Pizza Pizza recently released its financial information pertaining to its fourth quarter in the year ending Dec 31st, 2012, and things are looking rosy for the Canadian firm. Considered to be among the two highest yielding restaurant stocks in North America, the Toronto-based corporation has analysts validating its rise. One in particular, Derek Lessard of TD Securities, attributes the firm’s success to the management team and their “ability to deliver, despite … difficult operating conditions.”
This brings one to acknowledge the significance of managerial accounting. Certainly, analysts such as Lessard can say it all comes down to management, but to properly put just what “it all” is into perspective, one has to look beyond the obvious.
Large events, outdoors and otherwise (carnivals, hockey games) typically generate leagues of customers for the Canadian chain. Yet, heavy rains and flooding in the last year saw attendance falter at many of these events. Furthermore, juggernauts such as Darden (owner of Red Lobster and Olive Garden) are watching their fortune fluctuate; “[missing] earnings expectations.” Still Pizza Pizza is garnering solid gains left and right. Consciously, they are utilizing the knowledge commonly yielded from managerial accounting: internal knowledge, and they are the better for it.
Sources:
