Randy Quick FIN3150 Homework Project 1 Fall 20xx BWLD and CMG

Company Synopsis
Chipotle Mexican Grill - Chipotle Mexican Grill is the largest player in the $5 billion fast-casual Mexican restaurant category. Its menu includes burritos, bowls, tacos, and salads made from higher-quality ingredients than at quick-service restaurants. Because customers can choose from four different meats, two types of beans, and an array of extras, more than 65,000 menu combinations are possible. As of December 2011, the firm operated more than 1,230 restaurants in 42 states, Canada, and the United Kingdom. Buffalo Wild Wings - Based in Minneapolis, Buffalo Wild Wings is a casual dining restaurant chain that specializes in serving its guests chicken wings spun in one of the firm's 14 original sauces, alcohol, and sports. The company owns, operates and franchises nearly 560 restaurants in 38 states. Each restaurant has an open layout and an extensive multimedia system, including approximately 40 televisions and 7 projection screens, providing different forms of entertainment to all customers. Industry: Appliance & Tools From www.morningstar.com

Task 2 Ratio and its Intent:

Current Ratio: Cur. Assets / Cur. Liabilities (Bigger is better): The extent the firm is able to meet its current obligation (liabilities) by assets expected to be converted to cash in the near future.

Task 3 CMG BWLD

3.191082803 1.219298246

Task 4 Industry
2.14

Tasks 5 & 6 Assessment & Issues

Task 5: CMG current ratio is higher then BWLD and the Industry Average. This indicates that CMG is able to meet its current liabilities 3x over with current assets. Task 6: Chipotle may be hording cash or positioning for future growth. CMG has a strong position in cash totally more than 80% of total current assets. They also appear to have low accounts payable. The most significant current liabilities are held in short term notes. This may be a problem if interest rates climb.

Quick Ratio:

Inventory T/O:

DSO:

Fixed Assets T/O:

Total Assets T/O:

Debt Ratios:

Task 2 Ratio and its Intent:

TIE Ratio:

Task 3

Task 4

Tasks 5 & 6 Assessment & Issues

Profit Margin:

ROA:

ROE:

P/E Ratio:

Market/Book Ratio:

Task 7
Trend Analysis: Times Interest Earned Ratio
2003 Black&Decker Stanley #DIV/0! -2.23 2002 #DIV/0! -2.11 2001 #DIV/0! -2.09 2000 #DIV/0! -1.84 1999 4.14 -1.90

TIE Ratio
5.00 4.00 3.00

Ratio

2.00 1.00 0.00 -1.00 -2.00 -3.00

Black & Decker Stanley

1999

2000

2001

2002

2003

Year
Analysis:

Task 8

- You are required to write a one-page executive summary summarizing your buy recommendation for the first stock relative to the second and the industry average. - Address it to anyone you like. - Your subject line should be brief but concise. - Please refer to Executive Memo Example for this task. - You need to recommend/ not recommend investing in the first stock. Support your position by talking about Liquidity, Asset Managment, Debt, Profitabilty and Market Ratios. - Print the first 7 tasks and attach is to the memo. - Use the attached tasks as support for your recommendation in your memo. - You do not need to print the balance sheets or income statements.

Chipotle Mexican Grill, Inc. Class A (CMG) Balance Sheet Fiscal year ends in December. CU$$$$$USD in millions except per share data. 2007-12 2008-12 2009-12 2010-12 2011-12 Assets Current assets Cash Cash and cash equivalents 151 88 220 225 401 Short-term investments 20 100 50 125 55 Total cash 171 188 270 350 456 Receivables 5 4 5 6 8 Inventories 4 5 6 7 9 Deferred income taxes 2 3 3 4 6 Prepaid expenses 9 12 14 16 21 Other current assets 10 0 24 Total current assets 202 211 297 406 501 Non-current assets Property, plant and equipment Gross property, plant and equipment 646 777 882 982 1122 Accumulated Depreciation -151 -191 -246 -305 -370 Net property, plant and equipment 495 586 636 677 752 Equity and other investments 128 Goodwill 22 22 22 22 Intangible assets 22 Other long-term assets 3 6 6 17 22 Total non-current assets 520 614 664 715 924 Total assets 722 825 962 1122 1425 Liabilities and stockholders' equity Liabilities Current liabilities Capital leases 0 0 0 0 Accounts payable 20 24 25 34 46 Taxes payable 4 16 Accrued liabilities 53 53 73 89 77 Other current liabilities 0 18 Total current liabilities 73 77 102 123 157 Non-current liabilities Capital leases 4 4 4 Deferred taxes liabilities 16 30 39 51 64 Deferred revenues 87 106 124 143 Other long-term liabilities 70 5 7 10 16 Total non-current liabilities 87 126 156 188 224 Total liabilities 160 202 258 311 381 Stockholders' equity Common stock 0 0 0 0 Additional paid-in capital 489 502 540 594 677 Retained earnings 72 151 278 457 671 Treasury stock -30 -114 -241 -304 Accumulated other comprehensive income 0 0 1 0 Total stockholders' equity 562 623 703 811 1044 Total liabilities and stockholders' equity 722 825 962 1122 1425

