Steak and Shake Company in Indianapolis

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Steak and Shake Company in Indianapolis

Company background

This paper is the findings of research on the Steak and Shake company in Indianapolis. Steak and Shake Company is a well-to-do company with its headquarters in Indiana and its branches spread around other cities of the USA. The principal officers of this company include the well-known administrator Sardar Bilgari, the Chairman and CEO, Philip Cooley, the Executive President and CFO, among others. The history of this company can be traced back to 1934 when through him, the idea of hamburgers standing in place of the gas station and chicken point combinations came to being. Gus Belt, the founder of Steak and shake observed the lacking in the providence of highly demanded fast food and chose to pioneer in both solving the problem and at the same time making profits through the potential returns according to (Clarren 102).

With regards to his belief, the Steak and Shake company founder successfully coined the companys mission statement, Together we are building a world-class company that is a shining example of the power that is created when we help each other make our dreams come true.

Products and Services

Steak and shake company specializes in the provision of steakburgers, milkshakes, sandwiches among other products. Services such as special dinner arrangements are not a strange feat to the residents of the USA either. Needless to say, the Steak and Shake company is not just about profits or returns, rather, it has turned to be part of its environments way of life as pointed out by (Dolovich 67). No wonder it enjoys copyrights such as the name steak burger in place of the commonly known hamburger.

Though having started in Indiana, the Steak and Shake Company has long spread to other cities. states. countries and continents. Today, it runs like a chain of restaurants. In this sense, Its market can be categorized to local, with regards to its immediate neighborhoods, regional, with regards to the several neighboring hoods where its branches are located, national in terms of its spread through the American states, and global with regards to its venturing out of its mother country, USA.

Steak and Shake have endured immensely with regards to its comparative advantage of preparing their products at their customers sight as pointed out by (Jones 79). Competing companies lagged behind in this feature and this gave an upper hand to the Steak and Shake leading to a slogan Insight, it must be right.

Financial analysis

Quantitative Financial Analysis

The steak and shake stock symbol is derived from the first letters of its name and is designated as SNS. Looking at the trend in the companys stock, one wouldnt fail to notice the outstanding commendable performance of this companys exchange. According to records, the stock prices have been oscillating from $8 at the beginning of 2009 to well above $11 as of December 2009. In this sense, the stock prices are seen to have been rising gradually.

In this understanding, it would not be an overstatement to express Steak and Shake company as a remarkably profitable company. In fact, according to records, its profits have been increasing in a margin of about 4.8% in the 2008/2009 economic year.

Having about 1322806 shares, each share attracts a dividend of On the other hand, the remaining returns after-tax, and dividends have been paid, a remarkable amount of up to 50 percent is reinvested into the business for the future sustainability of the company.

Notably, a better percentage of the companies capital is sourced from the stock exchange. This forms the chief source of cash as well. The cash accumulated is mainly channeled into improving and increasing the number of steaks and shake outlets. Therefore, in summary, the cash flow of the company can be drawn from the SNS stock exchange as the source of company growth as the key investment section. The greener parts of the Steak and Shake should however not be taken to cover for the inevitable misdoings of the company. The companys products have for instance been criticized as being the cause of some diseases.

Steak and shake can however be recommended for its competency in liquidity. The management of this company has worked tirelessly towards ensuring that the company can pay for its current liabilities. This is a remarkable feat.

Qualitative Financial Analysis

In the qualitative perspective of the Steak and Shake company, one most definitely would consider the companys competence in turnover management. Again, it would not be an overstatement to deduce that steak and Shake Company is managing its asset turnover well. According to records, a clear reflection of such a deduction is seen in the turnover trends.

Apart from cash, buildings, vehicles and other tangible assets, the company owns a large share portion in the American Stock market and is, therefore, a key player in this market.

On the basis of business segmentation, it is easy to observe that the stock exchange is more profitable compared to the other segments of the business. The accounting of Steak and shake company is based on GAAP. Items such as stock and food services are the major items identified in the footnotes. The company auditor says stocks are the backbone of the capital source for this company. (Karp 56) says in the audit report notes, exceptional remarks such as recommendable for investors have been made.

Conclusion

To conclude, investment in Steak and Shake is beyond any doubt recommendable. The essence of investment is to earn profits according to (Kelly 206)and this is the dream that Steak and Shake live today. Personally, I would not hesitate to trust my fortune as an investment in this company with regards to the company operations, strengths and weaknesses as discussed above.

Works Cited

Clarren, Michael. Elements of Economics. Economics 10.0 (2000): 98-105.

Dolovich, Tim. Principles of Business. Entrepreneurial Skills. London: Oxford UP, 1995.

Jones, Peter. The Art of Investment. Business shifts 20.0 (2002).

Karp, Andrew. Business Practices. New York Times. 2004: A1.

Kelly, James. Accounting: Business Audit. East Africa Business 14.0 (1999): 200-215.

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