Mcdonald 's Corporation International Financial Performance Essay

1369 WordsSep 13, 20166 Pages
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
Open Document