16:1 10.91:1 Better
Comment: Pizza Pizza’s cash current debt coverage decreased by 0.41 while Boston Pizza’s increased by 1.25. This ratio signifies that Boston Pizza generated 12.16$ of cash flow from operating activities to cover each dollar of current liabilities while Pizza Pizza generated 7.83$.
Solvency Ratios:
Debt to Total Assets 2015 2014 Comp. with Prior Year
Pizza Pizza 20.13% 18.24% Worse
Boston Pizza 38.03% 44.16% Better
Comment: Pizza Pizza’s level of debt increased (worsened) by 1.89% while Boston Pizza decreased (improved) by 6.13% from 2014 to 2015. Pizza Pizza’s reliance on debt for 2014 and 2015 is almost half of what it is for Boston Pizza’s. For the year of 2015 creditors have provided financing that covers 20.13% of the Pizza Pizza’s total assets and financing that covers 38.03% of Boston pizza’s total …show more content…
The price of the stock has increased to 16.18 CAD as of 2016/11/21 (Google Finance). A factor that lead to the increase of stock was that Pizza Pizza on April 20, 2015 increased its monthly dividend.”First, in April 2015 the Company increased the monthly dividend by 1.95% to $0.0680 per Share ($0.8160 annualized). Secondly, in November 2015, the Company increased the monthly dividend by 2.5% to $0.0697 per Share ($0.8364 annualized).The previous dividend increase was in January 2014, when the Company increased the monthly dividend by 2.6% to $0.0667 per Share” ("Pizza Pizza Annual Report",2015). Another factor that led to the increase in stock for Pizza Pizza was that the company was featured in a popular news source called food.ca. They released an article talking about “How Pizza Pizza Royalty Corp. and A&W Royalties Income Fund Can Pay You 1st” with publication date: September 20, 2016.” (Greg Major, 2016). This attracted shareholders to invest more into Pizza Pizza that lead to the increase in stock for 2016 compared to