IR 1.U1: The Gumby's owners are retiring and have put the business up for sale.

Gumby has
about 30 stores and annual revenues of $125 million.
IR 1.U2: In order for the PE firm to want to buy the chain, they need to be able to double
gross margin in three years.

IR 1.U3: They're looking for two to three ideas of how to do that and would like to sell
Gumby, this chain, in three years to another set of family owners.
IR 1.U4: So I'd like you to start by just sketching out a framework for how you would tackle
this problem. And as you do that, provide a hypothesis about which side of profitability,
revenue, or costs you would like to focus on.

IE 1.U1: Okay.

IE 1.U2: So I, if it's okay, I'm going to give a quick brief context just to make sure we're on
the same page.
IR 1.U5: Great.
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IE 1.U3: We're basically working with a PE firm who's our client that really just want to
evaluate whether this mom-and-pop pizza chain called Gumby, what their value is currently,
IE 1.U4: and if it's possible to double their gross margin in three years and ultimately sell to
another family.

IE 1.U5: And so basically they want to evaluate this on either a profit, revenue, or cost
standpoint. Is that okay?

IR 1.U6: Yeah. And I would say evaluate it on a profit standpoint since they're looking to
grow gross margin.
IE 1.U6: Okay.
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IR 1.U7: And what I'd be curious to hear from you as you're thinking about the cases, would
you focus more on the revenue side or the cost side just to start as an initial hypothesis?

IE 1.U7: I understand.
IE 1.U8: So just to start off, I do have a couple of clarifying questions, if that's okay. Do we
have a little more understanding as to why this PE firm is really interested in a pizza chain?

IE 1.U9: Do they have it in their portfolio?

IR 1.U8: Yeah, it's a good question. My instinct is they think that food is easy to franchise
and grow quickly. And they may have a hypothesis that they have capabilities across other
businesses to grow this fast.

IE 1.U10: Okay.
----------------------------------------------------------------------------------------------------------------
IE 1.U10: And then in terms of just doubling the gross margin, and we have a timeline and
the benchmark there, but are they open to maybe expanding to more college towns or is
there a specific avenue they would prefer in terms of growing their profit?
IR 1.U9: Let's assume no limit on scope.

IE 1.U11: Okay. And then just for last clarification, college town or assuming just the US,
right?
IR 1.U10: Yes.

IE 1.U12: Okay. Perfect.

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IE 1.U12: So I think I have all the questions I need answered right now.

UE 1.U13: Is it okay if I just take about two minutes or so to structure my approach and then
we can go over it together?

IR 1.U11: Please.
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IE 1.U14: Okay. I have a general approach that I'd like to go over with you.
IR 1.U12: Great.
IE 1.U15: So starting off, we know that the overall objective here is to really evaluate this
mom-and-pop pizza chain called Gumby. And the PE firm really wants to see how we can
maximize profits in order to double the gross margin in three years.
IE 1.U16: So in order to do that, I've identified three specific questions that I'd like to dig
deeper into.

IE 1.U17: First one is looking at the profit standpoint itself and specifically how to grow its
profit or maximize the margin.
IE 1.U18: Secondly is to look at the PE firm in general and within their portfolio and really
figure out the logistics of how to evaluate this pizza chain shop.
IE 1.U19: And then lastly, the third question is just looking in a greater standpoint of other
considerations that could also affect the valuation of Gumby.
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IE 1.U20: So digging deeper into my first question of really wanting to grow our profit. It's
looking at two specific components, both the revenue and the cost component. So within
revenue, I'd really want to understand the current volume or the number of pizzas we're
selling, what the average price point is, whether or not we have the opportunity to bring in
new customers or ultimately retain old customers as well.

IE 1.U21: And then I know it's a pizza shop, but usually they sell other foods like calzones or
pasta. So whether or not there's the opportunity for us to expand our menu as well, that'll
help bring in more revenue.
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IE 1.U22: On a second cost standpoint, I will really want to focus in both fixed and the
variable costs.

IE 1.U23: Fixed looking at maybe marketing or rent of the actual stores, because we know
currently there are 30 stores, but what exactly the costs associated with those rents are.
And then variable costs is looking at ingredients for the pizza, labor itself, utilities that
change from store to store.
IR 1.U13: So I'm going to pause for a moment, Toma, and just make sure I'm following.
IR 1.U14: So if I go back to revenue, I heard three pieces. I heard the volume of pizza we're
selling.

