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MrRodgers -> Herman Cain...businessman ? (11/6/2011 5:25:52 AM)
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Cain took over the fourth largest Pizza company in America with no debt and a great promising future and in ten years turned it into the eight largest pizza company in America, one with so much debt, it could not be sold.
It is certainly true that he “turned around” the company as he likes to say.
Adjusting for inflation in 1985 to 1994 in order to compare 1985 to the last year, 1995, that he was a full time CEO at Godfather’s, 23 the $325 million Godfather’s sold in 1985 equals $448 million in 1995 dollars. Thus the drop was from $448 million to $265.5 million (in 1995 dollars). This is a drop of about 41%. Adjusted for inflation, sales dropped by about 41% in the ten years that Herman Cain ran the company as CEO.
Godfather’s Pizza was bought for 300 million by Diversifoods Inc. in 1983. Pillsbury Inc. bought most of Diversifoods’ restaurants for about $390 million in 1985. Because Diversifoods sold over 300 Burger Kings and other restaurants to Pillsbury, it is hard to know how much Pillsbury actually paid for the 740 or so Godfather restaurants it bought. It was probably $100-150 million. Three years later, after Cain had been managing the restaurants for 2 1/2 years, they sold it to Cain and twenty other managers for $30-40 million dollars. Cain was sent by Pillsbury to increase the company’s value. He failed miserably. If he had succeeded, Pillsbury would not have sold the company with huge losses.
Please ask reporters to question Herman Cain about why he doesn’t release his earnings statements from his Godfather Pizza years. He is asking for our vote for president, but not being honest with us about how well he did managing Godfather’s Pizza.
Imagine a baseball player who tells you how great he did and how his terrible team turned around after he joined it, but he refuses to tell you his batting average. One has to suspect that he did not really contribute to the team’s turnaround or if there was a turnaround at all.
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