Chipotle Mexican Grill, Inc. Class A (CMG) Income Statement Fiscal year ends in December. CU$$$$$USD in millions except per share data. 2007-12 2008-12 2009-12 2010-12 2011-12 TTM Revenue 1086 1332 1518 1836 2270 2401 Cost of revenue 843 1045 1140 1347 1680 1765 Gross profit 243 287 379 489 589 636 Operating expenses Sales, General and administrative 75 101 108 126 158 176 Restructuring, merger and acquisition 10 Other operating expenses 50 62 67 75 81 82 Total operating expenses 134 163 175 202 239 258 Operating income 108 124 204 288 351 378 Interest Expense 0 0 0 0 3 Other income (expense) 6 3 1 1 2 -1 Income before taxes 114 127 204 289 350 377 Provision for income taxes 43 49 77 110 135 146 Net income from continuing operations 71 78 127 179 215 231 Net income 71 78 127 179 215 231 Net income available to common shareholders 1 7 78 127 179 215 231 Earnings per share Basic 2.16 2.39 3.99 5.73 6.89 7.39 Diluted 2.13 2.36 3.95 5.64 6.76 7.27 Weighted average shares outstanding Basic 33 33 32 31 31 31 Diluted 33 33 32 32 32 32

Buffalo Wild Wings, Inc. (BWLD) Balance Sheet Fiscal year ends in December. CU$$$$$USD in millions except per share data. 2007-12 2008-12 2009-12 2010-12 2011-12 Assets Current assets Cash Cash and cash equivalents 2 8 10 15 21 Short-term investments 67 36 44 57 40 Total cash 68 45 53 72 60 Receivables 8 7 10 9 12 Inventories 2 3 4 4 6 Deferred income taxes 1 2 3 6 6 Prepaid expenses 3 3 3 4 4 Other current assets 2 2 26 39 50 Total current assets 85 61 99 134 139 Non-current assets Property, plant and equipment Gross property, plant and equipment 170 236 298 358 479 Accumulated Depreciation -67 -81 -108 -133 -169 Net property, plant and equipment 103 154 190 225 310 Goodwill 0 11 11 11 18 Other long-term assets 9 18 10 10 28 Total non-current assets 113 183 211 246 356 Total assets 197 244 309 380 495 Liabilities and stockholders' equity Liabilities Current liabilities Accounts payable 11 17 13 18 30 Accrued liabilities 19 21 26 25 38 Deferred revenues 3 3 2 2 Other current liabilities 3 0 24 34 44 Total current liabilities 32 41 67 79 114 Non-current liabilities Deferred taxes liabilities 2 9 15 25 39 Deferred revenues 16 18 23 Other long-term liabilities 21 23 1 2 2 Total non-current liabilities 23 32 33 44 63 Total liabilities 55 72 99 124 177 Stockholders' equity Additional paid-in capital 81 86 94 102 114 Retained earnings 61 85 116 154 205 Accumulated other comprehensive income 0 0 Total stockholders' equity 142 172 210 257 318 Total liabilities and stockholders' equity 197 244 309 380 495

Buffalo Wild Wings, Inc. (BWLD) Income Statement Fiscal year ends in December. CU$$$$$USD in 2008-12 except per share data. 2007-12 millions 2009-12 2010-12 2011-12 Revenue 330 422 539 613 784 Cost of revenue 246 313 403 453 573 Gross profit 84 109 136 160 212 Operating expenses Sales, General and administrative 40 48 57 62 87 Other operating expenses 18 26 35 41 52 Total operating expenses 58 74 92 104 139 Operating income 26 35 44 56 73 Other income (expense) 3 1 1 1 0 Income before taxes 29 36 45 57 73 Provision for income taxes 9 12 15 19 22 Net income from continuing operations 20 24 31 38 50 Net income 20 24 31 38 50 Net income available to common shareholders 20 24 31 38 50 Earnings per share Basic 1.12 1.37 1.7 2.11 2.75 Diluted 1.1 1.36 1.69 2.1 2.73 Weighted average shares outstanding Basic 18 18 18 18 18 Diluted 18 18 18 18 18