Financial Analysis of the McDonalds Company

Stock ticker symbol, exchange where traded _________

Address of company headquarters _________

Company phone number __________

Your name, etc.


PART 1, COMPANY OVERVIEW:

a. Brief description of the company (one paragraph, briefly summarizing the company’s business)

b. Company history (origin, major developments, etc.)

c. Organization (describe how the company is structured)

d. Main products and services (describe what the company sells; how it makes money)

e. Geographic area of operations (describe where the company sells its products)

f. Recent developments (list recent major news stories, if any)

PART 2, FINANCIAL OVERVIEW:

a. Sales and Income Record:
------------- Fiscal Years -------------
2008 2009 2010 2011 2012

Sales ____ ____ ____ ____ ____

Percent change in
sales each year ____ ____ ____ ____

Net Income ____ ____ ____ ____ ____

Percent change in
net income each year ____ ____ ____ ____

GRAPH OF SALES & NET INCOME, FY 2008 2012

|
|
| (Plot Sales and Net Income for the
| last five fiscal years on the graph)
|
| (Recommend you prepare the graph in Excel,
| then copy and paste it into the report)
|
|
|
| | | | |
2008 2009 2010 2011 2012

COMMENTS: Comment on the trends you see in your numbers and on the graph.

Be sure to include comments! The numbers and the chart are meaningless by themselves. Comment on what you see.

b. Expense Distribution:
FY 2012
Major Expenses:
________
(list the major expense categories ________
from the latest income statement) ________

PIE CHART OF EXPENSES, FY 2012

Note – Do not “explode”
the pie slices

COMMENTS: Comment on the company’s expense distribution.

c. Assets Distribution:
Year-end FY 2012
Assets:
Cash ________
Accounts receivable ________
Inventory ________
Fixed Assets ________
Other Assets ________

PIE CHART OF ASSETS, Year-end FY 2012

COMMENTS: Comment on the company’s asset distribution.

c. Capital Structure:
Year-end FY 2012
Capital Structure:

Current Liabilities ________
Long-term & Other Liabilities ________
Preferred Stock (if any) ________
Common Equity ________

CAPITAL STRUCTURE PIE CHART, Year-end FY 2012

COMMENTS: Comment on the company’s capital structure.

PART 3, RATIO ANALYSIS:

(1) LIQUIDITY:
FY 2011 FY 2012
Current Ratio:

McDonalds ____ ____
Wendy’s ____ ____

Quick Ratio:

McDonalds ____ ____
Wendy’s ____ ____

Comments On McDonalds Liquidity:

Be sure to include comments! The numbers are meaningless by themselves. Comment
on what you see. What story do the numbers tell?

(2) ASSET MANAGEMENT
FY 2011 FY 2012
Total Asset Turnover:

McDonalds ____ ____
Wendy’s ____ ____

Average Collection Period:

McDonalds ____ ____
Wendy’s ____ ____

Comments On McDonalds Asset Management:

(3) DEBT MANAGEMENT:
FY 2011 FY 2012
Total Debt to Total Assets:

McDonalds ____ ____
Wendy’s ____ ____

Times Interest Earned:

McDonalds ____ ____
Wendy’s ____ ____

Comments On McDonalds Debt Management:

(4) PROFITABILITY:
FY 2011 FY 2012
Net profit Margin:

McDonalds ____ ____
Wendy’s ____ ____

Return on Assets:

McDonalds ____ ____
Wendy’s ____ ____

Return on Equity:

McDonalds ____ ____
Wendy’s ____ ____

Modified Du Pont Equation, FY 2012:

McDonalds Wendy’s
Net Profit Margin ____ ____
Total Asset Turnover ____ ____
Equity Multiplier ____ ____

Comments On McDonalds Profitability:

(5) MARKET VALUE RATIOS:
FY 2011 FY 2012
PE Ratio:

McDonalds ____ ____
Wendy’s ____ ____

Market to Book Ratio:

McDonalds ____ ____
Wendy’s ____ ____

Comments On McDonalds Market Value Ratios:

PART 4, CONCLUSIONS AND RECOMMENDATIONS

Summarize your analysis. Review your comments in the financial analysis section and provide your assessment of the overall status of the firm. Include any recommendations you think are appropriate.

List any other recommendations you have for the firm in view of your analysis.

* End of report Outline *

How would you like us to help you with this assignment?