IR 1.U15: I heard something around customers. I'll call that demand, like how much our
whatever our customers can we get. And then I heard something about the product
portfolio.

IR 1.U16: Does that sound right?

IE 1.U24: Okay. Yes.

IE 1.U25: Okay.
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IE 1.U26: And then, sorry, I also put a price in there, just like the average cost of the pizza.
Great. Is it gourmet pizza?

IE 1.U27: Is it, you know, pizza that someone from a college town would be able to afford?
IR 1.U17: Okay.
----------------------------------------------------------------------------------------------------------------
IE 1.U28: So moving on to my second set of questions, looking further into the PE firm and,
you know, being able to get that valuation for them.

IE 1.U29: I want to see whether or not there's any potential synergy that we may have. If
they currently believe that their portfolio, you know, has some sort of food franchise in it,
we might be able to bring that synergy in and then use that information to then logistically,
you know, create this deal that they can then sell the franchise three years later as their
goal to another family.

IE 1.U30: And then lastly, even maybe calculate net present value for them or a PE valuation
number so that we can see, you know, we can quantify this valuation.
And then on a last, just looking at it holistically, other considerations, maybe the
competitors that are at this college town. I'm sure there are other pizza shops that are
nearby.
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IE 1.U31: So what really makes Gumby stand out? Looking at the general market, looking at
the trends, the food preferences of the college students and, you know, are they going
towards more healthy food or not?
IE 1.U32: And I think all of that will holistically help us determine the valuation of Gumby.

IE 1.U33: So I think initially there is, I initially hypothesized there is room to grow within
revenue. We can bring in greater revenue by, you know, looking at the volume, the price,
the demand itself. But I think if we're going to start off to really help our client, maybe
digging deep into historical revenue values, if we have information on maybe the number of
pizzas that are sold
IE 1.U34: or at, you know, each of the store, what prices are there or how many customers
they have.
IR 1.U18: Great. OK, sounds good. So we do have some data and I think I heard you mention
the competitive landscape and the other considerations.

IE 1.U35: OK.
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IR 1.U19: So what kind of hypotheses do you have on the competitive landscape? Just to
start kind of brainstorming together.

IE 1.U36: OK, so really who our competitors may be?

IR 1.U20: Yeah, any hypotheses you think about if you're evaluating the competitive
landscape of the south of the U.S.?
IE 1.U37: Yeah, so let's say in terms of competitor right off the top of my head, I would think
of maybe other mom and pop pizza chains. There's also, you know, the big brand pizza
chains like Domino's, Papa John's.

IE 1.U38: But then we can also expand our competitors to non-pizza chain stores. So fast
foods, McDonald's or even casual fast food like Chipotle.
IE 1.U39: So those are all, I think, competitors that we would need to look at, especially
since we know that Gumby's is major in college towns.

IE 1.U40: And so looking at the competitive landscape maybe of one college town and kind
of extrapolating what the competitive landscape would look like.

IR 1.U21: OK, great.

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So I have some data on our competition that I'm going to show you. In a moment, I'm going
to share my screen.

IR 1.U22: I'm going to ask that you just take a screen grab or screenshot and then I'll stop
sharing once you have the image. So I'm going to keep this question very broad. What can
you draw from this exhibit?

IE 1.U41: OK, I'm just going to take a couple of seconds to look through this.

IE 1.U42: OK, so here we're basically just looking at the average market share by customer
segment and we're really categorizing between students, faculty, staff, and then town folks
in this specific region. And we are just benchmarking Gumby's to other pizza shops like
Pappagino's, Pizza Hut, Domino's, as I mentioned previously.
IE 1.U43: So just main takeaways here is that within the student demographic, we see that
Gumby's definitely lead the market share at, I want to say that 60% compared to its
competitors.
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IE 1.U44: However, as we go towards adults or, I mean, older people outside of college, so
faculty and town folks, it does seem like Gumby's lose its attraction,
IE 1.U45: whereas some of the other competitors like Pizza Hut or Domino's tends to take
the lead.
IE 1.U46: So what I can potentially do here is we see that students contribute to, or, sorry,
students in general equal up to 15 million. I want to say that's population, right?
IE 1.U47: So 15 million students. So it seems like the market share, sorry, is 15 million.
IE 1.U48: So if we're saying that about 60% of them are choosing Gumby's compared to 20%
faculty and maybe 10% or 5% of town folks.
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IR 1.U23: Yeah, and just to clarify, the 15 million, I'm going to have you hypothesize is that
population or what is the metric on that? 15 million. The 15 and the 6 and the 9.

