Memo: A memo (maximum two pages) recommending the company you would invest in, based on the company’s information regarding their product, future prospects, past trend in revenues and profits, and any further information you deem appropriate
FROM: Name, Research Analyst
TO: Stephen Fitz, Investors
DATE: November 21, 2015
SUBJECT: DNKN Is a Viable Company for Investment
DNKN annual report makes a good analysis of all the products that the company sells showing their viability to different markets. The company also showcases a high level of research in creating new brands that are different yet targeting the same niche of their customers.
Viability of the Company
The company’s idea is viable since it accommodates two major brands that have a good market share. Together, they are complementary making them unique as a customer can consume two of these products at a single instant. To top it all off, the company has set shield measures in case the franchises fail to make royalty payments.
The company’s growth model indicates a high level of growth of about 8.2% while the annual sale of the company increases to billions every year. As of February 2014, the grow rate of the company’s price per share was at about $51 which was a rise from the initial public offering price of $22. Additionally, for the past five years, the company has been experiencing a consistent growth characterized by new product development and creation of new market lines of investment which are precursor to the strides the company will make in future.
The financial performance graph of the company also indicates an increasing a consistent increasing growth from about $100 Million to $200 Million. The same aspect of growth is replicated on how the company is experiencing growth on other aspects such as joint associations and growth of franchise markets. For the sake of consistency, the company has embraced the equity method of investment which serves to complement the high level of investment that the company has made making it possible to estimate a remainder of franchise lives. This practice advice on the company on other market it could focus on.
Based on these facts, I Believe DNKN to be the viable business to venture into