Monthly Financials

I have just analyzed August Financials and despite the positive results, I would like to receive some comments on the performance of the month, as follows:
1- Another declining sales month. Average daily sales dropped to $2.2k against $2.9k in July ($4.1k in June and $6.0k in May). What can be done to revert such declining "appetite" from our customers?
2- Contrary to the above, the Total Cost of foods solds / Total Income has an increase pattern of 34,5% (June), 40,8% (July) and 42,4% (August). This is kelling the results, since a repetition of the lower 34,5% of June (or even lower at 335) could represent a Net Profit 10,5x bigger than the one presented in August. This is a key success point for the business and again, I would like to know what is done or intented to be done to save this high cost?
3- I saw a huge improvement in staff costs. I remember from our last meeting that Sabrina explained this was going to be fixed, but I'm worried this is not only a ponctual action and costs will raise again or this is what we can expect going forward... Excellent job shall this be stable and sales can be increased without poor customer satisfaction.
4- Remaining numbers are quite ok, but with a bottom line of $500, any $100 represents 20% of the profit, which puts an allert and stress on any cent expent....
5- Apart from the above, as I commented previously, I still do not see the Depreciation of Fixed Assets allocated to the results, as well as the deferral of Prepaid or Deferred Assets, such as the fees paid to the Franchiser.
6- The presented financials were not accompanied of the Balance Sheet (so could not check there), but another commented issue on our previous meeting was the fact that should the expenditures of the Leasehold Improvements reverse in a form of rebate or lower rental, this must also be represented on the numbers so correct measures of P&L and future expenditures could take a better reading.

Best Regards

Comments (1)

  1. Amanda Ramirez :

    We will be reviewing those questions at our Friday monthly meeting, thank you for your message!

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