Multinational companies that are also in the fast-food business include Burger King, Pizza Hut, and KFC.
Ok. Between KFC and Mcdonalds, which one would you say is financially better?
Would it be Mcdonalds, because its nonstop, people go there everyday.
You need to look at their profits, earnings per share, sales, profit margin, etc. to determine which is financially better.
The financials for KFC might be difficult to find because it is part of YUM! corporation.
How do you determine which one is financially better?
If the Profit margin is high that indicates its better?
High sales --better
earnings per share - higher
So all of them have to be high?
Yes. All or most of them should be higher.
Except the P/E ratio right? That should be lower.
The P.E. ratio reflects what people are willing to pay for a share of this stock. P.E. ratios tend to be high when potential share holders believe the company will be very successful in the future. Sometimes they're right -- and often they are wrong.