IR 1.U24: What does that represent?

IE 1.U49: Yeah, I initially thought it was price point or just, you know, monetary value. What
do you mean by monetary value? Like the market share itself is 15 million dollars for
students and then 6 million for faculty and 9 million for town folks.

IE 1.U50: Okay. But I can also, I'm also leaning towards that it might be the population. So
we have 15 million students versus 6 million faculty and 9 million town folks.

IE1.U51: Okay.

IR 1.U25: I'm going to say that your first instinct was right since market share represents,
right, a revenue figure. It represents a dollar figure. O

IE 1.U52: okay, great.

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IE 1.U53: So in this case, we do see that students have the higher, no, sorry, so the student
segment has the highest revenue at 15 million compared to 6 and 9 for faculty and town
folks. And then within that segment, we see that Gumby's definitely takes the lead
compared to its competitors.
IE 1.U54: So if we want to take the next steps, if we can maybe dig deeper into, you know,
student segment since that seems to be the most popular segment for Gumby's and then
either benchmark why they choose Gumby's over their competitors.

IE 1.U55: If we want to get a survey or we can dig deeper into the financial aspect and
maybe see specifically how much Gumby's is selling to students. Okay.
---------------------------------------------------------------------------------------------------------------------
IR 1.U26: What other data might you want to know to figure out where to play for Gumby?
Let's see.

IE 1.U56: Some other potential data I think we might.

IE 1.U57: So I already mentioned, you know, specific revenue that Gumby's may be receiving
from students alone, but some other metrics might be if we have a little more information
on….

IE 1.U58: maybe the potential price points they're selling their products or their pizzas at,
even moving on to maybe costs since we were looking at revenue already at 15 million.

IR 1.U27: Okay, great. Awesome.

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One thing I might be curious about is just the growth of the market across these segments.

IE 1.U59: Okay.
IR 1.U28: So I'm going to show you one more graph and I'm going to have you do a similar
exercise both in terms of doing the screen grab and also sharing with me any hypotheses
that you can draw. Okay.

IE 1.U60: Okay. So I see this second exhibit. I'm also going to just take a couple seconds to
look through this

IR 1.U29: Beautiful.
----------------------------------------------------------------------------------------------------------------

IE 1.U61: Okay. So looking at this second exhibit, we're basically again looking at the average
market share by segment and now our segments are categorized as delivery, carryout, and
dine-in and that's again benchmarking Gumby's to their competitors. So main takeaway
here is that Gumby definitely seems to be leading market.

IE 1.U62: Sorry, leading the market in terms of delivery where they're at 40% compared to
their competitors.
IE 1.U63: However, it does seem like in dine-in category, they are slacking.
IE 1.U64: So some potential things that we can look at is whether or not we can expand
their dine-in capabilities.
IE 1.U65: so that we can raise revenues there or we can continue to focus on delivery since
they are leading in that category.
IE 1.U66: so that we can gain the market share for even further than that 40%.

IR 1.U30: Great.
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IR 1.U31: Anything else that you'd want to take away from this? Or that you'd want to
know?

IE 1.U67: Yeah. So previously we looked at just general, you know, how Gumby's work with
their segments of people versus now their, you know, delivery services or like food services.
IE 1.U68: I think next step may be to look at specifically if we can expand on their delivery if
we want to break that down into how to potentially increase their revenue delivery either.

IE 1.U69: I know the overall goal here is to maximize profits. So since profits is a component
of revenue and cost, you can look at the cost component of delivering a single pizza….
IE 1.U70: and then seeing if there's ways that we can drop that or increase that margin so
that Gumby's can grow their profit.

IR 1.U32: Great.
------------------------------------------------------------------------------------------------
IR 1.U33: So I'm going to take a bit of a step back with this question. So we've looked at the
market share by customer segment and we looked at market share by I'll call it like modality
of service, delivery, dine and carry out.

IR 1.U34: What other information would you like to see to make a more refined decision on
how to grow margin for this business?
IE 1.U71: Yeah, so we looked at customer before we looked at modality. In terms of pizza, I
think one of the most important things that I would like to look at is potentially surveying
what makes Gumby's, you know, superior or competitive.
IE 1.U72: So that could be either like a taste hat like, you know, a survey looking at, you
know, their taste compared to other pizzas.

