Swot Analysis Of Hooters
Hooters of America Financial Health and Liquidity
Charles Harper
Prof. Lisbeth Bundli
January 19, 2015
Hooters of America Financial Health and Liquidity Everyone is very well familiar with the name Hooters, and the brand they seem to personify. For the very few who are unaware, let’s take a quick look into Hooter’s beginnings and what they are all about. The very first Hooter’s was established on October 4, 1983 in Clearwater, Florida (“About Us”, 2012, para.1). When the restaurant first opened up, it originally included six founders who all shared the same vision for the upstart restaurant. The Hooter’s concept was very simple, create an environment where men can go and be men, while also remaining family friendly. Original …show more content…
Chanticleer Holdings has reduced its cash and investments. Normally this would be more alarming, but as the other trends show, they may have been used for other accounts that have a positive trend such as inventory and property and equipment. Again, this goes hand in hand with the possible expansion mentioned from the income statement. There is an extensive change in liabilities, but once again, this may be due to openings of new restaurants and the costs that go along with such.
Ratios
The current ratio of Chanticleer Holdings stands at .18:1, while the quick ratio is .07:1. The cash to current liabilities ratio stands at .03:1. In any typical business, with the current, quick and cash to current liabilities ratios not being favorable, one would assume that Hooters is a failing business that are not able to satisfy its payables. However, the aforementioned other competing “breastaurants” all have similar ratios. In this sort of restaurant business, a lot of the companies purchase their inventory on credit terms, causing a huge liability, as well as customers normally paying for the goods and services with cash which wouldn’t show favorably in the ratios. The only liquidity issues that are immediately evident are the small amount of cash for such a huge franchise. However, they remain financially healthy through their investments, and other …show more content…
The statements show the company is healthy financially; however, a human element to watch would be the public opinion of the company as far as its respect to women in general. With the sensitivity of the topic, it may present an issue one day that could directly affect the sales, therefore affecting the stock in the company. But as a financial advisor, I would put my stamp of approval on anyone looking to invest in Hooters!
References
Chanticleer Holdings. (2015, January 1). Retrieved January 16, 2015, from http://ir.stockpr.com/chanticleerholdings/financials
Daly, Pete. Grand Rapids Business Journal. 7/30/2012, Vol. 30 Issue 31, p14-14. 2/3p. , Database: Corporate ResourceNet
Hooters. (2012, January 1). Retrieved January 16, 2015, from https://www.hooters.com/Company/About.aspx
Hooters of America, LLC. Business Wire (English). 12/15/2014.
Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I. San Diego, CA: Bridgepoint Education,
Charles Harper
Prof. Lisbeth Bundli
January 19, 2015
Hooters of America Financial Health and Liquidity Everyone is very well familiar with the name Hooters, and the brand they seem to personify. For the very few who are unaware, let’s take a quick look into Hooter’s beginnings and what they are all about. The very first Hooter’s was established on October 4, 1983 in Clearwater, Florida (“About Us”, 2012, para.1). When the restaurant first opened up, it originally included six founders who all shared the same vision for the upstart restaurant. The Hooter’s concept was very simple, create an environment where men can go and be men, while also remaining family friendly. Original …show more content…
Chanticleer Holdings has reduced its cash and investments. Normally this would be more alarming, but as the other trends show, they may have been used for other accounts that have a positive trend such as inventory and property and equipment. Again, this goes hand in hand with the possible expansion mentioned from the income statement. There is an extensive change in liabilities, but once again, this may be due to openings of new restaurants and the costs that go along with such.
Ratios
The current ratio of Chanticleer Holdings stands at .18:1, while the quick ratio is .07:1. The cash to current liabilities ratio stands at .03:1. In any typical business, with the current, quick and cash to current liabilities ratios not being favorable, one would assume that Hooters is a failing business that are not able to satisfy its payables. However, the aforementioned other competing “breastaurants” all have similar ratios. In this sort of restaurant business, a lot of the companies purchase their inventory on credit terms, causing a huge liability, as well as customers normally paying for the goods and services with cash which wouldn’t show favorably in the ratios. The only liquidity issues that are immediately evident are the small amount of cash for such a huge franchise. However, they remain financially healthy through their investments, and other …show more content…
The statements show the company is healthy financially; however, a human element to watch would be the public opinion of the company as far as its respect to women in general. With the sensitivity of the topic, it may present an issue one day that could directly affect the sales, therefore affecting the stock in the company. But as a financial advisor, I would put my stamp of approval on anyone looking to invest in Hooters!
References
Chanticleer Holdings. (2015, January 1). Retrieved January 16, 2015, from http://ir.stockpr.com/chanticleerholdings/financials
Daly, Pete. Grand Rapids Business Journal. 7/30/2012, Vol. 30 Issue 31, p14-14. 2/3p. , Database: Corporate ResourceNet
Hooters. (2012, January 1). Retrieved January 16, 2015, from https://www.hooters.com/Company/About.aspx
Hooters of America, LLC. Business Wire (English). 12/15/2014.
Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I. San Diego, CA: Bridgepoint Education,