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Analyze Kingston Kitchens Kingston Kitchens operates both franchised and company-operated restaurants under the brand name Kingston Kitchens. Operating income, sales, and invested assets for
Analyze Kingston Kitchens Kingston Kitchens operates both franchised and company-operated restaurants under the brand name Kingston Kitchens. Operating income, sales, and invested assets for both segments are provided as follows: Company-Operated Franchised Operating income Sales $180,000 $192,000 600,000 1,500,000 240,000 150,000 Invested assets a. Determine the profit margin for company-operated and franchised restaurants. Round to the nearest whole percent. Profit margin Company-Operated Franchised b. Determine the investment turnover for company-operated and franchised restaurants. Round to two decimal places. Investment Turnover Company-Operated Franchised c. Use the DuPont formula to determine the return on investment for company-operated and franchised restaurants. Company-Operated Return on Investment % Franchised % d. The profit margin, investment turnover, and ROI favor Thus, from a financial perspective, restaurants. appears to be a more favorable route for expanding into the Midwest. In addition, Kingston may be able to expand faster using
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