IE 1.U73: it can also be what their product mix is. What I mentioned before, if they have,
you know, a wide range of menu where we can then expand on and, you know, potentially
bring in new customers. Even looking deeper into their, you know, business model.

IE 1.U74: So I know they have like the delivery carry out dine-in, but is there a potential way
that we can bring in maybe loyalty or increased loyalty and that would eventually bring in
more profit to revenue.
IE 1.U75: So I think next steps if we have information maybe on Gumby's specifically and
maybe customer surveys that we can take that can really hit home how Gumby's could be
more popular than its competitors.
IE 1.U76: Yeah, and then that can just be something that we can use to help grow revenue.

IR 1.U35: Cool. Well, unfortunately, we don't have customer, called satisfaction data. What
we do have, we do have some information on margin for the modalities.
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IR 1.U36: And earlier I heard you mention that you'd like to see like what it costs to just
deliver a pizza, right? Ultimately, what is the margin on these things we care about because
in this business we ultimately care about margin.
IR 1.U37: So in a moment, I'm going to show you some profitability data and I'm going to
have you do the same thing as before, which is not only what conclusions could you draw,
but I'm going to have you kind of do a pretty big synthesis exercise here, Thoma, which is
across all the data you've seen.

IR 1.U38: What are two to three kind of crisp ideas you'd have for this PE firm for how they
might double margin over the next three years?
IR 1.U39: So let me first share the final two exhibits with you. And I'm going to ask you to do
the screen grab once again.
--------------------------------------------------------------------------------------------------------
IR 1.U40: So just to recap my two questions, one is just kind of same that we've been doing,
hypotheses you can drive from these two new exhibits, and then a broader synthesis of two
to three ideas you'd give this PE firm to expand Gumby over the next three years to double
margin.

IE 1.U77: Okay. So I'll just go ahead and take a couple seconds to digest the two exhibits
that I have.

IR 1.U41: Please do.

IE 1.U78: Okay.
----------------------------------------------------------------------------------------------------------------
So looking at exhibit three, now we're just hitting home the revenue by customer segment
and product. So basically looking at students, faculty, staff, and town folks, but specifically
their preferring, or what their revenue is going towards either pizza, sandwiches, and drinks,
or others.
IE 1.U79: So just looking at this specific exhibit, main takeaway is that within student to
customer segment, the most popular, I guess, product sold by Gumby's is pizza really,
IE 1.U80: which is as expected, but then they do have some sales coming in from
sandwiches and drinks.
IE 1.U81: Whereas when we move forward to faculty, staff, and town folks, it does seem like
pizza revenue is going down. However, their sandwich revenue….
IE 1.U82: still is leading as the most popular product that is being sold.

IE 1.U83: And then comparing that to the second exhibit, where we're now looking at
profitability by products, and again, it's just looking at the margins between pizza,
sandwiches, drinks, and others, it really does seem like pizza has the greatest, or sorry,
drinks has the greatest margin at 53%. However, pizza, it follows slightly below that at 33%.
IE 1.U84: And it seems like the most, the highest cost products within pizza is really the
labor and the raw material.
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IE 1.U85: And that seems to be similar for the sandwiches and drinks as well.
So one of the things that we can potentially look at is, if we're expanding on the pizza
product, how we can potential,
IE 1.U86: how we can move forward in basically growing those margins, so that ultimately
we can double the gross in three years.
IE 1.U87: So if I am, some, so if I were to brainstorm some ways to expand, let's say our
margins.

IE 1.U88: So right now we see pizza is,

IE 1.U89: so it seems like pizza itself is costing, would that be $5? Or sorry, labor within pizza
is costing $5, where a raw material is costing $10?
IE 1.U90: If I'm looking at that properly.

IR 1.U42: Yeah, we can, I hear you on why you're trying, it makes sense why you're trying to
figure out the units here on the left-hand side of this chart. I'm going to ask you to ignore
that and just focus on margins.

IE 1.U91: Okay, all right.

