Breadtalk Analysis - 9655 Words

Executive Summary This reports aims to establish the current issues that BreadTalk Group Limited is facing and how the issues will have an impact on their earnings and share valuations. In our report, a computation of DuPont ROE Analysis between BreadTalk, Food Junction and Auric Pacific was examined and it was noticed that BreadTalk’s ROE is predominantly higher than Food Junction and Auric Pacific over the years of our forecast from FY2012 to FY2015. Based on the calculations, several assumptions and limitations on BreadTalk’s intrinsic value of share price were analysed and consequently estimated with four models. These models are Dividend Valuation Model, Free Cash Flow to Equity Model, Price/Earnings Ratio Model and the Price/Book†¦show more content†¦| Chan Soo Sen | Independent Director who heads the Remuneration Committee. He is also a member of the Audit Committee and Nominating Committee of BreadTalk Group. | Dr Tan Khee Giap | Independent Director. A member of the Aud it Committee, Dr Tan is also currently the Co-Director of Asia Competitiveness Institute and an Associate Professor of Public Policy at the Lee Kuan Yew School of Public Policy at the National University of Singapore. He also chairs the Singapore National Committee for Pacific Economic Cooperation and holds directorships in a few listed companies in Singapore. | 2. Economic Environment 3.3 Overview This section extends the overview of the macroeconomic factors that will impact BreadTalk Group. Macroeconomic factors refer to an aspect that resides outside the environment of the company where it involves the economy from both regional and national levels. These factors consist of inflation, labor cost, currency exchange rate and the global economic performance. BreadTalk may encounter various issues such as high labor cost and raw materials prices which may affect their operating expenses. These factors can be further analysed using the various macroeconomic issues mentioned below. 3.4 Macroeconomic I. Commodity Price Table 1: World Agriculture Pricing Summary Data obtained from Monetary AuthorityShow MoreRelatedIndustry Analysis Breadtalk1475 Words   |  6 PagesIndustry Analysis Future outlook and trends For its outlook, BreadTalk planned for the China and regional market and rising food cost. This is the largest challenge for the Bakery business. BreadTalk is going to shorten the supply chain and buying in bulk globally for economies of scale. Shanghai is one of the example that BreadTalk have successfully piloted using frozen dough to arrest rising labour and rental costs while maintaining the quality of our products. This is to encourage that BreadTalk willRead MoreBreadtalk Group Limited vs Old Chang Kee Company Analysis Essay1273 Words   |  6 PagesBreadtalk Group Limited had outlined areas that needs to improves. Firstly, under principle 1under board matters(breadtalk annual 2010 report,pg 32), despite directors are being appointed to the board by a formal letter of appoinment indicating the amount of time required and scope of duties, some directors espicially new directors are not clearly aware of discharging their duties. Board members needs more update and initaitive to gain better understanding of the group business operations and policiesRead MoreBreadtalk Swot Analysis857 Words   |  4 PagesSWOT analysis on Breadtalk Strengths Unique Concept and Branding The Breadtalk concept is unique and innovative and this distinguishes the brand from traditional bakeries in the market. More importantly, Breadtalk captures the interest of consumers as it constantly develops products reflecting contemporary lifestyle and current events. As part of Breadtalks unique concept, the layout of retail outlets are designed such that customers have a clear view of bakery items on display. TheRead MoreWhat Is Sakae Holding? Essay2497 Words   |  10 Pagesin a bad liquidity position. By comparing the Sakae Holding LTD and BreadTalk Group Limited, based on year 2013, Sakae Holding has a lower current ratio 0.69 as compared to BreadTalk 0.70. As for the quick ratio, Sakae Holding has 0.60 which is higher than BreadTalk 0.54. As for the cash ratio, Sakae Holding has 0.33 which is lower than BreadTalk 0.36. As Sakae has lower current ratio but higher quick ratio as compared to BreadTalk, this is due to a relative lower amount of inventory it is holdingRead MoreBread Talk Business Strategy5796 Words   |  24 PagesBreadTalk Group Limited Prepared by: Pek Sin Yee (3156436) Soh Mei Mei Bibi (3151012) Tan Rui Lynn (3154118) Yong Wei Ting (3152841) Chandrika Sridhar (3088524) Executive Summary Bread is one of the most popular staple in the Asian food culture. In the years, BreadTalk has successfully expanded their influence and reputation to 16 countries with more than 500 bakeries all around the world. BreadTalk is known for their see thru kitchen concept which enables their chefs a platform to showcase theRead MoreBreadtalk Economic Analysis1906 Words   |  8 PagesBreadTalk Group Ltd. 1.0 Introduction 1.1 Background information on the industry The FB industries play an important role in Singapore’s economy. Being a multinational country, the FB industries have been influenced by culture from different nationalities and countries. Singapore has been ranked as one of the three major eating capitals in the Asia Pacific region and the other two countries are Hong Kong and Australia. Singaporeans’ extremely large appetite for eating out has rose the incredibleRead MoreBakery Industry Analysis2365 Words   |  10 PagesAn Analysis of Yuxi Bakery Industry Professor, Ed Bukszar, Ph.D. Yee Chen September 27, 2010 Introduction The Chinese bakery industry, being in the growth period of its life cycle, has been developing at a high speed these years. There are more and more foreign chain brands such as Breadtalk and 21cake, coming into the Chinese bakery market; and at the same time, many Chinese local brandsRead MoreInvestment Essay on Breadtalk10059 Words   |  41 PagesExecutive Summary BreadTalk Group Ltd is a Singapore-based Food and Beverage operator that was founded in 2000 and was listed on the Singapore Exchange (SGX) in year 2003. The entire business revenue is segmented into four categories namely, Bakery, Restaurants, Food Atriums and Franchise. The objective of this report is to assess BreadTalks current position and future prospects through a series of valuation models. The key competitors of BreadTalk are namely Auric Pacific Group and Food JunctionRead MoreInvestment Essay on Breadtalk10073 Words   |  41 PagesExecutive Summary BreadTalk Group Ltd is a Singapore-based Food and Beverage operator that was founded in 2000 and was listed on the Singapore Exchange (SGX) in year 2003. The entire business revenue is segmented into four categories namely, Bakery, Restaurants, Food Atriums and Franchise. The objective of this report is to assess BreadTalks current position and future prospects through a series of valuation models. The key competitors of BreadTalk are namely Auric Pacific Group and Food JunctionRead MoreBreadtalk5020 Words   |  21 Pages721,192 | 1,003,502 | 144,302 | 893,021 | Background Information amp; SWOT Analysis BreadTalk Group Ltd Introduction * Incorporated in 2000 * 26 retail outlets island wide * Listed in 2003 * IPO shares offered at S$0.24 * 32 million shares bought at S$0.30 * 189 times subscribed * Signature food items are chicken and pork floss buns * Bakery: BreadTalk, The Icing Room, Toast Box * Food Atrium: Food Republic * Restaurant: Din Tai Fung, The