To complete a financial analysis of the McDonald's Company, you will need to gather the following information:

PART 1, COMPANY OVERVIEW:

a. Stock ticker symbol, exchange where traded: To find the stock ticker symbol of McDonald's Company and the exchange it is traded on, you can visit a financial website like Yahoo Finance or Google Finance. Search for the company's name, and you will find the stock ticker symbol and exchange information.

b. Address of company headquarters: The address of the company's headquarters can be found on their official website or in their annual report. Typically, this information is listed in the "Contact Us" or "About" section of their website.

c. Company phone number: The company phone number can be found on their official website or in their annual report. It is usually listed in the "Contact Us" section or the footer of the website.

d. Brief description of the company: To write a brief description of McDonald's Company, you can visit their official website or read their annual report. Look for information that summarizes their business, such as their main products and services, target market, and competitive advantage.

e. Company history: The company history of McDonald's can be found on their official website or in their annual report. Look for sections that provide information about the company's origin, major developments, and milestones. You can also search for news articles or publications that have covered the company's history.

f. Organization: To describe how the company is structured, you can visit their official website or read their annual report. Look for information about their corporate structure, including the divisions, subsidiaries, and key executives.

g. Main products and services: To describe what McDonald's sells and how it makes money, you can visit their official website or read their annual report. Look for information about their menu offerings, including food and beverage items, as well as any other products or services they may offer, such as merchandise or franchising opportunities.

h. Geographic area of operations: To describe where McDonald's sells its products, you can visit their official website or read their annual report. Look for information about their global presence, including the countries and regions where they have restaurants and franchises.

i. Recent developments: To list recent major news stories about McDonald's, you can search for news articles or press releases on reliable financial news websites or the company's official website. Look for information about any significant events or announcements that have occurred in the past year.

PART 2, FINANCIAL OVERVIEW:

a. Sales and Income Record: To find the sales and net income figures for McDonald's for the fiscal years 2008-2012, you can visit their annual reports, which are usually available on their official website. Look for the income statement or financial highlights section of the annual report. You can also find this information on financial websites like Yahoo Finance or Google Finance by searching for the company's stock ticker symbol and looking for their financial statements.

b. Expense Distribution: To find the major expense categories from the latest income statement of McDonald's, you can refer to their annual report or financial statements. Look for the income statement or statement of operations, where you will find a breakdown of the company's expenses. The major expense categories are usually listed as line items, such as cost of goods sold, marketing expenses, and administrative expenses.

c. Assets Distribution: To find the distribution of assets for McDonald's at the year-end of FY 2012, you can refer to their annual report or financial statements. Look for the balance sheet, where you will find a breakdown of the company's assets. The major asset categories are usually listed as line items, such as cash, accounts receivable, inventory, fixed assets, and other assets.

d. Capital Structure: To find the capital structure of McDonald's at the year-end of FY 2012, you can refer to their annual report or financial statements. Look for the balance sheet or statement of financial position, where you will find a breakdown of the company's liabilities and equity. The capital structure is typically shown as a combination of current liabilities, long-term liabilities, preferred stock (if any), and common equity.

PART 3, RATIO ANALYSIS:

To calculate the liquidity, asset management, debt management, profitability, and market value ratios for McDonald's, you will need the financial data from the income statement and balance sheet for the fiscal years 2011 and 2012. You can find this information in the company's annual reports or financial statements. Use the following formulas to calculate the ratios:

1. Liquidity:
- Current Ratio = Current Assets / Current Liabilities
- Quick Ratio = (Current Assets - Inventory) / Current Liabilities

2. Asset Management:
- Total Asset Turnover = Sales / Total Assets
- Average Collection Period = Accounts Receivable / (Sales / 365 days)

3. Debt Management:
- Total Debt to Total Assets = Total Debt / Total Assets
- Times Interest Earned = Operating Income / Interest Expense

4. Profitability:
- Net Profit Margin = Net Income / Sales
- Return on Assets = Net Income / Total Assets
- Return on Equity = Net Income / Total Equity

5. Market Value Ratios:
- P/E Ratio = Stock Price / Earnings per Share
- Market to Book Ratio = Market Value per Share / Book Value per Share

PART 4, CONCLUSIONS AND RECOMMENDATIONS:

Based on your analysis of the financial information and ratios, summarize your findings and provide an assessment of the overall status of McDonald's. Include any recommendations you think are appropriate for the company based on your analysis.

Note: It is advisable to use reliable and up-to-date financial information from sources such as the company's annual reports, financial statements, and reputable financial websites. Additionally, make sure to properly cite your sources and give credit for any information or data you include in your analysis.