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IE 1.U92: . So we're looking at that margin. Um, so yeah, we see that pizza is at 33% Where
drinks at the highest margin is at 53%
IE 1.U93: So what we can potentially do is look at ways to increase the margins for pizza to
similarly how we have for sandwiches and drinks um, and one of the potential ways to do
that is um,

IE 1.U94: since we see that raw material and labor has um is contributing the cost most um,
one way to look at that is either we Uh decrease labor or decrease the cost that's going
towards labor And then also, um if there's potential ways to decrease the cost of raw
material as well,

IR 1.U43: okay
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IR 1.U44: So that i'm hearing is one very feasible idea over the next three years to increase
margin

IE 1.U95: Yeah, so to increase overall margins I would say that two things that we can
potentially do is decrease the cost going towards labor and decrease the cost going towards
raw material.
IR 1.U45: Okay
IE 1.U96: Um another way to go about this um… we do see that since drinks have the
highest margin at 53% maybe potentially, um sell more drinks Um since uh, we see more
margins there uh, we can potentially sell at higher volumes or maybe sell at a higher price
where we can increase our profits
IE 1.U97: and um Uh, sorry, increase our profits and then uh ultimately help grow or Double
that gross margin goal that we have for three years

IR 1.U46: Okay, great anything else any other ideas you'd want to offer?
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IE 1.U97: Um Yeah um, so it does seem like sandwiches here. Uh, it has lower costs going
towards raw material and labor compared to pizza Um and has very similar profit margins as
um As pizza as well.
IE 1.U98: So one of the things that we can potentially do expand the product mix within
sandwiches itself so that we can uh Attract more customers or bring in newer customers
And then that can also you know help with the the selling of pizza and sandwiches or their
products in general to help ultimately double the gross margins

IR 1.U47: Awesome Okay, cool tomah i'm gonna call it a close to the case
IE 1.U99: Okay,
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IR 1.U48: take a deep breath How do you feel?

IE 1.U100: Um, I felt a little nervous.

IE 1.U101: I was expecting more math. Maybe I was not doing the quantifying That I was
supposed to do
IE 1.U102: Um, but it felt a little more qualitative just because we had so many exhibits.
---------------------------------------------------------------------------------------------------------------

IR 1.U49: Yeah Uh good noticing and I want to make a disclaimer on this case just for the
group in general this is a bain style case. I'll be very open. My familiarity is much more in the
interviewer-led McKinsey style case, So I would say this candidly, in my opinion, is not
representative. Uh, definitely not representative of a McKinsey case.

IR 1.U50: It may be more representative of Bain cases

IR 1.U51: Um in every case You will have a direct computational math question. You're right,
Toma, that you didn't have one here. This was very exhibit-heavy.
IR 1.U52: Um in a typical case, I would expect question one is your structure question.
Question two is maybe looking at data but then doing a straight math calculation
IE 1.U103: Yeah,
IR 1.U53: question three will be like a data graph that has you draw some hypotheses And
then question four will be like a synthesis question to bring the case together

IE 1.U104: Okay,
---------------------------------------------------------------------------
IR 1.U54: so um good observation anything you'd want to share before we do a little bit of
reflection together

IE 1.U105: um No, i'd really just love to hear your thoughts actually, I was not really sure
how to drive forward the case I think that's what I struggled a little bit because I was getting
the exhibits and it's just like where i'm going trying to relate what i'm seeing at the exhibit in
the market standpoint and then having translating that over to financial

IR 1.U55: Yeah, so what you're noting is both the beauty and challenge of an interviewee-
led case. So BCG and bain tend to be more interviewee-led. McKinsey is more interviewer-
led and i'm saying this for not just your benefit But hopefully for the benefit of the folks on
the call In a case like this where it's interviewee-led My guidance is at the end of every
question And this is where synthesis skill becomes really important
IR 1.U56: You almost want to have your one to two sentences that synthesize the like what
you've taken what you've learned from that question And almost have a sentence to say
and to this point in the case
----------------------------------------------------------------------------------------
IR 1.U57: You know, we talked about the three areas we would look at to evaluate how to
grow gumby and what we've learned thus far is the following because then you're actually
driving the case forward and frankly allowing yourself to keep.
IR 1.U58: I'll call it like the running Party line of all the information that you're gathering
Because to your point you're getting a lot of disparate data One by one and it's hard to
remember like what am I doing with all of this as I go along?

IE 1.U106: Yeah,
IR 1.U59: versus in an interviewer-led It'll be just much more like i'll pull you along in a way
that I didn't put you along here
IE 1.U107: Um, okay, great.
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IR 1.U60: So let me start with a few reflections.
IR 1.U61: Um, i'll start with a recap I loved your two like the two questions that you offered
one was, you know What is it about pizza that is interesting to this PE firm? Essentially
asking the question like should we be playing in pizza or generally in food?

