As investors it is important to understand the company in which you are looking at. One of the

700 WordsApr 23, 20193 Pages
As investors it is important to understand the company in which you are looking at. One of the most common mistakes made is people only see the current trends of the company and do not research previous years. In doing this they are not getting the true picture of the company and it is important to understand the cash flows of the company in and out. In order to do that one should look at the statement of cash flows, as it will provide information as to where the company spends its money. This assignment will be looking at “Eat at My Restaurant,” which is a case study that compares three different well-known companies. The companies in which we will look at are Panera Bread, Starbucks, and Yum Brands, Inc. Panera Bread Starbucks Yum…show more content…
From this case study it is hard to say why, but many companies will reinvest the money instead of paying it out to potentially increase the market value within stocks. Next we will take a look at the company everyone knows and can be found almost anywhere. That company is Starbucks, who is one of the leading coffee shops in the world and out of the companies in which we are looking at they had the highest cash flow/cash dividend. Starbucks did not have any operating cash flow/current maturities of long-term debt and current notes payable. Starbucks is also comparable to Panera Bread as their operating cash/flow debt ratio increased too. Out of the three different companies Starbucks did have the lowest cash flow per share. In 2010 Starbucks paid dividends of 9.97, however in 2009 they did not issue any dividends. Yum Brand, Inc. is the last company we will look at for this assignment, which is the parent company of A&W, Pizza Hut, and Taco Bell to name a few. As there seemed to be a trend that the companies were in a good place in regards to debt obligations Yum Brands, Inc. broke that trend in having debt to be paid. This company also had a 20.88 difference between the 2009 and 2010 in operating cash flow/current maturities of long-term debt and current notes payable. Yum Brands, Inc. did however have an increase in their operating cash flow/total debt ratio. Between they years Yum Brand, Inc. did have a rise in their

More about As investors it is important to understand the company in which you are looking at. One of the

Open Document