Chuck E Cheeses

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Chuck E. Cheese’s
“Where A Kid Can Be A Kid”
Yvonne Bell-White
The Catholic University of America

This paper was prepared for Financial Decision Making, MBU 652, Summer 2011, taught by Professor Howard S. Steed, PhD
Abstract

In this analysis paper I choose to learn about Chuck E. Cheeses. I demonstrate my understanding of the categories of Financial Statement Analysis, which includes – profitability, liquidity, activity and debt (leverage). Our class was assigned a company for financial scrutiny and to obtain financial statements (Balance Sheet, Income Statement, and Cash Flow Statement), from the company’s most recent Annual Report. We are to prepare a written analysis of the organization with the following requirements: 1) describing the product or service marketed by the company; 2) evaluate the company in terms of the financial ratios we believe are most helpful in understanding the company’s performance; and 3) include a financial forecast for the said company for the next 2-3 years. We were asked to include an estimate of the company’s prospects for the company industry for the years ahead. Finally, the students were asked to give an oral presentation to the class using this information. I choose to do my analysis of a company called Chuck E. Cheese’s. This paper will explain what I’ve learned about the financial statement analysis categories.

Chuck E. Cheese’s
“Where A Kid Can Be A Kid”

This class was assigned a company for financial scrutiny and to obtain financial statements (Balance Sheet, Income Statement, and Cash Flow Statement), from the company’s most recent Annual Report. We are to prepare a written analysis of the organization with the following requirements: 1) describing the product or service marketed by the company; 2) evaluate the company in terms of the financial ratios we believe are most helpful in understanding the company’s performance; and 3) include a financial forecast for the said company for the next 2-3 years. We were asked to include an estimate of the company’s prospects for the company industry for the years ahead. Finally, the students were asked to give an oral presentation to the class using this information. I choose to do my analysis of a company called Chuck E. Cheese’s.

In 1977, Nolan Bushnell, also known as the father of the video arcade industry, for his formation of Atari, Inc., founded Chuck E. Cheese Pizza-Time Theaters. It’s a nationally recognized leader in family dining and entertainment.

Chuck E Cheese’s is located in 48 states and seven foreign countries or territories. Each store feature musical and comic entertainment by robotic and animated characters, arcade-style and skill-oriented games, rides and many other activities to appeal to families and children between the ages of two to twelve. Chuck E. Cheese stores offers a variety dinning selection consisting of pizza, sandwiches, salad bar and desserts.

There business development strategy is focused on maintaining and evolving their existing stores, by developing high sales volume company-owned stores in primarily densely populated areas and selling franchises in domestic and international markets. Chuck E Cheeses are typically opened in shopping centers or free standing buildings near shopping centers

As of January 2, 2011, they employ approximate 17,300 employees – 17,000 field based and 300 located at the headquarters.

Before investing into a company you should follow expert’s advice. Experts insist on the importance of research and doing your homework before you decide to invest in a company. In other words, dig deep into the company’s financial statement and examine everything from the auditor’s report to the company’s references. Begin your homework by doing a Financial Statement Analysis. The financial statement analysis is how you will identify the company’s financial strengths and weaknesses from understanding the items of the balance sheet....
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