IR 1.U62: Um, and I liked your question on like are we limited by scope and geography? So I
thought you had really good not just like clarifying questions But questions that would move
that could move your answer forward, which is what I would call level three question.

IR 1.U63: Um what I want you to be aware of Um, and this is hopefully a pretty easy fix. I tell
all candidates.
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IR 1.U64: There's no need to be polite meaning you don't need to say that. Okay that i'm
going to do xyz. I expect you to take a moment um, I You know, I expect all that and I want
to say time is your friend and your enemy in an interview.
IR 1.U65: So the more that you can keep your language tight the better and so Even simply
putting saying statements.
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IR 1.U66: I actually encourage candidates. I'm going to put these in the chat I encourage
candidates to have their like go-to phrases that they just like ink around that they're going
to say Whether it's i'm going to recap what I heard Or i'm going to take a few minutes a few
moments and come back to you and that's all you need to say um,

IR 1.U67: so it'd be my only feedback on the Recap If it's okay with you tomah, i'm actually
going to jump to the exhibits first for feedback and then come back to structure Just
because it's such an exhibit heavy question.
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IR 1.U68: Um, so in general i'm going to encourage you and everyone on the call to think
about The approach to exhibits at three levels so one thing you did tomah that I really
appreciated that I want everyone to do is Take your 30 seconds to absorb the data And then
do what you did which is play back like literally just play back what the data graph is So what
this data is showing is market share and I can even share my screen while i'm saying this
market share by Um Yeah, what this data is showing is Essentially the revenues that we're
making by the customer segments that we have across You know four products pizzas
sandwiches drinks other

IR 1.U69: So just saying out loud What the data show without any insights any hypotheses,
that's level one.

IR 1.U70: Level two is drawing some takeaways like you did from the graph So if this is what
the graph is showing we see that pizza, you know students by far are Buying pizza.

IR 1.U71: They have a few drinks to accompany. They maybe buy some sandwiches What
we see is like for town folk.
IR 1.U72: They're kind of a split between pizza and sandwiches and faculty and staff is the
same. So no surprise younger people want pizza Older people want sandwiches and pizza.

IR 1.U73: That's like a level two, which is Just kind of i'll call it interpretation of the data.
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IR 1.U74: The level three is the distinguishing factor right for any candidate which is What
are hypotheses then or like why does this matter for our client?

IR 1.U75: And this is where making connections Not just within a data graph, but across
Data graphs becomes important So as an example in this case And i'm not going to share the
screen across the different exhibits because that might get just a bit jarring for folks on the
call…
IR 1.U76: um a couple of insights along the graphs were Just for gumby knowing that we
primarily serve students really well and that students are the majority of the market um and
that Margin, I think one of the other insights or just has was margin on drinks is high great
But ultimately pizza's where we really want to play…
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IR 1.U77: So I loved that you said How can we basically get more margin out of pizza…
IR 1.U78: um What I what I want I don't want to kind of prescribe a hypothesis that would
have connected the few graphs But one thing that just came to me when I was thinking
about the graphs is….

IR 1.U79: Essentially, how do we as gumby double down on pizza knowing that that's what
we do really well And that our primary segment Students is mostly eating pizza Oh, and by
the way, we also do delivery well and..
IR 1.U80: So I'm, I can make an assumption that delivery and carry out probably have higher
margins than sitting in just because I don't need a lot of overhead To do delivery and carry
out…

IR 1.U81: and if i'm mostly serving students They're not interested like an older couple is
sitting in my restaurant so essentially if i'm a pe firm wanting to just like Pardon my
capitalistic language of saying exploit profit.

IR 1.U82: I essentially want to make Pizza really cheap and get get as much volume out as I
can which is essentially carry out or delivery And I probably want to up my carry out because
my margin is likely going to be higher there…

IR 1.U83: And I think that's one thing I was hoping for earlier in the case, which is you
wanting margin data much earlier..

IR 1.U84: Because what was missing across all the exhibits until the end?

IR 1.U85: Was any sort of cost view on any of this information is all top line..
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IR 1.U86: um Let me pause there on exhibits for any questions from you and then i'll jump
to the structure And then we'll open it up for QA

IE 1.U107: No, I think it makes sense.

