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Mcdonalds Vs Wendys

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Even though both McDonalds and Wendy's, their profitability appear to be stable, we analyze that Wendy’s had a better financial performance due to strong income performance as it has lower Total Debt to Assets Ratio than McDonalds.

Based on the income statements and profitability ratios of the both McDonalds, and Wendy's, their profitability appear to be stable. Considering general average net profit margin of fast food industry that is 5 percent to 6 percent, both McDonalds, and Wendy's are profitable because the average net profit margin of McDonalds in 2016 is 19% when the average net profit margin of Wendy's in 2016 is 9 %. Even though Wendy’s profitability that is based on the ROE is greater than McDonalds, Return on Assets clarifies

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