revision 91891 (1).docx - Running head FINANCIAL STATEMENTS...

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Running head: FINANCIAL STATEMENTS AND DATA ANALYSIS (FDSA) 1 Financial Statements & Data Analysis (Fsda) Name Institution
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FINANCIAL ANALYSIS OF MCDONALD’S AND WENDY’S 2 Table of contents Table of contents ......................................................................................................................................... 2 Introduction ................................................................................................................................................. 3 Brief summery ............................................................................................................................................. 3 Literature Review ......................................................................................................................................... 3 Results/Graphs/Interpretation .................................................................................................................... 5 Sales revenue ........................................................................................................................................... 7 Asset Management .................................................................................................................................. 9 Working capital ...................................................................................................................................... 10 Efficiency ratio ....................................................................................................................................... 11 Financial ratio ........................................................................................................................................ 12 Discussion .............................................................................................................................................. 13 Conclusion ................................................................................................................................................. 14 References ................................................................................................................................................. 15 Appendices ................................................................................................................................................ 16
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FINANCIAL ANALYSIS OF MCDONALD’S AND WENDY’S 3 Introduction 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. Brief summery McDonald’s Chief Financial Officer is said the company is on the edge of increasing its chains to cover most parts of the United States. He was quoted saying that this will increase the company’s returns and dominate the market as it has always done. He said that the company has the best talented employees and the management change, which is going to take place very soon, will speed up the company’s movement to its next phase of growth and innovation. Wendy’s Chief Financial Officer has also made announce very lately that the company is going to actively engage its stakeholders in leadership so as to drive the company’s future success throughout the transition process of venturing into new types of food. Literature Review Narrative reports from businesses offer a mechanism that supports the creation of differentiated picture and more commercially attractive of the company that can result to improve the relationships of stakeholders and better investor understanding. As a matter of fact the underlying process needed to produce this kind of information to be used can improve governance and enhance the effectiveness of the board. The guidance and regulations used encourage businesses to reveal to the public the type of information that they use to manage their company. Most of this information is usually found in the annual report, though some
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FINANCIAL ANALYSIS OF MCDONALD’S AND WENDY’S 4 information may not be reported and only used internally for competitive reasons. In this case, businesses usually assess the information first before it is released to the public. Dong, Ren and Smith (2011) state that narrative reports have become more and longer sophisticated over the years. They continued stressing that the main aim of narrative reports is to provide more and detailed information to the third parties in aiding them in decision making and promoting meaningful report. What also needs to be understood is that management commentary is another form of narrative disclosure, which relates to complaint of IFRS financial statements.
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