2007 7 CPK

CPK ,.
M-M
,

, 9
EBIT. -1
-18-29
2 EBIT 22
+30

WACC

L = U[1 + D/E].

95%,.
,,.,
-..
CEORick
2007 7 , Susan 2007
.,,CPK
$2600 . 5%.
.
,.,
,CPK 10%, 22.10.,
.,. 2000
,CPK .

Rick . CPK
. ,Clllyns CPK
.

,Larry Rick
,1985 .,
. 20 2007 6 28 213
. , 41%. ,,
.
:, ,
CPK . ,
CPK , 170 .
500 .
, ASAP .1996 , HMSHHost ASAP .
ASAP ,,,.
,. 2007 , HMSHHost CPK
2012 . ASAP .
2000 ASAP , CPK ,.ASAP
. 2003 , 2007
ASAP 2007 $770000 ASAP .
ASAP , CPK
.2007 7 , 2007
.,.
CPK550000 65000, 5%
2007

1997
1% 95%,
.,
. CPK 5%,
.
,, CPK
.
CPK ,. CPK .
, , Morgan .
,.,
Shrimp Rolls,.
,,.
,,.2007
.2003 Flax Rosenfield ,
, CPK .CPK 2005 LA ,
2008 .

,$13.3 . P.F.Chang
Cheesecae Factory. RBC ,,
.
CPK 1% , , Chilis ,Red
Lobster,OliveGarden Outback Steakhouse 3%-4%.
,.
,,,
.
CPK ,., 05 ,
$75000 .CPK ,
.,,
.

,.
,.
Technomic Informaton Services
, 5.1%, 5.5%. CPK
, 6.5%.,,
:

,.,
,,.
.,
.
,.2007 ,
, 2007 7 $5.15 $7.25 .
, 2006 20
.
,. AAA MidAltantic ,52%
.,
,. ,,.
.
,,
. ,.

.
,,.,
.
.
.
45% 2010 53%.
..
William . william
2005 . 1500 ,$1billion
,.William 4.5%
.,.
Applebee,Wendys Friendlys. ,
.
,,,
,.Doug,Brinker Chilis
.
,.
.

CPKDE ,
. 2 3 CPKDE . cpk . 5
CPK.. Morgan :
, .
,,CPK ,,
.
.CPK 2007
16%$159. 375 21%. 16 18 .
CPKDE 2007 $85million.
. 06 07
0.03%.,,. izhanle
,.
.

CPK 6million. 20s,CPK

$644MILLION. 50%. CPK 3 for 2
.CPK ., 6 CPK
.
,CPK .CPK ROE 2006
10.1%,.,
..
.CPK

&75million .
0.8%. 5.36%, 6.16%..
10% .
. 9
. CPK
..

Case 33:
Q1: What is going on at CPK? What decisions does Susan Collyns
face? What do you recommend?
Q2: Maybe we can all be right. Is there a case for that?
Q3: How does debt add value to CPK?
Q4: What is the case for not doing the recapitalization?
Q5: What should Collyns recommend?