This paper analyzes McDonald 's corporation and Wendy 's corporation international financial performance. Data for various financial ratios have been adopted from income statement, balance sheet and cash flow statement. The biggest fast food chains and widely known are McDonald 's and Wendy 's. To compare these two companies financial capabilities we will have to look at current ratio, earnings per share, earnings/price, equity/debt ratio and divided yield all need to be carefully thought out to obtain an idea of which is better. Earnings per share are the total amount of cash a company gets for having one single share. It is better, the more the earnings per share, this is because the profit will be bigger for the stocks that a company owns. Wendy 's earning per share is $0.68, whereas McDonald 's are only $0.17. This is due to the fact that even though McDonald 's usually earns more money per year, they have bigger number of shareholders. In other words, this means that each stockholder of McDonald get to be paid less amount from huge pool of stockholders. On the side of Wendy 's, they are attempting to their ratio from 7% to 10%, which is below a longer term goal of 12 percent to 15 percent. On a careful analysis of McDonald 's you will realize that earnings per share is low, hence requires to be publicize they are doing better. Using this ratio it is quite obvious, Wendy 's is in a better situation. Working capital ratio is used to show the relationship between total
Price earnings ratio is a valuation ratio of a company's current share price compared to its per-share earnings. Coca-Cola has a lower P/E ratio than Pepsi Co. The industry average for P/E ratio is 21.1. This means neither of the companies beat the industry average ratio. Between the
About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.
In order for a company to be financially healthy, it is of most importance that the company must analyze, interpret, and review the business’s annual financial reports. The financial analyses of the annual reports provide insights and information regarding the performances of the business. In this paper, I will be disclosing financial evaluations and comparisons between Coca-Coca and PepsiCo Incorporation. The visualizations used in this paper were designed to provide the analyses performed utilizing three financial analyses methods: vertical analysis, horizontal analysis, and ratios analysis. There will also be recommendations made on how Coke and Pepsi could improve their financial status.
The analysis of a company's financial statements helps in the determination of both the weaknesses and strengths of the concerned entity. Further, such an analysis helps in the determination of the future viability of firms. There are a wide range of techniques utilized in the analysis of financial statements. In that regard, it is important to note that the relevance of a horizontal, vertical as well as ratio analysis of a company's financial statements cannot be overstated. This is more so the case when it comes to the interpretation of the various dollar amounts presented in both the balance sheet and the income statement. In this text, I carry out a horizontal, vertical as well as ratio analysis of both The Coca-Cola Company and PepsiCo, Inc. The analysis' results will be critical in the evaluation of each company's performance. Findings will be used as a basis for recommendations on how each company can improve its financial status.
The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:
balancing its current assets and liabilities better. On both McDonalds and Wendys website is says that the industry average for a current ratio is .60. So when comparing both firms, based on the industry average, McDonalds and Wendys are doing well and can both be efficiently liquidated. Liquidity refers to how quickly the firms current assets can be converted to cash. Now as far as being compared to each other by McDonalds
This paper reviews the Cash Flow Statements of Yum Brands, Inc., Panera Bread, and Starbucks documented by case study 10-10 in our textbook for the purpose of analyzing financial health based on cash flow data. (Gibson, 2013).
McDonalds Company functions in a global restaurant industry, where it franchises and operates restaurants. The revenue of the company consist of fees from franchised restaurants and also from the sales generated from the company operated restaurants. Management of the company examines results on constant currency basis which excludes the effect of the foreign currency and considers average exchange rate of the prior year to calculate. Company do not record any transaction related to the sale or purchase of the franchisees business in the consolidated financial statements. The company operates on diversified geographic segment and equity method where investment 50% or less i.e. Australia, China and Japan. Company regularly checks the fair
Price to Earnings Ratio (PER) refers to the fact how long a shareholder has to wait to recover the cost of purchasing the share. PER is directly affected by the market valuation of a share. Tesco has a PER of 18.1p in the year 2007. This is above the competitor’s average PER in the same industry (appendix 1). Sainsbury has the highest PER but this doesn’t suggest they are shares are more profitable than the other three companies. This suggests they earnings are expected to increase at a quicker rate than their rivals. Sainsbury PER is high this year but this is because their EPS for prior years were quite low which meant they were not really profitable in the previous years. Tesco have had a stable growth when it comes to EPS so their PER has also been stable.
McDonald's is the world’s leading food service retailer with more than 30,000 local restaurants in 121 countries serving 45 million customers each day.
This report is to compare the financial situations of two companies in the restaurant industry, Darden Restaurants Inc. of Florida and Brinker International Inc. of Texas. The report will provide a detailed analysis and summary of several things including financial analysis, industry history and analysis, both companies history and analysis, vertical and horizontal analysis, and the creditworthiness of each company.
The restaurant industry “operates restaurants and other eating places, including full-service restaurants, quick-service restaurants, cafeterias, buffets, and snack bars” (Restaurants). The fast food sector has a number of popular companies like McDonald’s and Wendy’s. Fast food chains earn the majority of their success by offering quick, inexpensive meals made uniformly around the world (Nath). This project will be focused on comparing the financial ratios and statements from McDonald’s (MCD) and Wendy’s (WEN). The analysis will take an unbiased approach when comparing the companies. The comprehensive analysis will include: the company’s financial statements, including the balance sheets, income statements, and statement of cash flows, calculating the financial ratios, deciding which external factors could influence the company’s profits, and finally making a recommendation on which stock will have a positive effect on a potential investor’s portfolio.
McDonald’s development from its first drive-in restaurant in San Bernardino, California, to the famous fast
Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand
"i 'm lovin ' it is a key part of McDonald 's business strategy to connect with customers in highly relevant, culturally significant ways around the world."