1. Pizza Pizza Limited
Assignment 1
By:
Aditya Aditya
ASHISH SETHI
HARLEEN CHAWLA
VEDIKA SADIOURA
RAHUL BHIMANI

2. Summary
We will discuss the following parts:
 Description of the company and its activities.
 Competitive Environment.
 Economic Climate and Outlook.
 Pizza Pizza Income Statement and its Findings.
 Pizza Pizza Balance Sheet and its Findings.
 MD&A Outlook and Risks
 Conclusion

3. Pizza Pizza’s Description
 Privately owned company, started in 1967.
 Trademarks are licensed to Pizza Pizza.
 Mission statement- “Best food, made especially for you.”
 Serve 30 million customers every year.
 High quality list of options to all ages.
 Serves Pizza, variety of fries, sandwiches, salads and drinks.

4. Pizza Pizza Activities
The main focus of the company is:
 Quality ingredients, best customer service and continual
improvement.
 Sales are increasing due to new pricing techniques and strategies.
 Management is very goal oriented and focussed.
Top level Management of the company:
 Paul Goddard, CEO of the Pizza Pizza.
 Curtis Feltner, Chief financial officer.
 Sebastian Fuschini, Vice-president.

5. Competitive Environment
 Main competitors are Dominos, Pizza hut, Gino’s and little Caesar.
 Very high competition.
 Pizza pizza’s marketing approaches – memorable jingle, nine six
eleven, eleven, eleven.
 Advertisements through coupons, flyers and receipts.
 Promotion through the pizza delivery bags.
 Centralized computer calls.
 Slices for the smiles foundation for the 40th anniversary.
 Foundation provides $1,300,000 to children of Canada for
education.

6. Economic Climate and Outlook
 SSS increased by 2.1% this year.
 The number of new stores increased by 25.
 Total pizza pizza location- 725.
 Trying to expand in both traditional and non traditional areas.
 Quarterly revenue increased by 2.1% from 127.3 millions to 130
millions.
 Three main states for future focussing- Ontario, Manitoba and
Quebec.

7. Income Statement Findings
 Gross profit is almost constant around 26%.
 S&G expenses reduced from 2011-12 lead to higher EBITDS.
 Net income increased by 4% from 2011 to 2012.
 Average net income is also constant around 18%.
 Average revenue growth rate for the industry is 2.1%.
 Average growth rate of Pizza Pizza is 4.1%.
 Market value for the share of Pizza Pizza is $14.41.
 The trailing EPS is 0.81.
 Overall the price/earnings ratio is 17.72.

8. Balance Sheet findings
 The current asset ratio is increasing every year.
 The current asset ratio for the year 2013 is 2.45%.
 Company mainly holds the long term assets i.e. 97.55%.
 Current liability ratio is 5.22% of the total liabilities.
 Main liabilities are long term debts i.e. 95% of the total liabilities.
 Company has strong financial backbone.
 Debts are manageable.

9. MD&A Outlook
 Same store sales growth was 2.13% for 2013.
 Company kept on working with its core qualities so it kept growing.
 Total number of stores grew to 723 which is 4.1% increase from 2012.
 Company is looking to expand in the old cities as well as big cities.
 Ontario, Quebec and Manitoba are the potential areas.
 Company is growing at fast pace.

10. MD&A Risk Factors
 Price, Store location and food quality are the major concern.
 Efficient staff and management are positive factors.
 Competitors are local pizza chains and big international pizza
brands.
 Government regulations are restricting the company.
 Other factors affecting the company includes Technology
breakdowns, food borne disease and inflation.

11. Conclusion
 Pizza Pizza is an old and well established brand.
 Company is growing at fast pace.
 Competition is fierce so improve the strategies.
 Company’s debts are manageable.
 Overall, company should invest in new technology and ideas.