GROUP # 01• Muhammad Usman Siddiqui

• Syed Faizan Haider Zaidi

• Muhammad Faizan Babar

• Saad Hamid

• Sardar Noman Salim

• Hasnain Shabbir

• Sayed Sahil Adbullah

FRESH BITES INC.

OUR MISSION :

Better quality at better prices

Better ambience

Targeting youth and families

OUR PRODUCTS :

• Fast Food

Coffee

Juices

Desserts

OWNERSHIP AND FINANCING DETAILS Seven Owners Financing Scheme – 80% Equity

Financing , 20% Debt Financing

INDUSTRY ANALYSIS: SWOT ANALYSIS

Strengths Cost advantage Hygienic Food Free Deliveries

Weaknesses Inexperienced Limited Products Low Market Share

Opportunities Optimistic Future

Economic Conditions Tastes and Preferences Online Availability

Threats Inflation Intense Competition Prevailing Economic

Conditions

LEPEST ANALYSIS

Legal

Economical

Political

Socio-cultural Analysis

Technological Factor

Environment

PORTER’S FIVE FORCES

Threat of Substitutes (HIGH)

Competitive Rivalry (HIGH)

Bargaining Power of Customers (HIGH)

Threat of New Entrants (HIGH)

Power of Suppliers (LOW)

ASSUMPTIONS FOR INDUSTRY MODEL Sales Forecasts through conducting interviews

Just in time method of production is followed

Dessert items are outsourced

Straight line method of depreciation is followed for each asset throughout the period

Inflation rate is kept constant at 10% per year

The number of kWh of electricity will increase as number of customers will increase

Rent of premises will increase by 17% each year

Closing Stock of raw materials are held at fixed percentage of the following year’s production

LIQUIDITY RATIOSYEARS 2014 2015 2016 2017 2018

CURRENT RATIO

2.8 4.3 5.7 4.2 6.9

ACID TEST RATIO

2.1 3.6 4.9 3.4 6.1

YEARS 2014 2015 2016 2017 2018

DEBT TO EQUITY

32% 24% 18% 14% 10%

DEBT TO TOTAL ASSETS

24% 19% 15% 12% 9%

TIMES INTEREST EARNED

23.28 33.41 54.18 109.2 323.22

DEBT RATIOS

DEBT RATIOS

YEARS 2014 2015 2016 2017 2018

G.P MARGIN

58.12%

58.42%

58.64% 58.85% 59.04%

O.P MARGIN

11.20%

11.76%

12.54% 14.17% 16.96%

N.P MARGIN

7.07% 7.53% 8.13% 9.27% 11.16%

RETURN ON EQUITY

35.99%

33.29%

32.84% 36.30% 38.04%

RETURN ON ASSETS

27.30%

26.94%

27.85% 31.78% 34.53%

PROFITABILITY RATIOS

PROFITATBILITY RATIOS

PROFITABILITY RATIOS

INVESTMENT RATIOS

YEARS 2014

2015 2016 2017 2018

E.P.S 4.77 5.87 7.65 11.007 17.390

D.P.S 1.5 1.5 2 4 2

INTEREST COVERAGE RATIOS

23.27

33.40 54.18 109.19 323.22

DIVIDEND COVER RATIOS

3.185

3.91 3.82 2.75 8.69

ACTIVITY RATIOS

YEARS 2014 2015 2016 2017 2018

FIXED ASSET TURNOVER

6 7 9 6 9

FINANCIAL LEVERAGE MULTIPLIER

74.89%

56.99%

42.89%

61.81%

39.95%

BREAKEVEN RATIOS

YEARS 2014 2015 2016 2017 2018

OPERATING LEVERAGE

5.20 5.003 4.70 4.176 3.519

FINANCIAL LEVERAGE

1.045 1.031 1.019 1.009 1.003

SENSITIVITY ANALYSIS

Sensitivity Analysis

NPV IRR

Tax rate falls to 25%

208868931%

Inflation rate increases to 15%

2482704 34%

Interest rate increase to 15%

435614 23%

SCENARIO ANALYSIS

Pessimistic

- Revenue decreases by 10%- Raw Material cost increases by

10%

NPV IRR

(1482184) -13%

Optimistic

-Raw Material cost decreases by 10%-Revenue increases by 10%

NPV IRR

1290283 25%

FUTURE PROSPECTS

To expand the business by entering into bigger markets both within as well as outside the city.

Expanding the product line by adding different cuisines; national as well as continental.

To maintain the same level of consumer loyalty and trust by providing them best possible services.

To remain a lucrative prospect for the company’s shareholders.

Thank you !