Research Paper on Breadtalk Valuation

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Table of Contents

Quick History        

Core Operations        

Financial Highlights        

Industry Analysis: Porter’s Five Forces        

Intensity of Rivalry        

Threats of New Entrants        

Bargaining Power of Buyers        

Bargaining Power of Suppliers        

Threats of Substitutes        

Fundamental Analysis        

Return & Volatility Analysis        

Peer Comparison        

Valuation        

Sensitivity Analysis        

Swot Analysis        

Strengths        

Weaknesses        

Opportunities        

Threats        

Conclusion        

Appendix        

Quick History

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Core Operations

Bakery consists of both Toast Box and BreadTalk outlets. Bakery has wide outreach in Asia, consisting of Singapore, Mainland China and Thailand. BreadTalk Group has expanded a new line of bread stores called BreadSociety which focuses on more artisanal breads that are more exquisite and expensive than its normal bread.

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(Average Annual Expansion Rate: 64.1%)         (Average Increase in Revenue: 16.58%)

Restaurant operation of BreadTalk Group consists of places like Din Tai Fung, RamenPlay and Carl’s Jr. BreadTalk Group intends to expand its Carl’s Jr operation as their leading food chain into China instead of Din Tai Fung. Din Tai Fung is a ShangHai-based restaurant, hence will not be an ideal restaurant to set up in China. The revenue growth from BreadTalk Group’s restaurant operation is the largest among its 3 core operations.

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(Average Annual Expansion Rate: 127.67%)         (Average Increase in Revenue: 30.90%)

Food Atrium consists of Food Republic, a higher-end food court located both in Singapore and in China. An extension from food court, the company had also came up with themed-based food courts such as “Food Opera”- Hong Kong food themed, “All things Nice”- Taiwan and Hong Kong dessert themed.

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(Average Annual Expansion Rate: 17.2%)        (Average Increase in Revenue: 16.5%)

For all three operations that we have discussed, the relationship between outlet and revenue growth is highly correlated. From this, we can deduce that their revenue growth is primarily due to an increase in the number of outlet, thus volume of sales made.