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Banks and fast food outlets are among the richest sources of seasonality compone

ID: 457468 • Letter: B

Question

Banks and fast food outlets are among the richest sources of seasonality components. Demand varies by the hour, by the day of the week, by the day of the month, by the week of the month, and by the month of the year. Select a local company / restaurant / retail store and identify as many seasonality components as you can.
HINT: If they are a manufacturing company - How have they developed products / scheduled production in order to keep their workforce busy all year? If they are a retailer / service company - How do they rotate their merchandise / menu etc. in order to keep customers doing business in their establishment all year. Chipotle is the company

Explanation / Answer

Case study about Chipotle: Seasonal factors cause the companies profitability to fluctuate from quarter to quarter. The average daily restaurant sales and profits are lower in the first and fourth quarters due, to the holiday season and because fewer people eat out during periods of winter than during periods of mild or warm weather (the spring, summer and fall months). Other factors also have a seasonal effect on their results. For example, restaurants located near colleges and universities generally do more business during the academic year. Seasonal factors, however, might be moderated or outweighed by other factors that may influence the quarterly results, such as the adverse publicity that they saw during 2015 around food-borne illness incidents associated with our restaurants, as well as fluctuations in food or packaging costs or the timing of menu price increases.

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