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IE 1.U108: I think I got Bogged down by the different exhibits and I need to get in habit of i'm
talking But I should also be writing some of my key takeaways
IE 1.U109: Um, and I think when we were going over it, it just I remembered Oh, I forgot
about delivery, which I realized I didn't even mention at the end

IR 1.U87: um, yeah, no, I understand that and I want to just honor the fact that looking at a
lot of the data like this is very fatiguing and just not that typical
IR 1.U88: so to the extent that and this is more of a like a note-taking strategy i'll say to the
extent that you can ensure that you have one piece of paper for each question and almost
get in the habit of Like a takeaway box at the bottom right of your piece of paper so that
when you're looking at the case holistically..
IR 1.U89: You've already done a bit of the synthesis for yourself And as you're recapping
what you've learned and then trying to draw that into like holistic insights at the end of the
case That helps make your job easier..
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IR 1.U90: um one shout out I want to give you I know i'm jumping around the questions
because There was just a lot of kind of creative and exhibit questions
IR 1.U91: I liked your Just kind of the bigger ideas for um Data that you would want to see in
general before we got to margins So what makes scum be superior for students?

IR 1.U92: Like what are we doing well that we want to make sure we keep doing well and
maybe exploit for other populations
IR 1.U93: Um, what is the product mix and how can we expand this? That was a great
question before you actually got some data on the product mix and margin
IR 1.U94: Um, and then the business model, right? So what can we do to actually just get
more money per customer not necessarily per product but actually per customer?

IR 1.U95: So I liked I liked that Um, okay, so let's jump back to structure um a few things i'll
say before I comment on your specific structure and I'm conscious of our time.
IR 1.U96: And so what I might do actually tomah is give my view on what? How to think
about structure in general not just gumby specific
IR 1.U97: And then we can talk about some of your structure pieces if that's if that's fine So
yeah, i'll say in general.

IR 1.U98: We all know me see is a bare minimum requirement for your structure
IR 1.U99: Um, I like to think of structure at three levels level one level two and level three So
in your example, I like that you framed there's a few questions. I want to analyze i'm going
to call those your level ones…
IR 1.U100: so what is the profitability of um gumby generally your second level one was the
PE firm and like its portfolio
IR 1.U101: And your third level one was other considerations to do a proper evaluation of
gumby. That's level one Within level one there's going to be what i'll call level twos And I
encourage everyone to think about a level two as like a research or analysis question and
the reason that I encourage that is Is it will require you to actually think about what what
are the what's the data that I need
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IR 1.U102: To ultimately care about what I care about in level one
um, so you said your first level two was revenue um So at that point the research question is
essentially what is what is the volume of pizza that i'm selling and at what price point What
does the customer? Demand look like today and what is the growth of that? Thing I heard
you say and then finally, what is a product portfolio?

IR 1.U103: That was my I think articulation tome of what you said when you did speak it you
kind of spoke it as one big sentence…
IR 1.U104: The more that you can like signpost for your interviewer within revenue…
IR 1.U105: Here are the three questions. I care about boom boom boom the better Um So
that's level two.

IR 1.U106: I'm kind of mixing up level two

IR 1.U107: and level three here level three for me is again this is what distinguishes a
candidate like a superstar candidate from a good candidate is
IR 1.U108: the more specific and like offering hypotheses you can even within specific parts
of your tree.
IR 1.U109: So as an example, I like under your PE firm portfolio bucket You talked about like
what other synergies do we have? So for me an explicit example of that would say um,
if we as a PE firm have had if we do we have experience just doing franchise or growing
businesses in general and more specifically you know fast food type businesses where we
know how to leverage talent really quickly We know how to get the like the cheapest but
high quality ingredients
IR 1.U110: Um, we know how to optimize like capacity on the supply chain like giving really
specific examples like that with regard to synergy Would be what a level three example like
examples are for something that's just called synergies
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IR 1.U111: So level one is the bucket level two is a research question and then level three
are specific Examples relative to the client context until i'm conscious. I threw a lot of
information at you So thank you for bearing with that. Hopefully it was useful.

IE1.U110: No. No, thank you so much. Yeah, of course I think that's what happens when you
get through a case you start losing a little bit of the structure if you're like Especially if you're
bogged down by exhibits or like what you need to say next
IE 1.U111: And I think that's just something that I need to keep in the back of my mind like
take time Take a breather and then just kind of structure what i'm going to say

IR 1.U112: Yes, always Everyone has the right to time. I want to remind everyone that on
the call.

IR 1.U113: You always have a right to ask for 30 seconds

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